December 2025 Sales Tax Revenue Report
Sharla Beesley
Attached you will find the December Sales Tax Revenue report for taxes collected in December 2025, remitted to the State in January 2026, and received by the Town on February 10, 2026.
Cash Collections:
Sales taxes collected for December 2025 were $1,726,953.90, which is an increase
of 32.46% over taxes collected for December 2024, which totaled $1,303,764.45. The Town’s General Fund receives 80% of these
amounts, or 4% of the 5% tax levied by the Town. The General Fund portion of the amounts
received in 2025 and 2024, respectively, were $1,381,563 and $1,043,012. The
remaining amounts are split between several purpose-restricted funds
established in accordance with the terms of the additional 1% sales tax. The
amounts used in the analysis below represent the General Fund portion of the
sales tax. The following industry sectors had significant variances as
summarized below.
So far to date in 2025, sales tax collections are 2.99% higher than what was budgeted. In the month of December, collections came in 33.60% higher than budget. Compared to the same time in 2024, year-to-date collections are up 6.31%, showing an increase from last year.
The Recreation industry sector showed measurable growth in December 2025. Collections increased by 44.26%, or $2,794, compared to December 2024. Delinquent returns filed in 2025 were $2,540 higher than those filed in 2024. After backing out delinquent returns, this industry recorded a slight increase of $254. Overall, these trends indicate slight growth that appears to be due to increased economic activity within the sector.
The Automotive industry sector collections increased 14.00%, or $2,447 in December 2025 over December 2024. Delinquent returns filed in 2025 were -$1,276 lower than 2024. After backing out the delinquent returns, this industry saw an increase of $3,723. Overall, the growth appears to be due to increased economic activity within the sector.
The Restaurant industry sector experienced a decline in December 2025, with total collections decreasing 4.00% (-$10,116) compared to December 2024. Delinquent returns filed in 2025 were (-$5,413) lower than in 2024. After adjusting for delinquent returns, the net decrease was (-$4,703). Overall, the sector recorded a modest year-over-year decline, which may indicate a slight slowdown in economic activity. Variances may also reflect the timing of filings, including potential late filers.
The Groceries industry sector collections showed measurable growth in December 2025. Collections increased by 24.83%, or $31,640, compared to December 2024. Delinquent returns filed in 2025 were $2,603 higher than the previous year. After adjusting for these delinquent filings, the sector experienced an increase of $29,037. Overall, these trends indicate continued growth that appears to be due to increased economic activity within the sector.
The Retail industry sector reported an increase of 7.67%, or $19,753 in sales tax collections in December 2025 compared to December 2024. Delinquent returns filed in 2025 were (-$483) lower than the previous year. After adjusting for these delinquent filings, the sector experienced an increase of $20,236. Overall, these trends indicate continued growth that appears to be due to increased economic activity within the sector.
The Lodging industry reported a 137.10% increase in sales tax collections in December 2025, representing a $296,102 gain compared to December 2024. Delinquent returns filed in December 2025 were $215,697 higher than in the prior year, largely due to multiple late filings for previous periods. After adjusting for delinquent returns, the sector experienced a net increase of $80,405, indicating measurable growth primarily driven by increased economic activity. This growth also reflects several businesses that filed returns in 2025 but did not file in 2024.
The Professional industry sector reported an increase of 17.37%, or $5,421 in sales tax collections in December 2025 compared to December 2024. Delinquent returns filed in 2025 were $1,727 higher than the previous year. After adjusting for these delinquent filings, the sector experienced an increase of $3,694. Overall, these trends indicate continued growth that appears to be due to increased economic activity within the sector.
The Utilities industry sector reported a decrease of 9.55%, or (-$6,837) in sales tax collections in December 2025 compared to December 2024. Delinquent returns filed in 2025 were $59 higher than the previous year. After adjusting for these delinquent filings, the sector experienced a decrease of (-6,897). Overall, these trends indicate some slowdown in economic activity.
Taxable Sales:
Taxable sales are recorded in the month the sales happen, even if the taxes are paid late. Because of this, late or delinquent filings can affect how monthly comparisons appear. Taxable sales reported for the month of December 2025 reflected an increase of 3% over the taxable sales reported for December 2024. Year-to-date taxable sales through December 2025 reflect an increase of 3% compared to year-to-date taxable sales in December 2024.
Inflation:
Changes in the CPI approximate the changes in the cost of goods sold. As a
result, retailers may periodically adjust their sales prices to cover the
increased costs, ultimately impacting the amount of sales tax revenue the Town
receives. The latest information released by the U.S. Bureau of Labor
Statistics is for January 2026. Over the last 12 months, the CPI-U for the
Denver-Aurora-Lakewood area advanced 2.6 percent. The index for all items less
food and energy also increased 3.3 percent over the year. Food prices rose 2.2 percent, and energy
prices fell 9.1 percent over the same period.
More information is posted online at: https://www.bls.gov/regions/mountain-plains/news-release/consumerpriceindex_denver.htm
Please feel free to contact me if you have any questions.
Sincerely,