October sales tax reports show yet another increase in business revenue over 2019
*Editor’s note: This story has been updated with accurate information about the effects of the Wayfair Supreme Court decision on sales tax collections.
Sales tax returns in towns across Summit County showed year-over-year increases in October.
The percentage increase in sales tax revenue was less than in previous months in some towns while other towns saw their highest year-over-year increase of 2020.
In Frisco, there was a 14% increase in October sales tax revenue compared with October 2019. Several business categories showed increases: Vacation rentals were up 47%, gifts were up 75%, and offices were up a whopping 107%. The only business sector in Frisco that saw a year-over-year downturn in October was hotels and inns, which was down 24%. October’s 14% increase trails September, which saw a 17% increase in sales tax revenue — the highest monthly increase so far this year for Frisco.
Also up in October was Frisco lodging tax revenue, which increased 20% compared with the same month in 2019. That contrasts with September’s 19% decrease.
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In Silverthorne, there was a 15% increase in sales tax revenue in October compared with October 2019, which is just behind September’s 22% increase. Year to date, the town has seen a 1% increase in sales tax revenue. Six of the town’s eight sales tax collection categories saw year-over-year increases in October, including lodging, which was up 21%; consumer retail, which was up 22%; and building retail, which was up 20%. Business sectors that saw year-over-year decreases in October were auto, down 7%; and the Outlets at Silverthorne, which was down 8%.
Silverthorne continues to see high year-over-year monthly increases in revenue from online retail sales taxes, which were up 80% in October. The town has attributed the increase in online sales to the Wayfair Supreme Court decision, which allows the town to charge sales tax on products delivered to Silverthorne, even if the business is out of state. The pandemic has further fueled online sales.
Lodging tax collections in Silverthorne increased 30% in October, but year-to-date lodging collections are down 11%.
The town of Dillon saw its biggest year-over-year increase of 2020 with October sales tax revenue up 17% compared with the same month last year. October comes after two consecutive months of about 13% growth compared with 2019.
Town Finance Director Carri McDonnell explained in an email that October saw a jump in revenue in part because the town received late payments from some online businesses. Year to date, Dillon’s sales tax revenue is up about 3%.
The town’s lodging tax revenue was up 91% in October compared with October 2019. October saw the highest increase in lodging tax revenue of the year and was one of three months this year that showed an increase in lodging collections compared with 2019.
Breckenridge also saw its biggest increase of the year in sales tax revenue with a 39% increase in October collections compared with October 2019. October marks the town’s fourth consecutive month of positive year-over-year growth in sales tax revenue after four months of declining numbers from March through June. The percentage increase has continued to grow each month.
Breckenridge Revenue Services Administrator Heather Pezzella attributed the big bump in October to good business. She wrote in an email that it was simply a strong month compared with prior year rather than one-time payments or late payments that could skew the data.
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