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  Home Page » News » Cortez Sales Tax Dips In Oct Up For 2008

Cortez sales tax dips in Oct., up for 2008

Bigger concern is less retail spending in city

by Steve Grazier
Cortez Journal
October sales-tax totals for Cortez dipped almost half a point from numbers recorded a year earlier.

The city's regular sales-tax figure for October came in at $760,553, which is a 0.48 percent decrease from $764,230 in October 2007.

But a larger concern could be an ongoing trend of less retail spending in the city during the next few months, according to Kathi Moss, the city's finance director.

"We've had decreases in the past, but I think we might see this continue in the coming months," Moss said.

Moss cited the national economic crisis as a reason retail sales could continue to drop.

However, she suggested that nationwide economic booms and busts generally hit Cortez a little later than larger municipalities.

"I think the consistency of European travelers (going mostly to Mesa Verde National Park) keeps us going a bit longer," Moss said.

City Manager Jay Harrington downplayed the October shortfall, and he attributed it to an often "fluctuating" month-to-month sales-tax figure.

"We've seen our sales tax up and flat for quite a while," Harrington said. "A 30-day snapshot is not really that relevant to a 90- or 120-day trend."

Moss said her office has never really been able to pinpoint specific reasons for sales-tax fluctuations.

With Cortez not being much of an economic boomtown, if one retailer or major city developer files its sales-tax figures late it could negatively skew overall numbers for one month, Harrington said.

"We could have a strong month in retail sales, but if no one buys a car or does a major construction project (in a month's time), numbers can definitely slow down."

Harrington said the 2008 sales tax overall is 2.62 percent ahead of last year's pace. Through October, this year's sales-tax revenue stands at $7,688,693, compared to 2007's $7,492,387 - a plus of more than $196,300.

"We're still above 2007 and fortunate to be where we're at," said Harrington, while referencing the current national economic downturn.

The drop of gas prices during the last three months might be a contributing factor to lower sales-tax numbers, Harrington said.

"When gas prices were at $4 a gallon, we were probably picking up more regional shoppers, he said. "Local residents are more likely to drive to Durango and Farmington to buy certain goods with fuel at (about) $1.75 (per gallon)."