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HomeMy WebLinkAbout03. 210105 Revenue Update1 TOWN OF VAIL REVENUE UPDATE January 5, 2021 Sales Tax Upon receipt of all sales tax returns, November collections are estimated to be 1,381,380 up 9.6% from last year and up 82.7% compared to budget. Year to date collections of $21,159,765 are down (15.4)% from prior year and up 6.0% from amended budget. Inflation as measured by the consumer price index was up 1.2% for November. The annual budget totals $22.5 million. Real Estate Transfer Tax (RETT) RETT collections through December 28 total $9,839,995 up 36.2% from this time last year. The 2020 amended annual RETT budget totals $8,650,000. The previous record high for RETT collections was in 2018 with $7,649,014. Construction Use Tax Use Tax collections through December 28 total $2,068,169 compared to 2,468,068 from this time last year. The 2020 amended budget totals $1,930,000. Parking Revenue Season to date: Pass sales from November through December 25 total $929,339 down $(595,606) or (39.1)% from prior winter season. The majority of the decrease in pass sales is due to fewer purchases of blue passes by Vail Health in 2020. Prepaid revenue on value passes was also lower. Daily sales from the parking structures from November through December 25 total approximately $969,831, up $214,568, or 28.4% from this time last year. Summary Across all funds, year-to-date total revenue of $60.0 million is down 3.7% from amended budget and down (11.6)% from prior year attributed to the economic impacts of COVID-19 on sales tax collections, parking sales and construction activity. The town’s “Crisis” level recession plan has projected a 21% decrease across all revenue streams for the full year 2020. 2020 Amended Budget % change % change 2015 2016 2017 2018 2019 Budget Variance from 2019 from Budget January 3,696,798$ 3,738,824$ 3,725,212$ 3,597,610$ 4,079,994$ 4,061,971$ 4,073,023$ 11,052$ -0.17% 0.27% February 3,593,947 3,746,055 3,692,592 3,818,356 4,137,087 4,135,058 4,282,616 147,558$ 3.52% 3.57% March 4,053,961 4,225,921 3,642,407 4,167,880 4,237,933 2,149,476 2,217,257 67,781 -47.68% 3.15% April 1,370,929 1,089,749 1,386,780 1,233,474 1,445,071 400,000 425,791 25,791 -70.53% 6.45% May 584,454 654,462 659,475 830,193 763,756 450,000 502,266 52,266 -34.24% 11.61% June 1,242,400 1,318,092 1,389,982 1,648,443 1,606,748 950,000 1,032,848 82,848 -35.72% 8.72% July 1,937,989 2,053,773 2,215,649 2,412,425 2,480,292 2,000,000 2,078,303 78,303 -16.21% 3.92% August 1,702,579 1,849,815 1,863,949 2,195,175 2,237,050 2,100,000 2,134,944 34,944 -4.56% 1.66% September 1,240,277 1,349,929 1,385,462 1,540,490 1,600,100 1,735,000 1,757,603 22,603 9.84% 1.30% October 835,649 906,385 936,954 1,106,596 1,165,176 1,220,000 1,273,735 53,735 9.32% 4.40% November 997,100 989,320 997,716 1,264,600 1,260,314 756,188 1,381,380 625,192 9.61% 82.68% YTD Total 21,256,083$ 21,922,325$ 21,896,178$ 23,815,242$ 25,013,520$ 19,957,693$ 21,159,765$ 1,202,072$ -15.41% 6.02% December 3,885,849 3,840,919 3,695,305 4,070,870 4,237,178 2,542,307 Total 25,141,932$ 25,763,244$ 25,591,483$ 27,886,112$ 29,250,698$ 22,500,000$ 21,159,765$ Actual Collections Collected Sales Tax January 5, 2021 Town of Vail Revenue Update SALES TAX 2020 Budget Comparison 2 Through November 30th Town of Vail Revenue Update January 5, 2021 YTD Sales Tax Collections by Year November Sales Tax Collections by Year 21,922,325 21,896,178 23,815,242 25,013,520 21,159,765 0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2016 2017 2018 2019 2020 Year to date collections of $21,159,765 are down (15.4)% from prior year and up 6.0% from amended budget. Inflation as measured by the consumer price index was up 1.2% for November. The 2020 Amended sales tax budget totals $22.5M, down (23.2)% compared to actual collections of $29.3M in 2019 989,320 997,716 1,264,600 1,260,314 1,381,380 0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2016 2017 2018 2019 2020 Vail will collect an estimated $53,200 in additional November sales tax to bring collections up to 1,381,380. November will be up 9.6% from last year. November will be up 82.7% from amended budget. 3 YTD Through December Construction Use Tax by Year YTD Through December Town of Vail Revenue Update January 5, 2021 Real Estate Transfer Tax by Year 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 2016 2017 2018 2019 2020 Sales Less Than $2.5 Million Sales $2.5 to $5.0 Million Sales $5 to $10 Million Sales Over $10 Million 6,801,765 6,313,611 7,649,014 7,224,668 9,839,995 This chart shows YTD collections of 1% RETT, segmented by individual home sale value. 2020 RETT collections through December 28 total $9,839,995 up 36.2% from the prior year. 1,791,542 $1,754,375 3,967,787 2,468,068 2,068,169 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2016 2017 2018 2019 2020 Use Tax collections through December 28 total $2,068,169 compared to $2,468,068 from this time last year. This is a decrease of (16.2)% 4 Parking Pass Sales by Year Town of Vail Revenue Update January 5, 2021 Paid Parking Revenue - YTD Through December 25th Revenue by Pass Type - Through December25thPassesSoldbyType 1,042 total parking passes have been sold for the 2020/21 ski season as of December 25th, down 23.7)% or (323) passes from the same period last year. YTD, 2020/21 parking pass sales total $929,339, down (39.1)% or $(595,606) from last year. Red parking passes were offered for the first time in the 2019/20 ski season. Green parking passes were eliminated for the 2020/21 season. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000 1,300,000 1,400,000 1,500,000 1,600,000 2018 2019 2020 1,361,582 1,524,945 929,339 39 4038535240 506 595 313 71 167 512 447 484 129 160 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 2018 2019 2020 1,042 1,365 1,239 Daily sales from the parking structures from November through December 25 total $969,831, up $214,568, or 28.4% from the prior winter. 0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2018 2019 2020 5 Vail Business Review October 2020 January 5, 2021 The Vail Business Review breaks down the four percent sales tax collected for the month of October 2020. Overall, October sales tax increased 8.9% with retail increasing 1.2%, lodging increased 29.2%, food and beverage increased 14.2%, and utilities/other decreased by (7.8)%. Excluding the out of town category; sales tax for the month of increased 12.5%. Town of Vail sales tax forms, the Vail Business Review and sales tax worksheets are available on the internet at www.vailgov.com/finance. 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 at (970) 479-2119. Sincerely, Alex Jakubiec Town of Vail Revenue Manager 6 October 2020 Sales Tax Collections by Business Type Town of Vail Business Review October Tax Collections by Year October 2020 Sales Tax October 2019 Retail 554,571 Lodging 311,242 Food & Beverage 296,440 Utilities & Other 111,482 0 100,000 200,000 300,000 400,000 500,000 600,000 1.2% 14.2% 7.8)% Retail 547,952 Lodging 240,953 Food & Beverage 259,576 Utilities & Other 120,863 0 100,000 200,000 300,000 400,000 500,000 600,000 1,273,735 1,169,345 1,110,970 942,395 912,307 0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 2020 2019 2018 2017 2016 29.2% This report represents collections of Town of Vail 4% sales tax, as opposed to actual gross sales This report does not include an estimate of quarterly sales taxes, due on January 20th, 2021. Overall, October 2020 sales tax collections were up 8.9% from prior year. The sales tax budget for 2020 totals $16.8M, compared to $29.3M actual collections in 2019. October retail sales increased 1.2%, lodging increased 29.2%, food and beverage increased 14.2% and utilities and other decreased (7.8)%. 