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Home My WebLink About(0002) IR 21-10584 - March 2021 - Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council �pRTsa��O a *a SUBJECT: MARCH 2O21 — SALES TAX UPDATE r6rn � Y@7'3 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. 21-10584 May 18, 2021 Page 1 of 4 General Fund Sales Tax Sales Tax All other revenue The Texas Comptroller's Office posted March 2021 (Fiscal Year 2021, Period 6) collection results on May 12th, 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 and a winter storm. This activity is being closely monitored and will be reported on if significant impact is expected. MARCH NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY) ] �1 ] 41 ] �1 � ] 41 ] �1 . ] 41 ] �1 ] 41 • ] �IJ41 ] 41 The City's net sales tax collection is up $4,243,522 or 29.5%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $4,614,539 or 32.4% in current period collections when compared to last year's collections for the same month. Current period collections include transactions that were collected for the current period on schedule within the due date. The State experienced a net collection increase of 31.42% compared to last year. March collections appear to show a rebound from the delay in spending from the February winter weather disaster. The Governor fully lifted COVID restrictions in March which likely contributed to a positive increase in collections. As activity is seen increasing this month, it is noted that March of last year experienced the negative impacts and decline in revenue from the onset of COVID-19 as the City declared a local disaster and implemented restrictions. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10584 To the Mayor and Members of the City Council May 18, 2021 Page 2 of 4 a SUBJECT: r rn MARCH 2O21 — SALES TAX UPDATE 1675 COLLECTION DETAIL FOR CITY SALES TAX March 20 March 21 Variance ($) Variance (%) Current Period Collections $14,250,859 $18,865,398 $4,614,539 32.4% Other Collections* 221,140 359,635 138,495 62.6% Single Local Rate* 94,512 175,125 80,613 85.3% Audit Adjustments 152,519 (257,002) (409,521) (268.5%) Service Fee (294,381) (382,863) (88,483) (30.1 %) Retainage (52,859) (144,980) (92,121) (174.3%) Net Collections $14,371,791 $18,615,313 $4,243,522 29.5% *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 32.4% ° 5.4% 2.7 /0 0.6% 1.5% 1.7% (7.8)% (4.0)% (12.9)% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 The City's General Fund sales tax collections as of March are 106.5% to budget, and at 105.3% through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of March are 105.1 % to budget, and 105.8% 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 �pRTsa��O a *a SUBJECT: MARCH 2O21 — SALES TAX UPDATE r6rn � Y@7'3 No. 21-10584 May 18, 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 March Through March Through March $83,445,036 $88,845,811 $84,390,185 40,341,740 42,416,397 40,098,743 $123,786,776 $131,262,208 $124,488,928 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. 21-10584 To the Mayor and Members of the City Council May 18, 2021 Page 4 of 4 a *a SUBJECT: r6rn � MARCH 2O21 - SALES TAX UPDATE Y@7'3 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 2nd Quarter March YTD ARLINGTON 104.9% 115.9% 143.9% 110.0% MCKINNEY 109.7% 114.1% 143.5% 111.8% FRISCO 108.9% 116.2% 143.2% 112.2% EL PASO 100.0% 117.3% 136.5% 107.8% SAN ANTONIO 100.6% 110.1% 133.6% 105.0% GARLAND 100.7% 112.3% 133.4% 106.0% GRAND PRAIRIE 106.0% 108.1% 131.0% 107.0% FORT WORTH 101.9% 109.1 % 129.5% 105.3% AUSTIN 96.7% 103.8% 126.1% 100.0% DALLAS 96.2% 104.1 % 125.2% 99.9% HOUSTON 93.5% 103.8% 122.9% 98.3% IRVING 97.3% 94.5% 114.2% 96.0% PLANO 96.0% 97.8% 99.1 % 96.8% STATE TOTAL 96.1 % 104.5% 131.4% 100.0% 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