Finance Department reports $22.4M March sales tax, strong variable collections boost revenue

The Management & Finance Policy Committee meeting held on May 8, 2025, in Aurora City, Colorado, focused primarily on the city's sales tax revenue for March 2025. Bill Levine from the finance department presented the sales tax report, revealing that the city collected $22.4 million in sales tax for March, marking a $1.3 million increase, or approximately 6%, compared to March 2024.

Levine noted that the city had started the year with disappointing sales tax results, being $2.5 million below budget in January. However, through March, the deficit had been reduced to $1.5 million, indicating a positive trend in revenue collection. A significant highlight of the report was the strong performance of variable sales tax collections, which are typically one-time business-to-business sales that can fluctuate month to month. In March, variable sales tax collections reached nearly $2.95 million, a substantial increase from $800,000 in March 2024.

Levine emphasized that while the increase in variable sales tax collections has positively impacted the city's finances, there is uncertainty about whether this trend will continue in the coming months. He pointed out that out of 15 sectors tracked for sales tax collections, 10 were showing negative trends for the year, indicating potential challenges ahead.

In conclusion, while the March sales tax figures reflect a recovery from earlier deficits, the committee acknowledged the need for cautious optimism regarding future revenue trends, particularly given the mixed performance across different sectors.