Brandon Leuallen, The Business Times 

The City of Grand Junction reported a decline in sales tax collections as of the May 31 Sales Tax Revenue Report, which was released in early July.

The report shows total tax revenue is down 0.5 percent compared to the same period in 2024 and 3.3 percent below the city’s budget projections for 2025. Sales tax is the city’s primary funding source for essential services, including public safety, infrastructure and parks.

Among the 19 business classifications tracked, eight categories increased their share of total taxes compared to 2024. These include:

• Department Stores, Warehouse Clubs and Supercenters (up 6 percent).
• Food Services and Drinking Places (up 1 percent).
• Clothing and Jewelry Retailers (up 4 percent).
• Grocery (up 1 percent).
• Utilities (up 6 percent).
• Other Services (up 10 percent).
• Gasoline Stations and Convenience Stores (up 1 percent).
• Construction (up 118 percent).

Several categories contributed a reduced share of revenue this year. These include Motor Vehicles, Building Materials, Business-to-Business Services, Furniture and Electronics, Rental Services, Manufacturing, Beer and Liquor Sales, Telecommunications, Lodging, and Personal Care.

Lodging-tax revenue is down more than 10 percent compared to the same period in 2024. The city collected $650,047 from its base 3 percent lodging tax by the end of May 2025, compared to $728,553 during the same time in 2024. Revenue from the additional 3 percent voter-approved lodging tax also fell by about 10.5 percent year-over-year.

In contrast, cannabis tax revenue is up significantly. The city collected $567,329 from its 6 percent cannabis sales tax through May 2025, up 36 percent from the $417,005 collected during the same period in 2024.

Mayor Cody Kennedy acknowledged both trends in his blog, noting cannabis revenue “exceeded expectations.” Commenting on the lodging downturn Kennedy said, “That matters because tourism and visitors bring dollars into our community, supporting local businesses and helping fund city services.”

Kennedy emphasized the need to focus on essential services during times of financial uncertainty.

“When revenues are uncertain, I believe the right thing to do is concentrate on core city services — things like police, fire protection, street maintenance, and essential infrastructure,” he wrote.

Kennedy said uncertain revenues will be an important factor in the upcoming two-year strategic planning discussions that are scheduled for later in July. He concluded by encouraging residents to support the local economy by shopping local whenever possible.

The full report is available on the City of Grand Junction website at www.gjcity.org/387/Monthly-Revenue-Reports.