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HomeMy WebLinkAbout01. 260505 Town of Vail Revenue Update1 TOWN OF VAIL REVENUE UPDATE May 5, 2026 4.0% General Sales Tax Upon receipt of all sales tax returns, March 2026 collections are estimated to be $5,606,894, down (10.3)% from 2025 and are up 5.5% from the amended budget. 2026 YTD collections of $17,028,979 are down (8.3)% from 2025 and up 2.5% from the amended budget. Inflation as measured by the consumer price index was up 3.3% for the 12-months ending March 2026. The amended budget totals $39.7 million for 2026. March sales tax collections were impacted by limited snowfall, but particularly in the lodging category, which declined (12.4)% compared to March 2025. Sales tax collections from short-term rentals decreased (9.9)% while collections from hotels and lodges decreased (13.2)%. Retail was down by (9.9)% while food and beverage decreased (6.5)%. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, March 2026 collections of the 0.5% housing sales tax are estimated to be $685,017, down (10.3)% from 2025 and up 5.6% from the amended budget. 2026 YTD collections of $2,079,431 are down (8.1)% from 2025 and up 2.6% from the amended budget The amended budget for the housing fund sales tax totals $4.8 million for 2026. Real Estate Transfer Tax (RETT) RETT collections through April 28 total $2,341,451, down (21.2)% from this time in 2025. This decrease is largely due to a small number of large-dollar sales that occurred in early 2025. The number of property sales (excluding time-shares) were down (10.5)% from 2025. The annual budget for RETT collections totals $7.8 million for 2026 (a 20.4% decrease compared to 2025 actuals). Lift Tax Lift tax collections for March 2026 total $1,205,914, down (11.9)% or $(163,610) from 2025. Year-to-date lift tax collections of $4,166,447 are down (9.7)% from this time in 2025. Construction Use Tax Use Tax collections through April 28 total $355,142 compared to $595,779 at this time in 2025. The budget totals $2.5 million for 2026. 2 Daily Parking Sales Daily sales from the parking structures from November through April total approximately $6,194,543, down (15.4)% from the prior season. This amount includes daily fees charged to the parking pass holders. Total parking transactions were down approximately (13.6)% compared to the prior winter season. Winter Parking Pass Sales Winter parking pass sales for the 2025/2026 winter season total approximately $1,197,750, a decrease of $(35,994) or (2.8)% 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 ($99,492), or (8.3)% from the prior season mainly due the decrease in the number of 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: Summary Across all funds and excluding one-time grants and reimbursements, year-to-date total revenue of $39.9 million is up 2.0% from the amended budget and is down (7.9)% from the prior year. The majority of the positive variance compared to the amended budget is due to higher-than-expected real estate transfer tax collections and sales tax collections. The town amended the budget in early April to adjust for impacts in visitation from the low snow fall. Compared to the prior year, sales tax, lift tax, parking, and real estate transfer tax collections have decreased. Pass Type 2025/2026 Pass Sales 2024/2025 Pass Sales Increase / (Decrease) from Prior Year Premier 21 21 - Vail Village Business Premier 70 69 1 Lionshead Business Premier 4 7 (3) Employee 495 488 7 Employee Plus 266 330 (64) Local 4,161 3,635 527 Total 5,017 4,550 468 Preliminary Amended 2026 Budget % change % change 2021 2022 2023 2024 2025 Budget Variance from 2025 from Budget January 3,422,209$ 5,217,125$ 5,911,572$ 5,805,199$ 5,988,253$ 5,610,786$ 5,678,686$ 67,900$ -5.17%1.21% February 3,691,850 5,686,585 6,041,108 6,080,349 6,325,963 5,684,325 5,743,400 59,075 -9.21%1.04% March 4,364,797 5,912,059 6,055,992 6,412,535 6,247,759 5,315,067 5,606,894 291,827 -10.26%5.49% YTD 11,478,857$ 16,815,769$ 18,008,672$ 18,298,082$ 18,561,975$ 16,610,178$ 17,028,979$ 418,802$ -8.26%2.52% April 1,751,528 2,234,296 2,264,892 1,842,893 2,193,928 1,180,000 - May 1,061,516 1,227,974 1,118,011 1,176,629 1,220,969 1,180,000 - June 2,149,312 2,317,931 2,272,457 2,361,482 2,371,399 2,289,072 - July 3,491,668 3,507,973 3,412,277 3,643,192 3,744,809 3,628,942 - August 2,877,550 2,997,389 