Title
Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending June 30, 2019 (Funds Collected During the Period January 1 to March 31, 2019). (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
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 June 30, 2019 (funds collected during the period of January 1 to March 31, 2019).
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of January 1 through March 31, 2019. This is the basis for sales tax revenues received by the City between April 1 and June 30, 2019. For the purpose of this report, sales tax revenues exclude Proposition 172 funds, the allocation from a statewide pool for public safety services.
DISCUSSION
Fiscal Year to Date (July 1 to June 30)
In the last quarter of the 2018-19 Fiscal Year, sales tax shifted to be the third largest source of General Fund revenues for the City, representing approximately 11% of the total budgeted revenues. As of June 30, 2019, the General Fund has received approximately $10.1 million in sales tax receipts. The General Fund received $10.3 million in sales tax receipts during the same period last fiscal year. This represents a 1% decrease in year over year sales tax revenues received for that period.
Business to business transactions actually posted a gain of 17% despite slow performance in some sectors. There were continuing adjustments by the California Department of Taxes and Fees Administration (CDTFA) in resolving outstanding payments that resulted from taxpayer processing complications due to their new computer system that launched earlier last year. Measure F, the City's voter-approved half cent transactions and use tax, became effectiv...
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