January sales tax revenue in Colorado Springs jumps 9 percent since 2015

COLORADO SPRINGS, Colo. — January sales tax revenue in Colorado Springs was higher than anticipated, which is good news for the roads. The report shows a 9 percent increase compared to January of last year.

The early months of 2015 got off to a slow start, but in the first month of this year, more than $10 million was generated from the 2 percent sales and use tax to go toward the general fund.

“We’ve seen strong sales tax growth for a number of years now and even each month it varies whether it’s up 2 percent, 10 percent, 8 percent, it varies, but we were just pleased it was another strong month,” Chief Financial Officer Kara Skinner said.

Historically, January is the lowest month of the year.

“The biggest months are typically the end of the quarter and then the seasonal months in the summer where we have a lot of tourism and then December is the largest month,” said Skinner.

January was also the first month for the 2C road tax approved last November, bringing in more than $3 million, which is right on track.

“With our projections, we’ve projected over the five years of the temporary tax the collections would average approximately $50 million,” Skinner said. “In the early years it may be a little less than that.”

If 2C tax collections exceed those expectations and generate more than $50 million, officials say all of it will still be invested into the roads.

But where Colorado Springs saw the biggest growth was in the lodger’s and auto rental tax, jumping 20 percent since last year.

“We’ve had a number of positive economic indicators in the community as well,” said Skinner. “The new jobs report came out that was very strong. We have low unemployment rate, that’s strong. The airport is doing very well so there’s been a lot of positive economic energy in the community and I think that’s showing in the sales tax numbers.”

>> See the complete tax report. 

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