June sales tax revenue sees large increase in construction as marijuana sales continue to fall
Revenue from Steamboat Springs’ sales, use and accommodation tax showed a large increase in June compared to last year, with collections from construction and home improvement projects leading the way.
While May saw a small 6.5% increase in sales tax revenue compared to the same month last year, June saw a robust 17.5% increase compared to June 2021.
The year-to-date collections through June finished the month at a strong 26% over last year’s total, though the city’s year-to-date advantage has been trending downward ever since its peak of 36.5% in February.
Five of the nine tax categories the city tracks were within 2% of last year, but a few categories saw large swings, including a 77% increase in tax revenue attributed to construction and home improvement projects, which yielded to the city a little over $900,000 in June.
This could also be seen in the building use tax, which is used to fund capital projects for the city and fluctuates based on the number of building permits issued by the city, use tax reconciliations completed and the size and number of developments in the city.
In total, the building use tax netted almost $600,000, a 218% increase over June 2021, and the year-to-date increase was at 59%.
Collections attributed to miscellaneous retail were also up 16.5%, continuing a trend that has been observed all year.
The marijuana industry continues to fall behind 2021 totals. June saw a 17% decrease in tax revenue compared to last year, bringing in only $39,000.
The utilities category in June saw an almost 7% increase in revenue over last year, which was almost identical to May.
June’s taxes broken down by area showed West Steamboat yielded almost $520,000 in revenue, its highest total on record.
Out-of-town sales tax revenue saw a huge spike, yielding over $800,000 or a 136% increase over last year.
The accommodation tax, which is used primarily to fund local trail projects, brought in 0.7% more revenue in June compared to the same month last year, but is 48% higher year-to-date than 2021 through the same time span.
To reach Spencer Powell, call 970-871-4229 or email him at spowell@SteamboatPilot.com
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