Upward trends in sales tax revenue continue
November 10, 2016
It was a pretty good summer, economically speaking, for northern Grand County with towns across the region seeing upward trends in sales tax revenues.
The Town of Grand Lake had a busy summer season with the community’s businesses and tourists generating $646,607.59 in revenue for the municipal government from June to Aug. July was, not surprisingly, the busiest month of the year once again for Grand Lake with $275,977.42 in revenue generated. August was slightly less lucrative with $202,184.10 in sales tax generated by local commerce. June was markedly lower than the latter summer months with $168,446.07 in sales tax generation.
Summer months in Grand Lake see a drastic increase in commerce for that community. A typical May in Grand Lake sees sales tax revenues in the $50k to $60k range while June, July and Aug. have averaged between $150k and $275k for the last several years. The sales tax revenue comes from multiple different industries with the categories of lodging, restaurants/bars, and fixed retail as the Town’s leading sources of sales tax income.
During the summer of 2016 sales taxes derived from lodging businesses provided the most tax revenue with a total of $220,079.83 in revenue generated over June, July and Aug. The fixed retail category was second this summer with $208,381.83 in taxes generated while restaurants/bars was the third highest generator of tax revenue for the municipal government at $185,153.08. Grand Lake breaks their sales tax data down into two additional categories; miscellaneous and telecom/utilities which generated $11,747.49 and $21,245.36 respectively.
Granby has also seen a continuing trend line in sales tax revenue growth over the past several years, indicating a continuing economic rebound from the doldrums of the Great Recession.
So far in 2016 the Town of Granby has generated $209,690 more than was generated by local commerce at this stage in 2015, a sales tax revenue increase of roughly 12 percent. That growth is a continuation of similar growth that occurred in 2015. In 2015 Granby received 10.6 percent higher sales tax revenues than were generated in 2014.
Unlike the town of Grand Lake, which saw it’s highest sales tax revenues in July, Aug. was the highest sales tax generating month for Granby in 2016. That detail breaks from Granby’s historic trends. From 2009 to 2015 July saw the highest sales tax revenues for Granby with Aug. trailing slightly behind.
But in Aug. 2016 Granby saw a significant jump over Aug. 2015 revenues, well outside historic trends. For Aug. 2016 Granby businesses generated $354,614 in sales taxes. In Aug. 2015 Granby businesses generated $247,875, which was only modestly larger than what was generated in Aug. 2014, $215,116.
The jump in sales taxes that occurred in Aug. 2016 becomes apparent when looking at the total sales tax revenues for July 2016, at $288,885.
The category of liquor/fuel/conv. stores/grocery is far and away Granby’s largest source of sales tax revenue accounting for 56 percent of all sales tax in the community. Restaurants/bars is the second largest source of sales tax revenue at 14 percent of the overall total. The categories of retail (nine percent), utilities/phone/communications (eight percent), construction related (seven percent), and lodging (four percent) round out most of the remaining sales taxes generated by local commerce with other categories such as other retail/beauty/unclassified, home parties/direct/health/electronic, leasing, mobile/farm, mkt/wholesale/nondurable coming in at one percent or less of the overall total in each individual category.
The Town of Kremmling has also seen increased commerce this summer. At the end of Aug. 2016 Kremmling’s year-to-date sale tax revenues were up roughly five-and-one-quarter percent.
While the sales tax revenue trends in Kremmling have been moving upwards over the past several years their monthly totals have not been quite as consistent as their annual averages. Like Grand Lake July is typically Kremmling’s best month in terms of sales tax revenue generation. In July 2016 Kremmling’s business community generated $80,248 in sales taxes, which was down from the 2015 total of $85,863.
Despite the drop in sales taxes in July from 2015 to 2016 in July 2016 Kremmling’s year-to-date collections were nearly five-and-a-half-percent above the 2015 totals at that same point, indicating significantly hire sales tax generations in 2016’s earlier months. Notably the months of Jan. and Feb. in 2016 saw significant jumps in sales tax revenue over 2015 levels with increases of 21.32 percent and 17.54 percent respectively.
June 2016 and Aug. 2016 saw nearly identical levels of sale tax generation for the Town of Kremmling. For the month of June 2016 Kremmling received $75,943 in sales taxes while the town received $75,874 in Aug. 2016. Totals were up nearly four-and-a-quarter percent for Kremmling in Aug. over 2015 totals but were down roughly four-and-one-tenth-percent in June.