2,932,111 3,052,213 3,270,007 3,144,067 - September 2,359,528 2,441,331 2,508,064 2,415,397 2,539,164 2,447,619 - October 1,734,964 1,729,558 1,773,358 1,753,419 1,906,445 1,757,502 - November 1,880,397 1,902,643 1,901,141 1,844,461 1,878,308 1,807,572 - December 5,749,365 5,602,018 5,811,950 5,789,893 5,762,201 5,654,095 - Total 34,534,683$ 40,776,882$ 42,002,933$ 42,177,661$ 43,449,206$ 39,699,047$ 17,028,979$ 418,802$ -8.26%2.52% Preliminary Amended 2026 Budget % change % change 2022 2023 2024 2025 Budget Variance from 2025 from Budget January 645,487$ 720,906$ 705,167$ 728,999$ 685,810$ 694,252$ 8,442$ -4.77%1.23% February 702,730 736,788 741,549 771,048 692,823 700,161 7,338 -9.19%1.06% March 719,717 738,244 783,123 763,215 648,733 685,017 36,284 -10.25%5.59% YTD 2,067,934$ 2,195,938$ 2,229,839$ 2,263,262$ 2,027,366$ 2,079,431$ 52,065$ -8.12%2.57% April 269,018 271,930 222,032 264,598 142,400 - May 146,657 132,333 139,793 145,795 142,649 - June 280,460 275,113 284,485 286,154 278,231 - July 424,602 412,849 439,142 451,816 440,885 - August 361,165 352,887 369,212 395,849 382,022 - September 294,861 304,068 293,066 308,100 298,442 - October 207,397 213,568 210,364 229,552 221,322 - November 230,383 229,092 222,639 226,892 218,186 - December 671,982 703,050 699,750 694,515 683,338 - Total 4,954,459$ 5,090,828$ 5,110,322$ 5,266,534$ 4,834,841$ 2,079,431$ 52,065$ -8.12%2.57% 0.5% HOUSING SALES TAX Town of Vail Revenue Update May 5, 2026 4.0% GENERAL SALES TAX2026 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax 2026 Budget Comparison 0.5% Collected Sales Tax Actual 0.5% Collections Town of Vail Revenue Update YTD 4% General Sales Tax Collections By Year May 5, 2026 Through March 31 March 4% General Sales Tax Collections By Year Through March 31 •March collections of $5,606,894 are down (8.3)% from prior year and are up 2.5% from the amended budget. $5,912,059 $6,055,992 $6,412,535 $6,247,759 $5,606,894 $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 $16,815,769 $18,008,672 $18,298,082 $18,561,975 $17,028,979 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2022 2023 2024 2025 2026 •YTD collections of $17,028,979 are down (8.3)% from prior year and are up 2.5% from the amended budget. •Inflation as measured by the consumer price index was up 3.3% for the 12-months ending March Town of Vail Revenue Update May 5, 2026 March 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through April 28 March Collections YTD Collections •This chart shows YTD collections of 1% RETT, segmented by real property values. 2026 collections are down (21.2)% from the prior year. $2,816,126 $1,897,504 $3,119,761 $2,970,489 $2,341,451 $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 2026 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million •March collections of $685,017 are down (10.3)% from prior year and are up 5.6% from the amended budget. •2025 YTD collections of $2,079,431 are down (8.1)% from 2025 and are up 2.6% from the amended budget. $738,244 $783,123 $763,215 $685,017 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2023 2024 2025 2026 $2,195,938 $2,229,839 $2,263,262 $2,079,431 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2023 2024 2025 2026 YTD Through April 2026 Construction Use Tax by Year Town of Vail Revenue Update May 5, 2026 YTD Lift Tax Collections YTD Through March 2026 •2026 YTD lift tax collections of $4,166,447 are down (9.7)% or $(447,915) from the same time last year. $4,285,902 $4,265,597 $4,585,496 $4,614,362 $4,166,447 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2022 2023 2024 2025 2026 •Use Tax collections through April 28 total $355,142 compared to $595,779 from this time last year. This is an decrease of (40.4)%. $599,518 $695,078 $495,237 $595,779 $355,142 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2022 2023 2024 2025 2026 Vail Business Review March and Q1 2026 May 5, 2026 The Vail Business Review breaks down the 4.5% sales tax collected for the month of March and the first quarter. 