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HomeMy WebLinkAbout03. July Revenue Update1 TOWN OF VAIL REVENUE UPDATE July 18, 2023 4.0% General Sales Tax Upon receipt of all sales tax returns, May collections are estimated to be $1,027,672, down (16.3)% from last year and down (1.5)% from the amended budget. YTD collections of $21,178,880 are up 4.4% from this time last year and down (0.2)% from the amended budget. Inflation as measured by the consumer price index was up 4.0% for the 12-months ending May 2023. The annual amended budget totals $40.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, May collections of the 0.5% housing sales tax are estimated to be $121,045, down (17.5)% from last year and down (10.3)% from the amended budget. YTD collections of $2,576,623 are up 3.6% from this time last year and down (0.5)% from the amended budget. The 2023 amended budget for the housing fund sales tax totals $4.9 million. Real Estate Transfer Tax (RETT) RETT collections through June 30 total $2,826,381, down (41.1)% from this time last year. The 2023 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through June 30 total $1,635,988 compared to $1,092,082 from this time last year. The 2023 budget totals $2,000,000. Lift Tax 2023 YTD lift tax collections through June 30 total $4,650,293, down (1.1)% or ($52,154) from the same time last year. The 2023 amended budget totals $6,234,550. Summary Across all funds, year-to-date total revenue of $52.7 million is up 4.9% from the budget and up 7.3% from prior year. The positive variance from budget is due to higher-than-expected construction use tax, construction permit revenue, and interest/gains on investments. 2023 Amended Budget % change % change 2018 2019 2020 Budget Variance from 2022 from Budget January 3,597,610$ 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,904,670$ 5,900,580$ (4,090)$ 13.10%-0.07% February 3,818,356 4,137,087 4,285,633 3,691,850 5,686,585 6,030,915 6,031,313 398 6.06%0.01% March 4,167,880 4,237,933 2,243,518 4,364,797 5,912,059 6,034,154 6,046,046 11,892 2.27%0.20% April 1,233,474 1,445,071 427,518 1,751,528 2,234,296 2,213,286 2,173,269 (40,017) -2.73%-1.81% May 830,193 763,756 503,828 1,061,516 1,227,974 1,043,778 1,027,672 (16,106) -16.31%-1.54% Total 13,647,513$ 14,663,841$ 11,536,642$ 14,291,900$ 20,278,039$ 21,226,803$ 21,178,880$ (47,923)$ 4.44%-0.23% June 1,648,443 1,606,748 1,023,517 2,149,312 2,317,931 2,132,497 July 2,412,425 2,480,292 2,084,644 3,491,668 3,507,973 3,227,335 August 2,195,175 2,237,050 2,138,838 2,877,550 2,997,389 2,757,598 September 1,540,490 1,600,100 1,767,393 2,359,528 2,441,331 2,246,025 October 1,106,596 1,165,176 1,371,727 1,734,964 1,729,558 1,591,193 November 1,264,600 1,260,314 1,425,461 1,880,397 1,902,643 1,750,432 December 4,070,870 4,237,178 3,625,189 5,749,365 5,602,018 5,153,119 Total 27,886,112$ 29,250,698$ 24,973,411$ 34,534,683$ 40,776,882$ 40,085,000$ 21,178,880$ (47,923)$ 4.44%-0.23% 2022 2023 Amended Budget % change % change Collections Budget Variance from 2022 from Budget January 645,487$ 720,043$ 719,532$ (511)$ 11.47%-0.07% February 702,730 735,514 735,564 50 4.67%0.01% March 719,717 735,514 737,001 1,487 2.40%0.20% April 269,018 259,234 260,482 1,248 -3.17%0.48% May 146,657 134,924 121,045 (13,879) -17.46%-10.29% Total 2,483,609$ 2,585,229$ 2,573,623$ (11,606)$ 3.62%-0.45% June 280,460 258,023 July 424,602 390,634 August 361,165 332,272 September 294,861 271,272 October 207,397 190,805 November 230,383 211,952 December 671,982 618,223 Total 4,954,459$ 4,858,410$ 2,573,623$ (11,606)$ 3.62%-0.45% Town of Vail Revenue Update July 18, 2023 4.0% GENERAL SALES TAX2023 Budget Comparison 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX COLLECTIONS 2023 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax20212022 Through May 31 May 4% General Sales Tax Collections By Year Through May 31 Town of Vail Revenue Update July 18, 2023 YTD 4% General Sales Tax Collections By Year •May collections of $1,027,672 are down (16.3)% from prior year and are down (1.5)% from the amended budget. $763,756 $503,828 $1,061,516 $1,227,974 $1,027,672 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2019 2020 2021 2022 2023 $14,663,841 $11,536,642 $14,291,900 $20,278,039 $21,178,880 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2019 2020 2021 2022 2023 •YTD collections of $21,178,880 are up 4.4% from prior year and are down (0.2)%from the amended budget. •Inflation as measured by the consumer price index was up 4.0% in May. May Collections YTD Collections Town of Vail Revenue Update July 18, 2023 May 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through June 2023 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2023 collections are down (41.1)% from the prior year. $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 $5,500,000 2019 2020 2021 2022 2023 Sales Less Than $2.5 Million Sales $2.5 to $5 Million Sales $5 to $10 Million Sales Over $10 Million $2,944,293 $2,414,347 $5,073,151 $4,796,758 $2,826,381 •May collections of $121,045 are down (17.5)% from prior year and are down (10.3)% from the amended budget.YTD collections of $2.6M are up 3.6% from this time last year and are down (0.5)% from the amended budget. $146,657 $121,045 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2022 2023 $2,483,609 $2,573,623 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 2023 Town of Vail Revenue Update June 6, 2023 Construction Use Tax by Year YTD Through June 2023 YTD Lift Tax Collections Through June 30 •Use Tax collections through June 30 total $1,635,988, compared to $1,092,082 from this time last year. This is an increase of 49.8%. $1,706,822 $733,781 $2,435,590 $1,092,082 $1,635,988 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 $2,750,000 2019 2020 2021 2022 2023 •2023 YTD lift tax collections of $4,650,293 are down (1.1)% or $(52,154) from the same time last year. $4,109,163 $2,916,926 $3,925,279 $4,702,447 $4,650,293 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2019 2020 2021 2022 2023 Vail Business Review April 2023 July 18, 2023 The Vail Business Review breaks down the 4.5% sales tax collected for the month of April 2023. 