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January sales tax up 5%; lodging tax down about 29% as city monitors state reporting timing
Summary
City staff reported a 5% increase in January 2025 sales tax receipts and a 29.4% drop in lodging tax collections; staff attributed the sales tax volatility in part to timing issues with the state's online reporting system and said they will monitor lodging tax monthly through mid‑year.
City Manager Aaron Vasilotti presented the January 2025 sales tax update to council on March 20, reporting an overall 5% increase in sales tax receipts compared with January 2024.
Vasilotti told council the city received $603,333 in sales tax for January—$28,695 more than the same month last year, a 5% increase. He said lodging tax for January was down 29.4% and that staff was considering whether to continue publishing the lodging tax line monthly but planned to keep it on monthly reports at least through June or July to watch the trend.
Vasilotti said some of the month‑to‑month volatility traces to the state's online sales tax reporting timing for remote sales; he displayed a month‑by‑month graph that showed alternating up and down months since October. Councilmembers asked whether to keep the lodging tax line on monthly reports; Vasilotti recommended retaining it through mid‑year to observe trends, particularly in light of short‑term rental changes.
No formal council action was required. Staff will continue to report monthly sales tax and lodging tax data and to monitor the state's reporting platform for timing anomalies.
