Title
Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending June 30, 2018 (Funds Collected During the Period January 1, 2018 to March 31, 2018). (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The California Department of Taxes and Fees Administration (CDTFA), formerly the Board of Equalization, allocates sales tax to the City on the monthly basis. This report provides information about the activity for the period ending June 30, 2018 (funds collected during the period of January 1, 2018 to March 31, 2018).
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of January 1 through March 31, 2018. This is the basis for sales tax revenues received by the City between April 1, 2018 and June 30, 2018. For the purposes of this report, sales tax revenues exclude Proposition 172 funds, the allocation from statewide pool for public safety services.
DISCUSSION
Fiscal Year to Date (July 1 to June 30)
For the 2017-18 Fiscal Year, Sales Tax is the second largest source of General Fund revenues for the City of Alameda, representing approximately 10% of the total revised budgeted revenues. As of June 30, 2018 (in a twelve month period), the General Fund has received approximately $9.2 million in Sales Tax receipts. The General Fund received $10.1 million in Sales Tax receipts during the same period last fiscal year. This represents a 9% decrease in year over year Sales Tax revenues received for that period.
Business to business transactions were lower than a year ago with mixed results in several sectors due to one-time events including state-initiated audit adjustments and fund transfers. The California Department of Taxes and Fees Administration (CDTFA) implemented new reporting software. This change allows for the collection and allocation of tax revenue more quickly. However, the imple...
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