Sales tax slip 10 percent in Eagle County in December
Eagle County, CO Colorado
EAGLE COUNTY, Colorado ” Sales tax was down about 10 percent countywide in Eagle County, Colorado in December, said John Lewis, the county’s finance director.
The county budgeted a 5 percent decrease in sales tax ” which amounts to about $427,000 ” into the 2009 budget. The 10 percent drop in December is a warning, but the county is still in good position to weather a historic drop in sales tax in 2009 if need be.
“Luckily we have money set aside in the contingency if there is a big decrease,” Lewis said.
The county has $4.75 million in contingency money in the 2009 budget, which is enough for the county to handle even a 20 or 25 percent decrease in sales tax, Lewis said. Since 1984, 2003 was the only year the county’s sales tax revenue decreased. It dropped 6 percent that year.
Sales tax only accounts for about 20 percent of the county’s revenue, which is lower than a lot of other places, Lewis said. The 2009 budget also assumed a 4 percent drop revenue from building permits.
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“Right now, budgetwise, you still can’t tell too much,” Lewis said.