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HomeMy WebLinkAbout01. 250107_Revenue_Update1 TOWN OF VAIL REVENUE UPDATE January 7, 2025 4.0% General Sales Tax Upon receipt of all sales tax returns, November 2024 collections are estimated to be $1,741,192, down (8.4%) from 2023 and down (2.1%) from the budget. The decline in October and November 2024 collections can partially be attributed to the allocation of Q4 quarterly fillings, which, by comparison, are reflected in the October and November 2023 totals. Quarterly filings allocated to these months will be updated in the next revenue update, which will include December 2024 collections. 2024 YTD collections of $36,068,471 are down (0.3%) from 2023 and up 1.3% from the budget. Inflation as measured by the consumer price index was up 2.7% for the 12-months ending November 2024. The annual budget totals $40.85 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, November 2024 collections of the 0.5% housing sales tax are estimated to be $209,804, down (8.4%) from 2023 and down (2.8%) from the budget. 2024 YTD collections of $4,371,236 are down (0.4%) from 2023 and up 1.3% from the budget. The annual budget for the housing fund sales tax totals $4.95 million. Real Estate Transfer Tax (RETT) RETT collections through December 26 total $9,346,776, up 16.9% from 2023. The number of property sales (excluding time-shares) is tracking down (7.9%) from 2023, while the average collection is tracking up 26.0%. Several high-dollar residential property sales during 2024 increased the town’s average RETT collection. The proposed amended budget for RETT collections totals $8,212,318. Construction Use Tax Use Tax collections through December 24 total $3,078,166 compared to $2,532,881 in 2023. The proposed amended budget totals $3,118,670. Lift Tax Year to date lift tax collections through November 30 total $5,553,154, up 4.8% or $257,552 from 2023. The proposed amended budget totals $7,014,135. The 2023/2024 season Epic Pass and Epic Pass Local both were priced with an 8% increase compared to the prior season. Daily Parking Sales Daily sales from the parking structures from November through December 28th total approximately $1,648,484, up 0.4% from time last year. This amount includes daily fees charged to the parking pass holders. 2 Parking Pass Sales Parking pass sale revenue through December 28th for the 2024/2025 winter season totals $1,179,275, up 5.3% or $59,644 from this time last year. In order to provide a better customer service experience while staff explored a new pass sales system, the annual fees for the Eagle County Local and Vail Local passes and were automatically renewed for the 2023/2024 winter season. A total of 3,972 passes have been sold this season compared to the 3,996 passes purchased and utilized to date during the prior winter season. Summary Across all funds and excluding one-time grants and reimbursement, year-to-date total revenue of $97.3 million is up 1.6% from the proposed amended budget and up 3.8% from prior year. The majority of the positive variance compared to the prior year is due to increased property tax collections, real estate transfer tax collections, construction use tax collections, and ski lift tax collections. 2024 Budget % change % change 2019 2020 2021 Budget Variance from 2023 from Budget January 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,787,370$ 5,798,584$ 11,214$ -1.91% 0.19% February 4,137,087 4,285,633 3,691,850 5,686,585 6,041,108 5,914,315 6,072,895 158,580 0.53% 2.68% March 4,237,933 2,243,518 4,364,797 5,912,059 6,055,992 6,035,677 6,405,920 370,243 5.78% 6.13% April 1,445,071 427,518 1,751,528 2,234,296 2,264,892 2,258,798 1,836,279 (422,519) -18.92% -18.71% May 763,756 503,828 1,061,516 1,227,974 1,118,011 1,111,919 1,170,007 58,088 4.65% 5.22% June 1,606,748 1,023,517 2,149,312 2,317,931 2,272,457 2,265,104 2,350,146 85,042 3.42% 3.75% July 2,480,292 2,084,644 3,491,668 3,507,973 3,412,277 3,399,024 3,636,007 236,983 6.56% 6.97% August 2,237,050 2,138,838 2,877,550 2,997,389 2,932,111 2,920,600 3,033,996 113,396 3.47% 3.88% September 1,600,100 1,767,393 2,359,528 2,441,331 2,508,064 2,495,143 2,392,305 (102,838) -4.62% -4.12% October 1,165,176 1,371,727 1,734,964 1,729,558 1,773,358 1,652,467 1,631,140 (21,327) -8.02% -1.29% November 1,260,314 1,425,461 1,880,397 1,902,643 1,901,141 1,779,167 1,741,192 (37,975) -8.41% -2.13% Total 25,013,520$ 21,348,222$ 28,785,318$ 35,174,864$ 36,190,983$ 35,619,584$ 36,068,471$ 448,887$ -0.34% 1.26% 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$ 36,068,471$ 448,887$ -0.34%1.26% **Please note, October and November 2024 does not include quarterly filings as oppsed to October and November 2023 where quarterly revenue has been allocated to those periods. Sales tax for these 2024 periods show as less by comparison and will reflect quarterlies in December. 