CFO Nikki Simmons reports El Paso County sales tax up 5.13% in March 2025

The Board of County Commissioners meeting on May 27, 2025, commenced with a presentation by Nikki Simmons, the Chief Financial Officer, regarding the quarterly sales and use tax report for the first quarter of 2025, covering January through March.

Simmons reported that the sales tax collections for March 2025 showed an increase of 5.13% compared to March 2024. However, year-to-date figures indicated a modest growth of only 0.71%, falling short of the budgeted projection of a 3.5% increase. This discrepancy raised concerns about the county's financial trajectory.

In terms of use tax, particularly from automobile sales, Simmons noted a decline of approximately 8% for April, with a year-to-date decrease of 4.26%. She clarified that this decline does not necessarily reflect a downturn in automobile sales, as taxes are often paid at the point of sale at dealerships rather than during vehicle registration.

Conversely, the use tax collected for construction materials through the regional building department showed a positive trend, with an 11.57% increase for April and a significant 20% increase year-to-date. This uptick suggests robust activity in the construction sector, aligning with the county's permitting trends.

Overall, the combined sales and use tax collections for April reflected a 5.21% increase, but the county remains approximately $915,000 below budget expectations for the first three months of the year. Simmons reassured the commissioners that there are no immediate concerns regarding revenue shortfalls, as other compensating revenues are being monitored closely in preparation for the 2026 budget.

Simmons concluded her presentation by inviting questions and directing attendees to additional reports available on the county's website, which provide detailed insights into sales and use tax collections by industry. The meeting highlighted the ongoing financial monitoring efforts as the county navigates its budgetary challenges.