Vail sets August record for sales tax revenue
Revenue overall is way up from 2020, and 2019, too
More people in Vail means more people are spending money, and that shows up in the town’s collection of sales, lodging and other taxes. The town set a sales tax revenue record for the month of August — the most recent data available.
That record — $2.77 million — eclipsed the previous August record of $2.23 million set in 2019. Sales tax makes up about 40% of the town’s general fund revenue.
Collections are higher compared to that pre-pandemic year, since 2020 numbers are skewed by relatively fewer visitors.
For instance, town lodging tax collections far exceed those from 2020.
But the real estate boom that began in 2020 showed up in collections of Vail’s 1% real estate transfer tax.
Year-to-date collections of that tax through September showed a 37.5% increase this year over 2020. The 2020 collections through September were 26% higher than the same period in 2019.
After a down year in 2020, the town’s construction tax collections through the end of September showed an 89% increase from the previous year.
All those numbers have pushed the town’s revenue beyond budget projections this year. But town officials are being cautious in drafting the 2022 budget. The Vail Town Council is expected to vote Oct. 5 on the first reading of the 2022 budget ordinance.
Sales tax collections for next year are projected to be roughly flat with 2021 collections.
Forecasts aren’t calling for another record-smashing real estate tax. Instead, the town is budgeting about $7.5 million in transfer tax revenue, roughly in line with a five-year average.
The town expects to collect about $6 million from property taxes in 2022. Parking revenue, meanwhile, is expected to total $6.6 million.
Overall, the 2022 budget expects to spend $85 million across all funds. Nearly 68% of that spending will go to fund municipal services.
7.4%: Increase from 2019 in year to date Vail sales tax collections through August.
35%: Increase from 2019 in July Vail sales tax collections.
113.4%: Increase from 2020 in July Vail lodging tax collections.
37.5%: Increase from 2020 in year to date Vail Real Estate Transfer Tax collections through Sept. 28.
Source: Town of Vail