High inflation helped spike sales-tax revenues in March as the City of Steamboat Springs collected more than $5 million, the most ever in the month of March.

Collections were 5.6% higher than March 2022 sales-tax collections. Year-to-date sales-tax collection from January to March is 8.6% higher than the same period in 2022, a year that resulted in the most sales tax ever collected.

“It’s an across-the-board increase,” said Kim Weber, the city finance director. “Groceries and retail and utilities are hitting everyone the hardest, and it’s reflected in the report.”

When comparing this past March to the previous March, the notable collections increases are in utilities at 20.79% and grocery stores and other food sellers at 12.7%. Weber chalks up these differences to increased prices due to inflation and this year’s colder winter, which led to people using more electricity or gas to heat their homes.

March 2023 accommodations-tax collections are 4.86% higher compared to last year. Year-to-date, accommodations-tax collections are 5.73% greater than last year. This tax is primarily reserved for local trail projects, but a small amount each year is dedicated to the marketing of these projects and capital improvements at Haymaker Golf Course.

Additionally, the city in March collected $1,810,056 in short-term rental taxes, bringing year-to-date collections to $4,445,349. The tax, which began in January of this year, is used to increase the stock of affordable and attainable housing by providing incentives and contributions to facilitate the development of affordable and attainable housing. This provides funding for infrastructure associated with affordable and attainable housing, including energy, stormwater, water, wastewater and multi-modal transportation.

The city also collected $285,812 in building-use tax, used to fund capital projects for the city. This tax will fluctuate depending on building permits issued, use-tax reconciliations completed, and the size and number of developments in the city.