Sales tax collections reveal a substantial increase in business in the lodging and restaurant industries, as well as a continuing recovery in the city’s economy, according to the June report from the city’s finance department.
Sales tax collections from hotels and motels soared 434 percent, and collections at restaurants were up 60.23 percent for the monthly reporting period that ended May 31, compared with the same period of 2020.
Sectors with the largest monthly decreases were medical marijuana, down 24.88 percent; and grocery stores, down 7.96 percent.
Total collections of the city’s combined sales and use tax were up 29.66 percent for the month, as compared with the same reporting period of 2020, and up 31 percent for the year to date, according to the latest report from Sara Freier, senior budget analyst.
Collections of the 2 percent sales tax increased 30.37 percent for the month and 31.62 percent for the year to date.
Collections of the 2 percent use tax rose 13.58 percent for the month and were up 19.29 percent for the year to date.
Collections of the sales and use tax go into the city’s general fund and are used for city operations such as police, fire, street repairs and parks maintenance. The report reflects revenue remitted to the city in June; most of these collections reflect business activity in May, but they also include delinquent filings.
Net combined sales and use tax revenue topped $18.37 million for the filing period, and net revenue for the year to date totaled $85.5 million — the largest year-to-date amount in the past five years.
That amount compares with $65.13 million in net revenue collected for the same period of 2020 and $71.26 million for the year to date in 2019.
Collections of the combined lodgers and auto rental tax, collectively known as the LART tax, increased 307.67 percent for the month and are up 80.64 percent 64 percent for the year to date.
Revenue from the 2 percent lodgers tax was up 313.88 percent for the month and 84.62 percent for the year to date. Collections of the 1 percent auto rental tax increased 244.8 percent for the month and 48.2 percent for the year to date.
LART tax revenue is used to attract visitors and enhance the region’s economy.
Collections of the 0.1 percent trails, open space and parks tax were up 29.66 percent for the month and 31 percent for the year to date.