“July posts strong sales numbers”

Posted: 10 Sep 2010 03:06 AM PDT

Taxable retail sales in Aspen jumped 10 percent in July compared to the same period in 2009, marking the largest month-over-month increase since the recession began, according to a city report.

The strong month brings total sales activity for the year to 3 percent above 2009.

"The current report suggests Aspen's economy is improving," city finance director Don Taylor wrote in a memo on the data.

The city's 1 percent lodging tax spiked 40 percent in July over the same month in 2009, and year to date, revenues are up 8 percent above last year.

The real estate transfer tax, which is updated through August, was up 62 percent for the month, but is down 14 percent so far for the year.

The report is based on the city of Aspen's 2.1 percent sales tax. The city's tax rate decreased in September 2009 from 2.2 percent to 2.1 percent. So actual revenue collected by the city of Aspen was up 8 percent in July over the same month in 2009, and year-to-date revenues were up 1 percent.

Broken out by economic sectors, hotels and lodges saw the largest jump in taxable sales activity at 30 percent in July compared to the same month in 2009. However, restaurants, bars, clothing and sports-equipment stores were up just 3 to 4 percent, suggesting that while occupancy was strong, guests still are spending less once they are here.

Liquor stores were down 5 percent for July over the same month in 2009, and are down 1 percent for the year.

Specialty retail posted a 24 percent gain for the month, while jewelry stores, fur shops and art galleries were up 42 percent. Utilities were down 10 percent.

The 10 percent growth in sales activity was the largest seen since the recession began in the fall of 2008. After initial dives in 2009 of 15 to 20 percent from 2008 levels, economic activity began showing small increases last September. In 2010, January was up 4 percent, March was up 7 percent and June was up 4 percent.

City of Aspen officials are watching the economic data closely as City Council prepares to make budgeting decisions for 2011. Questions such as whether wages and benefits will be increased for city employees are on the table as council considers the revenue picture.

curtis@aspendailynews.com

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