1 Sales Tax Receipts Detail It is important to review the sales tax detail to determine the source of the revenue. First, the following graph provides the allocation of the sales tax to the two areas: General and Public Safety or Tax Increment. The graph also provides comparisons through the years 2007–2012 Budget. We continue to examine the history from the onset of the Great Recession through today. Clearly, our sales tax receipts surpass our lowest levels of 2008 and 2009. We have now surpassed our highest year of collections in 2008. Two of the three types of use taxes are higher in August 2012 as compared to the same period 2011. General Use tax is the only one that is lower than last year at this time. Now that we have collections through August, we estimate General Use tax will be short of budget by at least $200,000. However, through September Building Use tax collections had already surpassed the budget estimate by $409,000. Over $2.052 million had been collected as compared to $1.724 million in 2011 through the third quarter. Auto Use tax collections are now 76% of the total budget of $4.881 million for 2012. We expect to exceed the budget because the $3.712 million collected represents only eight months as this revenue source lags by a month. City of Arvada Sales Tax Revenue Report Overview Total sales tax collections were 7.35% above the same amount received in August of 2011. A total of $3.896 million was received this year as compared to $3.630 million in 2011. To date, our sales tax collections are now 6.04% above last year and 4.89% above our original budgeted amount. We did revise the sales tax collections to a four percent increase over 2011 as we estimated the ten-year model; thus we are now 2.89% above our revised forecast. As Page 4 illustrates, our monthly collections have been as low as 1.26% over 2011 and as high as 8.71%. At this point, a four percent increase above our original budget should be sustainable; November and December usually reflect our highest collections due to the grocery store expenses. $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Jan Feb Mar Apr May June Jly Aug Sept Oct Nov Dec Total Monthly Collections 2010 2011 2012 $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2012 Budget YTD 2012 YTD 2011 Total Receipts through September General Auto Building 2007 2008 2009 2010 2011 2012 2012 Budget Voter‐Approved Police Sales Tax $3,532,580 $3,614,825 $3,434,660 $3,457,130 $3,591,028 $3,851,959 $3,791,136 General $23,045,042 $23,584,550 $22,399,179 $22,705,520 $23,195,004 $24,552,905 $23,288,409 $‐ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Total Receipts as of September Voter‐Approved Police Sales Tax General August 2012 Taxes Receipted September 2012
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Sales Tax Receipts DetailIt is important to review the sales tax detail to determine the source of the revenue. First, the following graph provides the allocation of the sales tax to the two areas: General and Public Safety or Tax Increment.
The graph also provides comparisons through the years 2007–2012 Budget. We continue to examine the history from the onset of the Great Recession through today. Clearly, our sales tax receipts surpass our lowest levels of 2008 and 2009. We have now surpassed our highest year of collections in 2008.
Two of the three types of use taxes are higher in August 2012 as compared to the same period 2011. General Use tax is the only one that is lower than last year at this time. Now that we have collections through August, we estimate General Use tax will be short of budget by at least $200,000.
However, through September Building Use tax collections had already surpassed the budget estimate by $409,000. Over $2.052 million had been collected as compared to $1.724 million in 2011 through the third quarter. Auto Use tax collections are now 76% of the total budget of $4.881 million for 2012. We expect to exceed the budget because the $3.712 million collected represents only eight months as this revenue source lags by a month.
City of Arvada Sales Tax Revenue Report
OverviewTotal sales tax collections were 7.35% above the same amount received in August of 2011. A total of $3.896 million was received this year as compared to $3.630 million in 2011. To date, our sales tax collections are now 6.04% above last year and 4.89% above our original budgeted amount. We did revise the sales tax collections to a four percent increase over 2011 as we estimated the ten-year model; thus we are now 2.89% above our revised forecast. As Page 4 illustrates, our monthly collections have been as low as 1.26% over 2011 and as high as 8.71%. At this point, a four percent increase above our original budget should be sustainable; November and December usually reflect our highest collections due to the grocery store expenses.
Types of BusinessesPage 5 illustrates the significant number of types of businesses we analyze. For the purposes of this summary, we combine the following areas: Restaurants/Fast Food/and Fast Food Casual; Grocery and Health Food/Specialty; and Public Utilities and Telephone. We also combine Liquor Stores, Drug Stores, Auto Care, Office Supplies and Furniture into “All Others.”
The above table includes rebates and late fees; thus, the total tax collections. Also, these numbers have been adjusted to “smooth” the collections from one major business. This business makes 13 payments, and the payment has already been made, but historically, it usually is paid in the July/August payments. Thus, these numbers do not match the Oracle receipts.
Our grocery store segment comprises 18.2% of our total collections. Through August collections and September receipts, total sales taxes are $567,742 more than the same period in 2011.
Information by LocationThe following is a compilation of area shopping centers. Page 3 of the Attachments provides additional information.
As illustrated, all areas of the City presented are increasing. Olde Town and City Center generates 30.42% of our total collections in 2012. This is up from 29.97% last year. As the detail illustrates Olde Town, while generating only 1.67% of our total collections, has actually had a 13.64% increase in sales tax generation over 2011.
SummaryAfter eight months of receipts and assuming there will not be a fiscal meltdown due to external forces, the estimates to the end of the year continue to assume we will meet our budgeted estimates in every category except General Use tax. Obviously, we will have other revenues to offset the budget shortfalls in this category.
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Report Prepared By:Victoria A. RunkleFinance Director
Use TaxesThere are three types of use taxes: General, Auto and Building. The first two are collected one month in arrears. This means we have only eight months’ worth of collections. Building Use Tax is collected here at the City with the issuance of a building permit; thus the following graph provides nine months’ of information. The graph provides information for six years. As stated in the introduction, the only concern is General Use tax. We have fallen to pre-Great Recession levels. Businesses pay this tax when they are adding interior things to their buildings (shelves, etc.) or for supplies for which they have not paid tax. Generally, one would see this as an indicator of increasing business.