Moab reports substantial growth in sales and various taxes post-COVID

In the heart of Moab's city hall, council members gathered on May 27, 2025, to discuss the city's financial landscape, particularly focusing on the growth of various tax revenues. The atmosphere was charged with anticipation as officials reviewed the latest figures, revealing a promising trend in the city’s economic recovery post-COVID.

The discussion began with an overview of the different tax sources contributing to Moab's budget, including sales tax, resort community tax, and wrap tax. The city has seen a remarkable increase in tax revenues, with total collections rising from approximately $8.6 million in the fiscal year 2019-2020 to nearly $13.7 million in 2023-2024. This growth, particularly notable in the years following the pandemic, has been attributed largely to increased visitation and spending in the area.

Council members highlighted that the sales tax, which is heavily reliant on tourism, has shown a consistent upward trend. From 2013 to 2019, the growth was steady, but the post-pandemic years saw an extraordinary surge of around 25% annually. While the growth has plateaued in the last two fiscal years, officials expressed optimism that the new baseline for tax revenues remains higher than pre-pandemic levels.

The meeting also delved into specific tax types. The wrap tax, which generates about $420,000 annually, is a small but significant contributor, while the resort community tax brings in approximately $6.6 million, benefiting from the high transient room capacity in Moab. This tax is particularly crucial for communities like Moab, where tourism plays a vital role in the local economy.

As the council reviewed the latest monthly figures, they noted a 13% increase in wrap tax and sales tax year-over-year for December through March, indicating a robust recovery and continued interest in Moab as a destination. Despite the positive outlook, officials cautioned that while growth is expected to continue, it may not reach the extraordinary rates seen in the immediate aftermath of the pandemic.

In conclusion, the council's discussions painted a picture of a resilient Moab, navigating the complexities of post-pandemic recovery with a focus on sustaining and enhancing its economic vitality. As the city continues to invest in infrastructure and community services, the hope is that these tax revenues will support ongoing growth and development, ensuring Moab remains a vibrant destination for visitors and residents alike.