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HomeMy WebLinkAbout01. 240806 Revenue Update1 TOWN OF VAIL REVENUE UPDATE August 6, 2024 4.0% General Sales Tax Upon receipt of all sales tax returns, June 2024 collections are estimated to be $2,325,594, up 2.3% from 2023 and up 2.7% from the budget. 2024 YTD collections of $23,526,473 are down (0.6)% from 2023 and up 0.7% from the budget. Inflation as measured by the consumer price index was up 3.0% for the 12-months ending June 2024. The annual budget totals $40.85 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, June 2024 collections of the 0.5% housing sales tax are estimated to be $280,598 up 2.0% from 2023 and up 2.3% from the budget. 2024 YTD collections of $2,577,182 are down (0.9)% from 2023 and up 0.8% from the budget. The 2024 budget for the housing fund sales tax totals $4.95 million. Real Estate Transfer Tax (RETT) RETT collections through July 30 total $4,773,554, up 44.3% from 2023. The variance compared to prior year is due in-part to an increase in the number of residential property sales which is tracking up 23%. 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 July 30 total $1,778,969 compared to $1,773,592 in 2023. The 2024 budget totals $2,040,000. Lift Tax Year to date lift tax collections through June 30 total $5,003,900, up 6.1% or $287,639 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. Summary Across all funds, year-to-date total revenue of $60.2 million is up 9.7% from the amended budget and up 6.8% from prior year. The majority of the positive variance compared to the amended budget is due to higher-than-expected real estate transfer tax collections and interest earnings. The majority of the positive variance compared to the prior year is due to higher- than-expected real estate transfer tax collections, property tax collections, and ski lift tax collections. 2024 Budget % change % change 2019 2020 2021 Budget Variance from 2023 from Budget January 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,787,370$ 5,791,011$ 3,641$ -2.04%0.06% February 4,137,087 4,285,633 3,691,850 5,686,585 6,041,108 5,914,315 6,065,694 151,379 0.41%2.56% March 4,237,933 2,243,518 4,364,797 5,912,059 6,055,992 6,035,677 6,365,024 329,347 5.10%5.46% April 1,445,071 427,518 1,751,528 2,234,296 2,264,892 2,258,798 1,820,747 (438,051) -19.61%-19.39% May 763,756 503,828 1,061,516 1,227,974 1,118,011 1,111,919 1,158,403 46,484 3.61%4.18% June 1,606,748 1,023,517 2,149,312 2,317,931 2,272,457 2,265,104 2,325,594 60,490 2.34%2.67% Total 16,270,588$ 12,560,159$ 16,441,212$ 22,595,970$ 23,664,032$ 23,373,183$ 23,526,473$ 153,290$ -0.58%0.66% 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$ 23,526,473$ 153,290$ -0.58%0.66% 2022 2023 2024 Budget % change % change Collections Collections Budget Variance from 2023 from Budget January 645,487$ 720,906$ 700,920$ 703,394$ 2,474$ -2.43%0.35% February 702,730 736,788 716,760 739,823 23,063 0.41%3.22% March 719,717 738,244 731,610 777,185 45,575 5.27%6.23% April 269,018 271,930 273,735 219,264 (54,471) -19.37%-19.90% May 146,657 132,333 134,640 137,515 2,875 3.92%2.14% June 280,460 275,113 274,230 280,598 6,368 1.99%2.32% Total 2,483,609$ 2,600,201$ 2,557,665$ 2,577,182$ 19,517$ -0.89%0.76% 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$ 2,577,182$ 19,517$ -0.89%0.76% Town of Vail Revenue Update August 6, 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 Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year August 6, 2024 Through June 30 June 4% General Sales Tax Collections By Year Through June 30 •June collections of $2,325,594 are up 2.3% from prior year and are up 2.7% from the budget. $1,023,517 $2,149,312 $2,317,931 $2,272,457 $2,325,594 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 2021 2022 2023 2024 $12,560,159 $16,441,212 $22,595,970 $23,664,032 $23,526,473 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2020 2021 2022 2023 2024 •YTD collections of $23,526,473 are down (0.6)% from prior year and are up 0.7% from the budget. •Inflation as measured by the consumer price index was up 3.0% in June. Town of Vail Revenue Update August 6, 2024 June 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through July 2024 June Collections YTD Collections •This chart shows YTD collections of 1% RETT, segmented by real property values. 