Positive Sales Tax Trend Continued in Reports for October

Collections of city sales tax for the month of October totaled $384,043. This represents an increase of $34,325, or 9.8%, from October 2014.  This is the largest amount revenue on record for the month of October. However, late payments and adjustments account for $22,542 of the total collected and, of that amount, $11,921 was from special events held in August and September. A comparison of only the current amounts included in the October reports for 2015 and 2014 shows an increase of 5.0%.

Year-to-date sales tax collections of $4,121,571 are $411,115, or 11.1%, greater than the same ten month period in 2014.

The October 2015 sales tax collected by businesses engaged in retail trade, which comprises approximately two-thirds of Salida’s total sales tax, increased 11.9%. Within the retail trade group of vendors, automotive related retail sales reversed its recent positive trend and declined by 11.1% compared to October 2014. The next largest industry group is restaurants with nearly one-sixth of the total; sales tax reported by this group of businesses decreased 2.9% in October. Sales tax collected by hotels, motels and vacation rentals increased 31.1% in October primarily due to delinquent filers in this group of businesses that caught up in October. 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. Each month, City staff updates this report with the current sales tax data and other general fund highlights. 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. The report can be accessed at a “quick link” on the home page or through the financial documents page. The City Treasurer presents this report to the council during the second regular meeting of each month.

On a somewhat related subject, any business owners not aware of the increase in Chaffee County’s tax rate that becomes effective in 2016, should read this post and prepare to update their POS systems.

City staff strives to provide information that serves to educate and engage its constituents. Your questions and suggestions are always appreciated.