Vail sets August record for sales tax revenue
More people in Vail means more people are spending money, and it shows in the city’s collection of sales, accommodation, and other taxes. The city set a sales tax revenue record for the month of August – the most recent data available.
That record – $ 2.77 million – eclipsed August’s previous record of $ 2.23 million set in 2019. Sales tax accounts for about 40% of the city’s general fund revenue.
Collections are higher compared to this pre-pandemic year, as the 2020 numbers are skewed by relatively fewer visitors.
For example, city lodging tax collections greatly exceed those of 2020.
But the real estate boom that began in 2020 manifested itself in the collections of the 1% tax on real estate transfers from Vail.
Since the beginning of the year, the collections of this tax until September showed an increase of 37.5% this year compared to 2020. The collections of 2020 until September were 26% higher than those of the same period in 2019.
After a declining year 2020, the city’s building tax collections until the end of September increased by 89% compared to the previous year.
All of these numbers have pushed the city’s revenue beyond budget this year. But city officials are cautious in drawing up the 2022 budget. Vail city council is expected to vote on October 5 on the first reading of the 2022 budget ordinance.
Sales tax collections for next year are expected to be roughly stable with collections for 2021.
The forecast does not call for another record property tax. Instead, the city is budgeting around $ 7.5 million in transfer fee revenue, which is roughly a five-year average.
The city expects to collect around $ 6 million in property taxes in 2022. Parking revenues, meanwhile, are expected to total $ 6.6 million.
Overall, the 2022 budget plans to spend $ 85 million for all funds. Almost 68% of these expenses will go to financing municipal services.