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Spokane County reports stronger-than-expected sales-tax collections; rolling average at 6.9%
Summary
County staff told commissioners July 20 that April taxable collections were nearly $7.1 million and year-to-date sales-tax receipts are ahead of last year by about $3.5 million (roughly 9.4%), with a 12‑month rolling average of 6.9%—well above the 2.2% budget assumption.
County staff told the Spokane County Board of County Commissioners on July 20 that sales-tax collections through April are stronger than budgeted, a development staff said will inform the 2027 revenue estimate.
“Sales tax was amazing,” the presenter said, reporting April taxable collections at just shy of $7,100,000 and year-to-date collections about 4.8% above the county’s capacity rate. Staff said collections are approximately $3,500,000 (about 9.4%) higher than the same period last year. The county’s rolling 12‑month average—a metric staff use to help set next year’s budget—stood at 6.9%, the highest since February 2023.
The presenter walked commissioners through sector-level detail showing which retail categories have driven growth and which have lagged. Retail trade, the county’s largest sales-tax source, posted year-over-year growth of about 7.1%. Full-service restaurants were up roughly 6.3%, limited-service restaurants about 3.4%, and clothing retailers and department-store sales were higher as well. By contrast, traveler accommodations were down about 14.7% year over year and nonresidential building construction showed a notable decline (reported as negative 14.6%).
Auto sales were mixed: staff reported new car dealers up nearly 9% year to date while used car dealers were down around 2.4%. Recreational-vehicle dealers showed a small year-to-date gain after a drop in April. Staff noted the county’s destination-based tax allocation means online marketplace sellers are sometimes categorized differently than big-box home-improvement stores.
A slide comparing jurisdictions showed the city’s share of taxable retail sales falling from roughly 52% in 2018 to about 46.7% in the most recent available quarter, while the county’s share rose from roughly 14% to 17.4%. Staff noted Q4 jurisdictional data were not available in time for the briefing and will be provided at the next update.
Why it matters: sales-tax strength gives the county more flexibility as departments build 2027 budgets, but staff cautioned that other revenue streams remain relatively flat and spending pressures—especially contracts and salary increases—could offset some gains. Commissioners asked for follow-up slides and jurisdictional updates at the next briefing.
The presenter indicated staff will use the 6.9% rolling average as one of the factors when preparing the 2027 revenue forecast and committed to bringing updated jurisdictional Q4 data at the next meeting.
