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Home My WebLink About(0002) IR 21-10702 - September 2021 - Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10702 To the Mayor and Members of the City Council November 16, 2021 =}�� Page 1 of 4 SUBJECT: SEPTEMBER 2021 —SALES TAX UPDATE aVA Y@73 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 September 2021 (Fiscal Year 2021, Period 12) collection results on November 10th, 2021. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax collections, a comparison of collections in the same period last year, and an estimated impact on the current year's budget. The past year has included a change in the method of remitting sales tax to the state comptroller (via legislation), effects of a global pandemic, and effects of a historic winter storm. This activity is being closely monitored and will be highlighted if significant impact is expected. SEPTEMBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY • $10.7 $11.2 $12.3 $12.3 $13.0 $14.0 $14.4 $14.7 $15.0 $18.7 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 The City's net sales tax collection is up $3,707,423 or 24.7%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $3,017,057 or 19.6% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 25.22% compared to the same month last year. COLLECTION DETAIL FOR CITY SALES TAX ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10702 To the Mayor and Members of the City Council November 16, 2021 '-PN, Page 2 of 4 SUBJECT: SEPTEMBER 2021 —SALES TAX UPDATE r rn Y@73 Collection Detail for City Sales Tax September 20 September 21 Variance ($) Variance (%) Current Period Collections $15,415,129 $18,432,187 $3,017,057 19.6% Other Collections* 350,974 382,869 31,895 9.1 % Single Local Rate* 114,568 182,643 68,075 59.4% Audit Adjustments (503,463) 189,862 693,325 137.7% Service Fee (307,544) (383,751) (76,207) (24.8%) Retainage (39,166) (65,890) (26,723) (68.2%) Net Collections $15,030,498 $18,737,920 $3,707,423 24.7% *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 32.4% 3 20.9% 18.7% 19.4% 18.8% 19.6% 5.4% 0.6% 1.5% 1.7% MMMMM�� I Ing (4.0)% Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 September collections continued a trend of strong performance after several months of stagnation following the initial response to the COVID-19 pandemic in March 2020. The Texas Governor fully lifted COVID-19 restrictions in March 2021. Although the revenue trend is positive, we continue to note the potential volatility in future receipts if the pandemic intensifies and/or new restrictions are implemented. Fiscal year projections were updated toward the end of the summer to reflect recent performance. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10702 To the Mayor and Members of the City Council November 16, 2021 0 Page 3 of 4 � SUBJECT: SEPTEMBER 2021 —SALES TAX UPDATE r6rn Y@7'3 The City's General Fund sales tax collections as of September are 111.4% to the adopted budget, and at 113.2% through the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of September are 113.3% to budget, and 114.1 % through the same month last year. The monthly budget is based on a historic three-year collection trend by month. Fiscal years 2017, 2018 and 2019 were included in this calculation —fiscal year 2020 was excluded due to the irregularity caused by the pandemic. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON CITY OF FORT WORTH GENERALFUND CRIME CONTROL AND PREVENTION DISTRICT TOTAL CITY OF FORT WORTH Budget as of Current Receipts FY2020 Receipts September Through September Through September $168,248,455 79,213,635 $187,495,736 89,778,516 $165, 658,172 78,692,079 $247,462,090 $277,274,252 $244,350,252 CITY OF FORT WORTH BUDGET COMPARISON — FY2021 Adopted Amended Actual Fiscal Budget Budget Year Totals Actual Variance to Adopted ($) N GENERAL FUND $168,248,455 $169,991,455 $187,495,736 $19,247,281 11.4% CRIME CONTROL & PREVENTION DISTRICT $79,213,635 $79,213,635 $89,778,516 $10,564,881 13.3% Actual collections in FY2021 totaled $187,495,736 in the General Fund, which is 11.4% higher ($19,247,281) than the adopted budget amount of $168,248,455 and 4.4% higher ($7,895,736) than the revised estimated collections of $179,600,000. This amount represents a 13.2% increase over FY2020 actual collections. Actual collections in FY2021 totaled $89,778,516 in the Crime Control and Prevention District Fund (CCPD), which is 13.3% higher ($10,564,881) than the adopted budget amount of $79,213,635 and 4.2% higher ($3,578,516) than the revised estimated collections of $86,200,000. This amount represents a 14.1 % increase over FY2020 actual collections. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10702 November 16, 2021 To the Mayor and Members of the City Council 0 Page 4 of 4 � SUBJECT: SEPTEMBER 2021 -SALES TAX UPDATE r6rn 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 3rd Quarter 4th Quarter YTD ARLINGTON 104.9% 115.9% 144.2% 148.7% 128.6% FRISCO 108.9% 116.2% 135.3% 128.8% 121.8% GARLAND 100.7% 112.3% 128.5% 130.4% 117.6% EL PASO 100.0% 117.3% 127.9% 116.9% 114.9% AUSTIN 96.7% 103.8% 131.0% 131.3% 114.8% DALLAS 96.2% 104.1 % 131.9% 129.5% 114.0% MCKINNEY 109.7% 114.1% 116.5% 115.8% 114.0% FORT WORTH 101.9% 109.1 % 120.4% 122.3% 113.2% SAN ANTONIO 100.6% 110.1% 123.6% 118.4% 112.9% GRAND PRAIRIE 106.0% 108.1% 113.6% 123.4% 112.8% HOUSTON 93.5% 103.8% 124.4% 118.9% 109.3% PLANO 96.0% 97.8% 122.2% 114.9% 107.1 % IRVING 97.3% 94.5% 118.9% 118.4% 106.8% STATE TOTAL 96.1 % 104.5% 120.2% 121.9% 110.2% 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