To: Honorable Mayor and Members of Town Council
From: Pete Mangers, Revenue Manager
Through: Trish Muller, Finance Director
Title
2018 Sales Tax Report
Body
________________________________________________________________________________
Executive Summary
Attached are the sales tax reports for December (collected in January) and YTD. The information is provided by area (sales tax districts) and NAICS category (industry). The month of December’s gross sales tax collections were up 1.8% over the previous year’s month or up $95,484 compared to December 2017. Staff is monitoring trending, including regional trends and will update Council accordingly.
Please note gross sales tax collections equates to all dollars collected by the Revenue Division. This would include sales tax revenue for the Town and the Promenade sales tax credit PIF, of which we share 27.5% of the sales tax generated in the Promenade. We also share back sales tax increment in the Downtown area with the DDA over the base set in 2008. Net sales tax revenue equates to only sales tax revenue for the Town.
Geographic Areas - The Milestone/Metzler is down 4.0% YTD. The Outlet Mall, which has shown a significant downturn over the last quarter, is down 0.4% for 2018; with the new outlet mall opening in Denver on September 27, 2018, staff will closely monitor its performance in the coming year and notify Council accordingly. The fourth quarter showed a negative impact on the outlet mall, with it being down 9.1%, 11.8% and 7.6% for October, November and December. Staff has met with a representative of the Castle Rock Outlet Center to discuss this impact. Out of Town and Out of State categories are up 6.7% and 3.6% compared to 5.8% and 29.1% for 2017. The Promenade category shows a significant increase due to the addition of several new locations over the past year and is up 42.9% YTD. The Downtown category is up 1.5% YTD. Staff will continue to monitor all areas moving forward.
Industry Areas - For the year, Miscellaneous Retail is up 5.1% and Food/General Merchandise is up 9.6% compared to 34.9% and 19.5% for 2017 respectively. Additionally, the estimate tax on food for home consumption (Grocery Tax) has been updated and is now is estimated to be approximately $7.5 million by year-end.
The Apparel and Accessories category is up 3.3%. Additionally, the Restaurant/bars category is coming in up 7.4% compared to 2017 totals. Home and Garden stores are showing an increase of 4.0%, consistent with prior year, staff will continue to monitor all aspects in these areas and report any concerns.
Audit Revenue - $482,950 in audit revenue was collected for 2018, compared to $399,172 collected in 2017 showing an increase of 21%. Audit revenue collections reflect payments received through January. These amounts are included in the gross sales tax collections. They are removed when showing net sales tax revenue to the Town.
Overall for 2018 the trend remains steady for sales tax, staff will continue to watch for trends in 2019 and will inform Council accordingly. With revenue showing a decline from 2018 budget amounts (6.2%), the Town is still showing continued positive growth. The outlook for sales tax continues to remain positive from year to year and staff will continue to monitor this very critical revenue stream.
Attachments
Attachment A: Yearly Sales Tax Revenue
Attachment B: Three-Year Sales Tax Revenue Comparison
Attachment C: Monthly Sales Tax Comparisons ‐ By Geographical Area
Attachment D: Map of Sales Tax Districts
Attachment E: Monthly Sales Tax Comparisons ‐ By Industry