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. Overall, April 4.5% sales tax was down from the prior year (2.8%). Retail increased 0.6%, lodging decreased (6.6%), food and beverage decreased (5.6%), and utilities/other increased 2.2%. Excluding the out-of-town category, sales tax for the month of April was down (1.0%) compared to prior year. The ski season VBR report reflects 4% general sales tax since collection of the 0.5% housing sales tax began partway through the 21-22 season. The 22-23 ski season resulted in an overall 3.6% increase from the prior ski season. Retail increased 4.3%, lodging decreased (0.5%), food and beverage increased 6.8%, and utilities/other increased 21.4%. Excluding the out-of-town category, sales tax for the 22-23 ski season increased 3.8%. 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 emailed 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, Finance Director, at (970) 479-2119. Sincerely, Lauren Noll Sales Tax Administrator April 2023 Town of Vail Business Review April Sales Tax Collections by Year April 2023 Sales Tax April 2022 Sales Tax Collections by Business Type 978,829 Lodging 674,612 Food & Beverage 553,931 Utilities & Other 226,378 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 0.6%(5.6%)2.2% Retail RLFU -$8,000,000 $12,000,000 1,444,255 428,125 1,751,761 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2019 2020 2021 2022 2023 General Sales Tax Housing Sales Tax 2,503,568 2,433,751 • April 2023 retail sales increased 0.6%, lodging decreased (6.6%), food and beverage decreased (5.6%), and utilities and other increased 2.2%. • The figures above reflect 4.5% sales tax. Retail 973,195 Lodging 721,997 Food & Beverage 586,779 Utilities & Other 221,597 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 • 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 and 2023 above include the 0.5% increase to sales tax, depicted in light blue. Prior years show 4.0% sales tax collections. • Total April 2022 collections were $2,503,568. Total April 2023 collections were $2,433,751. • Overall, April 2023 4.5% sales tax collections were down from the prior year (2.8%). (6.6%) April 2023 Sales Tax Town of Vail Business Review April 2022April 2023 Geographic Area Trends by Year April Sales Tax Sales Tax by Location Other Areas 13% Lionshead 14% Out of Town 30% Vail Village 43% Other Areas 13% Lionshead 15% Out of Town 31% Vail Village 41% • Vail Village sales tax increased 3.0%, Lionshead decreased (9.2%), Other Areas decreased (4.1%), and Out of Town decreased (6.8%). Excluding Out of Town collections, all areas were down (1.0%). • The figures above reflect 4.5% sales tax. 235,305 126,027 262,682 240,903 15,602 224,988 331,939 252,780 563,968 636,108 33,716 700,123 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2019 2020 2021 2022 2023 Vail Village Out of Town Lionshead Other Areas • This chart shows April sales tax collections by geographic area over time. • 2022 and 2023 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. 326,802379,740 770,282 1,026,744 1,057,578 344,647 718,039 313,488 Accommodation Services Sales Tax by Year Retail Business Sales Tax Detail April 2023 Sales Tax Town of Vail Business Review $0 $100,000 $200,000 $300,000 $400,000 $500,000 533,164 Apparel $185,230 Grocery $147,438 Gallery $40,588 Gifts $3,200 Jewelry $31,379Retail Liquor $41,104 Retail Other $236,298 Sporting Goods $224,493 Online Retailers $69,079 Retail Home Occupation $20 • Overall, April 2023 accommodations services decreased (6.6%) from prior year. Short-term rentals increased 20.3% from prior year and hotels and lodges decreased (16.1%). • 2022 and 2023 include the 0.5% increase for housing sales tax, depicted in lighter shades. General 4.0% sales tax collections are shown in darker shades. • 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. 315,359 157,810 Hotel and Lodges Short-Term Rentals 2023 2022 2021 188,833 447,384 227,228 Retail 155,273.84                                            153,775.82                                            0.97% Lodging 93,292.88                                              102,627.90                                             ‐9.10% F & B 59,829.87                                              65,627.23                                               ‐8.83% Other 5,091.18                                                 4,770.82                                                 6.71% Total 313,487.77                                            326,801.76                                             ‐4.07% Retail 108,157.23                                            101,953.73                                            6.08% Lodging 131,558.97                                            168,884.58                                             ‐22.10% F & B 101,698.19                                            106,093.17                                             ‐4.14% Other 3,232.14                                                 2,808.97                                                 15.06% Total 344,646.53                                            379,740.46                                             ‐9.24% Retail 313,013.52                                            366,345.88                                             ‐14.56% Lodging 194,879.06                                            200,017.94                                             ‐2.57% F & B 958.94                                                    1,794.05                                                  ‐46.55% Other 209,187.09                                            202,123.98                                            3.49% Total 718,038.61                                            770,281.86                                             ‐6.78% Retail 402,384.44                                            351,119.31                                            14.60% Lodging 254,881.31                                            250,466.36                                            1.76% F & B 391,444.09                                            413,264.99                                             ‐5.28% Other 8,867.88                                                 11,893.05                                               ‐25.44% Total 1,057,577.72                                         1,026,743.71                                         3.00% Retail 978,829.03                                            973,194.74                                            0.58% Lodging 674,612.22                                            721,996.79                                             ‐6.56% F & B 553,931.09                                            586,779.44                                             ‐5.60% Other 226,378.29                                            221,596.82                                            2.16% Total 2,433,750.63                                         2,503,567.79                                          ‐2.79% Retail Apparel 185,229.74                                            169,942.60                                            9.00% Retail Food 147,437.87                                            138,943.12                                            6.11% Retail Gallery 40,588.48                                              6,376.24                                                 536.56% Retail Gift 3,200.05                                                 3,433.89                                                  ‐6.81% Retail Home Occupation 19.54                                                      144.15                                                     ‐86.44% Retail Jewelry 31,378.75                                              29,525.45                                              6.28% Retail Liquor 41,103.73                                              45,157.50                                               ‐8.98% Retail Other 236,298.44                                            296,242.21                                             ‐20.23% Retail Sport 224,493.18                                            193,533.32                                            16.00% Retail Online Retailer 69,079.25                                              89,896.26                                               ‐23.16% Total 978,829.03                                            973,194.74                                            0.58% Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review April 4.5% Sales Tax 2023 Collections   2022 Collections YoY % Change Sales Tax Collections by Business Type Ski Season 2022-2023 Ski Season 2021-2022 Town of Vail Business Review Ski Season 2022-2023 Sales Tax Collections by Ski Season RFU -$8,000,000 $12,000,000 19,265,990 16,605,139 18,269,518 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 18-19 19-20 20-21 21-22 22-23 General Sales Tax Housing Sales Tax 29,028,986 30,997,336 • This report represents collections of Town of Vail sales tax, as opposed to actual gross sales. • Effective January 1 st 2022, voters approved a 0.5% sales tax to support housing initiatives applicable to all items excluding food for home consumption. The 0.5% housing sales tax is represented in light blue in the chart above. For the 21-22 ski season this tax was collected January through April while the 22-23 ski season reflects collections for the full season, November through April. • Total 21-22 ski season collections for the 4% general sales tax were $26,694,500. Total 4% general 22- 23 ski season collections were $27,643,908, up 3.6% from the prior ski season. Retail $9,080,606 Lodging $11,513,837 Food & Beverage $5,359,325 Utilities & Other $1,690,140 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 4.3%6.8% 21.4%(0.5%) Retail $8,709,348 Lodging $11,573,473 Food & Beverage $5,019,765 Utilities & Other $1,391,914 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 • Ski Season 2022-2023 retail sales increased 4.3%, lodging decreased (0.5%), food and beverage increased 6.8% and utilities and other increased 21.4%. • The figures above reflect 4.0% sales tax. Geographic Area Trends by Ski Season Town of Vail Business Review Ski Season 2022-2023 Sales Tax by Location Ski Season 2022-2023 Ski Season 2021-2022 Other Areas 14% Lionshead 18% Out of Town 24% Vail Village 44% Other Areas 15% Lionshead 18% Out of Town 24% Vail Village 43% • Vail Village sales tax increased 5.3%, Lionshead increased 2.8%, Other Areas increased 0.7%, and Out of Town increased 2.7%. Excluding Out of Town collections, all areas were up 3.8%. • The figures above reflect 4.0% sales tax. $2,981,518 $2,618,296 $2,717,386 $3,858,218 $3,885,053 $4,495,966 $3,692,687 $3,113,845 $4,763,633 $4,895,979 $2,250,103 $2,292,573 $4,729,703 $6,512,619 $6,687,638 $9,538,402 $8,001,582 $7,708,584 $11,560,030 $12,175,237 $0 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 18-19 19-20 20-21 21-22 22-23 Other Areas Lionshead Out of Town Vail Village • This chart shows ski season sales tax collections by geographic area over time. • The figures above reflect 4.0% sales tax. Town of Vail Business Review Ski Season 2022-2023 Retail Business 4.5% Sales Tax Detail Accommodation Services Sales Tax by Ski Season $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 Apparel $2,130,776 Grocery $1,357,142 Gallery $131,892 Gifts $42,312 Jewelry $389,114Retail Liquor $449,202 Retail Other $2,162,518 Sporting Goods $2,924,997 Online Retailers $523,483 Retail Home Occupation $2,195 • The 0.5% housing sales tax is represented in light shades in the chart above. For the 21-22 ski season this tax was collected January through April while the 22-23 ski season reflects collections for the full season, November through April. • 4% general sales tax collections for 22-23 ski season accommodations services decreased (0.5%) from the prior ski season. Short-term rentals increased 2.4% from prior ski season and hotels and lodges decreased (1.8%). • 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. 4,608,669 2,105,285 Hotel and Lodges Short-Term Rentals 22-23 21-22 20-21 3,793,030 8,947,788 4,005,279 8,842,879 4.0% Sales Tax 4.0% Sales Tax Retail 1,434,795.42                              1,440,157.71                               ‐0.37% Lodging 1,893,108.30                              1,940,428.50                               ‐2.44% F & B 481,960.16                                 435,963.68                                 10.55% Other 75,189.40                                   41,668.17                                   80.45% Total 3,885,053.28                             3,858,218.05                             0.70% Retail 1,339,393.45                              1,303,182.64                              2.78% Lodging 2,523,079.59                              2,517,357.54                              0.23% F & B 1,004,720.36                              917,385.64                                 9.52% Other 28,785.94                                   25,707.36                                   11.98% Total 4,895,979.34                             4,763,633.18                             2.78% Retail 2,215,127.82                              2,216,059.01                               ‐0.04% Lodging 3,035,925.75                              3,126,547.31                               ‐2.90% F & B 11,574.23                                   15,096.94                                    ‐23.33% Other 1,425,010.63                              1,154,915.94                              23.39% Total 6,687,638.43                             6,512,619.20                             2.69% Retail 4,091,289.15                              3,749,948.33                              9.10% Lodging 4,061,723.38                              3,989,139.99                              1.82% F & B 3,861,070.31                              3,651,318.58                              5.74% Other 161,154.33                                 169,622.94                                  ‐4.99% Total 12,175,237.17                           11,560,029.85                           5.32% Retail 9,080,605.84                              8,709,347.70                              4.26% Lodging 11,513,837.02                           11,573,473.34                            ‐0.52% F & B 5,359,325.06                              5,019,764.84                              6.76% Other 1,690,140.29                              1,391,914.40                              21.43% Total 27,643,908.22                           26,694,500.28                           3.56% Retail Apparel 1,894,023.43                              1,728,006.50                              9.61% Retail Food 1,296,990.40                              1,255,011.67                              3.34% Retail Gallery 117,237.28                                 206,728.00                                  ‐43.29% Retail Gift 37,610.35                                   42,742.54                                    ‐12.01% Retail Home Occupation 1,951.03                                      1,415.59                                      37.82% Retail Jewelry 345,879.43                                 218,189.65                                 58.52% Retail Liquor 399,342.86                                 433,248.84                                  ‐7.83% Retail Other 1,922,245.79                              1,864,062.12                              3.12% Retail Sport 2,600,006.71                              2,511,772.02                              3.51% Retail Online Retailer 465,318.58                                 448,170.77                                 3.83% Total 9,080,605.84                             8,709,347.70                             4.26% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review Ski Season 2022‐2023 22‐23 Collections 21‐22 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary