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HomeMy WebLinkAbout03. Revenue Update through 2023-11-071 TOWN OF VAIL REVENUE UPDATE November 7, 2023 4.0% General Sales Tax Upon receipt of all sales tax returns, September collections are estimated to be $2,500,016, up 2.4% from last year and up 11.3% from the amended budget. YTD collections of $32,411,540 are up 2.8% from this time last year and up 2.6% from the amended budget. Inflation as measured by the consumer price index was up 3.7% for the 12-months ending September 2023. The annual amended budget totals $40.1 million. 0.5% Housing Fund Sales Tax Upon receipt of all sales tax returns, September collections of the 0.5% housing sales tax are estimated to be $303,062, up 2.8% from last year and up 11.7% from the amended budget. YTD collections of $3,932,046 are up 2.3% from this time last year and up 2.5% 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 October 27 total $6,864,492, down (17.2)% from this time last year. The 2023 RETT budget totals $7,000,000. Construction Use Tax Use Tax collections through October 27 total $2,090,526 compared to $1,923,180 from this time last year. The 2023 budget totals $2,000,000. Lift Tax 2023 YTD lift tax collections through September total $5,070,899, down (1.7)% or $(85,535) from the same time last year. The 2023 amended budget totals $6,234,550. Summary Across all funds, year-to-date total revenue of $74.7 million is up 9.8% from the budget and up 5.7% from prior year. The majority of the positive variance from budget is due to higher-than-expected sales tax, construction use tax, interest/gains on investments, and real estate transfer tax collections in recent months. 2023 Amended Budget % change % change 2018 2019 2020 Budget Variance from 2022 from Budget January 3,597,610$ 4,079,994$ 4,076,145$ 3,422,209$ 5,217,125$ 5,904,670$ 5,905,480$ 810$ 13.19%0.01% February 3,818,356 4,137,087 4,285,633 3,691,850 5,686,585 6,030,915 6,034,720 3,805 6.12%0.06% March 4,167,880 4,237,933 2,243,518 4,364,797 5,912,059 6,034,154 6,049,548 15,394 2.33%0.26% April 1,233,474 1,445,071 427,518 1,751,528 2,234,296 2,213,286 2,258,313 45,027 1.07%2.03% May 830,193 763,756 503,828 1,061,516 1,227,974 1,043,778 1,111,901 68,123 -9.45%6.53% June 1,648,443 1,606,748 1,023,517 2,149,312 2,317,931 2,132,497 2,264,943 132,446 -2.29%6.21% July 2,412,425 2,480,292 2,084,644 3,491,668 3,507,973 3,227,335 3,391,666 164,331 -3.32%5.09% August 2,195,175 2,237,050 2,138,838 2,877,550 2,997,389 2,757,598 2,894,953 137,355 -3.42%4.98% September 1,540,490 1,600,100 1,767,393 2,359,528 2,441,331 2,246,025 2,500,016 253,991 2.40%11.31% Total 21,444,046$ 22,588,030$ 18,551,034$ 25,169,958$ 31,542,663$ 31,590,258$ 32,411,540$ 821,282$ 2.75%2.60% 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$ 32,411,540$ 821,282$ 2.75%2.60% 2022 2023 Amended Budget % change % change Collections Budget Variance from 2022 from Budget January 645,487$ 720,043$ 720,144$ 101$ 11.57%0.01% February 702,730 735,514 735,990 476 4.73%0.06% March 719,717 735,514 737,438 1,924 2.46%0.26% April 269,018 259,234 271,108 11,874 0.78%4.58% May 146,657 134,924 131,569 (3,355) -10.29%-2.49% June 280,460 258,023 274,173 16,150 -2.24%6.26% July 424,602 390,634 410,273 19,639 -3.37%5.03% August 361,165 332,272 348,289 16,017 -3.57%4.82% September 294,861 271,272 303,062 31,790 2.78%11.72% Total 3,844,697$ 3,837,430$ 3,932,046$ 94,616$ 2.27%2.47% October 207,397 190,805 November 230,383 211,952 December 671,982 618,223 Total 4,954,459$ 4,858,410$ 3,932,046$ 94,616$ 2.27%2.47% Town of Vail Revenue Update November 7, 2023 4.0% GENERAL SALES TAX2023 Budget Comparison 0.5% Collected Sales Tax 0.5% HOUSING SALES TAX 2023 Budget Comparison Actual 4.0% Collections 4.0% Collected Sales Tax20212022 Through September 30 September 4% General Sales Tax Collections By Year Through September 30 Town of Vail Revenue Update November 7, 2023 YTD 4% General Sales Tax Collections By Year •September collections of $2,500,016 are up 2.4%% from prior year and are up 11.3% from the amended budget. $1,600,100 $1,767,393 $2,359,528 $2,441,331 $2,500,016 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2019 2020 2021 2022 2023 $22,588,030 $18,551,034 $25,169,958 $31,542,663 $32,411,540 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2019 2020 2021 2022 2023 •YTD collections of $32,411,540 are up 2.8% from prior year and are up 2.6%from the amended budget. •Inflation as measured by the consumer price index was up 3.7% in September. September Collections YTD Collections Town of Vail Revenue Update November 7, 2023 September 0.5% Housing Fund Sales Tax Collections By Year Real Estate Transfer Tax by Year YTD Through October 2023 •This chart shows YTD collections of 1% RETT, segmented by real property values. 