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HomeMy WebLinkAbout06. 260303 Town of Vail Revenue Update1 TOWN OF VAIL REVENUE UPDATE March 3, 2026 4.0% General Sales Tax Upon receipt of all sales tax returns, January 2026 collections are estimated to be $5,525,983, down (7.3)% from 2025 and down (5.3)% from the budget. Inflation as measured by the consumer price index was up 2.4% for the 12- months ending January 2026. The annual budget totals $42.3 million. This amount does not yet reflect the 7% overall budget reduction (including the 10% winter budget reductions), which will be incorporated in the April supplemental. January sales tax collections were impacted by limited snowfall, but particularly in the lodging category, which declined (13.0)% compared to January 2025. The food and beverage category showed the strongest performance, increasing 1.1% compared to January 2025, primarily driven by restaurants that were vacant in January 2025 but are now occupied. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, January 2026 collections of the 0.5% housing sales tax are estimated to be $675,210, down (7.0)% from 2025 and down (5.8)% from the budget. The annual budget for the housing fund sales tax totals $5.1 million. This amount does not yet reflect the 7% overall budget reduction (including the 10% winter budget reductions), which will be incorporated in the April supplemental. Real Estate Transfer Tax (RETT) RETT collections through February 23 total $498,896, down (16.9)% from this time in 2025. This decrease is due to a small number of large-dollar sales that occurred in early 2025. The number of property sales (excluding time-shares) were flat with 2025. The annual budget for RETT collections totals $7.8 million for 2026. Lift Tax Lift tax collections for January 2026 total $1,500,403, down (8.2)% or $(134,670) from 2025. January lift tax collections were impacted by limited snowfall. Daily Parking Sales Daily sales from the parking structures from November through February 22nd total approximately $2,689,893, down (12.9)% from time last year. This amount includes daily fees charged to the parking pass holders. The number of daily parking facility vehicle entries (including free periods) is down approximately (11.8)% compared to the prior winter season. The number of paid parking transactions is down approximately (20.1)% compared to the prior winter season. 2 Winter Parking Pass Sales Winter parking pass sales for the 2025 – 2026 season through February 22nd total approximately $1,190,250, a decrease of $(46,800) or (3.8)% from the prior season. Adjustments to the pass pricing structure were approved for the 2025- 2026 season. If prices had not been increased (and the same number of passes were sold), collections would have been down approximately ($103,925), or (8.6)% from the prior season mainly due the decrease in employee plus passes sold. 2025/2026 season pass sales indicate that more employees opted for the local pass option than prior years. The total budget for Winter parking pass sales is 1,240,000. The number of passes sold by type is included in the following chart: Pass Type 2025 - 2026 Pass Sales 2024 – 2025 Pass Sales Increase / Decrease) from Prior Year Premier 21 21 - Vail Village Business Premier 70 69 1 Lionshead Business Premier 4 7 (3) Employee 491 487 4 Employee Plus 265 330 (65) Local 4,073 3,575 498 Total 4,924 4,489 435 Preliminary 2026 Budget % change % change 2021 2022 2023 2024 2025 Budget Variance from 2025 from Budget January 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,963,170$ 5,836,300$ 5,525,983$ (310,317)$ -7.33% -5.32% YTD 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,963,170$ 5,836,300$ 5,525,983$ (310,317)$ -7.33% -5.32% February 3,691,850 5,686,585 6,041,108 6,080,349 6,362,719 6,142,600 - March 4,364,797 5,912,059 6,055,992 6,412,535 6,301,518 6,103,200 - April 1,751,528 2,234,296 2,264,892 1,842,893 2,216,331 2,170,678 - May 1,061,516 1,227,974 1,118,011 1,176,629 1,242,458 1,183,000 - June 2,149,312 2,317,931 2,272,457 2,361,482 2,390,380 2,322,200 - July 3,491,668 3,507,973 3,412,277 3,643,192 3,757,598 3,679,500 - August 2,877,550 2,997,389 2,932,111 3,052,213 3,274,312 3,185,400 - September 2,359,528 2,441,331 2,508,064 2,415,397 2,545,506 2,475,700 - October 1,734,964 1,729,558 1,773,358 1,753,419 1,905,399 1,777,600 - November 1,880,397 1,902,643 1,901,141 1,844,461 1,864,954 1,807,572 - December 5,749,365 5,602,018 5,811,950 5,789,893 5,782,346 5,654,095 - Total 34,534,683$ 40,776,882$ 42,002,933$ 42,177,661$ 43,606,691$ 42,337,800$ 5,525,983$ (310,317)$ -7.33%-5.32% Preliminary 2026 Budget % change % change 2022 2023 2024 2025 Budget Variance from 2025 from Budget January 645,487$ 720,906$ 705,167$ 725,863$ 716,600$ 675,210$ (41,390)$ -6.98% -5.78% YTD 645,487$ 720,906$ 705,167$ 725,863$ 716,600$ 675,210$ (41,390)$ -6.98% -5.78% February 702,730 736,788 741,549 775,643 747,700 - March 719,717 738,244 783,123 769,935 746,500 - April 269,018 271,930 222,032 267,398 266,700 - May 146,657 132,333 139,793 148,481 138,500 - June 280,460 275,113 284,485 288,527 280,900 - July 424,602 412,849 439,142 453,414 432,900 - August 361,165 352,887 369,212 396,387 371,500 - September 294,861 304,068 293,066 308,893 300,900 - October 207,397 213,568 210,364 229,422 214,100 - November 230,383 229,092 222,639 225,223 224,600 - December 671,982 703,050 699,750 697,033 700,100 - Total 4,954,459$ 5,090,828$ 5,110,322$ 5,286,220$ 5,141,000$ 675,210$ (41,390)$ -6.98% -5.78% 2026 Budget Comparison 0.5% Collected Sales Tax Actual 0.5% Collections 0.5% HOUSING SALES TAX Town of Vail Revenue Update March 3, 2026 4.0% GENERAL SALES TAX 2026 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax Through January 31 0.5% Housing Sales Tax Collections By Year Through January 31 Town of Vail Revenue Update March 3, 2026 4% General Sales Tax Collections By Year January collections of $675,210 are down (7.0)%from prior year and are down (5.8)% from the budget. 645,487 720,906 705,167 725,863 675,210 0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2022 2023 2024 2025 2026 5,217,125 5,911,572 5,805,199 5,963,170 5,525,983 0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2022 2023 2024 2025 2026 January collections of $5,525,983 are down (7.3)% from prior year and are down (5.3)%from the budget. Inflation as measured by the consumer price index was up 2.4% in the 12-months ending January YTD through February 23 Lift Tax Collections Through January 2026 Town of Vail Revenue Update March 3, 2026 Real Estate Transfer Tax by Year This chart shows YTD collections of 1% RETT, segmented by real property values. 2025 collections are down (16.9)% from the prior year. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2022 2023 2024 2025 2026 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million 698,384 $ 764,806 1,256,668 601,287 498,896 2026 YTD lift tax collections of $1,500,403 are down (8.2)% or $(134,670) from the same time last year. 1,452,347 1,503,415 1,609,419 1,635,073 1,500,403 0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2022 2023 2024 2025 2026 Vail Business Review January 2026 March 3, 2026 The Vail Business Review breaks down the 4.5% sales tax collected for the month of January. 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. January 4.5% sales tax was down (7.3)% from the prior year. Retail decreased (4.1)%, lodging decreased (13.0)%, food and beverage increased 1.1%, and utilities/other decreased (8.4)%. Excluding the out-of-town category, sales tax for the month of January was down (6.1)% compared to prior year. Town of Vail sales tax reports, the Vail Business Review, and financial statements are available on the internet at vail.gov. You may email me to request to have the Vail Business Review 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 January 2025 Sales Tax Collections by Business Type January 2026 Town of Vail Business Review January Sales Tax Collections by Year January 2026 Sales Tax 1,879,590 Lodging 2,640,713 Food & Beverage 1,380,936 Utilities & Other 299,804 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 4.1)% 