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File #: 2020-8256   
Type: Consent Calendar Item
Body: City Council
On agenda: 9/15/2020
Title: Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending June 30, 2020 (Funds Collected During the Period January 1 to March 31, 2020). (Finance 2410)
Attachments: 1. Exhibit 1 - Quarterly Sales Tax Report, 2. Exhibit 2 - Quarterly Transactions Tax
Title
Recommendation to Accept the Quarterly Sales Tax Report for the Reporting Period Ending June 30, 2020 (Funds Collected During the Period January 1 to March 31, 2020). (Finance 2410)

Body
To: Honorable Mayor and Members of the City Council

EXECUTIVE SUMMARY

The California Department of Taxes and Fees Administration (CDTFA) 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, 2020 (funds collected during the period of January 1 to March 31, 2020 and recognized as revenue in the current fiscal year).

BACKGROUND

This report summarizes the sales tax receipts for the point-of-sales activity for the period of January 1 through March 31, 2020. This is the basis for sales tax revenues received by the City between April 1 and June 30, 2020. For the purpose of this report, sales tax revenues exclude Proposition 172 funds, the allocation from the statewide pool for public safety services.

DISCUSSION

Fiscal Year to Date (July 1 to March 31)

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 June 30, 2020, the General Fund has received approximately $8.4 million in sales tax receipts. The General Fund received $9.2 million in sales tax receipts during the same period of the last fiscal year. On a fiscal year basis over the same time period, sales tax revenue decreased.

On April 1, 2019, Measure F, the City's voter-approved half cent transactions and use tax, became effective. Budget projections for 2019-20 for the Transaction and Use Tax were $5.5 million. As of June 30, 2020, the General Fund received approximately $5.4 million in sales tax receipts.

1st Quarter 2020 to 1st Quarter 2019 Comparison

Due to the COVID-19 shelter-in-place declaration in mid-March, the City's receip...

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