2023 collections are down (17.2)% 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 $10,000,000 $11,000,000 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 $5,323,469 $7,942,577 $9,619,958 $8,290,089 $6,864,492 •September collections of $303,062 are up 2.8% from prior year and are up 11.7% from the amended budget.YTD collections of $3.9M are up 2.3% from this time last year and are up 2.5% from the amended budget. $294,861 $303,062 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2022 2023 $3,844,697 $3,932,046 $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 2022 2023 Town of Vail Revenue Update November 7, 2023 Construction Use Tax by Year YTD Through October 2023 YTD Lift Tax Collections YTD Through September 2023 •Use Tax collections through October 27 total $2,090,526, compared to $1,923,180 from this time last year. This is an increase of 8.7%. $2,378,844 $1,897,133 $3,405,556 $1,923,180 $2,090,526 $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 •2023 YTD lift tax collections of $5,070,899 are down (1.7)% or $(85,535) from the same time last year. $4,267,308 $3,046,308 $4,347,950 $5,156,434 $5,070,899 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2019 2020 2021 2022 2023 Vail Business Review August 2023 November 7, 2023 The Vail Business Review breaks down the 4.5% sales tax collected for the month of August 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, August 4.5% sales tax was down from the prior year (3.4%). Retail decreased (4.8%), lodging decreased (3.9%), food and beverage decreased (1.1%), and utilities/other decreased (2.6%). Excluding the out-of-town category, sales tax for the month of August was down (3.9%) 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. 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 Town of Vail Business Review August Sales Tax Collections by Year August 2023 Sales Tax August 2022 Sales Tax Collections by Business Type August 2023 1,162,668 Lodging 1,029,163 Food & Beverage 881,508 Utilities & Other 169,865 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 (4.8%)(1.1%)(2.6%) Retail 2,248,247 2,143,407 2,878,541 $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 General Sales Tax Housing Sales Tax 3,357,116 3,243,204 • August 2023 retail sales decreased (4.8%), lodging decreased (3.9%), food and beverage decreased (1.1%), and utilities and other decreased (2.6%). • The figures above reflect 4.5% sales tax. Retail 1,220,691 Lodging 1,070,426 Food & Beverage 891,676 Utilities & Other 174,324 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 (3.9%) • 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 August 2022 collections were $3,357,116. Total August 2023 collections were $3,243,204. • Overall, August 2023 4.5% sales tax collections were down from the prior year (3.4%). Town of Vail Business Review August 2022August 2023 Geographic Area Trends by Year August Sales Tax Sales Tax by Location August 2023 Sales Tax Other Areas 16% Lionshead 14% Out of Town 25% Vail Village 45% • Vail Village sales tax decreased (5.1%), Lionshead decreased (2.9%), Other Areas decreased (1.3%), and Out of Town decreased (1.9%). Excluding Out of Town collections, all areas were down (3.9%). • The figures above reflect 4.5% sales tax. 406,560 340,518 442,713 415,754 300,535 375,243 338,441 454,137 702,324 1,087,493 1,048,218 1,358,260 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2019 2020 2021 2022 2023 Vail Village Out of Town Lionshead Other Areas • This chart shows August 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. 541,936 455,706 848,493 1,510,980 1,433,539 442,530 831,975 535,160 Other Areas 16% Lionshead 14% Out of Town 26% Vail Village 44% Retail Business 4.5% Sales Tax Detail August 2023 Sales Tax Town of Vail Business Review Accommodation Services Sales Tax by Year $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Apparel $253,298 Grocery $205,136 Gallery $19,416 Gifts $7,278 Jewelry $62,652 Retail Liquor $52,881 Retail Other $347,148 Sporting Goods $125,620 Online Retailers $89,193 Retail Home Occupation $46 • Overall, August 2023 accommodations services decreased (3.9%) from prior year. Short-term rentals remained flat compared to prior year and hotels and lodges decreased (5.4%). • 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. 661,824 291,974 Hotel and Lodges Short-Term Rentals 2023 2022 2021 308,715 720,446 761,711 308,717 Retail 217,006.16                                            217,526.89                                             ‐0.24% Lodging 178,682.43                                            188,255.86                                             ‐5.09% F & B 129,514.14                                            126,481.90                                            2.40% Other 9,957.67                                                 9,671.61                                                 2.96% Total 535,160.40                                            541,936.26                                             ‐1.25% Retail 81,499.86                                              84,862.01                                               ‐3.96% Lodging 201,659.25                                            207,602.85                                             ‐2.86% F & B 153,866.52                                            158,880.17                                             ‐3.16% Other 5,503.94                                                 4,361.37                                                 26.20% Total 442,529.57                                            455,706.39                                             ‐2.89% Retail 382,700.57                                            408,058.22                                             ‐6.21% Lodging 295,812.79                                            291,024.65                                            1.65% F & B 4,987.50                                                 1,694.94                                                 194.26% Other 148,474.31                                            147,715.65                                            0.51% Total 831,975.17                                            848,493.46                                             ‐1.95% Retail 481,461.05                                            510,243.65                                             ‐5.64% Lodging 353,008.53                                            383,542.35                                             ‐7.96% F & B 593,140.17                                            604,618.49                                             ‐1.90% Other 5,929.21                                                 12,575.85                                               ‐52.85% Total 1,433,538.96                                         1,510,980.34                                          ‐5.13% Retail 1,162,667.64                                         1,220,690.76                                          ‐4.75% Lodging 1,029,163.00                                         1,070,425.71                                          ‐3.85% F & B 881,508.33                                            891,675.50                                             ‐1.14% Other 169,865.12                                            174,324.48                                             ‐2.56% Total 3,243,204.10                                         3,357,116.45                                          ‐3.39% Retail Apparel 253,298.27                                            254,293.58                                             ‐0.39% Retail Food 205,136.02                                            202,016.42                                            1.54% Retail Gallery 19,416.20                                              9,847.55                                                 97.17% Retail Gift 7,277.99                                                 6,882.43                                                 5.75% Retail Home Occupation 45.85                                                      205.69                                                     ‐77.71% Retail Jewelry 62,651.72                                              86,616.50                                               ‐27.67% Retail Liquor 52,881.20                                              57,342.78                                               ‐7.78% Retail Other 347,147.70                                            398,770.63                                             ‐12.95% Retail Sport 125,620.01                                            128,182.34                                             ‐2.00% Retail Online Retailer 89,192.69                                              76,532.84                                              16.54% Total 1,162,667.64                                         1,220,690.76                                          ‐4.75% Total ‐ All Areas Lionshead Out of Town Vail Village Retail Summary Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review August 4.5% Sales Tax 2023 Collections   2022 Collections YoY % Change