Sales tax collections climb again in February
In another sign of the budding economic recovery, February sales tax collections rose 4.74 percent compared with February 2009, the Colorado Springs Financial and Administrative Services Department reported Monday.
February collections reflect consumer and business purchases made in January. It is the fourth straight month of year-to-year increases.
Combined sales and use tax collections in February rose 11.38 percent from February 2009, but that was partly from one-time audit revenue of $1,004,471 received in February. Minus that revenue, the sales and use tax collections were up 1.61 percent. Use tax is levied on equipment and other items that businesses buy outside the Springs for use inside city limits.
WHY IT’S IMPORTANT: Sales tax collections fund more than half of the city’s annual budget for general services such as police and fire protection, parks and roads.
NUMBERS IN CONTEXT: The recent string of increases is being compared to terrible figures a year earlier.
Sales tax collections in February 2009, for example, fell 9.2 percent from the year before.
WINNERS AND LOSERS: Categories showing the greatest increases in sales tax revenue included furniture, appliances and electronics, up 17.76 percent, utilities, 8.40 percent; and department and discount stores, 7.09 percent.
The greatest decreases were posted by auto repairs and leases, down 11.02 percent; and building materials, down 7.93 percent from the year before.
LART: Lodger’s and auto rental tax collections climbed 6.45 percent in February compared with the same month a year before.
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Contact the writer at 636-0272.
