Colorado Springs consumers spent in May at the fastest rate in a year, fueled by the category that includes online retail giant Amazon, the latest sales tax report from the city’s Finance Department shows.
Sales tax collections for June, based on transactions in May, rose 6.3 percent to $14.2 million, the sixth consecutive monthly increase and the biggest gain since a 10.6 percent jump in June 2017. Collections so far this year were up 5.3 percent from the same period last year to $64.8 million.
Nearly one-third of the June increase came from a 17.4 percent jump in miscellaneous retail, which includes sales from Amazon, to $1.87 million. That was partially offset by a 10.4 percent drop in collections from department and discount stores. Other big gains in June came from business services, up 35.8 percent; commercial machines, up nearly 18 percent, and building materials, up 5.8 percent.
Tom Binnings, senior economist for Summit Economics LLC, a local economic research and consulting firm, said housing construction and business investment have been gaining strength nationwide since last year’s tax cut. He said the city’s sales tax numbers are “pretty indicative of a continuing economic expansion.”
The 2 percent tax generates more than half of the city’s revenue used for public safety, parks and other basic services, and economists consider the collections a key barometer of the local economy.
Other highlights from the report:
• Revenue from the city’s tax on hotel rooms and rental cars posted another strong month in June, up 7.1 percent from June 2017, to $629,832, the eighth-highest monthly total in city history.
• Collections from the city’s use tax — paid on equipment and machinery bought outside the Springs — recovered from May’s 17.9 percent decline with a 14.1 percent increase in June to $653,970. Use tax collections so far this year are up 9.4 percent to $3.82 million.
• Revenue from the city’s road repair sales tax in June was up 6.6 percent from June 2017 to $4.61 million and is up 5.6 percent so far this year to $21.3 million.
• Overall sales and use tax was up 6.6 percent from June 2017 to $14.9 million, and was up 5.5 percent so far this year to $68.7 million.
• Collections from special taxes for public safety and trails, open space and parks in June were up 6.6 percent in June to $3.72 million and were up 5.5 percent so far this year to $17.2 million.
Contact Wayne Heilman 636-0234 Facebook www.facebook.com/wayne.heilman
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