Posts tagged with Sales Tax
The up and down trend of retail spending in Lawrence is continuing.
The latest sales tax report out of Lawrence City Hall shows retail spending for the period of mid-August to mid-September, about the time students returned to campus, was down about 1.6 percent compared to the same period a year ago.
The decline comes after a whopping 17 percent increase in the previous month's reporting period. The city has received 10 of its 12 sales tax checks from the state this year, and thus far retail sales have been up in five of those months and they have been down in five.
The forward steps, however, have been just a little bit bigger than the backwards steps. Through the first 10 reporting periods, retail spending is up about 2.5 percent compared to the same period a year ago.
The bottom-line is that retail sales in the city are still growing but not nearly at the rate they were in 2012. At this time in 2012, sales tax collections were up 6.1 percent compared to 2011 totals.
Looking at a little bit broader picture, the large increase in 2012 came after Lawrence consumer spending hit some pretty pitiful levels in 2009 and 2010. Consumers started to ramp up in 2011, but it appears that 2012 is when consumers unleashed their pent up demand. That period of pent-up demand, it appears, is now over. Once you adjust for inflation, consumer spending in Lawrence is up only about 0.6 percent for the year. This year's sales tax collections are on track to meet the city's budget estimates, but if this moderation continues, it will make 2014 an interesting year to watch.
It also is interesting to watch what is going on in other major retail markets in the state. Lawrence is faring slightly poorer than many of the major retail areas in the state, with a few notable exceptions. Lawrence's 2.5 percent growth rate thus far in 2013 is better than Topeka at 1.6 percent; Manhattan at 1.1 percent; and far better than Hays, where something is either amiss with the reports or else a significant spending slow down has occurred. Sales tax numbers in Hays are down 9.9 percent for the year.
Here's a look at other major retail areas in the state:
• Emporia: up 3.6 percent
• Johnson County: up 4.3 percent
• Kansas City: up 5.7 percent
• Lenexa: up 6 percent
• Olathe: up 4.7 percent
• Ottawa: up 6.7 percent
• Overland Park: up 3.1 percent
• Salina: up 2.5 percent
• City of Shawnee: up 4.9 percent
• Sedgwick County: up 3.6 percent
Here's one other piece of data for you. The state periodically provides statistics on the type of consumer spending taking place in the state. The latest report shows spending by industry through the first six months of 2013. I don't have access to numbers specifically or Lawrence, but these statewide numbers may give glimpse at what sectors of the market are rising of falling locally.
Sales tax collections for sporting goods, hobby, book and music stores were the largest gainer in the retail sector, by percentage increase. Sales in that sector were up 5.2 percent during the first six months of the year. Other retail categories included:
• Vehicle and parts sales: up 4.3 percent
• Furniture and home furnishing: up 1.8 percent
• Electronics and appliance stores: down 2.8 percent
• Building material and garden supply stores: down 2.7 percent
• Grocery and food and beverage stores: up 2.8 percent
• Drug stores and personal care stores: up 3.0 percent
• Gasoline stations: down 1.9 percent
• Clothing and clothing accessories: up 3.6 percent
• General merchandise stores: up 0.8 percent
• Miscellaneous retailers: down 6.4 percent
• Restaurant and drinking establishments: up 1.7 percent
• Hotels and accommodations: up 2.1 percent
Retail sales in the city up 3 percent for the year; SLT opponents organizing “occupation” event at the wetlands
There must have been a lot of families with back-to-school shopping lists this season much like mine: pencils, erasers, notebooks, diamond earrings. (What's that? I was told it is a necessity that mothers looks stylish at PTO meetings.)
Regardless, the latest sales tax report from Lawrence City Hall shows that something caused a spike in sales during that back-to-school season. The city's September sales tax report — which actually includes sales data from the mid-July to mid-August time period — shows taxable sales in the city were up a whopping 17 percent from September 2012.
I never make too much of one month's worth of data because statistical anomalies can pop up, but the bigger picture also is looking more positive than it did for the city just a few months ago. With nine months of sales tax checks in the bank, retail sales in the city are up 3 percent from the same period a year ago.
Bottomline: Retail sales are growing at a decent clip in Lawrence, but not nearly as fast as they did in 2012. At this time last year, retail sales were up 6 percent. But I can tell you that City Hall officials who rely on sales tax collections for a big part of their budgets are breathing a little easier now. At the midway point of 2013, retail sales were up just 1.7 percent for the year, and it was uncertain whether the city's sales tax collection would meet budget for the year.
It appears more likely that the city will make its budget at this point. With just three more checks to collect in 2013, collections in the city's largest sales tax fund are about 1 percent over budget projections. So, the fourth quarter still will be key, but City Hall budget-makers feel better about their chances than they did a few months ago.
As for how Lawrence stacks up with other cities, it is a mixed bag. The data indicates Lawrence's retail sales growth may be a little bit behind the statewide average. For all jurisdictions that collect a local sales tax, the average growth rate thus far for 2013 has been 3.7 percent compared to 3.0 percent for Lawrence. Here's a look at how some of the larger retail markets in the state have fared year-to-date:
• Emporia: up 3.6 percent
• Hays: down 8.3 percent
• Kansas City: up 5.7 percent
• Manhattan: down 0.1 percent
• Olathe: up 4.5 percent
• Overland Park: up 3.2 percent
• Salina: up 2.9 percent
• Shawnee: up 5.1 percent
• Topeka: up 1.7 percent
Here's a look at some of the smaller markets around Lawrence. The sales totals in these communities are much smaller, so wilder swings are possible. But with nine months in the books, most are having a strong year:
• Baldwin City: up 1.4 percent
• Basehor: up 16 percent
• Eudora: up 14.2 percent
• Ottawa: up 6.9 percent
• Tonganoxie: up 10.0 percent
And finally, here's a look at how Lawrence's retail sales totals year-to-date compare to the same period in past years, and how they have been growing once adjusted for inflation. The number in parenthesis is the inflation-adjusted total for the year:
2013: $1.03 billion 2012: $1.00 billion ($1.02B) 2011: $947.9 million ($985.5M) 2010: $916.5 million ($983.0M) 2009: $930.7 million ($1.01B) 2008: $966.2 million ($1.04B)
So, once adjusted for inflation, Lawrence's retail sales are up about 1 percent for the year, and we're still lagging behind where we were before the economic downturn that hit in late 2008. But don't worry, we'll catch up. I think there is another PTO meeting coming up.
In other news and notes from around town:
• From PTO to WPO — the Wetlands Preservation Organization. As I've been telling you, get ready for some protests out at the Baker Wetlands as roadwork on the South Lawrence Trafficway likely will begin in the wetlands next month. Well, the WPO — which includes a lot of students from Haskell Indian Nations University — is beginning to show its hand in that regard. The organization's Facebook page is advertising an "Occupy the Wakarusa Wetlands" event on Oct. 25 and Oct. 26. According to a flier on the site, the group is encouraging people to camp at the wetlands and "help us protest this atrocity." The website also says the group is trying to "organize resistance and awareness in any way possible," and it even makes reference to the large protests that have gripped the Arab world. "There is an Indian Summer coming this fall," an organizer wrote on the page. "It looks a lot like an Arab Spring."
It will be interesting to watch the changing of the seasons at the wetlands in the coming weeks.
• In the category of notable commercial sales: It looks like one of Lawrence's more renowned music venues has taken a step to secure its future in downtown Lawrence. According to a filing at the Douglas County Register of Deeds, a company led by Brett Mosiman, owner of The Bottleneck, has purchased the building at 737 New Hampshire, which houses the The Bottleneck. The building was owned by a trust in the name of longtime Lawrence attorney Lance Burr.