Steamboat finance chief “reassured” by strong sales tax revenue in January

Steamboat Springs’ preliminary sales tax report for January showed a 4.51% increase in tax revenue collected in the same month last year.

During what is traditionally one of Steamboat’s biggest sales tax months, city Finance Director Kim Weber said January’s tax return increased by $207,158 compared to January 2023. “It makes a big difference in how we look at the rest of the period.” Year. “

“We had a 4.5% higher profit than last year, and our budget was 3%, so we’re off to a good start this year, we’re off to a good start, and we’re sticking to our budget,” Webber said.

The finance director added that he was “pleasantly surprised” by the sharp increase in sales tax revenue that month. Weber said the good snowfall recorded by Steamboat Resort may have helped boost tourism, but the increase in tax collections was primarily due to a reduction in the cost of goods sold at grocery stores. He said this was due to the increase.

“I think it’s an increase in cost,” Weber said. “If you look at which items are going up, grocery stores and grocery stores are going up 22%, so taxes are a function of price, which means the cost of items is going up. does not attribute this increase entirely to tourism.

“Actually, I think a lot of that is due to an increase in the cost of goods sold, because sporting goods are down and some other areas are down as well. A lot of it is just price increases. I think it has something to do with the rise.”

With the city’s sales tax revenue surging in January, lodging tax collections were also 11% higher than the revenue collected through the first month of 2023.

The 1% lodging tax revenue is primarily used to fund local trail projects, with a portion going toward marketing the project and supporting capital improvements to the city’s Haymaker Golf Course.

Weber said the lodging tax increase could be related to the amount of snow the ski resort has received this season compared to other resorts in Colorado.

As of March 1, Steamboat Resort leads all resorts in Colorado with a total snowfall of 294 inches, followed by Winter Park and Wolf Creek with 257 inches and 238 inches, respectively.

“I think tourism has been stronger than it would have been without the snow,” Weber said. “I’ve heard from other people that I think a lot of tourists who probably could have gone elsewhere came to Steamboat because of the snow.”

The city’s January preliminary tax report also showed a significant 116.75% increase in short-term rental tax revenue in this category compared to last year’s collections.

Steamboat voters approved a short-term rental tax in the November 2022 general election. The tax took effect on January 1, 2023, but the city did not collect it on reservations made before that date.

Weber noted that the jump in short-term rental tax collections to more than $1.5 million in January was largely a result of these developments.

“The reason prices have gone up so much is because all reservations made before Jan. 1 in 2023 are exempt from the (short-term rental) tax,” she said.