2022 2023 2024 Budget % change % change Collections Collections Budget Variance from 2023 from Budget January 645,487$ 720,906$ 700,920$ 704,341$ 3,421$ -2.30% 0.49% February 702,730 736,788 716,760 740,723 23,963 0.53% 3.34% March 719,717 738,244 731,610 782,297 50,687 5.97% 6.93% April 269,018 271,930 273,735 221,206 (52,529) -18.65% -19.19% May 146,657 132,333 134,640 138,966 4,326 5.01% 3.21% June 280,460 275,113 274,230 283,659 9,429 3.11% 3.44% July 424,602 412,849 411,840 438,245 26,405 6.15% 6.41% August 361,165 352,887 353,925 366,936 13,011 3.98% 3.68% September 294,861 304,068 302,445 289,963 (12,482) -4.64% -4.13% October 207,397 213,568 200,475 195,096 (5,379) -8.65% -2.68% November 230,383 229,092 215,820 209,804 (6,016) -8.42% -2.79% Total 4,282,477$ 4,387,778$ 4,316,400$ 4,371,236$ 54,836$ -0.38% 1.27% December 671,982 687,985 633,600 - Total 4,954,459$ 5,075,763$ 4,950,000$ 4,371,236$ 54,836$ -0.38% 1.27% Town of Vail Revenue Update January 7, 2025 4.0% GENERAL SALES TAX 2024 Budget Comparison 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX 2024 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax2022 2023 Vail Business Review November 2024 January 7, 2025 The Vail Business Review breaks down the 4.5% sales tax collected for the month of November. 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. November 4.5% sales tax was down (8.5)% from the prior year. Retail decreased (17.7)%, lodging increased 4.0%, food and beverage increased 3.9%, and utilities/other decreased (21.2)%. Excluding the out-of-town category, sales tax for the month of November was down (6.4)% compared to 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) 479-2125 or Carlie Smith, Finance Director, at (970) 479-2119. Sincerely, Lauren Noll Revenue Manager November 2023 Sales Tax Collections by Business Type November 2024 Town of Vail Business Review November Sales Tax Collections by Year November 2024 Sales Tax Retail 821,632 Lodging 593,623 Food & Beverage 380,533 Utilities & Other 155,160 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 RLFU$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000LFU$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000R 1,389,683 1,884,888 2,131,788 2,132,094 1,950,949 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 2020 2021 2022 2023 2024 General Sales Tax Housing Sales Tax • November 2024 retail sales decreased (17.7)%, lodging increased 4.0%, food and beverage increased 3.9%, and utilities and other decreased (21.2)%. • The figures above reflect 4.5% sales tax. Retail 998,243 Lodging 570,793 Food & Beverage 366,162 Utilities & Other 196,896 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 (17.7)% • 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 November 2023 collections were $2,132,094; November 2024 collections were $1,950,949, down (8.5)% from the prior year. 4.0%3.9%(21.2)% November 2024 Sales Tax Town of Vail Business Review November 2023November 2024 Geographic Area Trends by Year November Sales Tax Sales Tax by Location Other Areas 13% Lionshead 10% Out of Town 43% Vail Village 34% • Vail Village sales tax decreased (10.2)%, Lionshead decreased (0.4)%, Other Areas decreased (0.8)%, and Out of Town decreased (11.2)%. Excluding Out of Town collections, all areas were down (6.4)%. • The figures above reflect 4.5% sales tax. 241,495 235,269 162,531 216,986 531,107 770,278 454,550 662,355 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2020 2021 2022 2023 2024 Vail Village Out of Town Lionshead Other Areas 237,082 285,087 • This chart shows November 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. 266,743 212,175 922,240 730,936 656,523 211,239 818,668 264,519 Other Areas 13% Lionshead 11% Out of Town 42% Vail Village 34% 688,301 921,317 Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail November 2024 Sales Tax Town of Vail Business Review Apparel $139,679 Grocery $111,585 Gallery $10,297 Gifts $2,880 Jewelry $13,276 Retail Liquor $31,578 Retail Other $280,831 Sporting Goods $130,427 Online Retailers $101,079 Retail Home Occupation $0 • November 2024 accommodations services increased 4.0% from the prior year. Short-term rentals increased 3.6% and hotels and lodges increased 4.3%. • 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. 325,478 256,161 318,049 252,744 331,722 261,902 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Hotel and Lodges Short-Term Rentals 2024 2023 2022 Cascade Village / East Vail / Sandstone / West Vail Retail 133,368 143,785 -7.24% Lodging 69,684 72,090 -3.34% F & B 59,496 43,971 35.31% Other 1,970 6,897 -71.43% Total 264,519 266,743 -0.83% Lionshead Retail 70,070 71,397 -1.86% Lodging 77,755 81,981 -5.15% F & B 62,594 55,781 12.21% Other 821 3,016 -72.79% Total 211,239 212,175 -0.44% Out of Town Retail 358,560 473,957 -24.35% Lodging 309,659 264,550 17.05% F & B 481 613 -21.66% Other 149,968 183,120 -18.10% Total 818,668 922,240 -11.23% Vail Village Retail 259,634 309,103 -16.00% Lodging 136,526 152,173 -10.28% F & B 257,962 265,797 -2.95% Other 2,401 3,863 -37.84% Total 656,523 730,936 -10.18% Total - All Areas Retail 821,632 998,243 -17.69% Lodging 593,623 570,793 4.00% F & B 380,533 366,162 3.92% Other 155,160 196,896 -21.20% Total 1,950,949 2,132,094 -8.50% Retail Summary Retail Apparel 139,679 150,904 -7.44% Retail Food 111,585 126,332 -11.67% Retail Gallery 10,297 9,941 3.58% Retail Gift 2,880 4,447 -35.25% Retail Home Occupation - 206 -100.00% Retail Jewelry 13,276 30,203 -56.04% Retail Liquor 31,578 33,437 -5.56% Retail Other 280,831 397,413 -29.34% Retail Sport 130,427 151,040 -13.65% Retail Online Retailer 101,079 94,321 7.17% Total 821,632 998,243 -17.69% **Please note, November 2024 does not include quarterly filings as oppsed to November 2023 where quarterly revenue has been allocated. The Retail Other category is most affected by quarterly filings. Town of Vail Business Review November 4.5% Sales Tax 2024 Collections 2023 Collections YoY % Change