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Sales tax collections keep increasing, but for how long?

Sales and use tax collections for the City of Grand Junction continue to follow a pattern the city manager forecast last fall for the first half of 2011.

Whether or not a dire prediction for the second half of 2011 comes to fruition remains up for speculation.

According to the city report for May, sales and use tax collections totaled $3.78 million, a 9.4 percent increase over the $3.46 million reported in May 2010.

May reports reflects consumer spending in April, since reports lag a month behind the consumer spending that produced the taxes.

For reports covering the first five months of 2011, sales and use tax collections totaled $19.89 million, a 10.8 percent increase over the same span last year.

While the 2011 reports reflect an increase in sales compared to the first part of 2010, City Manager Laurie Kadrich expects tax collections to level off during the second half of this year. Kadrich bases her prediction in part on the fact few major construction projects are on the books late this year and no new projects are planned for 2012.

“I’m pessimistic,” Kadrich said during a public presentation on budget projections in early June. “Other people aren’t as pessimistic.”

City Finance Director Jodi Romero is among those who are more optimistic, Romero believes pent up consumer demand will prompt people to continue to spend more at retail stores and restaurants.

 

About
Mike Moran has worked as a news and sports reporter, and news manager for the past 30 years, in markets that include Rochester, New York; Colorado Springs; Panama City, Florida and Monroe, Louisiana. He also teaches Speechmaking at Mesa State College and assists his wife, Toni Heiden, in managing her real estate company in downtown Grand Junction. Mike is active in Kiwanis Club of Grand Junction, the Mesa State MBA Alumni Committee, Habitat for Humanity, the United Way and the Botanical Gardens of Western Colorado.
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Posted by on Jun 28 2011. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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