General Tax Revenue Forecast

The following table and schedule outline the non-department revenue budget unit and the expected general revenues over the next three-year period. This is the second year following the COVID-19 Pandemic which changed how many State and Local governments look to provide and deliver services to their communities. For the most part our local economy actually benefited from the pandemic momentarily while many high sales tax driven counties were subjected to making budget cuts and layoffs. The largest revenue source for our County continues to be Property Tax followed by sales tax. With the increase in remote work for many individuals and a hot real estate market our Assessor’s office is looking at a positive forecast outlook on property taxes. The second largest general revenue source is sales tax which makes up approximately a little over $2 million per year of the general fund source revenues. Included in the below forecast is the Proposition 172 Sales taxes which are required to be used towards safety departments, this allocation is determined by the State. The forecast includes expected increases to sales taxes over the next three years but will be updated depended on the economic outlook. Transient Occupancy Tax is showing a surprising outlook, but we will need to monitor it in terms of looking at it as a sustainable funding source. Business License Tax is now fully integrated into the County and growth in this revenue source will be limited without any new commercial and industrial growth in the County. Documentary Transfer Taxes is also reflecting a projected increase based on the prior year’s collections.