El Paso County sales and use tax collections up modestly in 2024; county revenue mix offsets shortfall

Nikki Simmons, El Paso County chief financial officer, told the Board of County Commissioners on Feb. 18 that year-end sales and use tax collections for activity in 2024 were up 1.85% overall and that December activity alone was up 3.5%.

Simmons said total retail collections reported by the Colorado Department of Revenue were “up 2.31% for the year, up 2.85% just for the month of December,” with “total collections of a hundred and $53,700,000, compared to a hundred and 50.2 [million] the prior year.” She said use tax on automobiles collected through the Clerk and Recorder was down 4.63% for the year and that sales and use tax collections tied to regional building permits were down 3.32%.

All sales and use taxes combined were up 1.85% for 2024, Simmons said, and the county’s sales-and-use-tax receipts came in under the projection used in the budget by about $1 million. Simmons cautioned that the collections data reflect activity two months earlier (December activity remitted in January) and that budgeting uses partial-year data when projections are finalized.

Simmons told commissioners the county expects other revenue sources and underspending to offset the sales-tax variance. She said the county would likely add “probably about $4,000,000 to fund balance from unanticipated more from underspending,” which will offset near-term variances. Looking ahead, Simmons said the county would need about a 5% increase in sales taxes on the new base to meet budget assumptions for 2025, clarifying that she meant collections, not a change in the 1% sales tax rate.

Industry-level detail Simmons highlighted: retail up 2.57% for the year; food services up 1.1%; publications up 4.82%; wholesale down 2.2%; accommodations down 1.23%; real estate and leasing up 4.64%; manufacturing down 1.57%; and construction-related taxes up about 14% (which the CFO said can reflect purchases of materials for repairs or projects, not only new construction). Simmons said full data tables (industry-by-industry) are published on the county website and that citizens may contact the budget office for details.

Commissioners asked clarifying questions. One commissioner asked whether 2025 is a property reassessment year; Simmons confirmed reassessments apply to taxes payable in 2026. Another commissioner asked if the 14% uptick in construction taxes reflected new builds; Simmons said it reflected purchases of construction materials and could include projects such as deck or roof repairs.