Sales and use tax collections see big jump in September

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Sales tax in September rolled in at 10.56 percent more than at this time last year, the latest city sales and use tax report said.

It was all about building materials, cars and commercial machines — industries that posted the highest month over month gains.

Hotels took a hit, with the Lodger’s and Auto Rental Tax down 4.3 percent from this same time last year. To date, LART is down 1.87 percent.

Medical marijuana posted a 51.65 percent gain over this time last year, with $112,132 collected in September.

All told, sales and use taxes were $11.2 million — that puts sales tax up 4.5 percent so far this year. And the total collected so far is $82.5 million.

Sales and use taxes account for more than 50 percent of the city’s budget. Last year, sales and use tax increased a healthy 5.4 percent — or $6.2 million — higher than 2010 collections. The Southern Colorado Economic Forum, in its annual report released in September, project that the city’s tax collections will be up 5.1 percent by year’s end.