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HomeMy WebLinkAbout02. July Revenue UpdatesTOWN OF VAIL REVENUE UPDATE July 7, 2020 Sales Tax Upon receipt of all sales tax returns, May collections are estimated to be $431,169; down 43.6% from last year. Year to date collections of $11,346,051 are down 22.6% from prior year and up 13.1% from amended budget. Inflation as measured by the consumer price index was up 0.1% for May. The 2020 original budget of $28,524,000 was amended to $16,800,000 in May. This is a total decrease of 41% from the 2020 original budget and a 43% decrease compared to 2019 collections of $29,405,827. Real Estate Transfer Tax (RETT) RETT collections through June 30 total $2,394,197 down 18.7% from the prior year. The 2020 annual RETT budget totals $6,300,000, down 12.8% from 2019 collections. Construction Use Tax Use Tax collections through June 30 total $673,880 compared to $1,706,822 from this time last year. The 2020 amended budget totals $1,800,000, down 18.9% from 2019 collections. Summary Across all funds, year-to-date revenue of $27.2 million is up 0.2% from amended budget. Year-to-date revenue is down 16.0% from prior year attributed to the economic impacts of COVID-19 on sales tax collections, parking sales, lift tax, and construction activity. The town’s “Crisis” level recession plan has projected a 21% decrease across all revenue streams for the full year 2020. 1 MEMORANDUM July 7, 2020 To: Vail Town Council Kathleen Halloran From: Alex Jakubiec Re: May 2020 Sales Tax and COVID-19 Impact Reporting Vail will collect an estimated $39,984 in additional May sales tax to bring collections up to $431,169. Due to the economic impacts of COVID 19 on the business community, the Vail Town Council elected to defer sales tax payments until August 2020; businesses are still required to file regular sales tax returns while deferring payments. A further analysis of the deferred May sales tax payments has been provided on page four of this update. May will be down (43.6)% or $(332,587) from May 2019 and up 1.5% or $6,169 from the amended budget. 2 2020 Amended2020 YTD Budget % change % change 20152016201720182019BudgetTotal Variance from 2019 from BudgetJanuary3,696,798$ 3,738,824$ 3,725,212$ 3,597,610$ 4,079,994$ 4,061,971$ 4,023,457$ -$ 4,023,457$ (38,514)$ -1.39% -0.95%February 3,593,947 3,746,055 3,692,592 3,818,356 4,137,087 4,135,058 3,076,032 1,190,902 4,266,933 131,875$ 3.14%3.19%March4,053,961 4,225,921 3,642,407 4,167,880 4,237,933 1,059,003 1,484,139 784,721 2,268,861 1,209,858 -46.46% 114.24%April1,370,929 1,089,749 1,386,780 1,233,474 1,445,071 350,000 346,971 8,660 355,631 5,631 -75.39%1.61%May584,454 654,462 659,475 830,193 763,756 425,000 391,185 39,984 431,169 6,169 -43.55%1.45%YTD Total13,300,089$ 13,455,011$ 13,106,466$ 13,647,513$ 14,663,841$ 10,031,032$ 9,321,784$ 2,024,267$ 11,346,051$ 1,315,019$ -22.63% 13.11%June1,242,400 1,318,092 1,389,982 1,648,443 1,606,748 562,264 July1,937,989 2,053,773 2,215,649 2,412,425 2,498,020 874,209 August1,702,579 1,849,815 1,863,949 2,195,175 2,247,250 898,804 September 1,240,277 1,349,929 1,385,462 1,540,490 1,609,132 643,553 October835,649 906,385 936,954 1,106,596 1,234,105 490,116 November997,100 989,320 997,716 1,264,600 1,263,064 767,472 December 3,885,849 3,840,919 3,695,305 4,070,870 4,283,668 2,532,550 Total25,141,932$ 25,763,244$ 25,591,483$ 27,886,112$ 29,405,827$ 16,800,000$ Actual CollectionsTOWN OF VAILSALES TAX2020 Budget ComparisonCollected Sales TaxDeferred Sales Tax0501001502002503003504004505005506006507007508008509002015 2016 2017 2018 2019 2020May Sales Tax By Year(in Thousands)3 May Sales Tax Collected Vs. Deferred 1,095 Businesses filed and paid their May Town of Vail sales tax for a total of $391,185 collected revenue. 112 Businesses have not yet paid their May taxes for a total of $39,984. Town of Vail COVID-19 Sales Tax Impact Reporting In same period, prior year; Retail businesses comprised 44% of all sales tax collected; Accommodation Services were 18%; Food and Beverage were 23%; and Other businesses were 15%. Deferred Sales Tax by Business Type Paid Sales Tax by Business Type Overall, 112 businesses filed returns for May without payment. Of these 112 outstanding returns; 65 businesses are located in Vail Village, 14 in Outlying Neighborhoods, 21 in Lionshead, and 12 Out of Town. Deferred Vs. Collected Sales Tax By Business Location May Tax Payments Collected Vs. Deferred Collected $391,185 91% Deferred $39,984 9% 1,095 Collected Payments 91% 112 Deferred Payments 9% Accommodation Services $10,380 - 3% Other $95,520 24% Food and Beverage $38,147 10% Retail $247,138 63% Accommodation Services $9,228- 23% Other $58 0% Food and Beverage $10,666 27% Retail $20,031 50% 137.6 55.0 8.1 190.5 1.6 35.0 3.0 0.3 OUTLYING NEIGHBORHOODS VAIL VILLAGE LIONSHEAD VILLAGE OUT OF TOWN Deferred Revenue Collected Revenue (in Thousands) 4 Vail Business Review April 2020 July 7, 2020 The Vail Business Review breaks down the four percent sales tax collected for the month of April. Overall April sales tax decreased (75.4)% with retail decreasing (65.8)%, lodging decreased (95.9)%, food and beverage decreased (94.8)%, and utilities/other decreased by (25.7)%. Excluding the out of town category; sales tax for the month of April was Down (85.7)%. Town of Vail sales tax forms, the Vail Business Review and sales tax worksheets are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailgov.com. 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 5 Retail 103,341.42 124,881.35 ‐17.25% Lodging 1,219.19 60,814.52 ‐98.00% F & B 8,965.40 49,015.89 ‐81.71% Other 1,796.50 3,915.48 ‐54.12% Total 115,322.51 238,627.24 ‐51.67% Retail 3,241.31 73,881.93 ‐95.61% Lodging 7,204.62 111,682.95 ‐93.55% F & B 3,087.74 55,018.79 ‐94.39% Other ‐ 1,374.17 ‐100.00% Total 13,533.67 241,957.84 ‐94.41% Retail 84,919.85 181,681.78 ‐53.26% Lodging 91.30 5,302.36 ‐98.28% F & B ‐ 745.69 ‐100.00% Other 110,886.41 145,116.39 ‐23.59% Total 195,897.56 332,846.22 ‐41.14% Retail 16,197.57 226,139.16 ‐92.84% Lodging 5,765.75 169,645.98 ‐96.60% F & B 5,266.91 231,093.15 ‐97.72% Other 3,647.81 6,172.92 ‐40.91% Total 30,878.04 633,051.21 ‐95.12% Retail 207,700.15 606,584.22 ‐65.76% Lodging 14,280.86 347,445.81 ‐95.89% F & B 17,320.05 335,873.52 ‐94.84% Other 116,330.72 156,578.96 ‐25.70% Total 355,631.78 1,446,482.51 ‐75.41% Retail Apparel 5,480.53 85,263.19 ‐93.57% Retail Food 81,426.33 110,112.98 ‐26.05% Retail Gallery 2,222.85 545.59 307.42% Retail Gift ‐ 2,695.24 ‐100.00% Retail Home Occupation ‐ 105.35 ‐100.00% Retail Jewelry 698.83 12,527.30 ‐94.42% Retail Liquor 23,892.48 31,889.98 ‐25.08% Retail Other 85,673.41 216,301.39 ‐60.39% Retail Sport 6,152.78 147,143.20 ‐95.82% Total 205,547.21 606,584.22 ‐66.11% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review April 2020 Sales Tax April 2020 Collections  April 2019 Collections April % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary 6