2024 collections are up 44.3% from the prior year. $3,170,265 $6,373,698 $5,442,865 $3,307,320 $4,773,554 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 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 •June collections of $280,598 are up 2.0% from prior year and are up 2.3% from the budget. YTD collections of $2,577,182 are down (0.9)% from this time last year and are up 0.8% from the budget. $280,460 $275,113 $280,598 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2022 2023 2024 $2,483,609 $2,600,201 $2,577,182 $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 August 6, 2024 Construction Use Tax by Year YTD Through July 2024 YTD Lift Tax Collections YTD Through June 2024 •Use Tax collections through July 30 total $1,778,969, compared to $1,773,592 from this time last year. This is an increase of 0.3%. $839,478 $2,659,062 $1,227,733 $1,773,592 $1,778,969 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 •2024 YTD lift tax collections of $5,003,900 are up 6.1% or $287,639 from the same time last year. $2,918,791 $3,981,861 $4,798,965 $4,716,261 $5,003,900 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2020 2021 2022 2023 2024 Vail Business Review June 2024 and 2024 2nd Quarter August 6, 2024 The Vail Business Review breaks down the 4.5% sales tax collected for the month of June 2024. 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. Overall, June 4.5% sales tax was up from the prior year 2.3%. Retail decreased (9.3%), lodging decreased (1.0)%, food and beverage increased 13.3%, and utilities/other decreased (9.3)%. Excluding the out-of-town category, sales tax for the month of June was up 3.5% compared to prior year. The second quarter of 2024 resulted in an overall (6.0)% decrease from the prior year. Retail decreased (9.1)%, lodging decreased (9.4)%, food and beverage increased 2.6%, and utilities/other decreased (3.1)%. Excluding the out-of-town category, sales tax collections for second quarter of 2024 decreased (5.4)%. 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. Town of Vail sales tax forms, the Vail Business Review, and sales tax worksheets are available on the internet at www.vail.gov. You can subscribe to have the Vail Business Review and the sales tax worksheet emailed to you automatically from www.vail.gov. 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 June 2023 Sales Tax Collections by Business Type June 2024 Town of Vail Business Review June Sales Tax Collections by Year June 2024 Sales Tax Retail 967,109 Lodging 752,950 Food & Beverage 726,505 Utilities & Other 159,489 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 U$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000 1,021,229 2,150,733 2,599,169 2,547,565 2,606,053 $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 •June 2024 retail sales decreased (0.3)%, lodging decreased (1.0)%, food and beverage increased 13.3%, and utilities and other decreased (9.3%). •The figures above reflect 4.5% sales tax. Retail 970,359 Lodging 760,610 Food & Beverage 640,804 Utilities & Other 175,792$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 (0.3)% •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 June 2023 collections were $2,547,565; June 2024 collections were $2,606,053 up 2.3% from the prior year. (1.0)%13.3%(9.3)% June 2024 Sales Tax Town of Vail Business Review June 2023June 2024 Geographic Area Trends by Year June Sales Tax Sales Tax by Location Other Areas 16% Lionshead 12% Out of Town 30% Vail Village 42% •Vail Village sales tax decreased (3.7)%, Lionshead increased 25.8%, Other Areas increased 6.3%, and Out of Town decreased (0.6%). Excluding Out of Town collections, all areas were up 3.5%. •The figures above reflect 4.5% sales tax. 194,492 336,430 149,733 250,115 262,950 665,641 414,053 898,548 $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 1,104,107771,944325,717 325,717 •This chart shows June 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. 376,505299,358 755,542 1,076,273 1,035,989 376,505 751,115 442,444 Other Areas 17% Lionshead 14% Out of Town 29% Vail Village 40% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail June 2024 Sales Tax Town of Vail Business Review Apparel $194,898 Grocery $172,890 Gallery $6,671 Gifts $4,428 Jewelry $30,566Retail Liquor $43,381 Retail Other $339,911 Sporting Goods $78,994 Online Retailers $95,173 Retail Home Occupation $197 •June 2024 accommodations services decreased (1.0)% from the prior year. Short-term rentals decreased (8.6)% and hotels and lodges increased 2.2%. •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. 582,046 208,516 535,308 225,301 547,061 205,889 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 Cascade Village / East Vail / Sandstone / West Vail Retail 185,137 173,310 6.82% Lodging 125,061 127,689 -2.06% F & B 129,090 105,620 22.22% Other 3,156 9,773 -67.71% Total 442,444 416,391 6.26% Lionshead Retail 55,868 54,633 2.26% Lodging 162,174 126,034 28.68% F & B 154,206 112,467 37.11% Other 4,256 6,224 -31.62% Total 376,505 299,358 25.77% Out of Town Retail 385,349 388,140 -0.72% Lodging 221,304 215,146 2.86% F & B 615 1,376 -55.33% Other 143,848 150,879 -4.66% Total 751,115 755,542 -0.59% Vail Village Retail 340,755 354,277 -3.82% Lodging 244,411 291,741 -16.22% F & B 442,594 421,340 5.04% Other 8,229 8,915 -7.69% Total 1,035,989 1,076,273 -3.74% Total - All Areas Retail 967,109 970,359 -0.33% Lodging 752,950 760,610 -1.01% F & B 726,505 640,804 13.37% Other 159,489 175,792 -9.27% Total 2,606,053 2,547,565 2.30% Retail Summary Retail Apparel 194,898 196,987 -1.06% Retail Food 172,890 156,402 10.54% Retail Gallery 6,671 9,534 -30.03% Retail Gift 4,428 4,962 -10.75% Retail Home Occupation 197 43 362.14% Retail Jewelry 30,566 38,358 -20.31% Retail Liquor 43,381 44,777 -3.12% Retail Other 339,911 360,894 -5.81% Retail Sport 78,994 80,551 -1.93% Retail Online Retailer 95,173 77,852 22.25% Total 967,109 970,359 -0.33% Town of Vail Business Review June 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change Town of Vail Business Review Q2 Sales Tax Collections by Year Q2 2024 Sales Tax Q2 2023 Sales Tax Collections by Business Type Q2 2024 2,381,814 Lodging 1,544,652 Food & Beverage 1,460,372 Utilities & Other 568,613 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 (9.1)%2.6%(3.1%) Retail 1,955,976 5,000,620 6,472,100 6,335,048 5,955,450 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2020 2021 2022 2023 2024 General Sales Tax Housing Sales Tax •Q2 2024 retail sales decreasd (9.1)%, lodging decreased (9.4)%, food and beverage increased 2.6%, and utilities and other decreased (3.1%). •The figures above reflect 4.5% sales tax. Retail 2,619,504 Lodging 1,704,518 Food & Beverage 1,424,034 Utilities & Other 586,991 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 (9.4)% •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 Q2 2023 collections were $6,335,048; Q2 2024 collections were $5,955,450, down from the prior year (6.0)%. Town of Vail Business Review Q2 2023Q2 2024 Geographic Area Trends by Year Q2 Sales Tax Sales Tax by Location Q2 2024 Sales Tax Other Areas 14% Lionshead 19% Out of Town 22% Vail Village 45% •Vail Village sales tax decreased (13.3)%, Lionshead increased 8.6%, Other Areas increased 4.4%, and Out of Town decreased (7.2%). Excluding Out of Town collections, all areas were down (5.4)%. •The figures above reflect 4.5% sales tax. 469,456 784,188 177,356 550,443 775,927 1,745,053 533,236 1,920,936 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 2021 2022 2023 2024 Vail Village Out of Town Lionshead Other Areas 2,553,238 2,171,580814,887932,416 •This chart shows Q2 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. 933,091756,406 2,185,932 2,459,620 2,130,972 821,724 2,028,587 974,167 Other Areas 15% Lionshead 19% Out of Town 20% Vail Village 46% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail Q2 2024 Sales Tax Town of Vail Business Review Apparel $405,035 Grocery $404,730 Gallery $13,365 Gifts $8,525 Jewelry $74,487 Retail Liquor $101,770 Retail Other $873,413 Sporting Goods $257,841 Online Retailers $245,761 Retail Home Occupation $591 •Q2 2024 accommodations services decreased 9.4% from the prior year. Short-term rentals decreased (20.1)% and hotels and lodges decreased (4.1)%. •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. 1,297,894 496,756 1,143,834 560,685 1,096,464 448,188 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 Retail 449,552 460,680 -2.42% Lodging 257,172 248,922 3.31% F & B 258,707 203,720 26.99% Other 8,736 19,768 -55.81% Total 974,167 933,091 4.40% Retail 138,785 174,823 -20.61% Lodging 343,761 300,501 14.40% F & B 325,269 264,913 22.78% Other 13,909 16,169 -13.97% Total 821,724 756,406 8.64% Retail 1,012,057 1,113,359 -9.10% Lodging 488,699 537,299 -9.05% F & B 1,400 3,361 -58.36% Other 526,432 531,913 -1.03% Total 2,028,587 2,185,932 -7.20% Retail 781,420 870,642 -10.25% Lodging 455,020 617,796 -26.35% F & B 874,996 952,041 -8.09% Other 19,536 19,142 2.06% Total 2,130,972 2,459,620 -13.36% Retail 2,381,814 2,619,504 -9.07% Lodging 1,544,652 1,704,518 -9.38% F & B 1,460,372 1,424,034 2.55% Other 568,613 586,991 -3.13% Total 5,955,450 6,335,048 -5.99% Retail Apparel 405,035 447,459 -9.48% Retail Food 404,730 408,622 -0.95% Retail Gallery 13,365 64,247 -79.20% Retail Gift 8,525 9,497 -10.23% Retail Home Occupation 591 143 312.88% Retail Jewelry 74,487 97,697 -23.76% Retail Liquor 101,770 109,998 -7.48% Retail Other 873,413 949,095 -7.97% Retail Sport 257,841 323,779 -20.37% Retail Online Retailer 245,761 213,469 15.13% Total 2,385,518 2,624,005 -9.09% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Q2 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary