City tax revenues on track
October 5, 2006
Aspen’s sales taxes continue to bring in good revenue for the city. August’s revenue from the 2.2 percent tax was “the strongest in history,” according to Paul Menter, the city’s finance director.Revenue for August was $985,765, up 3.2 percent over August 2005. Year-to-date revenue through August was $7,344,449, up 7.2 percent over the same period last year.”It’s about what we expected,” Menter said. “It’s the same theme as June and July, which is that last year, we had such an increase in summer business compared to 2004.”That means that the 2005 numbers are continuing to rise even higher than last year’s phenomenal revenue.The city was projecting an increase of about 6 percent over 2005’s numbers, Menter said, and the actual 7.2 percent increase is right in line with that projection.According to Menter, lodging bookings for Thanksgiving and December of this year are strong, so it appears the trend will continue.The city’s 1 percent lodging tax generated $90,419 in August, up 4.0 percent from Aug. of last year. Year-to-date, the city has earned $806,695 from the lodging tax, up 10.9 percent from the same period in 2005.Menter said city officials have been watching national real estate trends. There’s been talk that real estate sales might not only cool off but also start to contract, he said.”But we haven’t seen that here,” he said. “It’s a unique market.”The 1 percent housing real estate transfer tax brought in $715,673 in September. Year-to-date, revenue is up 11 percent over 2005, at $8,224,569 through September 2006.