Sales tax activity in Breckenridge up slightl
summit daily news
Vail, CO Colorado
The first quarter of 2010 shows Breckenridge financial activity on track with the town’s budget – a better situation than in 2009, when the economic recession led to significant cuts.
“Right now, we’re feeling pretty good,” said Brian Waldes, the town’s financial services manager.
Overall taxable sales activity through March is 0.7 percent more than in 2009.
After the first two months showed activity at 3 percent to 4 percent below 2009, peoples’ spending in the town increased.
In the month of March alone, retail sales activity was up 22 percent – totaling $12.7 million – relative to March 2009.
And March also recorded an 8.7 percent year-to-year increase in short-term lodging, an indication of visitors coming to town.
The town’s real-estate transfer tax collections started the year tremendously high (382 percent of budget) before falling in March and April to 78 percent and 76 percent of budget, respectively.
“RETT has always been really volatile and hard to predict,” Waldes said. “We’re kind of eating into that income that we have .. right now we’re on budget – but we’re keeping a close eye.”
The tax of 1 percent is assessed on nearly all transfers of real estate within town limits.
The spike of these transfers in January was attributable mostly to sales of time-shares at the Grand Lodge on Peak 7 going through, contributing nearly $450,000 toward the $589,000 collected.
Meanwhile, sales of supplies for construction and development continue to be lower than in 2009.
“Supplies are lagging; that’s down in a down year,” Waldes said. “We started seeing that shortfall in 2009.”
Year-to-date, the taxable activity for supplies is down 10 percent from last year.