7 Geographic Area Trends by Year October Sales Tax Sales Tax by Location Town of Vail Business Review October 2020 Sales Tax October 2019October2020 Other Areas 17% Lionshead 10% Out of Town 32% Vail Village 42% Other Areas 20% Lionshead 13% Out of Town 34% Vail Village 33% Vail Village sales tax increased 36.7%, Lionshead decreased (14.6)%, Other Areas decreased 10.6)%, and Out of Town increased 2.0%. Excluding Out of Town collections, all areas were up 12.5%. 158,643 $ 175,010 233,264 $239,531 $ 214,166 151,030 126,265 $129,073 $143,234 122,280 223,071 $225,754 319,265 397,465 $405,418 379,563 415,366 $429,368 389,114 531,871 0 100,000 200,000 300,000 400,000 500,000 600,000 2016 2017 2018 2019 2020 Other Areas Lionshead Out of Town Vail Village This chart shows October sales tax collections, by geographic area over time. 8 October Sales Tax Accommodation Services Sales Tax by Year Retail Business Sales Tax Detail - October 2020 Sales Tax Town of Vail Business Review October 2020 Sales Tax Apparel 100,653 Grocery 113,762 Gallery 8,466 Gifts 4,645Jewelry 19,470 Retail Liquor 39,279 Retail Other 204,168 Sporting Goods 64,086 Retail Home Occupation 42... Overall, October accommodations services were up 22.3%, short-term rentals were up 49.5% and hotels and lodges were up 11.5%. The Town of Vail adopted marketplace facilitator tax rules on October 1st, 2020. This change in remittance requirements is anticipated to have a positive impact on short-term rental sales tax collections going forward. 170,850 72,645 169,513 67,768 188,929 101,291 0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Hotels/Lodges Short-Term Rentals 2020 2019 2018 9 Retail 135,344.80 111,724.63 21.14% Lodging 31,624.93 61,563.58 -48.63% F & B 41,620.95 58,754.90 -29.16% Other 5,575.07 7,488.19 -25.55% Total 214,165.75 239,531.30 -10.59% Retail 33,007.32 28,792.41 14.64% Lodging 53,153.82 77,295.70 -31.23% F & B 36,117.16 36,799.87 -1.86% Other 1.38 346.51 -99.60% Total 122,279.68 143,234.49 -14.63% Retail 184,983.13 283,077.11 -34.65% Lodging 115,640.08 2,559.39 4418.26% F & B 1,447.45 182.11 694.81% Other 103,347.25 111,646.59 -7.43% Total 405,417.91 397,465.21 2.00% Retail 201,235.96 124,357.99 61.82% Lodging 110,823.06 99,534.40 11.34% F & B 217,254.00 163,839.50 32.60% Other 2,558.21 1,381.76 85.14% Total 531,871.23 389,113.65 36.69% Retail 554,571.21 547,952.13 1.21% Lodging 311,241.89 240,953.08 29.17% F & B 296,439.56 259,576.38 14.20% Other 111,481.91 120,863.06 -7.76% Total 1,273,734.57 1,169,344.65 8.93% Retail Apparel 100,652.60 65,611.39 53.41% Retail Food 113,761.94 89,793.59 26.69% Retail Gallery 8,466.29 1,595.61 430.60% Retail Gift 4,645.03 2,693.93 72.43% Retail Home Occupation 42.40 100.74 -57.91% Retail Jewelry 19,470.10 10,511.30 85.23% Retail Liquor 39,279.01 25,049.30 56.81% Retail Other 204,168.32 305,854.06 -33.25% Retail Sport 64,085.52 46,742.21 37.10% Total 554,571.21 547,952.13 1.21% Total - All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review October 2020 Sales Tax October 2020 Collections October 2019 Collections October % Change 10