REVENUE REPORT - Boulder

[Pages:14]REVENUE REPORT

May 2019

Contents

Sales and Use Tax..........................................................................................................................1 Retail Sales Tax .............................................................................................................................3 Marijuana Tax Revenues...............................................................................................................7 Sugar Sweetened Beverage Tax Revenue ....................................................................................8 Other Tax Revenues......................................................................................................................8 City Tax Descriptions............................................................................................................... 9-10 Exhibit 1: Sales and Use Tax by Category, Industry and Location .............................................11 Exhibit 2: Sales Tax and Use Tax Separately by Industry and Location .....................................12 Exhibit 3: Sales Tax and Use Tax Separately by Month .............................................................13

Tax & Licensing Division Joel Wagner, Tax and Special Projects Manager wagnerj@, 303-441-3871

City of Boulder Revenue Report

May 2019

This report provides information and analysis related to 2019 unaudited taxes and fees including sales and use tax, accommodations tax, admissions tax, disposable bag fee, food services tax, marijuana tax, short-term rental tax, sugar sweetened beverage tax, and the trash tax.

The revenue reported below was received by the city through June 2019 and is largely attributed to economic activity through the month of May.

Select tax tables now include a rolling 12-Month percentage change column. Because tax collections can be variable month-to-month, the rolling 12-Month comparison provides an additional measure of growth over a longer time horizon than a YTD percent change, particularly in the early months of a year when timing differences can result in significant percent changes.

Sales and Use Tax

? Year to date, sales and use tax based upon current economic activity declined from 2018 by $127,735 or

0.24%. However, rolling 12-Month sales and use tax increased by 0.35%

? The city also completes tax compliance audits which may result in revenue. This revenue relates to prior

periods and is not reflective of current economic activity. Including audit revenue, the increase in total sales and use tax from 2018 is $379,773 or 0.71%. On a rolling 12-Month basis, total sales and use tax including audit revenue increased by 1.38%

? Details by industry, geographic zone and month are found on pages 3 through 7 of this report.

Sources - Related to Current Economic Activity Sales Tax Rec MJ Additional 3.5%* Business Use Tax Construction Use Tax Motor Vehicle Use Tax

Total Sales & Use Tax based on current economic activity Sources - Related to Prior Periods Sales Tax Audit Revenue Business Use Tax Audit Revenue Total Sales and Use Tax

2018 $39,974,744

638,389 4,803,649 6,025,026 1,908,659

YTD through May

2019

$ Change

YTD % Change

$41,802,954 $1,828,210

4.57%

696,260

57,871

9.07%

4,227,304 (576,345) (12.00%)

4,366,704 (1,658,322) (27.52%)

2,129,510

220,851 11.57%

$53,350,467 $53,222,732 ($127,735) (0.24%)

15,429

189,051

237,328

571,215

$53,603,224 $53,982,997

173,622 333,887 $379,773

1125.30% 140.69% 0.71%

* Additional sales tax on Recreational Marijuana is dedicated to the general fund ** Includes Construction Use Tax audit revenue

12 Month % Change

3.45% 36.09% (18.11%) (10.16%) 9.28%

0.35%

1267.23% 288.63%

1.38%

1

City of Boulder Revenue Report

Chart 1: YTD Sales and Use Tax by Fund

May 2019

Chart 2: YTD Sales & Use Tax by Type

2

Retail Sales Tax

? Retail sales tax including Recreational Marijuana additional sales tax and sales tax audit revenue comprises approximately 79% of total sales and use tax revenue.

? Because there is strong seasonality to retail sales tax revenue, it is useful to compare same month-over-month revenue changes. May 2019 retail sales tax revenue was up 5.4% over May 2018 revenue (including audit revenue and the additional recreational marijuana sales tax).

Chart 3: Month-Over-Month Change in Retail Taxable Sales

3

Chart 4: Sales Tax by Industry 4

Chart 5: Sales Tax by Geographic Area1

1 Some geographic sub-areas have been combined, see Exhibit 2 for sub-area breakdowns. 5

Chart 6: Industry Trends ? YTD Retail Sales Tax The chart below highlights the three-highest grossing industries. Combined these three industries generate 53% of total retail sales tax revenue.

Note: Totals may not tie to exhibits due to rounding.

Chart 7: Geographic Area Trends ? YTD Retail Sales Tax The chart below highlights the three-highest grossing geographic areas. Combined these three areas generate 50% of total retail sales tax revenue.

Notes: Downtown includes Pearl Street Mall, Downtown, Downtown Extension, and East Downtown Totals may not tie to exhibits due to rounding.

6

Marijuana Tax Revenues

The City of Boulder collects revenue from the sale of both medical and recreational marijuana. The City collects the base 3.86% sales and use tax on medical and recreational marijuana. The city also collects an additional 3.50% sales and use tax on recreational marijuana, and a 5.0% excise tax when marijuana is transferred from a cultivation facility to a dispensary, testing facility or facility that produces marijuana infused products. In addition, the city receives a revenue share back from state recreational marijuana taxes, which is reflected in Chart 7 below. Chart 8: Distribution of YTD Marijuana Revenues

*Dedicated to the General Fund.

Chart 9: Historical Trends for YTD Marijuana Revenues2

2 Rec Marijuana excludes state share back payments. Note: Totals may not tie to exhibits due to rounding.

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