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HomeMy WebLinkAbout02. 250701 Revenue Update1 TOWN OF VAIL REVENUE UPDATE July 1, 2025 4.0% General Sales Tax Upon receipt of all sales tax returns, May 2025 collections are estimated to be $1,158,304, down (1.6)% from 2024 and up 0.5% from the budget. 2025 YTD collections of $21,913,644 are up 2.8% from 2024 and up 3.1% from the budget. Inflation as measured by the consumer price index was up 2.4% for the 12-months ending May 2025. The annual budget totals $42.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, May 2025 collections of the 0.5% housing sales tax are estimated to be $137,978, are down (1.3)% from 2024 and down (3.8)% from the budget. 2025 YTD collections of $2,665,783 are up 2.9% from 2024 and up 1.5% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. Real Estate Transfer Tax (RETT) RETT collections through June 25 total $3,930,068, down (8.1)% from 2024. The number of property sales (excluding time-shares) is tracking down (24.8)% from 2024, while the average collection is tracking up 21.7%. The budget for RETT collections totals $7.7 million for 2025. Construction Use Tax Use Tax collections through June 25 total $1,057,747 compared to $1,458,640 in 2024. The budget totals $2.5 million for 2025. Lift Tax Lift tax collections through May 2025 total $5,038,503, up 2.0% or $97,683 from May 2024. The budget totals $6,915,427. Summary Across all funds and excluding one-time grants and reimbursements, year-to-date total revenue of $53.9 million is up 4.3% from the amended budget and is up 0.1% from prior year. The majority of the positive variance compared to the budget is due to higher-than-expected interest earnings, real estate transfer tax collections, and sales tax collections. 2025 Budget % change % change 2020 2021 2022 2023 2024 Budget Variance from 2024 from Budget January 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,791,927$ 5,983,025$ 191,098$ 3.06% 3.30% February 4,285,633 3,691,850 5,686,585 6,041,108 6,080,349 6,063,693 6,314,116 250,423 3.84% 4.13% March 2,243,518 4,364,797 5,912,059 6,055,992 6,412,535 6,162,148 6,296,960 134,812 -1.80% 2.19% April 427,518 1,751,528 2,234,296 2,264,892 1,842,893 2,082,859 2,161,240 78,381 17.27% 3.76% May 503,828 1,061,516 1,227,974 1,118,011 1,176,629 1,152,860 1,158,304 5,444 -1.56% 0.47% YTD 11,536,642$ 14,291,900$ 20,278,039$ 21,391,575$ 21,317,604$ 21,253,487$ 21,913,644$ 660,157$ 2.80% 3.11% June 1,023,517 2,149,312 2,317,931 2,272,457 2,361,482 2,355,770 - July 2,084,644 3,491,668 3,507,973 3,412,277 3,643,192 3,629,309 - August 2,138,838 2,877,550 2,997,389 2,932,111 3,052,213 3,038,643 - September 1,767,393 2,359,528 2,441,331 2,508,064 2,415,397 2,414,174 - October 1,371,727 1,734,964 1,729,558 1,773,358 1,753,419 1,752,419 - November 1,425,461 1,880,397 1,902,643 1,901,141 1,844,461 1,843,961 - December 3,625,189 5,749,365 5,602,018 5,811,950 5,789,893 5,776,237 - Total 24,973,411$ 34,534,683$ 40,776,882$ 42,002,933$ 42,177,661$ 42,064,000$ 21,913,644$ 660,157$ 2.80%3.11% 2025 Budget % change % change 2022 2023 2024 Budget Variance from 2024 from Budget January 645,487$ 720,906$ 705,167$ 711,525$ 728,345$ 16,820$ 3.29% 2.36% February 702,730 736,788 741,549 753,337 769,568 16,231 3.78% 2.15% March 719,717 738,244 783,123 769,644 769,365 (279) -1.76% -0.04% April 269,018 271,930 222,032 249,107 260,527 11,420 17.34% 4.58% May 146,657 132,333 139,793 143,483 137,978 (5,505) -1.30% -3.84% YTD 2,483,609$ 2,600,201$ 2,591,664$ 2,627,096$ 2,665,783$ 38,687$ 2.86% 1.47% June 280,460 275,113 284,485 291,846 - July 424,602 412,849 439,142 448,039 - August 361,165 352,887 369,212 377,205 - September 294,861 304,068 293,066 299,772 - October 207,397 213,568 210,364 217,051 - November 230,383 229,092 222,639 228,495 - December 671,982 703,050 699,750 712,030 - Total 4,954,459$ 5,090,828$ 5,110,322$ 5,201,534$ 2,665,783$ 38,687$ 2.86% 1.47% 0.5% HOUSING SALES TAX 2025 Budget Comparison 4.0% Collected Sales Tax Actual 0.5% Collections 0.5% Collected Sales Tax Town of Vail Revenue Update July 1, 2025 4.0% GENERAL SALES TAX 2025 Budget Comparison Actual 4.0% Collections Through May 31 May 4% General Sales Tax Collections By Year Through May 31 Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year July 1, 2025 •May collections of $1,158,304 are down (1.6)% from prior year and are up 0.5% from the budget. $1,061,516 $1,227,974 $1,118,011 $1,176,629 $1,158,304 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2021 2022 2023 2024 2025 $14,291,900 $20,278,039 $21,391,575 $21,317,604 $21,913,644 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2021 2022 2023 2024 2025 •YTD collections of $21,913,644 are up 2.8% from prior year and are up 3.1% from the budget. •Inflation as measured by the consumer price index was up 2.4% for the 12-months ending May 2025. May Collections YTD Collections Town of Vail Revenue Update July 1, 2025 May 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through June 2025 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2025 collections are down (8.1)% from the prior year. $5,073,151 $4,796,758 $2,826,381 $4,274,434 $3,930,068 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2021 2022 2023 2024 2025 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •May collections of $137,978 are down (1.3)% from prior year and are down (3.8)% from the budget. •2025 YTD collections of $2,665,783 are up 2.9% from 2024 and up 1.5% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. $146,657 $132,333 $139,793 $137,978 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2022 2023 2024 2025 $2,483,609 $2,600,201 $2,591,664 $2,665,783 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 2023 2024 2025 Town of Vail Revenue Update July 1, 2025 Construction Use Tax by Year YTD Through June 2025 YTD Lift Tax Collections YTD Through May 2025 •Use Tax collections through June 24 total $1,057,747 compared to $1,458,640 from this time last year. This is an decrease of (27.5)%. $2,435,590 $1,092,082 $1,653,078 $1,458,640 $1,057,747 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2021 2022 2023 2024 2025 •2025 YTD lift tax collections of $5,038,503 are up 2.0% or $97,683 from the same time last year. $3,925,279 $4,702,447 $4,650,293 $4,940,821 $5,038,503 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2021 2022 2023 2024 2025 Vail Business Review May 2025 July 1, 2025 The Vail Business Review breaks down the 4.5% sales tax collected for the month of May. 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. May 4.5% sales tax was down (1.5)% from the prior year. Retail increased 4.7%, lodging decreased (14.1)%, food and beverage decreased (0.3)%, and utilities/other decreased (4.9)%. Excluding the out-of-town category, sales tax for the month of May was down (3.8)% 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 May 2025 Town of Vail Business Review May Sales Tax Collections by Year May 2025 Sales Tax May 2024 Sales Tax Collections by Business Type 617,637 Lodging 233,516 Food & Beverage 273,707 Utilities & Other 171,423 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 4.7% (0.3)% (4.9)% Retail 1,061,987 1,383,815 1,273,541 1,316,314 1,296,282 $0 $500,000 $1,000,000 $1,500,000 2021 2022 2023 2024 2025 General Sales Tax Housing Sales Tax • May 2025 retail sales increased 4.7%, lodging decreased (14.1)%, food and beverage decreased (0.3)%, and utilities and other decreased (4.9)%. • The figures above reflect 4.5% sales tax. Retail 589,863 Lodging 271,702 Food & Beverage 274,473 Utilities & Other 180,277 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 (14.1)% • 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. 2022-2025 above include the 0.5% increase to sales tax, depicted in light blue. 2021 shows 4.0% sales tax collections. • Total May 2024 collections were $1,316,314; May 2025 collections were $1,296,282, down from the prior year (1.5)%. May 2025 Sales Tax Town of Vail Business Review May 2024May 2025 Geographic Area Trends by Year May Sales Tax Sales Tax by Location Other Areas 19% Lionshead 11% Out of Town 45% Vail Village 25% • Vail Village sales tax increased 17.6%, Lionshead decreased (43.3)%, Other Areas decreased (9.0)%, and Out of Town increased 1.3%. Excluding Out of Town collections, all areas were down (3.8)%. • The figures above reflect 4.5% sales tax. 184,815 203,217 75,742 110,876 480,476 644,020 320,953 425,702 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2021 2022 2023 2024 2025 Vail Village Out of Town Lionshead Other Areas 653,058316,437 109,771 194,276 • This chart shows May sales tax collections by geographic area over time. • 2022-2025 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 244,900145,600 598,505 327,310 384,770 82,491 606,061 222,959 Other Areas 17% Lionshead 6% Out of Town 47% Vail Village 30% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail May 2025 Sales Tax Town of Vail Business Review Apparel $78,618 Grocery $97,963 Gallery $6,442 Gifts $2,485 Jewelry $29,345 Retail Liquor $22,363 Retail Other $274,091 Sporting Goods $23,641 Online Retailers $82,688 Retail Home Occupation $0 • May 2025 accommodations services decreased (14.1)% from the prior year. Short-term rentals decreased (8.1)% and hotels and lodges decreased (17.5)%. • 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 that advertise and rent properties on these platforms. 142,760 119,414 171,650 100,052 141,554 91,961 $0 $50,000 $100,000 $150,000 $200,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 Retail 112,319 123,231 -8.85% Lodging 37,784 39,976 -5.48% F & B 68,785 75,056 -8.36% Other 4,071 6,636 -38.65% Total 222,959 244,900 -8.96% Retail 13,534 13,756 -1.61% Lodging 24,666 59,945 -58.85% F & B 42,754 65,264 -34.49% Other 1,537 6,635 -76.84% Total 82,491 145,600 -43.34% Retail 328,485 316,646 3.74% Lodging 112,756 117,629 -4.14% F & B 196 156 25.69% Other 164,624 164,073 0.34% Total 606,061 598,505 1.26% Retail 163,298 136,229 19.87% Lodging 58,310 54,152 7.68% F & B 161,971 133,996 20.88% Other 1,191 2,933 -59.39% Total 384,770 327,310 17.56% Retail 617,637 589,863 4.71% Lodging 233,516 271,702 -14.05% F & B 273,707 274,473 -0.28% Other 171,423 180,277 -4.91% Total 1,296,282 1,316,314 -1.52% Retail Apparel 78,618 76,815 2.35% Retail Food 97,963 107,244 -8.65% Retail Gallery 6,442 1,916 236.23% Retail Gift 2,485 1,539 61.48% Retail Home Occupation - 197 -100.00% Retail Jewelry 29,345 12,170 141.12% Retail Liquor 22,363 23,922 -6.51% Retail Other 274,091 267,983 2.28% Retail Sport 23,641 25,335 -6.69% Retail Online Retailer 82,688 72,741 13.67% Total 617,637 589,863 4.71% Total - All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review May 4.5% Sales Tax 2025 Collections 2024 Collections YoY % Change