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. March 4.5% sales tax was down (10.3)% from the prior year. Retail decreased (9.9)%, lodging decreased (12.4)%, food and beverage decreased (6.5)%, and utilities/other decreased (9.1)%. Excluding the out-of-town category, sales tax for the month of March was down (10.1)% compared to prior year. Q1 4.5% sales tax was down (8.2)% from the prior year. Retail decreased (5.6)%, lodging decreased (12.2)%, food and beverage decreased (4.2)%, and utilities/other decreased (4.0)%. Excluding the out-of-town category, sales tax for the first quarter was down (9.0)% 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 Town of Vail Business Review March Sales Tax Collections by Year March 2026 Sales Tax March 2025 Sales Tax Collections by Business Type March 2026 1,983,508 Lodging 2,636,879 Food & Beverage 1,372,753 Utilities & Other 298,772 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 (9.9)% (6.5)% (9.1)% Retail 6,636,387 6,794,573 7,189,297 7,010,875 6,291,913 $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 • March 2026 retail sales decreased (9.9)%, lodging decreased (12.4)%, food and beverage decreased (6.5)%, and utilities and other decreased (9.1)%. • The figures above reflect 4.5% sales tax. Retail 2,202,222 Lodging 3,011,607 Food & Beverage 1,468,263 Utilities & Other 328,783 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 (12.4)% • 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. The 0.5% increase to sales tax is depicted in light blue. General 4.0% sales tax collections are shown in darker blue. • Total March 2025 collections were $7,010.875; March 2026 collections were $6,291,913, down from the prior year (10.3)%. Town of Vail Business Review March 2025March 2026 Geographic Area Trends by Year March Sales Tax Sales Tax by Location March 2026 Sales Tax 975,654 966,343 1,001,311 915,133 810,907 1,232,458 1,263,980 1,347,293 1,214,465 1,028,589 1,348,539 1,479,405 1,365,214 1,601,526 1,429,296 3,079,736 3,084,845 3,475,480 3,279,750 3,023,120 Other Areas 13% Lionshead 17% Out of Town 23% Vail Village 47% • Vail Village sales tax decreased (7.8)%, Lionshead decreased (15.3)%, Other Areas decreased (11.4)%, and Out of Town decreased (10.8)%. Excluding Out of Town collections, all areas were down (10.1)%. • 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 $3,500,000 2022 2023 2024 2025 2026 Vail Village Out of Town Lionshead Other Areas • This chart shows March 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 13% Lionshead 16% Out of Town 23% Vail Village 48% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail March 2026 Sales Tax Town of Vail Business Review Apparel $495,854 Grocery $255,779 Gallery $2,465 Gifts $14,163 Jewelry $88,916Retail Liquor $68,031 Retail Other $426,502 Sporting Goods $492,155 Online Retailers $139,344 Retail Home Occupation $300 • March 2026 accommodations services decreased (12.4)% from the prior year. Short-term rentals decreased (13.0)% and hotels and lodges decreased (12.2)%. • 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. 2,263,279 976,969 2,067,044 944,563 1,814,677 822,202 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 Hotel and Lodges Short-Term Rentals 2026 2025 2024 Retail 219,254 250,983 (31,729) -12.6% Lodging 448,883 530,614 (81,730) -15.4% F & B 135,772 126,048 9,724 7.7% Other 6,998 7,488 (490) -6.5% Total 810,907 915,133 (104,226) -11.4% Retail 279,515 320,992 (41,477) -12.9% Lodging 541,031 642,236 (101,205) -15.8% F & B 204,824 247,465 (42,641) -17.2% Other 3,219 3,773 (553) -14.7% Total 1,028,589 1,214,465 (185,876) -15.3% Retail 476,930 560,152 (83,222) -14.9% Lodging 693,608 760,397 (66,789) -8.8% F & B 1,360 2,948 (1,587) -53.9% Other 257,397 278,030 (20,632) -7.4% Total 1,429,296 1,601,526 (172,230) -10.8% Retail 1,007,808 1,070,094 (62,285) -5.8% Lodging 953,356 1,078,361 (125,005) -11.6% F & B 1,030,798 1,091,802 (61,005) -5.6% Other 31,158 39,493 (8,336) -21.1% Total 3,023,120 3,279,750 (256,630) -7.8% Retail 1,983,508 2,202,222 (218,713) -9.9% Lodging 2,636,879 3,011,607 (374,729) -12.4% F & B 1,372,753 1,468,263 (95,509) -6.5% Other 298,772 328,783 (30,011) -9.1% Total 6,291,913 7,010,875 (718,962) -10.3% Retail Apparel 495,854 522,024 (26,171) -5.0% Retail Food 255,779 249,489 6,290 2.5% Retail Gallery 2,465 10,080 (7,616) -75.5% Retail Gift 14,163 12,997 1,165 9.0% Retail Home Occupation 300 151 149 99.0% Retail Jewelry 88,916 92,163 (3,247) -3.5% Retail Liquor 68,031 75,117 (7,086) -9.4% Retail Other 426,502 506,164 (79,662) -15.7% Retail Sport 492,155 610,562 (118,407) -19.4% Retail Online Retailer 139,344 123,473 15,871 12.9% Total 1,983,508 2,202,222 (218,713) -9.9% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review March 4.5% Sales Tax 2026 Collections 2025 Collections YoY % ChangeYoY $ Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary Town of Vail Business Review Q1 Sales Tax Collections by Year Q1 2026 Sales Tax Q1 2025 Sales Tax Collections by Business Type Q1 2026 5,863,257 Lodging 8,154,550 Food & Beverage 4,124,947 Utilities & Other 965,655 $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 (5.6)% (4.2)% (4.0)% Retail 18,906,702 20,189,948 20,479,205 20,810,676 19,108,410 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2022 2023 2024 2025 2026 General Sales Tax Housing Sales Tax • Q1 2026 retail sales decreased (5.6)%, lodging decreased (12.2)%, food and beverage decreased (4.2)%, and utilities and other decreased (4.0)%. • The figures above reflect 4.5% sales tax. Retail 6,214,122 Lodging 9,285,575 Food & Beverage 4,305,046 Utilities & Other 1,005,934 $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 (12.2)% • 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 Q1 2025 collections were $20,810,676; Q1 2026 collections were $19,108,410, down from the prior year (8.2)%. Town of Vail Business Review Q1 2025Q1 2026 Geographic Area Trends by Year Q1 Sales Tax Sales Tax by Location Q1 2026 Sales Tax 2,781,520 2,814,304 2,970,122 2,870,031 2,560,174 3,538,670 3,807,544 3,885,302 3,714,391 3,288,870 4,074,443 4,403,917 4,147,353 4,659,614 4,406,855 8,512,069 9,164,184 9,476,429 9,566,640 8,852,511 Other Areas 14% Lionshead 18% Out of Town 22% Vail Village 46% • Vail Village sales tax decreased (7.5)%, Lionshead decreased (11.5)%, Other Areas decreased (10.8)%, and Out of Town decreased (5.4)%. Excluding Out of Town collections, all areas were down (9.0)%. • The figures above reflect 4.5% sales tax. $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 2022 2023 2024 2025 2026 Vail Village Out of Town Lionshead Other Areas • This chart shows Q1 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 17% Out of Town 23% Vail Village 46% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail Q1 2026 Sales Tax Town of Vail Business Review Apparel $1,482,627 Grocery $720,262 Gallery $25,370 Gifts $36,576 Jewelry $264,581Retail Liquor $203,199 Retail Other $1,223,436 Sporting Goods $1,514,683 Online Retailers $391,762 Retail Home Occupation $761 • Q1 2026 accommodations services decreased (12.2)% from the prior year. Short-term rentals decreased (9.9)% and hotels and lodges decreased (13.2)%. • 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. 6,552,881 2,803,571 6,452,461 2,833,114 5,601,265 2,553,285 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Hotel and Lodges Short-Term Rentals 2026 2025 2024 Retail 663,572 768,403 (104,831) -13.6% Lodging 1,435,729 1,688,636 (252,906) -15.0% F & B 438,701 393,081 45,620 11.6% Other 22,172 19,912 2,260 11.4% Total 2,560,174 2,870,031 (309,857) -10.8% Retail 848,594 944,187 (95,593) -10.1% Lodging 1,740,471 1,994,199 (253,727) -12.7% F & B 684,599 757,366 (72,767) -9.6% Other 15,205 18,639 (3,434) -18.4% Total 3,288,870 3,714,391 (425,521) -11.5% Retail 1,425,397 1,467,136 (41,739) -2.8% Lodging 2,138,124 2,333,457 (195,332) -8.4% F & B 5,447 10,134 (4,687) -46.3% Other 837,887 848,887 (11,000) -1.3% Total 4,406,855 4,659,614 (252,759) -5.4% Retail 2,925,694 3,034,396 (108,702) -3.6% Lodging 2,840,225 3,269,284 (429,058) -13.1% F & B 2,996,201 3,144,465 (148,264) -4.7% Other 90,391 118,496 (28,105) -23.7% Total 8,852,511 9,566,640 (714,129) -7.5% Retail 5,863,257 6,214,122 (350,865) -5.6% Lodging 8,154,550 9,285,575 (1,131,024) -12.2% F & B 4,124,947 4,305,046 (180,099) -4.2% Other 965,655 1,005,934 (40,278) -4.0% Total 19,108,410 20,810,676 (1,702,266) -8.2% Retail Apparel 1,482,627 1,470,036 12,591 0.9% Retail Food 720,262 783,564 (63,302) -8.1% Retail Gallery 25,370 32,604 (7,234) -22.2% Retail Gift 36,576 34,274 2,302 6.7% Retail Home Occupation 761 453 308 68.1% Retail Jewelry 264,581 255,942 8,639 3.4% Retail Liquor 203,199 224,476 (21,277) -9.5% Retail Other 1,223,436 1,195,341 28,095 2.4% Retail Sport 1,514,683 1,762,625 (247,942) -14.1% Retail Online Retailer 391,762 454,807 (63,045) -13.9% Total 5,863,257 6,214,122 (350,865) -5.6% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Q1 4.5% Sales Tax 2026 Collections 2025 Collections YoY % ChangeYoY $ Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary