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The City Café

For those interested in sharing ideas and perspectives regarding local government.

Click here for ULCT Economist Doug Macdonald’s quarterly construction report for Salt Lake County and and the state.

Construction Graph

City Dist April 2015DOUG MACDONALD

April’s local 1% distribution came up on the Tax Commission website last week and at $35.98M was off 0.8% compared to a year earlier.  Even though the last two distributions were flat compared to last year, the 13.0% gain in February’s distribution pushed up the 3-month average to a 5.5% gain. For the fiscal year, the statewide distributions are up 5.6% compared to fiscal year 2014.

Nationwide, retailers sales were up 1.7% in February, with fairly strong auto sales.

Salt Lake City’s computed sales were up 10.1% in the April distribution, representing largely sales from February. Its distribution was up 4.7% for the month and up 5.8% for the fiscal year.  Sandy’s distribution was up 5.3%, implying a direct sales increase of 11.4% for February.  The distribution in Draper was up 16.4% in April, implying a 33.6% gain in sales.

In Davis County, Centerville’s distribution 7.6% gain led other cities. Layton and Farmington trailed Centerville with 3% gains.

In Weber County, Ogden and Roy’s distributions fell about 1%.

Lehi’s sales rose 17.6% in April, similar to Draper’s 16% gain, indicating strong growth is clustering there due to an influx of new businesses and homes.

Sales in St. George, Tooele and Moab rose between 5% and 8%.

Tax Rev

DOUG MACDONALD

The Tax Commission’s 9-month revenue report came out yesterday described a picture of slightly weakening, but overall still strong revenues.

State sales tax (cumulative, fiscal year 2015) growth slipped from 4.5% to 3.8% for the first 9 months of FY2015. For the month, state sales taxes fell 2.7%.  But we note that the sales tax earmark for the Transportation Fund’s” 30% Sales Growth Diversion” rose 85.1%, $12.4 million this month, to $96.4 million during the first 9 months (compared to $84 million last year).

Indicating continued strong growth in Utah wages, the State’s withholding tax is up 6.2% during the first 9 months of FY2015.  Overall, individual income taxes are up 7.6% this year compared to the 5% forecast made in February.  Corporate income taxes are up 22.5% in the first 9 months, compared to the February forecast of 18.8%.

Motor fuel taxes are up nearly 3% in the first 9 months, indicating increased driving due to lower gasoline prices.  This should help our B&C distributions.

Finally, the local 1% sales tax was up 2.7% for the month and 4.0% for the first 9 months of the State’s fiscal year at $389.4 million (this is found in a detailed report not below).  The County 0.25% tax is up 3.6% for the first 9 months of FY2015.

 

DOUG MACDONALDMarch Stoplights

DOUG MACDONALD

The Tax Commission distributed $37.73 million to Utah’s cities, towns and counties for the 1% local sales tax last week, up 1.7% from last year’s $37.11 million.  These monies represent mainly sales from January 2015 large, monthly filers.  At first glance, the 1.7% increase appears low, but coupled with the 13% gain from last month’s 4th quarter sales and the 3.7% gain in the January distribution, the last three months’ gain equals a healthy 6.8%. It is also possible that some of January’s transactions were counted last month, which lowered January’s gain.

3-15 Dist

Retail sales across the U.S. rose 3.2% in January, and new light-vehicle sales rose from 15.2 million last year to 16.6 million in January 2015, up 9.2%.

What’s interesting with this month’s distribution is the fact that while Salt Lake and Weber counties grew along with the statewide growth of 1.7%, Davis County’s distribution rose 5.1%, implying an 8.5% sales gain and Utah County’s distribution rose 3.9%, implying a 6.2% sales increase. 

In Salt Lake County, double-digit gains in Draper and South Jordan were almost offset by small declines in Sandy, Holladay and Midvale.  Salt Lake City’s distribution was up only 0.5%, but its 3-month average gain was still up 6%.

Davis County gains ranged from 2.3% in Kaysville to 16.3% in Farmington, while its largest cities, Bountiful and Layton, scored 5.1% and 4.2% increases, respectively.

March 2015 Dist

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