To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, Finance Director
Pete Mangers, Revenue Manager
Title
Update: October 2020 Sales Tax Report
Body
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Executive Summary
Attached are the sales tax reports for October (collected in November) and YTD. The information is provided by area (sales tax districts) and NAICS category (industry). The month of October’s gross sales tax collections were up 18.2% from the previous year’s month or up $727,748 compared to October 2019. Staff is monitoring trending, including regional trends and will update Council accordingly.
Please note gross sales tax collections equates to all dollars collected by the Revenue Division. This would include sales tax revenue for the Town and the Promenade sales tax credit PIF, of which we share 27.5% of the sales tax generated in the Promenade. We also share back sales tax increment in the Downtown area with the DDA over the base set in 2008. Net sales tax revenue equates to only sales tax revenue retained by the Town.
Geographic Areas YTD- The Milestone/Metzler is up 6.9%. The Outlet Mall, which has shown a significant downturn since 4Q of 2018, is down 29.2%; with the COVID shutdowns and social distancing requirements the economic impact is expected to continue. The Out of Town category is up 13.1% and the Out of State category is up 26.8%. The Promenade category shows a significant increase due to the addition of new locations over the past year and is up 14.2%. The Downtown category is up 5.0%. Staff will continue to monitor all areas moving forward.
Industry Areas YTD- Miscellaneous Retail is up 32.7% and Food/General Merchandise is up 19.7%.
The estimated tax on food for home consumption (Grocery Tax) is estimated to be approximately $7.8 million for 2018. Additionally, 60% of grocery tax is generated from non-residents. The Apparel and Accessories category is down 27.4%. Restaurant/bars category is down 4.3%. Home and Garden stores are showing an increase of 22.1%, staff will continue to monitor all aspects in these areas and report any concerns.
Audit Revenue - $1,728,703 in audit revenue was collected through October 2020, compared to $1,364,078 collected through October 2019 showing an increase of 26.7%. Audit revenue collections
reflect payments received through October. These amounts are included in the gross sales tax collections. They are removed when showing net sales tax revenue to the Town.
Overall for 2020 is showing cautious signs of improvement with the near future still uncertain for sales tax revenues, staff will continue to watch trends as 2020 starts its final quarter and will inform Council
accordingly. Of the $2,982,727 of increase YTD $1,728,703 has been due to audit revenue. Without
audit revenue, the Town would be up 2.9% YTD. Sales tax YTD has performed above budget
projections, we remain cautious as we monitor this very critical revenue stream.
The Town's top 100 filers for 2020 account for 66% of the total sales tax revenue or $30,254,945. The Top ten filers, which account for 38% of monthly revenue for the Town are listed in alphabetical order below.
Amazon.com Services Inc
Home Depot
Intermountain Rural Electric Association
King Soopers #125
King Soopers 132
Lowe's Home Centers LLC
Safeway Store #1877
Sam's Club #4853
Target Store #1326
Walmart Inc.