Colorado Springs’ sales and use tax collections increased in January as compared with January 2020, but tax collections in the hospitality industry remained depressed.
Collections of the 2 percent combined sales and use tax collections increased 10 percent for the month, contributing more than $20 million to the city's General Fund, but increased just 0.42 percent over the past 12 months, compared with the previous 12-month period.
According to the monthly sales tax report issued Feb. 11, sales tax collections alone increased 9.56 percent and were up 0.81 percent for the year to date.
Sectors with the largest percentage increase in sales tax collections in January were groceries (62 percent), building materials (54 percent) and medical marijuana (47.7) percent.
Industries with the largest monthly decrease in sales tax collections were hotels and motels (down 51 percent) and restaurants (down 23.7 percent).
Sales and use tax revenue supports city operations such as police and fire protection, street repairs and park maintenance. Some of these functions also are also supported by the 0.62 percent 2C road tax (up 10 percent for the month and 0.38 for the year to date), the 0.4 percent public safety sales and use tax (up 10 percent for the month and 0.42 percent for the year to date) and the 0.1 percent trails, open space and parks tax (up 10 percent for the month and 0.42 percent for the year to date).
Collections of the 2 percent lodgers and 1 percent auto rental tax, known collectively as LART, were down almost 30 percent in January and posted a 39.6 percent decrease for the year to date.
Revenue from the lodgers tax accounted for the biggest share of the drop, posting a 32 percent drop in January and a 40.5 percent decrease for the year to date.
Auto tax revenue dropped 12.3 percent in January and is down more than 29 percent for the year to date.