Sales Tax Trend Analysis

Sales Tax General Information

City and shared County sales tax is the major revenue source for the General, Streets, Capital Improvement, and Economic Development funds representing 72% of the total revenue in those funds (47% of total City Revenue). Salida has fared well through the COVID-19 pandemic in which we have been operating. Tourism is increasing to mountain communities as people try to find safer places to recreate and escape from the stresses of everyday life. With Salida’s creative solutions at keeping restaurants and stores safely operating, the City has become a destination for many, as have the surrounding areas where people camp and recreate while stopping in Salida for food and supplies. The City is seeing a significant increase in new development as people decide to invest in the community or move here permanently.

The budget anticipates a continuation of strong sales tax revenues but perhaps conservatively, does not anticipate a significant increase beyond the historic high levels of 2021. Sales tax is tracked monthly; as a Statutory City, actual remittances from the State lag 60 days from each sales month. If a downward trend is identified, budget adjustments will be considered. Monthly tracking reports can be found here.

City Sales Tax Trend Analysis

The City of Salida sales tax trends have been positive for years with an average annual increase from 2015 to 2020 of 9.5%. At the date of this writing, 2021 is on trend to see a 22% increase over 2020. Sales tax revenue goes a long way toward making your City safe, healthy and fun as the major funding source for such amenities as:

  • Beautiful parks and trail systems
  • Fun, educational and inspiring events and programming
  • Police and Fire protection
  • Support for local creatives
  • Planning for and controlling growth
  • Clean public bathrooms and frequently emptied public trash recepticals
  • Support for great facilities (pool, SteamPlant event center, tennis and pickleball courts, skatepark, boat ramps, river water features...)

County Shared Sales Tax Trends

Chaffee County shares a portion of its sales tax collections with the City in a longstanding revenue sharing agreement. County shared sales tax is another important revenue stream for the City and its trends mirror the City sales tax trends.

Sales Tax by Industry Sector

Salida is a popular tourist destination; as tourists come to visit, they spend money and provide a healthy influx to the City's economy. Typical of destination cities, the City of Salida's major sources of sales tax come from the retail and accomodation (hotels, restaurants) industry sectors.

The following charts show the breakdown of the City Sales Tax by industry sector.