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HomeMy WebLinkAbout02. 230801 Revenue Update1 TOWN OF VAIL REVENUE UPDATE August 1, 2023 4.0% General Sales Tax Upon receipt of all sales tax returns, June collections are estimated to be $2,174,255, down (6.2)% from last year and up 2.0% from the amended budget. YTD collections of $23,510,087 are up 4.1% from this time last year and up 0.7% from the amended budget. Inflation as measured by the consumer price index was up 3.0% for the 12-months ending June 2023. The annual amended budget totals $40.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, June collections of the 0.5% housing sales tax are estimated to be $262,837, down (6.3)% from last year and up 1.9% from the amended budget. YTD collections of $2,856,070 are up 3.3% from this time last year and up 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 July 24 total $3,153,381, down (42.1)% from this time last year. The 2023 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through July 24 total $1,704,532 compared to $1,227,733 from this time last year. The 2023 budget totals $2,000,000. Lift Tax 2023 YTD lift tax collections through July 24 total $4,716,261, down (1.7)% or $(82,704) from the same time last year. The 2023 amended budget totals $6,234,550. Summary Across all funds, year-to-date total revenue of $56.6 million is up 4.5% from the budget and up 6.8% from prior year. The majority of the positive variance from budget is due to higher-than-expected construction use tax, and interest/gains on investments. 2023 Amended Budget % change % change 2018 2019 2020 Budget Variance from 2022 from Budget January 3,597,610$ 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,904,670$ 5,905,152$ 482$ 13.19%0.01% February 3,818,356 4,137,087 4,285,633 3,691,850 5,686,585 6,030,915 6,035,128 4,213 6.13%0.07% March 4,167,880 4,237,933 2,243,518 4,364,797 5,912,059 6,034,154 6,049,933 15,779 2.33%0.26% April 1,233,474 1,445,071 427,518 1,751,528 2,234,296 2,213,286 2,245,435 32,149 0.50%1.45% May 830,193 763,756 503,828 1,061,516 1,227,974 1,043,778 1,100,184 56,406 -10.41%5.40% June 1,648,443 1,606,748 1,023,517 2,149,312 2,317,931 2,132,497 2,174,255 41,758 -6.20%1.96% Total 15,295,956$ 16,270,588$ 12,560,159$ 16,441,212$ 22,595,970$ 23,359,300$ 23,510,087$ 150,787$ 4.05%0.65% 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$ 23,510,087$ 150,787$ 4.05%0.65% 2022 2023 Amended Budget % change % change Collections Budget Variance from 2022 from Budget January 645,487$ 720,043$ 720,103$ 60$ 11.56%0.01% February 702,730 735,514 736,041 527 4.74%0.07% March 719,717 735,514 737,487 1,973 2.47%0.27% April 269,018 259,234 269,498 10,264 0.18%3.96% May 146,657 134,924 130,104 (4,820) -11.29%-3.57% June 280,460 258,023 262,837 4,814 -6.28%1.87% Total 2,764,069$ 2,843,252$ 2,856,070$ 12,818$ 3.33%0.45% 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$ 2,856,070$ 12,818$ 3.33%0.45% 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX 2023 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax20212022 Town of Vail Revenue Update August 1, 2023 4.0% GENERAL SALES TAX2023 Budget Comparison Through June 30 June 4% General Sales Tax Collections By Year Through June 30 Town of Vail Revenue Update August 1, 2023 YTD 4% General Sales Tax Collections By Year •June collections of $2,174,255 are down (6.2)% from prior year and are up 2.0% from the amended budget. $1,606,748 $1,023,517 $2,149,312 $2,317,931 $2,174,255 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2019 2020 2021 2022 2023 $16,270,588 $12,560,159 $16,441,212 $22,595,970 $23,510,087 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2019 2020 2021 2022 2023 •YTD collections of $23,510,087 are up 4.1% from prior year and are up 0.7%from the amended budget. •Inflation as measured by the consumer price index was up 3.0% in June. June Collections YTD Collections Town of Vail Revenue Update August 1, 2023 June 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through July 2023 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2023 collections are down (42.1)% 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 $6,000,000 $6,500,000 $7,000,000 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 $3,247,351 $3,170,265 $6,373,698 $5,442,865 $3,153,381 •June collections of $262,837 are down (6.3)% from prior year and are up 1.9% from the amended budget.YTD collections of $2.9M are up 3.3% from this time last year and are up 0.5% from the amended budget. $280,460 $262,837 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2022 2023 $2,764,069 $2,856,070 $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 August 1, 2023 Construction Use Tax by Year YTD Through July 2023 YTD Lift Tax Collections YTD Through June 2023 •Use Tax collections through July 24 total $1,704,532, compared to $1,227,733 from this time last year. This is an increase of 38.8%. $1,855,190 $839,478 $2,659,062 $1,227,733 $1,704,532 $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 $4,716,261 are down (1.7)% or $(82,704) from the same time last year. $4,131,594 $2,918,791 $3,981,861 $4,798,965 $4,716,261 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2019 2020 2021 2022 2023 Vail Business Review May 2023 August 1, 2023 The Vail Business Review breaks down the 4.5% sales tax collected for the month of May 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, May 4.5% sales tax was down from the prior year (10.6%). Retail decreased (8.0%), lodging decreased (11.7%), food and beverage decreased (22.1%), and utilities/other decreased (0.7%). Excluding the out-of-town category, sales tax for the month of May was down (17.3%) compared to prior year. 