Local region sales tax revenues have zoomed their way to the top with a record high last month in Colorado Springs. What propelled those numbers was more than just strong holiday shopping and buying season. This is what one local economist said.
Local Region – Millions in Revenue Dollars
The city did collect $23 million in revenue in January. It was from the 2% tax it did levy on the purchase of appliances, TVs, clothing, cars, building materials, and other items. This is according to a Colorado Springs Finance Department report which was releasing on Friday. Also, the January collections are based on purchases mainly made in December.
In fact, last month’s collection did rise by 21.4% over January 2021. It did surpass the previous monthly high of $21.7 million which was set last July. The Finance Department report does show.
Ending in January, during the 12-month period, city sales tax revenues did total $221.9 million. It was a record and then nearly 25% jump from the prior high of $177.7 million during the prior 12 months. This is according to the report. Also, it was the first time yearly sales tax revenues have topped the $200 million mark.
Moreover, the performance of the sales tax is really the key to the operation of the Colorado Springs city government. Also, the tax does generate more than half of the revenue which pays for public safety, roads, parks, and other basic services in the city’s general fund budget.
In December 2021, more people were out and about and actually shopping than in December 2020. There is no doubt it contributes to higher city sales tax revenues which are collecting in January. This is what Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum.
Bailey said that several other factors were critical in driving the increase.
Moreover, inflationary pressures have, in fact, has driven up the costs of goods and services, for one, she said. Also, for consumers and businesses which have paid more for their purchase, city sales tax revenues which also has spiked.