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HomeMy WebLinkAbout01. 240604_Revenue_Update1 TOWN OF VAIL REVENUE UPDATE June 4, 2024 4.0% General Sales Tax Upon receipt of all sales tax returns, April 2024 collections are estimated to be $1,808,688, down (20.1)% from 2023 and down (19.9)% from the budget. Historically, the timing of Easter has impacted sales tax collections for the months of March and April. To eliminate the reporting variance impacted by how the holiday fell, staff has combined March and April collections. For the two months combined sales tax collections totaled $8,167,959 down (1.8)% from the prior year and down (1.5)% from the budget. 2024 YTD collections of $19,934,818 are down (1.7)% from 2023 and down (0.3)% from the budget. Inflation as measured by the consumer price index was up 3.4% for the 12-months ending March 2024. The annual budget totals $40.85 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, April 2024 collections of the 0.5% housing sales tax are estimated to be $217,768, down (19.9)% from 2023 and down (20.5)% from the budget. 2024 YTD collections of $2,437,313 are down (1.2)% from 2023 and up 0.6% from the budget. The 2024 budget for the housing fund sales tax totals $4.95 million. To eliminate the reporting variance impacted by how the Easter holiday fell, staff has combined March and April collections. For the two months combined housing sales tax collections totaled $994,252 down (1.6)% from the prior year and down (1.1)% from the budget. Real Estate Transfer Tax (RETT) RETT collections through May 28 total $3,653,938, up 41.4% from 2023. The variance compared to prior year is due to an increase the number of residential property sales which is tracking up 27%. Additionally, there have been several high dollar residential property sales. The 2024 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through May 28 total $806,611 compared to $1,074,782 in 2023. The 2024 budget totals $2,040,000. Lift Tax Year to date lift tax collections through April 30 total $4,940,032, up 6.2% or $289,738 from 2023. The 2024 budget totals $6,675,000. The 2023/2024 season Epic Pass and Epic Pass Local both were priced with an 8% increase compared to the prior season. 2 Summary Across all funds, year-to-date total revenue of $44.1 million is up 4.5% from the amended budget and up 5.1% from prior year. The majority of the positive variance compared to the amended budget and prior year is due to higher-than-expected real estate transfer tax collections. 2024 Budget % change % change 2019 2020 2021 Budget Variance from 2023 from Budget January 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,787,370$ 5,835,478$ 48,108$ -1.29%0.83% February 4,137,087 4,285,633 3,691,850 5,686,585 6,041,108 5,914,315 5,931,381 17,066 -1.82%0.29% March 4,237,933 2,243,518 4,364,797 5,912,059 6,055,992 6,035,677 6,359,271 323,594 5.01%5.36% April 1,445,071 427,518 1,751,528 2,234,296 2,264,892 2,258,798 1,808,688 (450,110) -20.14%-19.93% Total 13,900,085$ 11,032,814$ 13,230,384$ 19,050,065$ 20,273,564$ 19,996,160$ 19,934,818$ (61,342)$ -1.67%-0.31% May 763,756 503,828 1,061,516 1,227,974 1,118,011 1,111,919 - June 1,606,748 1,023,517 2,149,312 2,317,931 2,272,457 2,265,104 - July 2,480,292 2,084,644 3,491,668 3,507,973 3,412,277 3,399,024 - August 2,237,050 2,138,838 2,877,550 2,997,389 2,932,111 2,920,600 - September 1,600,100 1,767,393 2,359,528 2,441,331 2,508,064 2,495,143 - October 1,165,176 1,371,727 1,734,964 1,729,558 1,773,358 1,652,467 - November 1,260,314 1,425,461 1,880,397 1,902,643 1,901,141 1,779,167 - December 4,237,178 3,625,189 5,749,365 5,602,018 5,691,428 5,230,416 - Total 29,250,698$ 24,973,411$ 34,534,683$ 40,776,882$ 41,882,411$ 40,850,000$ 19,934,818$ (61,342)$ -1.67%-0.31% 2022 2023 2024 Budget % change % change Collections Collections Budget Variance from 2023 from Budget January 645,487$ 720,906$ 700,920$ 703,270$ 2,350$ -2.45%0.34% February 702,730 736,788 716,760 739,790 23,030 0.41%3.21% March 719,717 738,244 731,610 776,484 44,874 5.18%6.13% April 269,018 271,930 273,735 217,768 (55,967) -19.92%-20.45% Total 2,336,952$ 2,467,868$ 2,423,025$ 2,437,313$ 14,288$ -1.24%0.59% May 146,657 132,333 134,640 - June 280,460 275,113 274,230 - July 424,602 412,849 411,840 - August 361,165 352,887 353,925 - September 294,861 304,068 302,445 - October 207,397 213,568 200,475 - November 230,383 229,092 215,820 - December 671,982 687,985 633,600 - Total 4,954,459$ 5,075,763$ 4,950,000$ 2,437,313$ 14,288$ -1.24%0.59% Town of Vail Revenue Update June 4, 2024 4.0% GENERAL SALES TAX2024 Budget Comparison 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX 2024 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax20222023 Through April 30 April 4% General Sales Tax Collections By Year Through April 30 Town of Vail Revenue Update June 4, 2024 YTD 4% General Sales Tax Collections By Year •April collections of $1,808,688 are down (20.1)% from prior year and are down (19.9)% from the budget. •Historically, the timing of Easter has impacted sales tax collections for the months of March and April. To eliminate the reporting variance impacted by how the holiday fell, staff has combined March and April collections. For the two months combined sales tax collections totaled $8,167,959 down (1.8)% from the prior year and down (1.5)% from the budget. $427,518 $1,751,528 $2,234,296 $2,264,892 $1,808,688 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 2021 2022 2023 2024 $11,032,814 $13,230,384 $19,050,065 $20,273,564 $19,934,818 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2020 2021 2022 2023 2024 •YTD collections of $19,934,818 are down (1.7)% from prior year and are down (0.3)% from the budget. •Inflation as measured by the consumer price index was up 3.4% in April. April Collections YTD Collections Town of Vail Revenue Update June 4, 2024 April 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through May 2024 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2024 collections are up 41.4% from the prior year. $2,069,914 $4,056,565 $3,936,168 $2,584,277 $3,653,938 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2020 2021 2022 2023 2024 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •April collections of $217,768 are down (19.9)% from prior year and are down (20.5)% from the amended budget. YTD collections of $2,437,313 are down (1.2)% from this time last year and are up 0.6% from the budget. •Historically, the timing of Easter has impacted sales tax collections for the months of March and April. To eliminate the reporting variance impacted by how the holiday fell, staff has combined March and April collections. For the two months combined housing sales tax collections totaled $994,2539 down (1.6)% from the prior year and down (1.1)% from the budget. $269,018 $271,930 $217,768 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2022 2023 2024 $2,336,952 $2,467,868 $2,437,313 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 2023 2024 Town of Vail Revenue Update June 4, 2024 Construction Use Tax by Year YTD Through May 2024 YTD Lift Tax Collections YTD Through April 2024 •Use Tax collections through May 28 total $806,611, compared to $1,074,782 from this time last year. This is a decrease of (25.0)%. $575,018 $2,138,087 $965,715 $1,074,782 $806,611 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 2021 2022 2023 2024 •2024 YTD lift tax collections of $4,940,032 are up 6.2% or $289,738 from the same time last year. $2,916,926 $3,919,631 $4,677,161 $4,650,293 $4,940,032 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2020 2021 2022 2023 2024 Vail Business Review April 2024 June 4, 2024 The Vail Business Review breaks down the 4.5% sales tax collected for the month of April. The 4.5% sales tax includes the town’s general 4% sales tax and the 0.5% housing sales tax supported by Town of Vail voters during the November 2021 election, effective January 1, 2022. The housing sales tax sunsets on December 31, 2051. April 4.5% sales tax was down (20.2)% from the prior year. Retail decreased (25.5)%, lodging decreased (24.1)%, food and beverage decreased (12.0)%, and utilities/other decreased (5.2%). Excluding the out-of-town category, sales tax for the month of April was down (20.0)% compared to prior year. In 2024, the Easter holiday weekend fell on March 30th through 31st. Historically, years in which the holiday falls during March see increased collections during the month of March, and decreased collections during the month of April. Across March and April combined, sales tax collections were down (1.6)% from the prior year. Town of Vail sales tax forms, the Vail Business Review, and sales tax worksheets are available on the internet at vail.gov. You may email me to request to have the Vail Business Review and the sales tax worksheet emailed to you automatically. Please remember when reading the Vail Business Review that it is produced from sales tax collections as opposed to actual gross sales. If you have any questions or comments, please feel free to call me at (970) 479-2113 or Carlie Smith, Finance Director, at (970) 479-2119. Sincerely, Jake Shipe Budget Analyst Town of Vail Business Review April Sales Tax Collections by Year April 2024 Sales Tax April 2023 Sales Tax Collections by Business Type April 2024 779,610 Lodging 517,664 Food & Beverage 498,222 Utilities & Other 225,787 $0 $500,000 $1,000,000 (25.5)%(12.0)%(5.2.%) Retail 428,125 1,797,641 2,503,426 2,531,912 2,021,282 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 General Sales Tax Housing Sales Tax •April 2024 retail sales decreased (25.5)%, lodging decreased (24.0)%, food and beverage decreased (12.0)%, and utilities and other decreased (5.2%). •The figures above reflect 4.5% sales tax. Retail 1,045,875 Lodging 681,736 Food & Beverage 566,031 Utilities & Other 238,270 $0 $500,000 $1,000,000 $1,500,000 (24.0)% •This report represents collections of Town of Vail sales tax, as opposed to actual gross sales. •On January 1st, 2022, Town of Vail sales tax increased from 4.0% to 4.5% on all items except food for home consumption. 2022, 2023, and 2024 above include the 0.5% increase to sales tax, depicted in light blue. Prior years show 4.0% sales tax collections. •Total April 2023 collections were $2,531,912; April 2024 collections were $2,021,282, down (20.1)% from the prior year. •Historically, the timing of Easter has impacted sales tax collections for the months of March and April. To eliminate the reporting variance impacted by how the holiday fell, staff has combined March and April collections. For the two months combined sales tax collections totaled $8,948,274 down (1.6)% from the prior year. Town of Vail Business Review April 2023April 2024 Geographic Area Trends by Year April Sales Tax Sales Tax by Location April 2024 Sales Tax Other Areas 14% Lionshead 19% Out of Town 22% Vail Village 45% •Vail Village sales tax decreased (24.9)%, Lionshead decreased (19.4)%, Other Areas decreased (4.7)%, and Out of Town decreased (20.5%). Excluding Out of Town collections, all areas were down (20.0)%. •The figures above reflect 4.5% sales tax. 126,283 262,798 15,059 224,692 253,163 610,041 33,620 700,109 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 2021 2022 2023 2024 Vail Village Out of Town Lionshead Other Areas 975,936770,911378,278 327,666 •This chart shows April sales tax collections by geographic area over time. •2022, 2023, and 2024 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 322,211347,319 793,726 1,068,657 769,869 279,986 626,347 290,654 Other Areas 14% Lionshead 19% Out of Town 19% Vail Village 48% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail April 2024 Sales Tax Town of Vail Business Review Apparel $133,172 Grocery $122,730 Gallery $4,471 Gifts $2,743 Jewelry $30,821 Retail Liquor $34,185 Retail Other $220,777 Sporting Goods $153,026 Online Retailers $77,684 Retail Home Occupation $326 •April 2024 accommodations services decreased (24.0)% from the prior year. Short-term rentals decreased (36.2)% and hotels and lodges decreased (17.9)%. •The figures above reflect 4.5% sales tax. •Short-term rental sales tax collection numbers include online marketplace facilitators like Airbnb and VRBO. Revenue collections from facilitators may include some hotels and lodges. 547,632 174,365 452,141 229,594 371,131 146,533 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 Cascade Village / East Vail / Sandstone / West Vail Retail 137,759 166,223 -17.12% Lodging 91,926 93,355 -1.53% F & B 75,573 59,830 26.31% Other 1,752 2,803 -37.50% Total 307,010 322,211 -4.72% Lionshead Retail 69,372 107,420 -35.42% Lodging 120,532 134,309 -10.26% F & B 87,281 101,698 -14.18% Other 2,801 3,891 -28.01% Total 279,986 347,318 -19.39% Out of Town Retail 269,758 374,401 -27.95% Lodging 149,350 195,641 -23.66% F & B 623 1,314 -52.62% Other 211,415 222,370 -4.93% Total 631,145 793,726 -20.48% Vail Village Retail 302,722 397,830 -23.91% Lodging 155,856 258,432 -39.69% F & B 334,745 403,188 -16.98% Other 9,819 9,206 6.65% Total 803,141 1,068,657 -24.85% Total - All Areas Retail 779,610 1,045,875 -25.46% Lodging 517,664 681,736 -24.07% F & B 498,222 566,031 -11.98% Other 225,787 238,270 -5.24% Total 2,021,282 2,531,912 -20.17% Retail Summary Retail Apparel 133,172 186,447 -28.57% Retail Food 122,730 152,122 -19.32% Retail Gallery 4,471 40,733 -89.02% Retail Gift 2,743 3,383 -18.91% Retail Home Occupation - 56 -100.00% Retail Jewelry 30,821 31,380 -1.78% Retail Liquor 34,185 41,104 -16.83% Retail Other 220,777 297,340 -25.75% Retail Sport 153,026 222,833 -31.33% Retail Online Retailer 77,684 70,478 10.22% Total 779,610 1,045,875 -25.46% Town of Vail Business Review April 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change