RES 98034 - Laserfiche WebLink

Property Taxes :_ Property tax revenue projections are being increased by $343,000 to $14.76 million, based on updated projections received from the County in February. Estimated transfer tax revenue projections of $550,000 are $9,000 more than previously projected. The Governor's proposed State budget for 1998-99 again does not make provisions to reverse the property tax shifts (ERAF) that were implemented during the State recession. Pleasanton is now losing almost $4 million per year in property tax revenues due to the ERAF shifts. The League of California Cities has sent letters to all legislators urging the State to return property tax revenues to local governments. Sales Tax Staff had not yet received sales tax information for the Christmas quarter at the time this report was being prepared. Therefore, the sales tax revenue projection is not being updated at this time. Sales Tax is a very difficult revenue to project because information is so late in coming from the State, and because so many adjustments (often material) are made as a result of cities disputing sales tax allocations. In addition, much of the City's sales tax comes from sources other than retail establishments, such as business to business sales. These types of sales are very volatile, and much harder to project than sales at the mall and other store-front retailers. Appendix F (page 53) contains a sales tax update for the first quarter of the fiscal year (third Quarter 1997). Staff will analyze the sales tax data in more depth with the next quarterly financial report, and recommend further changes, if necessary. Efforts continue at various levels to review the existing point of sale basis for distributing sales tax. Since Pleasanton has higher than average point of sale revenue, any changes in the structure could be detrimental. Staff will continue to monitor the status of these efforts and report regularly to Council. Business License Tax Staff has just completed the renewal processing for business licenses this year, and is now increasing the projection by $50,000 to $1.75 million. This revenue also will be reviewed in the third quarter after the delinquency processing has occurred. SR 98:63 Page 3