1.1%8.4)% Retail 5,874,615 6,632,629 6,497,587 6,689,033 6,201,042 0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2022 2023 2024 2025 2026 General Sales Tax Housing Sales Tax January 2026 retail sales decreased (4.1)%, lodging decreased (13.0)%, food and beverage increased 1.1%, and utilities and other decreased (8.4)%. The figures above reflect 4.5% sales tax. Retail 1,959,690 Lodging 3,036,871 Food & Beverage 1,365,345 Utilities & Other 327,127 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 13.0)% 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. The 0.5% increase to sales tax is depicted in light blue. General 4.0% sales tax collections are shown in darker blue. Total January 2025 collections were $6,689,033; January 2026 collections were $6,201,042, down from the prior year (7.3)%. January 2026 Sales Tax Town of Vail Business Review January2025January2026 Geographic Area Trends by Year January Sales Tax Sales Tax by Location 2,589,481 3,046,769 2,866,875 2,999,919 2,855,327 1,379,034 1,464,331 1,436,515 1,531,972 1,360,109 1,047,707 1,238,976 1,280,144 1,199,325 1,103,981 858,392 882,553 914,053 957,817 881,626 Other Areas 14% Lionshead 18% Out of Town 23% Vail Village 45% Vail Village sales tax decreased (4.8)%, Lionshead decreased (7.9)%, Other Areas decreased (8.0)%, and Out of Town decreased (11.2)%. Excluding Out of Town collections, all areas were down (6.1)%. The figures above reflect 4.5% sales tax. 0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 2023 2024 2025 2026 Vail Village Out of Town Lionshead Other Areas This chart shows January sales tax collections by geographic area over time. The 0.5% increase for housing sales tax is depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. Other Areas 14% Lionshead 18% Out of Town 22% Vail Village 46% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail January 2026 Sales Tax Town of Vail Business Review Apparel 475,602 Grocery 221,603 Gallery 12,157 Gifts 11,380 Jewelry 105,743RetailLiquor 65,169 Retail Other 342,736 Sporting Goods 515,351 Online Retailers 129,701 Retail Home Occupation 149 January 2026 accommodations services decreased (13.0)% from the prior year. Short-term rentals decreased 13.1)% and hotels and lodges decreased (13.0)%. 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. 2,046,652 880,545 2,063,442 973,429 1,794,361 846,351 0 $500,000 $1,000,000 $1,500,000 $2,000,000 Hotel and Lodges Short-Term Rentals 2026 2025 2024 Retail 213,879 258,206 (44,328) -17.2% Lodging 502,622 564,237 (61,615) -10.9% F & B 158,458 130,703 27,755 21.2% Other 6,668 4,671 1,997 42.7% Total 881,626 957,817 (76,192) -8.0% Retail 278,126 309,499 (31,373) -10.1% Lodging 576,423 640,729 (64,306) -10.0% F & B 239,842 240,177 (335) -0.1% Other 9,589 8,920 669 7.5% Total 1,103,981 1,199,325 (95,344) -7.9% Retail 410,354 438,653 (28,298) -6.5% Lodging 689,918 809,778 (119,860) -14.8% F & B 3,046 4,250 (1,204) -28.3% Other 256,790 279,291 (22,501) -8.1% Total 1,360,109 1,531,972 (171,863) -11.2% Retail 977,230 953,332 23,898 2.5% Lodging 871,750 1,022,127 (150,377) -14.7% F & B 979,590 990,214 (10,624) -1.1% Other 26,757 34,245 (7,488) -21.9% Total 2,855,327 2,999,919 (144,592) -4.8% Retail 1,879,590 1,959,690 (80,101) -4.1% Lodging 2,640,713 3,036,871 (396,159) -13.0% F & B 1,380,936 1,365,345 15,591 1.1% Other 299,804 327,127 (27,323) -8.4% Total 6,201,042 6,689,033 (487,991) -7.3% Retail Apparel 475,602 438,681 36,921 8.4% Retail Food 221,603 260,327 (38,724) -14.9% Retail Gallery 12,157 16,528 (4,371) -26.4% Retail Gift 11,380 11,009 372 3.4% Retail Home Occupation 149 151 (2) -1.5% Retail Jewelry 105,743 89,628 16,115 18.0% Retail Liquor 65,169 69,556 (4,387) -6.3% Retail Other 342,736 367,265 (24,528) -6.7% Retail Sport 515,351 574,660 (59,309) -10.3% Retail Online Retailer 129,701 131,887 (2,186) -1.7% Total 1,879,590 1,959,690 (80,101) -4.1% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review January 4.5% Sales Tax 2026 Collections 2025 Collections YoY % ChangeYoY $ Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary