Title
Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending September 30, 2018 (Funds Collected During the Period April 1, 2018 to June 30, 2018). (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
The California Department of Taxes and Fees Administration (CDTFA), formerly the Board of Equalization, allocates sales tax to the City of Alameda (City) on a monthly basis. This report provides information about the activity for the period ending September 30, 2018 (funds collected during the period of April 1, 2018 to June 30, 2018).
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of April 1 through June 30, 2018. This is the basis for sales tax revenues received by the City between July 1, 2018 and September 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 September 30)
For the 2018-19 Fiscal Year, Sales Tax is the second largest source of General Fund revenues for the City, representing approximately 12% of the total budgeted revenues. As of September 30, 2018, the General Fund has received approximately $913,000 in Sales Tax receipts. The General Fund received $657,000 in Sales Tax receipts during the same period last fiscal year. This represents a 1.3% increase in year over year Sales Tax revenues received for that period.
CDTFA's new computer system, launched earlier in the year, again had taxpayer processing complications. The implementation provided delayed disbursements by the sales tax producers to CDTFA, resulting in reporting of lower receipts for the period. These missing payments are expected to be allocated in the next quarter. Including the omitted distributions and other reporting anomalies, actual sales were up 1%.
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