2022 Steamboat sales taxes surpassed all of 2021 — and that’s just through November
The sporting goods sector saw the most growth compared to November 2021, increasing about 29%
Through 11 months of 2022, the City of Steamboat Springs collected more sales, use and accommodations tax than in all of 2021, as a surge of such collections continues to significantly outpace historical figures.
Like every other month so far in 2022, collections in November exceeded those in the same month of the year before, this time by nearly 10%, according to preliminary numbers released by the city on Tuesday, Jan. 3.
Compared to 2021 on a year-to-date basis, tax collections in 2022 were up about 19% through November.
Total November 2022 collections neared $2.4 million. The month of November typically represents about 6% of a year’s total. The city has collected just over $35 million through November, compared to the $34.3 million collected in all of 2021.
This is about $2 million more than anticipated by budget officials when the city budget was forecasted, and is nearly $7 million more than what was collected in all of 2019, the year prior to the COVID-19 pandemic.
The city is on pace to have doubled its sales, use and accommodations tax collections over the past decade. Even if yet-to-be-seen collections for December are on par with 2021, total collections are on pace to potentially exceed $40 million in 2022.
Final sales tax numbers for December are expected in February, which will finalize collections for all of 2022. December is typically the most profitable month of the year, in terms of sales, use and accommodations taxes. December 2021 saw collections reach $4.8 million.
Each of the categories of sales taxes saw growth in November compared to the same month in 2021, except for marijuana taxes that have continued to decline. While marijuana sales taxes have declined by more than 11% compared to November of 2021, it still represents just 1% of total taxes collected by the city.
The largest growth for November was in the sporting goods category, which saw a 29% jump compared to last November, perhaps fueled by more early season snow than in 2021.
Utilities saw significant growth as well, with this November increasing by more than 17% over last, as natural gas rates continue to see increases. Taxes collected from utilities represent about 9% of all sales taxes collected by the city.
While pot sales haven’t blossomed, liquor sales have continued to see growth, with a nearly 13% increase in November over the prior year. Liquor stores collect about 3% of all sales taxes.
Taxes attached to construction and home improvement, lodging and amenities, and grocery stores all saw about a 10% jump in November over the prior year. Taxes collected on retail sales — the largest single category — increased by about 6%, the same amount that restaurant sales taxes increased this November over last.
When looking at areas within Steamboat Springs, each saw an increase over last year except for businesses downtown. The most growth was in the Mountain area, which saw a 24% increase. The U.S. Highway 40 corridor, the area that collects the lion’s share of sales taxes, was up 11% over November 2021.
Accommodations taxes — primarily used for local trails projects — was up 10% in November over the prior year and is up 30% year-to-date over 2021. Building use taxes saw a steep, 24% decline over the prior November, but is still up 2% over the course of the year.
To reach Dylan Anderson, call 970-871-4247 or email danderson@SteamboatPilot.com.
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