HomeMy WebLinkAbout(0002) IR 21-10540 - Sales Tax December 2020INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10540
To the Mayor and Members of the City Council February 16, 2021
Page 1 of 4
SUBJECT: DECEMBER 2020 —SALES TAX UPDATE
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Sales tax revenue represents approximately twenty-two percent of
the City's General Fund anticipated revenue in Fiscal Year 2021.
It is the second largest revenue source, with property tax being the
largest. In addition, sales tax revenue represents the largest
revenue source in the Crime Control and Prevention District Fund.
Staff is committed to providing regular updates on this important
and sometimes volatile revenue source.
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted December 2020 (Fiscal Year 2021, Period 3) collection results
on February 10th, 2021. Actual receipts are dependent upon the timeliness and accuracy of sales tax
payers' returns. This report provides Fort Worth's sales tax collection compared to last year and the
impact on the current year's budget. The past year has included changes from legislation reformed in
how sales tax is remitted to the state comptroller, as well as the affects from a global pandemic. This
activity is being closely monitored and will be reported on if significant impact is expected.
DECEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is down $106,953 or -0.6%, compared to the same month last year.
As depicted in the table below, the City experienced $268,482 or a 1.5% increase in current period
collections when compared to last year's collections for the same month. Current period collections
include transactions that were collected for the current period on schedule within the due date. Current
collections are performing in line with expectations considering the adverse effects of COVID-19. The
State experienced a net collection decrease of -0.32% compared to last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10540
To the Mayor and Members of the City Council February 16, 2021
Page 2 of 4
SUBJECT: DECEMBER 2020 —SALES TAX UPDATE
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COLLECTION DETAIL FOR CITY SALES TAX
December 19 December 20 Variance ($) Variance (%)
Current Period Collections
$18,079,450
$18,347,931
$268,482
1.5%
Other Collections*
463,147
221,890
(241,257)
(52.1 %)
Single Local Rate
109,466
156,080
46,614
42.6%
Audit Adjustments
40,637
(169,758)
(210,396)
(517.7%)
Service Fee
(373,854)
(371,123)
2,731
0.7%
Retainage
(112,673)
(85,800)
26,873
23.9%
Net Collections
$18,206,173
$18,099,221
($106,953)
(0.6%)
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON -CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS. SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE
RATE OF 1.75%. THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS. AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON
RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
8.4%
4.8% 5.4%
° 2.7%
(2.6)% (0.2)% (1.3)%
(7.8)%
(12.9)%
Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
The City's General Fund sales tax collections as of December are 105.6% to budget, and at 101.9%
through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections as of December are 104.8% to budget, and 102.6% through the same period last year.
The comparison of performance to budget is based on a historic three year collection trend by month.
Fiscal years 2017, 2018 and 2019 were included in this calculation, while fiscal year 2020 was excluded
due to the irregularity caused by the pandemic.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10540
To the Mayor and Members of the City Council
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� SUBJECT: DECEMBER 2020 —SALES TAX UPDATE
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February 16, 2021
Page 3 of 4
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
CITY OF FORT WORTH
GENERALFUND
CRIME CONTROL AND PREVENTION DISTRICT
TOTAL
Current Receipts FY2020 Receipts
Budget as of December Through December Through December
$43,300,043 $45,714,120 $44,868,536
20,933,529 21,930,553 21,371,519
$64,233,571 $67,644,673 $66,240,055
CITY OF FORT WORTH BUDGET COMPARISON — FY2021
Adopted Amended Fiscal Year
Budget Budget Projections
CITY OF FORT WORTH
GENERAL FUND $168,248,455 $168,248,455 $168,248,455
CRIME CONTROL & PREVENTION DISTRICT $79,213,635 $79,213,635 $79,213,635
Projected
Variance to Amended
$0 0.0%
$0 0.0%
The City anticipates collecting $168,248,488 by fiscal year end, which matches original estimates in the
FY2021 adopted budget. This is 1.56% over fiscal year 2020 actual collections. At the time of budget
development, this represented a 4% increase over the June 2020 projected sales tax. Staff will continue
to provide regular updates as financial analysis continues for sales tax impacts due to COVID-19.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10540
To the Mayor and Members of the City Council
NATEA
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� SUBJECT: DECEMBER 2020 -SALES TAX UPDATE
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February 16, 2021
Page 4 of 4
The chart below indicates how current year sales tax net collections in Fort Worth and other select cities
in the state compare to FY2020 collections for the same period.
CITIES COMPARISON - NET COLLECTIONS
FY2021 vs. FY2020
City
October
November
December
YTD
MCKINNEY
106.6%
114.8%
108.4%
109.7%
FRISCO
105.8%
113.5%
107.8%
108.9%
GRAND PRAIRIE
100.1%
111.7%
106.5%
106.0%
ARLINGTON
105.3%
107.3%
103.0%
104.9%
DALLAS
91.7%
93.3%
101.9%
96.2%
SAN ANTONIO
99.9%
101.5%
100.5%
100.6%
FORT WORTH
98.4%
109.3%
99.4%
101.9%
EL PASO
99.5%
101.4%
99.3%
100.0%
PLANO
95.8%
92.3%
98.8%
96.0%
GARLAND
97.6%
106.8%
98.6%
100.7%
IRVING
90.2%
105.8%
97.2%
97.3%
HOUSTON
87.9%
95.9%
96.3%
93.5%
AUSTIN
97.1 %
98.1 %
95.3%
96.7%
STATE TOTAL
93.7%
95.0%
99.7%
96.1 %
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
If you have any questions, please call Mark McAvoy, Director of Planning and Data Analytics, at 817-
392-6222.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS