Colorado Springs Sales Tax Revenue Posts 12th Straight Double-Digit Gain | Content reserved for subscribers
Colorado Springs sales tax revenue in February jumped a double-digit percentage for the 12th consecutive month, although the gain was the smallest in a year.
The $15.9 million generated by the city’s 2% sales tax last month was up 12.4% from a year ago, according to the Colorado Springs Department of Finance report released Wednesday. . February collections on items such as appliances, televisions, cars, building materials and others were based on sales made primarily in January.
Colorado Springs sales tax revenue hits record high in January
Sales tax revenue increases over the previous 12 months showed gains of 15% to 60% from the same month a year earlier. The lower gain in February was likely based, in part, on an increase in COVID-19 cases of the fast-spreading but less severe omicron variant, said Tatiana Bailey, director of the University of Colorado at the Colorado Springs Economic Forum. .
“I expected (sales tax) growth to moderate, not just in Colorado Springs, but in retail sales nationwide, as higher inflation and greater (economic) uncertainty ) significantly erode consumer confidence,” Bailey said.
“You also see consumers focusing their spending on essentials now that they are paying more for everything and the lack of supply for purchases like vehicles has become a major issue.”
More than half of February’s gain was generated by receipts from sales of building materials, restaurants and grocery stores, although many grocery items are exempt from sales tax. All retail categories except medical marijuana among the 15 tracked by the department increased from February 2021, with business services, utilities and hotels showing the largest percentage increases .
Sales tax revenue is a key economic indicator and the primary source of municipal government funding, accounting for more than half of spending on public safety, roads, parks, and other services. Special taxes for public safety, roads, parks, open spaces and trails generated nearly $9 million during the month of February.
Colorado Springs sales tax revenue growth slows, but remains strong
Other details in the report:
• Revenue from the municipal tax on hotel rooms and rental cars jumped nearly 35% to reach $414,748, a record for February .
Colorado Springs’ booming sales tax revenue shows no signs of slowing
• Municipal use tax recoveries, paid on manufacturing and other equipment purchased out of town, increased slightly to $661,549.