HomeMy WebLinkAboutMemo - Mail Packet - 5/19/2020 - Memorandum From Travis Storin And Jennifer Poznanovic Re: April 2020 Sales And Use Tax Collection Report1
Finance Administration
215 N. Mason Street
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
DATE:
TO:
May 8, 2020
Mayor and City Councilmembers
THROUGH: Darin Atteberry, City Manager
FROM: Travis Storin, Interim Chief Financial Officer
Jennifer Poznanovic, Senior Revenue Manager
RE: April 2020 Sales and Use Tax Collection Report
Attached is the April 2020 Sales and Use Tax Collection Report. Information below provides Council
context behind the numbers in the report.
Year-to-Date Results
Note regarding impact of COVID-19: The cumulative results reflect the impact of the pandemic on a
limited basis only. Sales taxes are collected in the month following retail sales (i.e. March’s taxable sales
are collected in April). To that extent, only the first 2 weeks of shutdown are reflected herein.
1. Sales Tax – While the first quarter sales tax revenue was over budget, April revenue declined
7.7% leaving year-to-date growth of 1.0% over the first four months of 2019. Sales tax revenue is
under budget $186K impacting the General Fund (GF) by an estimated $118K.
2. Use Tax – Year-to-date use tax is down 6.0% over 2019, resulting in a $400K use tax budget
shortfall. Impact to the GF is approximately $236K.
3. Total Sales and Use Tax – Year-to-date revenue is below budget by $586K.
Month-to-Date Results
$000's YTD
Budget
YTD
Actual
Over/
(Under)
Sales Tax $ 39,250 $ 39,064 $ (186)
Use Tax 6,672 6,272 (400)
Total $ 45,922 $ 45,336 $ (586)
Total Sales & Use Tax Revenue
$000's 2019
Actual
2020
Actual Amount
Sales Tax $ 9,569 $ 8,829 $ (740)
Use Tax 1,979 1,417 (562)
Total $ 11,548 $ 10,246 $ (1,302)
April Sales & Use Tax Revenue
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
Overall, April sales and use tax revenue is $1.3M less than April 2019. Use tax is volatile and largely
driven by development and business investment.
Many sales tax categories saw significant changes from last April. Grocery, Convenience, Liquor is up
nearly 30%, while Vehicle Sales, Parts and Repair, Restaurants, Caterers and Bars, Clothing and
Accessories, and Lodging are down between 25% to 61%. These sales tax category shifts align with
finance staff projections.
Council has been briefed on a range of scenarios for revenue shortfall and is scheduled for a status update
at the May 18th Council Finance Committee meeting.
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
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Financial Services
Sales Tax Division
215 N. Mason Street – 2nd Floor
PO Box 580, Fort Collins, CO 80522-0580
970.221.6780
970.221.6782 - fax
fcgov.com
Sales and Use Tax Collection Report – April 2020
Issued April 11, 2020
This report reflects Sales and Use Tax collected in April for economic activity that occurred in March. Please
note the sales and use tax collected in April is predominately from March sales but also includes delinquent
collections from prior periods.
APRIL SUMMARY OVER PRIOR YEAR
Month Year to Date
Net Sales Tax Collected: -7.7% 1.0%
Net Use Tax Collected: -28.4% -19.6%
Net Sales and Use Tax Collected: -11.3% -2.5%
Year to date, sales and use tax collections excluding rebates are down 2.5% and total $45.3M.
APRIL SUMMARY OVER BUDGET
Month Year to Date
Net Sales Tax Collected: -10.0% -0.5%
Net Use Tax Collected: -14.7% -6.0%
Net Sales and Use Tax Collected: -10.7% -1.3%
Year to date, the City has collected 1.3% less sales and use tax revenue, totaling $586K under budget.
Figure 1. Budget to Actual - Sales and Use Tax Collected After Rebates
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
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April Sales Tax Collected. In April 2020, sales tax collected in Fort Collins decreased 7.7% compared to
April 2019. Sales tax collected totaled $8.8M compared to $9.6M in 2019.
April Use Tax Collected. The total use tax collected in April was $1.4M, a decrease of 28.4% compared to
April 2019.
Net Sales and Use Tax Collected. Total tax collected of $10.2M was 11.3% lower than April 2019.
Figure 2. Sales and Use Tax Collected
Actual
2019
Actual
2020
%
Change
Actual
2019
Actual
2020
%
Change
SALES TAX COLLECTIONS
Grocery, Convenience, Liquor $1,256,147 $1,625,817 29.4% $5,587,353 $6,126,652 9.7%
Restaurants, Caterers and Bars 1,582,445 964,654 -39.0% 5,926,918 5,235,156 -11.7%
General Merchandise 831,512 883,447 6.2% 3,499,886 3,611,816 3.2%
Vehicle Sales, Parts and Repairs 701,047 524,717 -25.2% 2,740,894 2,833,575 3.4%
Building Materials, Garden Equipment & Supplies 694,360 791,302 14.0% 2,675,457 2,880,561 7.7%
Sporting, Hobby, Book, Music 383,003 267,230 -30.2% 1,804,818 1,538,186 -14.8%
Broadcasting and Telecommunications 428,695 343,192 -19.9% 1,762,025 1,415,863 -19.6%
Electronics and Appliances 386,341 361,537 -6.4% 1,655,647 1,833,356 10.7%
Miscellaneous Retailers 804,650 845,177 5.0% 3,230,429 3,587,546 11.1%
Utilities 524,459 448,818 -14.4% 1,950,757 1,834,796 -5.9%
Clothing and Accessories 359,671 184,629 -48.7% 1,439,692 1,227,694 -14.7%
Pharmacy, Salon and Laundry 471,300 527,429 11.9% 1,815,741 2,061,453 13.5%
Other 250,132 286,628 14.6% 1,067,928 1,181,528 10.6%
Rental and Leasing Services 232,054 226,025 -2.6% 859,944 869,432 1.1%
Furniture and Home Furnishings 184,985 153,437 -17.1% 787,996 736,057 -6.6%
Wholesale Trade 270,332 213,947 -20.9% 853,002 916,984 7.5%
Lodging 227,198 88,637 -61.0% 721,147 600,363 -16.7%
Manufacturing 180,843 186,179 3.0% 773,525 999,870 29.3%
TOTAL SALES TAX 9,769,174 8,922,802 -8.7% 39,153,159 39,490,888 0.9%
Less Mall Sales Tax Remittance* (199,740) (93,929) -53.0% (476,928) (426,675) -10.5%
NET SALES TAX 9,569,434 8,828,873 -7.7% 38,676,231 39,064,213 1.0%
USE TAX COLLECTIONS
Building Permits 300,376 422,259 40.6% 1,883,066 1,801,340 -4.3%
Car Tax 507,512 610,832 20.4% 2,211,879 2,431,610 9.9%
Return Tax 1,171,343 383,694 -67.2% 3,704,938 2,038,689 -45.0%
TOTAL USE TAX 1,979,231 1,416,785 -28.4% 7,799,883 6,271,639 -19.6%
Less Economic Rebates 0 0 0.0% 0 0 0.0%
NET USE TAX 1,979,231 1,416,785 -28.4% 7,799,883 6,271,639 -19.6%
SALES & USE TAX COLLECTIONS
Total Sales & Use Tax 11,748,405 10,339,587 -12.0% 46,953,042 45,762,527 -2.5%
Less Mall Sales Tax Remittance* (199,740) (93,929) -53.0% (476,928) (426,675) -10.5%
Less Economic Rebates 0 0 0.0% 0 0 0.0%
NET SALES & USE TAX 11,548,665 10,245,658 -11.3% 46,476,114 45,335,852 -2.5%
SALES & USE TAX DISTRIBUTION
Streets and Transportation (.25%) 709,048 602,022 -15.1% 2,766,960 2,714,539 -1.9%
Community Capital Improvement Program (.25%) 709,048 602,022 -15.1% 2,766,960 2,714,539 -1.9%
Natural Areas (.25%) 709,048 602,022 -15.1% 2,766,960 2,714,539 -1.9%
Keep Fort Collins Great (.85%) 2,388,067 2,035,806 -14.8% 9,224,329 9,165,783 -0.6%
General Fund (2.25%) 7,233,194 6,497,715 -10.2% 29,427,833 28,453,127 -3.3%
Less Mall Sales Tax Remittance* (199,740) (93,929) -53.0% (476,928) (426,675) -10.5%
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Figure 3. Budget to Actual - Sales Tax Collected
Figure 4. Budget to Actual – Use Tax Collected
Figure 5. Budget to Actual – Sales and Use Tax Distribution
April Sales Tax Budget to Actual. In April 2020, sales tax collected in Fort Collins was $979K less than
budget.
April Use Tax Budget to Actual Excluding Rebates. In April 2020, use tax collected in Fort Collins was
$245K less than budget.
% Year to Date %
Over/(Under) Over/(Under) Year to Date Annual Over/(Under)
Month Actual Budget Budget Budget Actual Budget Annual Budget
January $ 13,232,844 12,331,803 $ 901,041 7.3% $ 13,232,844 $ 12,331,803 7.3%
February 8,686,443 8,652,328 34,115 0.4% 21,919,287 20,984,131 4.5%
March 8,316,054 8,457,664 (141,610) -1.7% 30,235,340 29,441,795 2.7%
April 8,828,873 9,808,202 (979,329) -10.0% 39,064,213 39,249,997 -0.5%
May - - - 0.0% - 48,588,847 0.0%
June - - - 0.0% - 58,395,603 0.0%
July - - - 0.0% - 69,036,186 0.0%
August - - - 0.0% - 79,040,353 0.0%
September - - - 0.0% - 89,598,707 0.0%
October - - - 0.0% - 100,240,368 0.0%
November - - - 0.0% - 109,944,142 0.0%
December - - - 0.0% - 119,703,200 0.0%
Net Collections 39,064,213 39,249,997 (185,784) -0.5%
YTD Rebates 426,675 480,000 (53,325) -
Total Collections $ 39,490,888 $ 39,729,997 $ (239,109) -0.6% $ 119,703,200
% Year to Date %
Over/(Under) Over/(Under) Year to Date Annual Over/(Under)
Month Actual Budget Budget Budget Actual Budget Annual Budget
January $ 1,863,473 $ 1,674,628 $ 188,845 11.3% $ 1,863,473 $ 1,674,628 11.3%
February 1,523,740 1,686,398 (162,658) -9.6% 3,387,213 3,361,026 0.8%
March 1,467,641 1,649,111 (181,470) -11.0% 4,854,854 5,010,137 -3.1%
April 1,416,785 1,661,540 (244,755) -14.7% 6,271,639 6,671,677 -6.0%
May - - - 0.0% - 8,339,996 0.0%
June - - - 0.0% - 10,006,432 0.0%
July - - - 0.0% - 11,676,634 0.0%
August - - - 0.0% - 13,349,849 0.0%
September - - - 0.0% - 15,004,797 0.0%
October - - - 0.0% - 16,666,619 0.0%
November - - - 0.0% - 18,345,202 0.0%
December - - - 0.0% - 20,000,008 0.0%
Net Collections 6,271,639 6,671,677 (400,038) -6.0%
YTD Rebates - 0 - -
Total Collections $ 6,271,639 $ 6,671,677 $ (400,038) -6.0% $ 20,000,008
Over/(Under) %
Actual Budget Budget Over/(Under)
Apr YTD Apr YTD Apr YTD Budget
2,714,539 2,741,175 (26,636) -1.0%
Community Capital Improvement Program (.25%) 2,714,539 2,741,175 (26,636) -1.0%
2,714,539 2,741,175 (26,636) -1.0%
9,165,783 9,314,248 (148,465) -1.6%
28,026,452 28,383,903 (357,451) -1.3%
426,675 480,000 (53,325) 100.0%
$ 45,762,527 $ 46,401,676 $ (639,149)
Fund
Total Collections
Streets and Transportation (.25%)
Natural Areas and Parks (.25%)
Keep Fort Collins Great (.85%)
General Fund (2.25%) (net of rebates)
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Figure 6. April Collections*
*Total collections after rebates.
Figure 7. Year to Date Collections*
*Total collections after rebates.
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
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Figure 9. Local Retail Compared to National Retail
Retail Sales Category
% Change from
March 2019
United States
% Change from
March 2019
Fort Collins
Grocery, Convenience, Liquor 29.3 29.8
Restaurants, Caterers & Bars -23.0 -31.9
General Merchandise 7.5 10.5
Vehicle Sales, Parts & Repairs -23.7 -22.9
Building Materials, Garden Equipment & Supplies 7.6 14.6
Clothing & Accessories -50.7 -46.8
Furniture & Home Furnishings -24.6 -12.0
Total -6.2 -4.3
At the national level, March 2020 retail sales (as reported on April 15, 2020) decreased by 6.2% compared
to a decrease in Fort Collins’ sales of 4.3%. March 2020 sales are the basis for the City’s April 2020 sales
tax collections and net taxable amounts (which are included in this report).
Figure 8. Net Taxable
Actual Actual % Actual Actual %
$ in Millions 2019 2020 Change 2019 2020 Change
SALES TAX
Grocery, Convenience, Liquor $44.3 $57.4 29.8% $198.8 $217.9 9.6%
Restaurants, Caterers and Bars 40.9 27.9 -31.9% 155.0 141.6 -8.6%
General Merchandise 24.6 27.2 10.5% 103.5 104.1 0.6%
Vehicle Sales, Parts and Repairs 17.8 13.7 -22.9% 70.9 72.9 2.8%
Building Materials, Garden Equipment & Supplies 18.1 20.7 14.6% 69.5 75.3 8.3%
Sporting, Hobby, Book, Music 9.9 7.2 -27.3% 43.5 40.2 -7.7%
Broadcasting and Telecommunications 11.1 8.9 -19.8% 45.8 36.7 -19.7%
Electronics and Appliances 10.0 9.4 -6.6% 42.8 47.4 10.7%
Miscellaneous Retailers 21.0 22.3 6.4% 84.3 94.3 11.8%
Utilities 13.6 11.7 -14.4% 50.7 47.7 -6.0%
Clothing and Accessories 9.4 5.0 -46.8% 36.4 32.2 -11.6%
Pharmacy, Salon and Laundry 12.2 13.7 12.6% 47.9 53.9 12.6%
Other 6.8 7.8 14.9% 27.2 30.8 13.2%
Rental and Leasing Services 6.0 5.9 -1.8% 22.3 22.6 1.2%
Furniture and Home Furnishings 4.7 4.1 -12.0% 20.8 19.5 -5.9%
Wholesale Trade 7.1 5.9 -16.9% 22.7 24.7 8.8%
Lodging 5.8 2.8 -52.7% 18.8 15.8 -15.7%
Manufacturing 4.8 5.0 4.2% 20.4 26.4 29.8%
NET TAXABLE SUBJECT TO SALES TAX 268.1 256.6 -4.3% 1,081.3 1,104.2 2.1%
USE TAX
Building Permits 7.8 11.0 40.6% 48.9 46.8 -4.3%
Car Tax 13.2 15.9 20.4% 57.5 63.2 9.9%
Return Tax 30.4 10.0 -67.2% 96.2 53.0 -45.0%
NET TAXABLE SUBJECT TO USE TAX 51.4 36.8 -28.4% 202.6 162.9 -19.6%
TOTAL NET TAXABLE SUBJECT TO SALES & USE TAX $319.5 $293.4 -8.2% $1,283.9 $1,267.1 -1.3%
April Year to Date
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
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Figure 10. April - Net Taxable Sales Subject to Sales Tax
Figure 11. Year to Date - Net Taxable Sales Subject to Sales Tax
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Figure 12. Metro District Reporting
The City’s sales tax rate of 3.85% can be broken into two pieces:
2.25% comprises the Core Base rate and supports general fund activities.
1.6% comprises the Dedicated Base and goes to four specific funds to support activities defined in
the ballot language for that dedicated tax.
The Foothills Mall agreement outlines a base year of May 2012 to April 2013 to determine the core base
sales tax (2.25%) received at $1.8M. Anything remitted to the City above that core base amount will be
returned to the Metro District to support debt service. No tax is remitted to the Metro District until the base of
$1.8M is reached. The chart above tracks both Core and Dedicated tax receipts for the period of May to
April. As of April 30, 2020, the year to date core amount collected is $2.2M resulting in $94K tax due to the
Metro District.
Sales Tax in the City’s Downtown Area. The sales tax collected in April for the downtown area
decreased 26.2% from the same period in 2019.
Lodging Tax Collections. The City collected $63K in lodging tax in April 2020. This was a decrease of
58.8% from April 2019.
Sales Tax Licenses. There were 13,676 active sales tax licenses at the end of April.
$1,778
$171
$362
$558
$741
$940
$1,139
$1,319
$1,502
$1,792
$1,967
$2,111
$2,204
$121
$254
$392
$521
$661
$801
$928
$1,056
$1,261
$1,384
$1,486
$1,553
$1,254
0%
2%
4%
6%
8%
10%
‐
500
1,000
1,500
2,000
2,500
May 2012‐
April 2013
May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr
2019 2020
Mall Area ‐ 2019‐2020 Sales Tax
(in Thousands)
Core Base Dedicated Base Core YTD
Dedicated YTD Core Level YTD % Change Over Prior Year
Core reached:
• January 2020
• February 2019
• February 2018
• March 2017
Anticipated ST Sharing
with Metro District
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
General Fund Economic Rebates
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12
Less General Fund Economic Rebates 0 0 0.0% 0 0 0.0%
NET SALES & USE TAX $11,548,665 $10,245,658 -11.3% $46,476,114 $45,335,852 -2.5%
April Year to Date
* Per the Mall Redevelopment Agreement, a portion of the sales tax generated at the Mall is remitted monthly to support the
Metro District Debt Service
DocuSign Envelope ID: 8A369973-E3D4-4A7D-8A14-2E4EE96BFB12