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Lcityor <br />Louisville <br />COLORADO • SINCE 1878 <br />FINANCE COMMITTEE <br />COMMUNICATION <br />ITEM 3 <br />SUBJECT: REVENUE AND SALES TAX REPORTS - MAY 2024 <br />DATE: JULY 18, 2024 <br />PRESENTED BY: TRAVIS ANDERSON, REVENUE AND TAX MANAGER, JESS <br />ZEAS, SALES TAX ACCOUNTANT/AUDITOR, MELISSA LUNDGREN CPA, CFE, <br />SALES TAX ACCOUNTANT/AUDITOR II <br />SUMMARY: <br />Revenue and Sales Tax Collection Report — May 2024 <br />Year -to -Date (YTD) Cumulative Performance <br />• Sales Tax: Sales tax revenue for 2024 is currently below projected budget by - <br />2.2% decrease ($200,075). However, it shows a 3.8% increase of $319,269 <br />compared to 2023 due in part to the open space tax increase. The true amount of <br />growth in sale tax is 0.56% <br />• Other Taxes: The "Other Taxes" budget is estimated based on the total collected <br />in 2023 divided by 12 months. This category includes use tax, building tax, auto <br />tax, lodging tax, and bag tax. <br />• Overall Performance: Year-to-date, total tax revenue has decreased by -2.9% in <br />total tax revenue year-to-date. <br />Sales Tax Performance: Shortfall Potential of $1.8M <br />Sales tax revenue is currently tracking below budget by 8.8% (12.6% - 3.8%). If this <br />trend persists, we project a year-end shortfall of $1.8 million compared to our <br />budgetary targets. <br />Building Use Tax Credit <br />A builder requested a tax refund of $132,217 after completing commercial construction <br />project. After reviewing the records, the approved refund amount was $102,903.32. <br />Building Use Tax Calculation Example — "How it works" <br />The building tax is calculated based on the initial project value "declared by the <br />contractor." This clarifies who provides the project value. <br />Here's how it works: <br />1. Half Project Value: The initial project value is divided by two. <br />FINANCE COMMITTEE17/8COMMUNICATION1 <br />