HomeMy WebLinkAbout(0003) IR 21-10570 - Sales Tax February 2021INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 1 of 4
a
SUBJECT: FEBRUARY 2021 — SALES TAX UPDATE
r rn
1675
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 February 2021 (Fiscal Year 2021, Period 5) collection results
on April 7th, 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.
FEBRUARY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY)
$8.4 $8.4 $8.8 $9.1 $9.9 $10.8 $10.9 $11.8 $11.8 $11.5
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is down $272,292 or -2.3%, compared to the same month last year.
As depicted in the following table, the City experienced a decrease of $469,052 or -4.0% in current
period collections when compared to last year's collections for the same month. Current period
collections include transactions that were collected for the current period on schedule within the due
date. The State experienced a net collection decrease of -2.37% compared to last year.
In addition to the pandemic trend on sales tax collections, the unusual winter weather disaster also
proved to slow sales tax collections for the month of Februar
widespread power outages and an extended taxpayer remittance
be negatively affecting current collections.
y
. Store closures likely caused by
deadline allowed by the State may
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10570
To the Mayor and Members of the City Council
April 13, 2021
Page 2 of 4
a
SUBJECT: FEBRUARY 2021 — SALES TAX UPDATE
r rn
1675
COLLECTION DETAIL FOR CITY SALES TAX
February 20 February 21
Variance ($) Variance (%)
Current Period Collections $11,678,476 $11,209,424
($469,052) (4.0%)
Other Collections* 287,922 225,488
(62,434) (21.7%)
Single Local Rate* 62,384 101,398
39,014 62.5%
Audit Adjustments (6,650) 209,921
216,570 3256.9%
Service Fee (240,443) (234,925)
5,518 2.3%
Retainage 29,115 27,206
(1,909) (6.6%)
Net Collections $11,810,804 $11,538,512
($272,292) (2.3%)
*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
5.4%
2.7°
0.6% 0.6% 1.5% 1.7%
101m,
(0.2)% (1.3)%
(5.1)% (2.6)% (4.0)%
(7.8)%
(12.9)%
Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
The City's General Fund sales tax collections as of February are 103.9% to budget, and at 100.3%
through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections as of February are 103.4% to budget, and 101.0% 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
a
*a SUBJECT: FEBRUARY 2021 — SALES TAX UPDATE
r6rn �
Y@7'3
CITY OF FORT WORTH
No. 21-10570
April 13, 2021
Page 3 of 4
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
GENERALFUND
CRIME CONTROL AND PREVENTION DISTRICT
TOTAL
Current Receipts FY2020 Receipts
Budget as of February Through February Through February
$67,609,608 $70,230,497 $70,018,394
32,686,057 33,807,069 33,473,538
$100,295,665 $104,037,567 $103,491,932
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. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 4 of 4
a
SUBJECT: FEBRUARY 2021 - SALES TAX UPDATE
r rn
1675
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
February
YTD
EL PASO
100.0%
104.7%
109.0%
102.4%
PLANO
96.0%
91.2%
104.5%
96.4%
GARLAND
100.7%
100.6%
99.8%
100.5%
FRISCO
108.9%
104.5%
99.8%
106.5%
FORT WORTH
101.9%
97.3%
97.7%
100.3%
DALLAS
96.2%
90.7%
95.7%
95.0%
HOUSTON
93.5%
92.3%
95.1 %
93.5%
ARLINGTON
104.9%
104.6%
95.0%
103.2%
AUSTIN
96.7%
91.1 %
93.2%
95.0%
SAN ANTONIO
100.6%
100.6%
93.0%
99.3%
GRAND PRAIRIE
106.0%
99.9%
90.3%
102.1%
MCKINNEY
109.7%
112.5%
86.4%
105.6%
IRVING
97.3%
89.4%
78.3%
92.3%
STATE TOTAL
96.1 %
86.7%
97.7%
94.5%
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