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File #: 2020-7419   
Type: Consent Calendar Item
Body: City Council
On agenda: 2/18/2020
Title: Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending September 30, 2019 (Funds Collected During the Period April 1 to June 30, 2019). (Finance 2410)
Attachments: 1. Exhibit 1 - Quarterly Sales Tax Report
Title
Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending September 30, 2019 (Funds Collected During the Period April 1 to June 30, 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 September 30, 2019 (funds collected during the period of April 1 to June 30, 2019).

BACKGROUND

This report summarizes the sales tax receipts for the point-of-sales activity for the period of April 1 through June 30, 2019. This is the basis for sales tax revenues received by the City between July 1 and September 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 September 30)

For the 2019-20 Fiscal Year (FY), sales tax shifted to be the third largest source of General Fund revenues for the City (behind property tax and transfer tax), representing approximately 11% of the total budgeted revenues. As of September 30, 2019, the General Fund has received approximately $2.9 million in sales tax receipts. The General Fund received $2.6 million in sales tax receipts during the same period last fiscal year. This represents an 11% increase in year-over-year sales tax revenues received for that period. Last year's launch of the State's updated tax filing system delayed timely processing of multiple returns.

2nd Quarter 2019 to 2nd Quarter 2018 Comparison

Alameda's receipts from April through June showed a 23.5% increase in sales compared to the second quarter sales period in 2018. Actual receipts included catch-up adjustments. Excluding reporting anomalies, actual sales were up 8.8%. The following is a s...

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