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HomeMy WebLinkAbout01. 231003 Revenue Update1 TOWN OF VAIL REVENUE UPDATE October 3, 2023 4.0% General Sales Tax Upon receipt of all sales tax returns, August collections are estimated to be $2,829,569, down (5.6)% from last year and up 2.6% from the amended budget. YTD collections of $29,744,959 are up 2.2% from this time last year and up 1.4% from the amended budget. Inflation as measured by the consumer price index was up 3.7% for the 12-months ending August 2023. The annual amended budget totals $40.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, July collections of the 0.5% housing sales tax are estimated to be $340,084, down (5.8)% from last year and up 2.4% from the amended budget. YTD collections of $3,607,966 are up 1.6% from this time last year and up 1.2% 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 September 26 total $5,376,842, down (31.2)% from this time last year. The 2023 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through September 27 total $1,923,906 compared to $1,869,324 from this time last year. The 2023 budget totals $2,000,000. Lift Tax 2023 YTD lift tax collections through August total $4,990,984, down (2.0)% or $(101,304) from the same time last year. The 2023 amended budget totals $6,234,550. Summary Across all funds, year-to-date total revenue of $68.4 million is up 6.5% from the budget and up 0.9% from prior year. The majority of the positive variance from budget is due to higher-than-expected sales tax, construction use tax, interest/gains on investments, and real estate transfer tax collections during the month of August. 2023 Amended Budget % change % change 2018 2019 2020 Budget Variance from 2022 from Budget January 3,597,610$ 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,904,670$ 5,903,634$ (1,036)$ 13.16%-0.02% February 3,818,356 4,137,087 4,285,633 3,691,850 5,686,585 6,030,915 5,898,023 (132,892) 3.72%-2.20% March 4,167,880 4,237,933 2,243,518 4,364,797 5,912,059 6,034,154 6,181,884 147,730 4.56%2.45% April 1,233,474 1,445,071 427,518 1,751,528 2,234,296 2,213,286 2,258,079 44,793 1.06%2.02% May 830,193 763,756 503,828 1,061,516 1,227,974 1,043,778 1,108,720 64,942 -9.71%6.22% June 1,648,443 1,606,748 1,023,517 2,149,312 2,317,931 2,132,497 2,262,116 129,619 -2.41%6.08% July 2,412,425 2,480,292 2,084,644 3,491,668 3,507,973 3,227,335 3,302,934 75,599 -5.84%2.34% August 2,195,175 2,237,050 2,138,838 2,877,550 2,997,389 2,757,598 2,829,569 71,971 -5.60%2.61% Total 19,903,556$ 20,987,931$ 16,783,641$ 22,810,430$ 29,101,332$ 29,344,233$ 29,744,959$ 400,726$ 2.21%1.37% 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$ 29,744,959$ 400,726$ 2.21%1.37% 2022 2023 Amended Budget % change % change Collections Budget Variance from 2022 from Budget January 645,487$ 720,043$ 719,913$ (130)$ 11.53%-0.02% February 702,730 735,514 718,903 (16,611) 2.30%-2.26% March 719,717 735,514 753,980 18,466 4.76%2.51% April 269,018 259,234 271,078 11,844 0.77%4.57% May 146,657 134,924 131,171 (3,753) -10.56%-2.78% June 280,460 258,023 273,820 15,797 -2.37%6.12% July 424,602 390,634 399,015 8,381 -6.03%2.15% August 361,165 332,272 340,084 7,812 -5.84%2.35% Total 3,549,836$ 3,566,158$ 3,607,966$ 41,808$1.64%1.17% September 294,861 271,272 October 207,397 190,805 November 230,383 211,952 December 671,982 618,223 Total 4,954,459$ 4,858,410$ 3,607,966$ 41,808$ 1.64%1.17% Town of Vail Revenue Update October 3, 2023 4.0% GENERAL SALES TAX 2023 Budget Comparison 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 October 3, 2023 YTD 4% General Sales Tax Collections By Year Through August 31 August 4% General Sales Tax Collections By Year Through August 31 • August collections of $2,829,569 are down (5.6)% from prior year and are up 2.6% from the amended budget. $2,237,050 $2,138,838 $2,877,550 $2,997,389 $2,829,569 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2019 2020 2021 2022 2023 $20,987,931 $16,783,641 $22,810,430 $29,101,332 $29,744,959 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2019 2020 2021 2022 2023 • YTD collections of $29,744,959 are up 2.2% from prior year and are up 1.4% from the amended budget. • Inflation as measured by the consumer price index was up 3.7% in August. Town of Vail Revenue Update October 3, 2023 August 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through September 2023 August Collections YTD Collections • This chart shows YTD collections of 1% RETT, segmented by real property values. 2023 collections are down (31.2)% from the prior 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 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 $4,778,874 $6,064,302 $8,465,550 $7,815,116 $5,376,842 • August collections of $340,084 are down (5.8)% from prior year and are up 2.4% from the amended budget. YTD collections of $3.6M are up 1.6% from this time last year and are up 1.2% from the amended budget. $361,165 $340,084 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2022 2023 $3,549,836 $3,607,966 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2022 2023 Town of Vail Revenue Update October 3, 2023 Construction Use Tax by Year YTD Through September 2023 YTD Lift Tax Collections YTD Through August 2023 • Use Tax collections through September 27 total $1,923,906, compared to $1,869,324 from this time last year. This is an increase of 2.9%. $2,273,327 $1,696,299 $3,225,928 $1,869,324 $1,923,906 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2019 2020 2021 2022 2023 • 2023 YTD lift tax collections of $4,990,984 are down (2.0)% or $(101,304) from the same time last year. $4,244,160 $3,016,849 $4,280,736 $5,092,288 $4,990,984 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2019 2020 2021 2022 2023 Vail Business Review July 2023 October 3, 2023 The Vail Business Review breaks down the 4.5% sales tax collected for the month of July 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, July 4.5% sales tax was down from the prior year (5.9%). Retail decreased (11.9%), lodging decreased (3.1%), food and beverage decreased (1.0%), and utilities/other decreased (3.6%). Excluding the out-of-town category, sales tax for the month of July was down (2.1%) 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 July 2022 Sales Tax Collections by Business Type July 2023 Town of Vail Business Review July Sales Tax Collections by Year July 2023 Sales Tax 1,297,700 Lodging 1,228,568 Food & Beverage 1,012,797 Utilities & Other 163,057 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 (11.9%)(1.0%)(3.6%) Retail RLFU -$8,000,000 $12,000,00 OLOV 2,499,620 2,081,068 3,494,004 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2019 2020 2021 2022 2023 General Sales Tax Housing Sales Tax 3,933,241 3,702,122 • July 2023 retail sales decreased (11.9%), lodging decreased (3.1%), food and beverage decreased (1.0%), and utilities and other decreased (3.6%). • The figures above reflect 4.5% sales tax. Retail 1,473,658 Lodging 1,267,414 Food & Beverage 1,023,056 Utilities & Other 169,113 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 • 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 July 2022 collections were $3,933,241. Total July 2023 collections were $3,702,122. • Overall, July 2023 4.5% sales tax collections were down from the prior year (5.9%). (3.1%) July 2023 Sales Tax Town of Vail Business Review July 2022July 2023 Geographic Area Trends by Year July Sales Tax Sales Tax by Location Other Areas 14% Lionshead 13% Out of Town 25% Vail Village 48% • Vail Village sales tax decreased (1.1%), Lionshead decreased (2.4%), Other Areas decreased (5.2%), and Out of Town decreased (17.5%). Excluding Out of Town collections, all areas were down (2.1%). • The figures above reflect 4.5% sales tax. 403,042 343,884 527,091 461,293 304,840 481,559 319,967 321,989 824,762 1,315,318 1,110,354 1,660,592 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 2019 2020 2021 2022 2023 Vail Village Out of Town Lionshead Other Areas • This chart shows July 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. 568,963 527,032 966,135 1,871,112 1,851,072 514,433 797,502 539,115 Other Areas 15% Lionshead 14% Out of Town 21% Vail Village 50% Accommodation Services Sales Tax by Year Retail Business 4.5% Sales Tax Detail July 2023 Sales Tax Town of Vail Business Review $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Apparel $344,523 Grocery $231,749 Gallery $31,339 Gifts $8,785Jewelry $78,670 Retail Liquor $63,117 Retail Other $299,671 Sporting Goods $153,343 Online Retailers $86,437 Retail Home Occupation $66 • Overall, July 2023 accommodations services decreased (3.1%) from prior year. Short-term rentals decreased (3.5%) from prior year and hotels and lodges decreased (2.9%). • 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. 812,119 340,074 Hotel and Lodges Short-Term Rentals 2023 2022 2021 371,825 869,941 895,589 358,627 Retail 216,159.36                                            224,053.57                                             ‐3.52% Lodging 200,059.08                                            220,429.84                                             ‐9.24% F & B 109,705.00                                            114,542.92                                             ‐4.22% Other 13,191.29                                              9,937.02                                                 32.75% Total 539,114.73                                            568,963.35                                             ‐5.25% Retail 103,929.14                                            109,760.37                                             ‐5.31% Lodging 218,355.79                                            217,061.57                                            0.60% F & B 187,730.01                                            195,907.98                                             ‐4.17% Other 4,417.65                                                 4,301.60                                                 2.70% Total 514,432.59                                            527,031.51                                             ‐2.39% Retail 321,973.15                                            491,936.68                                             ‐34.55% Lodging 340,546.88                                            335,946.19                                            1.37% F & B 1,765.79                                                 2,033.95                                                  ‐13.18% Other 133,216.47                                            136,217.74                                             ‐2.20% Total 797,502.29                                            966,134.56                                             ‐17.45% Retail 655,638.27                                            647,907.30                                            1.19% Lodging 469,606.30                                            493,976.33                                             ‐4.93% F & B 713,596.02                                            710,571.48                                            0.43% Other 12,231.56                                              18,656.48                                               ‐34.44% Total 1,851,072.15                                         1,871,111.59                                          ‐1.07% Retail 1,297,699.92                                         1,473,657.91                                          ‐11.94% Lodging 1,228,568.05                                         1,267,413.93                                          ‐3.06% F & B 1,012,796.82                                         1,023,056.33                                          ‐1.00% Other 163,056.97                                            169,112.84                                             ‐3.58% Total 3,702,121.76                                         3,933,241.01                                          ‐5.88% Retail Apparel 344,523.29                                            345,489.76                                             ‐0.28% Retail Food 231,748.62                                            204,959.36                                            13.07% Retail Gallery 31,339.33                                              19,672.76                                              59.30% Retail Gift 8,784.85                                                 7,287.94                                                 20.54% Retail Home Occupation 66.38                                                      386.31                                                     ‐82.82% Retail Jewelry 78,670.06                                              91,443.23                                               ‐13.97% Retail Liquor 63,116.73                                              70,214.65                                               ‐10.11% Retail Other 299,671.01                                            492,083.74                                             ‐39.10% Retail Sport 153,342.65                                            156,961.30                                             ‐2.31% Retail Online Retailer 86,437.00                                              85,158.86                                              1.50% Total 1,297,699.92                                         1,473,657.91                                          ‐11.94% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review July 4.5% Sales Tax 2023 Collections   2022 Collections YoY % Change Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary