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HomeMy WebLinkAbout01. 250805 TOV Revenue Update1 TOWN OF VAIL REVENUE UPDATE August 8, 2025 4.0% General Sales Tax Upon receipt of all sales tax returns, June 2025 collections are estimated to be $2,351,865, down (0.4)% from 2024 and down (0.2)% from the budget. 2025 YTD collections of $24,313,889 are up 2.7% from 2024 and up 3.0% from the budget. Inflation as measured by the consumer price index was up 2.7% for the 12-months ending June 2025. The annual budget totals $42.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, June 2025 collections of the 0.5% housing sales tax are estimated to be $283,945, are down (0.2)% from 2024 and down (2.7)% from the budget. 2025 YTD collections of $2,955,746 are up 2.8% from 2024 and up 1.3% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. Real Estate Transfer Tax (RETT) RETT collections through July 29 total $4,707,496, down (1.8)% from 2024. The number of property sales (excluding time-shares) is tracking down (21.5)% from 2024, while the average collection is tracking up 11.2%. The budget for RETT collections totals $7.7 million for 2025. Construction Use Tax Use Tax collections through July 29 total $1,106,265 compared to $1,922,374 in 2024. The budget totals $2.5 million for 2025. The decrease from the prior year is due to a decline in the number of non-Town funded projects, particularly high- dollar projects. Lift Tax Lift tax collections through June 2025 total $5,119,739, up 2.3% or $115,839 from June 2024. The budget totals $6,915,427. Summer Daily Parking Sales Daily sales from the parking structures and gated lots from May through July 25th total approximately $729,198. This compares to $141,952 for the same period last year. In 2025, the Town implemented a daily summer paid parking program while in 2024, only overnight stays and event parking were charged fees. The 2025 budget for daily summer parking revenue is $2.5 million. Based on current year to date collections, staff anticipates that actual revenues will fall short of budget by approximately $800,000. Staff is continuing to analyze the data but believes the variance is due to a combination of factors, including the total number of transactions, average duration of stays, and the volume of employee parking passes sold and used. 2 Summer Parking Pass Sales Summer parking pass sales through July 25th total approximately $44,975. The budget for summer parking passes totals $29,774. Summary Across all funds and excluding one-time grants and reimbursements, year-to-date total revenue of $60.8 million is up 5.7% from the amended budget and is up 1.7% from prior year. The majority of the positive variance compared to the budget is due to higher-than-expected interest earnings, real estate transfer tax collections, and sales tax collections. The majority of the positive variance compared to the prior year is due to increased sales tax collections and the implementation of summer paid parking. Pass Type Summer Season Sales Premier 10 Employee 114 Employee Plus 14 Eagle County Local 94 Vail Local 187 Total 419 2025 Budget % change % change 2020 2021 2022 2023 2024 Budget Variance from 2024 from Budget January 4,076,145$ 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,791,927$ 5,974,315$ 182,388$ 2.91% 3.15% February 4,285,633 3,691,850 5,686,585 6,041,108 6,080,349 6,063,693 6,307,988 244,295 3.74% 4.03% March 2,243,518 4,364,797 5,912,059 6,055,992 6,412,535 6,162,148 6,261,709 99,561 -2.35% 1.62% April 427,518 1,751,528 2,234,296 2,264,892 1,842,893 2,082,859 2,197,092 114,233 19.22% 5.48% May 503,828 1,061,516 1,227,974 1,118,011 1,176,629 1,152,860 1,220,920 68,060 3.76% 5.90% June 1,023,517 2,149,312 2,317,931 2,272,457 2,361,482 2,355,770 2,351,865 (3,905) -0.41% -0.17% YTD 12,560,159$ 16,441,212$ 22,595,970$ 23,664,032$ 23,679,086$ 23,609,257$ 24,313,889$ 704,632$ 2.68% 2.98% 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$ 24,313,889$ 704,632$ 2.68%2.98% 2025 Budget % change % change 2022 2023 2024 Budget Variance from 2024 from Budget January 645,487$ 720,906$ 705,167$ 711,525$ 727,257$ 15,732$ 3.13% 2.21% February 702,730 736,788 741,549 753,337 768,802 15,465 3.68% 2.05% March 719,717 738,244 783,123 769,644 764,959 (4,685) -2.32% -0.61% April 269,018 271,930 222,032 249,107 264,994 15,887 19.35% 6.38% May 146,657 132,333 139,793 143,483 145,790 2,307 4.29% 1.61% June 280,460 275,113 284,485 291,846 283,945 (7,901) -0.19% -2.71% YTD 2,764,069$ 2,875,314$ 2,876,149$ 2,918,942$ 2,955,746$ 36,804$ 2.77% 1.26% 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$ 2,955,746$ 36,804$ 2.77% 1.26% Town of Vail Revenue Update August 5, 2025 4.0% GENERAL SALES TAX 2025 Budget Comparison Actual 4.0% Collections 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 YTD 4% General Sales Tax Collections By Year August 5, 2025 Through June 30 June 4% General Sales Tax Collections By Year Through June 30 •June collections of $2,351,865 are down (0.4)% from prior year and are down (0.2)% from the budget. $2,149,312 $2,317,931 $2,272,457 $2,361,482 $2,351,865 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2021 2022 2023 2024 2025 $16,441,212 $22,595,970 $23,664,032 $23,679,086 $24,313,889 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2021 2022 2023 2024 2025 •YTD collections of $24,313,889 are up 2.7% from prior year and are up 3.0% from the budget. •Inflation as measured by the consumer price index was up 2.7% for the 12-months ending June 2025. Town of Vail Revenue Update August 5, 2025 June 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through July 2025 June Collections YTD Collections •This chart shows YTD collections of 1% RETT, segmented by real property values. 2025 collections are down (1.8)% from the prior year. $6,373,698 $5,442,865 $3,307,320 $4,795,504 $4,707,496 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 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 •June collections of $283,945 are down (0.2)% from prior year and are down (2.7)% from the budget. •2025 YTD collections of $2,955,746 are up 2.8% from 2024 and up 1.3% from the budget. The annual budget for the housing fund sales tax totals $5.2 million. $280,460 $275,113 $284,485 $283,945 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2022 2023 2024 2025 $2,764,069 $2,875,314 $2,876,149 $2,955,746 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2022 2023 2024 2025 Town of Vail Revenue Update August 5, 2025 Construction Use Tax by Year YTD Through July 2025 YTD Lift Tax Collections YTD Through June 2025 •Use Tax collections through July 29 total $1,106,265 compared to $1,922,374 from this time last year. This is an decrease of (42.5)%. $2,659,062 $1,227,733 $1,773,592 $1,922,374 $1,106,265 $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 $5,119,739 are up 2.3% or $115,839 from the same time last year. $3,981,861 $4,798,965 $4,716,261 $5,003,900 $5,119,739 $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 June and Q2 2025 August 5, 2025 The Vail Business Review breaks down the 4.5% sales tax collected for the month of June and YTD through Q2. 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. June 4.5% sales tax was down (0.3)% from the prior year. Retail increased 2.8%, lodging decreased (3.4)%, food and beverage decreased (4.4)%, and utilities/other increased 13.7%. Excluding the out-of-town category, sales tax for the month of June was down (4.4)% compared to prior year. YTD through Q2 4.5% sales tax was up 2.8% from the prior year. Retail increased 5.4%, lodging remained flat, food and beverage increased 4.1%, and utilities/other increased 3.8%. Excluding the out-of-town category, sales tax for YTD through Q2 was down (0.4)% 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 June 2024 Sales Tax Collections by Business Type June 2025 Town of Vail Business Review June Sales Tax Collections by Year June 2025 Sales Tax 1,019,111 Lodging 728,800 Food & Beverage 698,571 Utilities & Other 188,828 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2.8% (4.4)% 13.7% Retail 2,150,760 2,599,483 2,549,136 2,641,939 2,635,309 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2021 2022 2023 2024 2025 General Sales Tax Housing Sales Tax • June 2025 retail sales increased 2.8%, lodging decreased (3.4)%, food and beverage decreased (4.4)%, and utilities and other increased 13.7%. • The figures above reflect 4.5% sales tax. Retail 991,207 Lodging 754,316 Food & Beverage 730,305 Utilities & Other 166,111$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 (3.4)% • 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. 2022-2025 above include the 0.5% increase to sales tax, depicted in light blue. 2021 shows 4.0% sales tax collections. • Total June 2024 collections were $2,641,939; June 2025 collections were $2,635,309, down from the prior year (0.3)%. June 2025 Sales Tax Town of Vail Business Review June 2024June 2025 Geographic Area Trends by Year June Sales Tax Sales Tax by Location Other Areas 16% Lionshead 15% Out of Town 29% Vail Village 40% • Vail Village sales tax remained flat, Lionshead decreased (19.4)%, Other Areas decreased (1.9)%, and Out of Town increased 9.9%. Excluding Out of Town collections, all areas were down (4.4)%. • The figures above reflect 4.5% sales tax. 322,995 377,120 251,254 326,467 668,247 775,007 908,264 1,120,890 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2021 2022 2023 2024 2025 Vail Village Out of Town Lionshead Other Areas 759,006 1,087,987 299,885 402,258 • This chart shows June 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. 427,272378,906 771,105 1,064,656 1,062,780 305,468 847,722 419,340 Other Areas 16% Lionshead 12% Out of Town 32% Vail Village 40% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail June 2025 Sales Tax Town of Vail Business Review Apparel $181,518 Grocery $160,384 Gallery $3,251 Gifts $8,930 Jewelry $57,252 Retail Liquor $42,442 Retail Other $376,579 Sporting Goods $81,170 Online Retailers $104,994 Retail Home Occupation $2,590 • June 2025 accommodations services decreased (3.4)% from the prior year. Short-term rentals increased 4.1% and hotels and lodges decreased (6.2)%. • 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 that advertise and rent properties on these platforms. 534,704 225,906 546,469 207,846 512,431 216,369 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 Retail 164,456 163,484 0.59% Lodging 123,333 126,359 -2.39% F & B 127,208 131,447 -3.22% Other 4,342 5,982 -27.42% Total 419,340 427,272 -1.86% Retail 53,859 56,316 -4.36% Lodging 132,104 162,544 -18.73% F & B 117,921 155,790 -24.31% Other 1,583 4,256 -62.80% Total 305,468 378,906 -19.38% Retail 429,013 401,998 6.72% Lodging 239,561 221,304 8.25% F & B 1,093 615 77.77% Other 178,055 147,189 20.97% Total 847,722 771,105 9.94% Retail 371,782 369,409 0.64% Lodging 233,801 244,108 -4.22% F & B 452,349 442,454 2.24% Other 4,847 8,685 -44.18% Total 1,062,780 1,064,656 -0.18% Retail 1,019,111 991,207 2.82% Lodging 728,800 754,316 -3.38% F & B 698,571 730,305 -4.35% Other 188,828 166,111 13.68% Total 2,635,309 2,641,939 -0.25% Retail Apparel 181,518 200,430 -9.44% Retail Food 160,384 173,594 -7.61% Retail Gallery 3,251 6,679 -51.33% Retail Gift 8,930 4,700 90.01% Retail Home Occupation 2,590 197 1213.67% Retail Jewelry 57,252 30,732 86.30% Retail Liquor 42,442 43,381 -2.16% Retail Other 376,579 355,816 5.84% Retail Sport 81,170 79,035 2.70% Retail Online Retailer 104,994 96,643 8.64% Total 1,019,111 991,207 2.82% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review June 4.5% Sales Tax 2025 Collections 2024 Collections YoY % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary Jan - Jun 2024 Sales Tax Collections by Business Type Jan - Jun 2025 Town of Vail Business Review Jan - Jun Sales Tax Collections by Year YTD through Q2 2025 Sales Tax 8,874,763 Lodging 10,913,221 Food & Beverage 5,847,833 Utilities & Other 1,630,942 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 5.4%4.1%3.8% Retail 16,467,803 25,372,403 26,518,203 26,521,755 27,266,759 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2021 2022 2023 2024 2025 General Sales Tax Housing Sales Tax • YTD through Q2 2025 retail sales increased 5.4%, lodging remained flat, food and beverage increased 4.1%, and utilities and other increased 3.8%. • The figures above reflect 4.5% sales tax. Retail 8,422,237 Lodging 10,908,353 Food & Beverage 5,619,630 Utilities & Other 1,571,535 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 0.0% • 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. 2022-2025 above include the 0.5% increase to sales tax, depicted in light blue. 2021 shows 4.0% sales tax collections. • Total through Q2 2024 collections were $26,521,755; though Q2 2025 collections were $27,266,759, up from the prior year 2.8%. YTD through Q2 2025 Sales Tax Town of Vail Business Review Jan - Jun 2024Jan - Jun 2025 Geographic Area Trends by Year Jan - Jun Sales Tax Sales Tax by Location Other Areas 15% Lionshead 18% Out of Town 23% Vail Village 44% • Vail Village sales tax increased 2.4%, Lionshead decreased (5.4)%, Other Areas decreased (2.5)%, and Out of Town increased 13.3%. Excluding Out of Town collections, all areas were down (0.4)%. • The figures above reflect 4.5% sales tax. 2,402,719 3,689,042 2,663,027 4,369,485 4,467,934 6,249,024 6,934,123 11,064,852 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2021 2022 2023 2024 2025 Vail Village Out of Town Lionshead Other Areas 6,583,809 11,620,378 4,586,617 3,727,399 • This chart shows YTD through Q2 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. 3,937,770 4,749,348 6,192,225 11,642,412 11,921,034 4,491,544 7,016,686 3,837,495 Other Areas 14% Lionshead 16% Out of Town 26% Vail Village 44% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail YTD through Q2 2025 Sales Tax Town of Vail Business Review Apparel $1,840,013 Grocery $1,149,154 Gallery $52,422 Gifts $51,054 Jewelry $387,478 Retail Liquor $316,635 Retail Other $2,319,027 Sporting Goods $2,024,516 Online Retailers $731,035 Retail Home Occupation $3,427 • YTD through Q2 2025 accommodations services remained flat from the prior year. Short-term rentals increased 1.7% and hotels and lodges decreased (0.7)%. • 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. 7,493,949 3,394,944 7,647,286 3,261,067 7,597,107 3,316,115 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Hotel and Lodges Short-Term Rentals 2025 2024 2023 Retail 1,188,879 1,295,377 -8.22% Lodging 1,951,314 1,933,139 0.94% F & B 665,935 676,468 -1.56% Other 31,367 32,786 -4.33% Total 3,837,495 3,937,770 -2.55% Retail 1,096,778 1,150,476 -4.67% Lodging 2,330,418 2,461,294 -5.32% F & B 1,036,501 1,054,482 -1.71% Other 27,848 83,096 -66.49% Total 4,491,544 4,749,348 -5.43% Retail 2,710,728 2,191,704 23.68% Lodging 2,851,801 2,695,579 5.80% F & B 12,369 9,453 30.84% Other 1,441,788 1,295,488 11.29% Total 7,016,686 6,192,225 13.31% Retail 3,878,379 3,784,679 2.48% Lodging 3,779,688 3,818,340 -1.01% F & B 4,133,028 3,879,228 6.54% Other 129,939 160,165 -18.87% Total 11,921,034 11,642,412 2.39% Retail 8,874,763 8,422,237 5.37% Lodging 10,913,221 10,908,353 0.04% F & B 5,847,833 5,619,630 4.06% Other 1,630,942 1,571,535 3.78% Total 27,266,759 26,521,755 2.81% Retail Apparel 1,840,013 1,772,978 3.78% Retail Food 1,149,154 1,220,990 -5.88% Retail Gallery 52,422 50,836 3.12% Retail Gift 51,054 34,297 48.86% Retail Home Occupation 3,427 1,571 118.19% Retail Jewelry 387,478 288,203 34.45% Retail Liquor 316,635 355,841 -11.02% Retail Other 2,319,027 1,938,114 19.65% Retail Sport 2,024,516 2,173,875 -6.87% Retail Online Retailer 731,035 585,532 24.85% Total 8,874,763 8,422,237 5.37% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Jan - Jun 4.5% Sales Tax 2025 Collections 2024 Collections YoY % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary