Bobby Young, Principal, HdL CompaniesBobby Young, Principal, HdL Companies
SCACA – Property Tax Managers’ Sub-Committee ConferenceSCACA – Property Tax Managers’ Sub-Committee Conference
February 4, 2015February 4, 2015
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AN EXACT SCIENCE!AN EXACT SCIENCE!
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•HdL receives approximately 98% ofthe statewide sales tax data eachquarter for clients and some non-clients
•With data for all major categories –use as the starting point to identifypast trends then factor in currenteconomic conditions
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* - projected
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•Shale oil & fracking on global production
•Bakken Oil Formations in North/South Dakota and Canada
•OPEC and Saudi Arabia’s decision on futureproduction
•ISIL/ISIS and conflict in the Middle East
•Future/continued sanctions on Russia
•National political interests
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•Offset effect of lower gas prices on GeneralConsumer Goods and Restaurant categories
•Federal interest rate changes may affect longterm financing options thereby purchases
•More online shopping shifting tax dollars fromlocal point of sale to distribution centers andcountywide pool allocations
•Possible expansion of the sales tax base by wayof legislative action
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•Originally created to finance State EconomicRecovery Bonds (Prop 57) because Wall Streetwanted a dedicated revenue stream
1.Decrease monthly sales tax allocations from1% to 0.75%
2.Counties transfer from ERAF to SUTCF thenpay cities & counties their 0.25%
3.State General Fund reimburses County’sERAF for schools (if needed)
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•Bonds paid off July 2015•Bonds paid off July 2015
•Department of Finance (DOF) to advance for 2ndQuarter 2015•Department of Finance (DOF) to advance for 2ndQuarter 2015
•Continue to take ¼ cent in 3rd Quarter and 4thQuarter 2015•Continue to take ¼ cent in 3rd Quarter and 4thQuarter 2015
•Reimburse 3Q & 4Q and “true up” 2Q, 3Q & 4Q byMay 2016•Reimburse 3Q & 4Q and “true up” 2Q, 3Q & 4Q byMay 2016
•Return to full 1 cent Bradley-Burns allocations inMarch 2016 (1Q16 advance)•Return to full 1 cent Bradley-Burns allocations inMarch 2016 (1Q16 advance)
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•July 2015 – Bonds Paid Off
•September 2015 – DOF calculate 2ndQuarter 2015 advance and provide noticeto County’s of estimated advance amount(equivalent of 1 quarter)
•January 2016 – Counties pay agenciesSUTCF advance
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•March 2016 – DOF & BOE calculate 2Qclean-up, 3Q & 4Q reimbursementamounts
•April 2016 – provide notice to Counties offinal amounts to pay agencies
•May 2016 – Counties pay agencies finalSUTCF amounts
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•Most of 2Q15 will be accrued back to FY2014-15 – ¾ cent as usual
•Many agencies will likely see a one-time“bump” in FY 2015-16 due to:
•2Q15 clean-up as part of May 2016 final payment
•Increase of FY 2015-16 year end accrual compared toFY 2014-15
Full 1 cent allocation vs. ¾ cent allocation
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Bobby Young, Principal, HdL CompaniesBobby Young, Principal, HdL Companies
SCACA – Property Tax Managers’ Sub-Committee ConferenceSCACA – Property Tax Managers’ Sub-Committee Conference
February 4, 2015February 4, 2015
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