Positive Sales Tax Trend Continues into 2016

Recently released data from the Colorado Department of Revenue for sales tax collections show Salida’s positive revenue trend continued into the first month of 2016. Collections of the City of Salida’s 3% sales tax for the month of January totaled $350,309. This represents an increase of $18,869, or 5.7%, from January 2015.

The January 2016 sales tax collected by businesses engaged in retail trade, which comprises approximately two-thirds of Salida’s total sales tax, increased 5.2%. Within the retail trade group of vendors, automotive related retail sales decreased by 8.1%. The next largest industry group is restaurants with nearly one-sixth of the total revenue; sales tax reported by this group of businesses decreased 12.1% in January. A number of restaurants filed late reports in January of both 2015 and 2016; excluding those from both years, the reports showed a decrease of 1.3% in 2016. Sales tax collected by hotels, motels and vacation rentals increased 38.1% in January 2016 compared to January 2015; however, excluding the delinquent filers in that group the increase was 0.7%. As a percentage of total collections, the lodging industry only accounts for about 5%; however, this group is also an indicator for the level of tourism that brings spending in other sectors, as well.

Please review the full “Sales Tax Trend Report” for further details. In addition to data about sales tax, the most important revenue source for government operations, it includes total revenues and expenditures, cash balances and financing obligations of the general fund. The report can be accessed at a “quick link” on the home page of the website or through the financial documents page.

The website includes other financial reports including those for compliance with requirements of the Colorado Revised Statutes.

Salida’s share of the Chaffee County tax for January 2016 is not yet available.