Another month of Estes Park Sales Tax Revenue Report brings another increase over the same month last year. Collections for August 2022 totalled $2,806,791, up by 14.64 percent over August 2021 totals ($2,448,449).
Last year was a record year of Sales Tax collections in Estes Park with $20,930,809 collected. Through the month of August, the town is on pace to beat last year’s record with $15,164,709 already collected and four months left in the calendar year.
“From detailed analysis, the collection of delinquent returns accounted for $57,277 of this increase,” said Town Finance Director Duane Hudson. “After accounting for the second Groceries return mentioned below, much of the remaining increase in tax collections is general economic activity.”
“The Groceries industry sector increased significantly by 78.48 percent. However, much of this is due to receipt of two returns from a 13 period filer in August 2022. If this extra return is excluded, the Groceries sector increased by approximately 11 percent.”
The Recreation industry was hit with a decrease of 39.45 percent, which Hudson says is largely due to two vendors who failed to file in August 2022.
“These delinquent returns are expected to be collected in the next few months,” said Hudson.
August saw a 52.95 percent increase in the Automotive industry sector, which was largely due to the collection of delinquencies and a new periodic filer in August 2022.
“The Restaurants and Liquor industry sector increase of 12.04 percent appears to be largely due to collections of delinquent returns in 2022,” Hudson said. “The Lodging industry sector increased 8.11 percent from 2021’s collections. However, 2021’s collections were less than normal due [to]the late filing of an August 2021 return by a large lodging provider. This return was ultimately collected in December 2021. After correction of this anomaly, lodging revenues were basically the same for August 2021 and August 2022.”
The taxable sales schedules reflect the taxable sales activity in the month of the actual sale, regardless of when the sales taxes were remitted, and the taxable sales reported for August 2022 increased one percent over last August.
Year-to-date taxable sales through August 2022 are up six percent over August 2021.
The Consumer Price Index (CPI) is used to measure the cost of goods sold in the open market. Over the last 12 months ending September 2022, the CPI for the urban Denver-Aurora-Lakewood area rose 7.7 percent.
The index for all items less food and energy rose 7.2 percent over the year. Food prices rose 11.8 percent, while energy prices increased 7.1.
“As a result, retailers may periodically adjust their sales prices to cover the increased costs, ultimately impacting the amount of sales tax revenue generated,” Hudson said.