The city of Colorado Springs released Monday its “Sales and Use Tax Revenue Report” for February, which sustained year-over-year increases of all funds collected.
Combined sales and use taxes increased by 11.46 percent — 12.37 percent for sales tax and 3.82 percent for use tax — for the month and year-to-date, according to the report. These 2-percent taxes, which are issued straight to the city’s general fund, accounted for $11.7 million.
Collections created by the city’s .62-percent 2C Road Tax accounted for $3.6 million, a 19.14-percent year-over-year increase. Collections created by the .4-percent Public Safety Sales and Use Tax accounted for $2.34 million, marking a 11.46-percent year-over-year increase. Collections created by the .1-percent Trails, Open Space and Parks Tax accounted for $584,616 and increased by 11.46 percent from the same time last year, according to the report.
The report also tracked collections created by the Lodger’s and Auto Rental Tax, which accounted for $281,749 in February — a 6.77-percent increased from February 2016.
The report also highlighted tax collection trends by industry and found the largest month-over-month increases came in industries such as building materials, hotel/motel, medical marijuana, restaurants and miscellaneous retail.
As demand for local housing has skyrocketed in Colorado Springs, so has construction and the subsequent cost of building materials. In February, the city reported that the building materials industry experienced a 40.67-percent month-over-month increase in sales tax collections, which totaled $352,153 — the largest industry increase.
Other substantial increases came in the hotel/motel industry, which reported a 21.63-percent month-over-month increase that accounted for $202,361; and the medical marijuana industry, which reported a 20.11-percent month-over-month increase that accounted for a total of $143,929 in sales tax collections.
The industry with the largest month-over-month decrease in sales tax collections was the “department and discount” industry, which reported a drop of 6.26 percent from January that accounted for a loss of $59,444, according to the report.