Frisco sales taxes held steady for 2008
summit daily news
FRISCO ” Sales taxes were off 1.74 percent in Frisco last year, but solid returns from lodging and groceries helped buoy town revenues.
“In real dollars, that 1.74 percent breaks down to roughly $106,000,” said town revenue specialist Chad Most.
The town ultimately missed its projected sales-tax revenues by 1.22 percent, or $74,000, but offset that shortfall with stronger-than-expected income from cable and utility franchise fees and conservative budgeting.
Among the highlights:
– Sales taxes from lodging were up 1.63 percent over 2007. Meanwhile, the lodging tax, used specifically for marketing, recreation and other tourist-oriented purposes, was up 1 percent.
– Grocery and general food sales rose 1.34 percent, generating a record $947,000 for the town.
– Restaurant sales were down less than 1 percent and still were above 2006 levels, despite the shaky national economy and the sense that fewer people would dine out.
The sector hit hardest was retail sales, which were off 3.38 percent or $116,000 in sales taxes from 2007. Additionally, “retail tourist” sales ” ski rentals and the like ” were down 1.43 percent, or $3,300 in sales taxes.
“I think people are still coming up here and still buying what they need, but they’re not buying extras,” Most said. “There’s not a lot of impulse buying going on.”
Businesses such as home decorating, antiques and home furnishings suffered most visibly, attributed in large part to the general decline in real-estate sales.
Although 2008 didn’t turn out as badly as feared, town officials are taking a conservative approach to the budget in 2009.
“We’re ratcheting back our spending, just like everyone else and postponing some projects,” Most said. “You plan for the worse and hope for the best.”
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