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 May 2022 Sales Tax Collections by Business Type May 2023 Town of Vail Business Review May Sales Tax Collections by Year May 2023 Sales Tax 604,989 Lodging 241,412 Food & Beverage 211,021 Utilities & Other 172,501 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 (8.0%)(22.1%)(0.7%) Retail RLFU -$8,000,000 $12,000,000 762,940 507,677 1,061,987 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 2019 2020 2021 2022 2023 General Sales Tax Housing Sales Tax 1,375,498 1,229,922 • May 2023 retail sales decreased (8.0%), lodging decreased (11.7%), food and beverage decreased (22.1%), and utilities and other decreased (0.7%). • The figures above reflect 4.5% sales tax. Retail 657,620 Lodging 273,343 Food & Beverage 270,741 Utilities & Other 173,794 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 • 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 May 2022 collections were $1,375,498. Total May 2023 collections were $1,229,922. • Overall, May 2023 4.5% sales tax collections were down from the prior year (10.6%). (11.7%) May 2023 Sales Tax Town of Vail Business Review May 2022May 2023 Geographic Area Trends by Year May Sales Tax Sales Tax by Location Other Areas 16% Lionshead 9% Out of Town 50% Vail Village 25% Other Areas 15% Lionshead 8% Out of Town 46% Vail Village 31% • Vail Village sales tax decreased (27.0%), Lionshead decreased (1.0%), Other Areas decreased (6.0%), and Out of Town decreased (2.7%). Excluding Out of Town collections, all areas were down (17.3%). • The figures above reflect 4.5% sales tax. 163,037 148,115 184,229 82,621 13,247 76,982 266,253 260,500 478,470 251,029 85,815 322,306 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2019 2020 2021 2022 2023 Vail Village Out of Town Lionshead Other Areas • This chart shows May 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. 203,578111,435 633,758 426,727 311,661 110,315 616,584 191,362 Accommodation Services Sales Tax by Year Retail Business Sales Tax Detail May 2023 Sales Tax Town of Vail Business Review $0 $50,000 $100,000 $150,000 $200,000 Apparel $65,701 Grocery $100,098 Gallery $13,979 Gifts $1,325 Jewelry $27,959 Retail Liquor $24,118 Retail Other $283,062 Sporting Goods $24,383 Online Retailers $64,319 Retail Home Occupation $45 • Overall, May 2023 accommodations services decreased (11.7%) from prior year. Short-term rentals increased 6.0% from prior year and hotels and lodges decreased (20.8%). • 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. 139,728 82,668 Hotel and Lodges Short-Term Rentals 2023 2022 2021 93,004 142,821 180,338 98,591 Retail 118,319.76                                            111,997.96                                            5.64% Lodging 27,859.26                                              29,948.57                                               ‐6.98% F & B 35,803.88                                              54,480.16                                               ‐34.28% Other 9,378.86                                                 7,150.89                                                 31.16% Total 191,361.76                                            203,577.57                                             ‐6.00% Retail 13,354.84                                              17,185.00                                               ‐22.29% Lodging 40,158.64                                              47,948.75                                               ‐16.25% F & B 50,747.51                                              43,610.89                                              16.36% Other 6,053.51                                                 2,690.49                                                 125.00% Total 110,314.51                                            111,435.14                                             ‐1.01% Retail 354,071.09                                            376,083.81                                             ‐5.85% Lodging 105,771.05                                            104,995.49                                            0.74% F & B 694.05                                                    855.30                                                     ‐18.85% Other 156,048.16                                            151,823.40                                            2.78% Total 616,584.35                                            633,758.01                                             ‐2.71% Retail 119,242.89                                            152,353.00                                             ‐21.73% Lodging 67,622.88                                              90,449.73                                               ‐25.24% F & B 123,775.20                                            171,794.81                                             ‐27.95% Other 1,020.44                                                 12,129.30                                               ‐91.59% Total 311,661.41                                            426,726.84                                             ‐26.96% Retail 604,988.58                                            657,619.77                                             ‐8.00% Lodging 241,411.83                                            273,342.55                                             ‐11.68% F & B 211,020.64                                            270,741.16                                             ‐22.06% Other 172,500.97                                            173,794.08                                             ‐0.74% Total 1,229,922.03                                         1,375,497.56                                          ‐10.58% Retail Apparel 65,700.62                                              78,959.90                                               ‐16.79% Retail Food 100,097.54                                            103,285.53                                             ‐3.09% Retail Gallery 13,979.43                                              4,606.65                                                 203.46% Retail Gift 1,324.54                                                 2,536.21                                                  ‐47.77% Retail Home Occupation 44.78                                                      218.51                                                     ‐79.51% Retail Jewelry 27,959.24                                              26,230.63                                              6.59% Retail Liquor 24,117.69                                              29,302.51                                               ‐17.69% Retail Other 283,062.01                                            312,141.61                                             ‐9.32% Retail Sport 24,383.36                                              43,425.86                                               ‐43.85% Retail Online Retailer 64,319.37                                              56,912.36                                              13.01% Total 604,988.58                                            657,619.77                                             ‐8.00% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review May 4.5% Sales Tax 2023 Collections   2022 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary