HomeMy WebLinkAbout(0005) IR 21-10553 - Sales Tax January 2021INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
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*a SUBJECT: JANUARY 2021 — 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.
No. 21-10553
March 23, 2021
Page 1 of 4
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted January 2021 (Fiscal Year 2021, Period 4) collection results on
March 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.
JANUARY 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 $361,189 or -2.7%, compared to the same month last year.
As depicted in the following table, the City experienced $215,289 or a 1.7% increase in current period
collections when compared to last year's collections for the same month. Current period collections
include transactions that were collected for the current period on schedule within the due date. Current
collections are performing in line with expectations considering the adverse effects of COVID-19. The
State experienced a net collection decrease of-13.26% compared to last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10553
To the Mayor and Members of the City Council
March 23, 2021
Page 2 of 4
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SUBJECT:
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JANUARY 2021 — SALES TAX UPDATE
1675
COLLECTION DETAIL FOR CITY
SALES TAX
January 20
January 21
Variance ($)
Variance (%)
Current Period Collections
$12,487,455
$12,702,744
$215,289
1.7%
Other Collections*
612,038
239,163
(372,875)
(60.9%)
Single Local Rate
62,977
115,474
52,497
83.4%
Audit Adjustments
345,107
76,901
(268,205)
(77.7%)
Service Fee
(270,152)
(262,686)
7,466
2.8%
Retainage
101,628
106,268
4,640
4.6%
Net Collections
$13,339,054
$12,977,865
($361,189)
(2.7%)
"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
4.8%
0.6% 2.7% 0.6%
(0.2)%
(2.6)%
1.5% 1.7%
(12.9)%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
The City's General Fund sales tax collections as of January are 105.6% to budget, and at 100.8%
through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections as of January are 105.0% to budget, and 101.5% 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
To the Mayor and Members of the City Council
NATsa4
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*a SUBJECT: JANUARY 2021 — SALES TAX UPDATE
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No. 21-10553
March 23, 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 January Through January Through January
$55,563,000 $58,691,986 $58,207,590
26,862,090 28,216,233 27,803,458
$82,425,090 $86,908,219 $86,011,048
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
To the Mayor and Members of the City Council
NATsa4
a
*a SUBJECT: JANUARY 2021 - SALES TAX UPDATE
r6rn �
Y@7'3
No. 21-10553
March 23, 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
1st Quarter
January
YTD
MCKINNEY
109.7%
112.5%
110.3%
EL PASO
100.0%
104.7%
101.0%
ARLINGTON
104.9%
104.6%
104.9%
FRISCO
108.9%
104.5%
107.9%
GARLAND
100.7%
100.6%
100.7%
SAN ANTONIO
100.6%
100.6%
100.6%
GRAND PRAIRIE
106.0%
99.9%
104.6%
FORT WORTH
101.9%
97.3%
100.8%
HOUSTON
93.5%
92.3%
93.2%
PLANO
96.0%
91.2%
94.9%
AUSTIN
96.7%
91.1 %
95.4%
DALLAS
96.2%
90.7%
94.9%
IRVING
97.3%
89.4%
95.4%
STATE TOTAL
96.1 %
86.7%
93.9%
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