The Crestone Eagle • October, 2020
Big boost seen in local sales tax revenue during Safer At Home order
by Lisa Cyriacks
An unexpected result of statewide public health orders is a boost in local sales tax revenue for the Town of Crestone. A greater number of people have been shopping locally so as to not be exposed to COVID-19.
Groceries and hardware, marijuana and liquor have all increased sales resulting in increased revenue from sales tax.
Data provided from the Town shows an average of $21,209 received in September for August sales from 2015 to 2019. In 2020 the Town received $65,640 in the month of September. May, June and July saw numbers that were nearly double the usual amount.
There are several economic studies affirming the power of shopping locally and the benefit to local businesses. Spending locally creates local jobs, and often locally owned businesses provide better products and services. Local businesses are more likely to donate to local events.
One-of-a-kind businesses are an integral part of the distinct character of Crestone.
In 2019 Governor Polis enacted new legislation changing Colorado Sales and Use Tax laws. Under the new law, businesses with gross retail sales greater than $100,000 in either the previous calendar year or within 90 days of exceeding $100,000 in current calendar year, must collect the State’s sales tax. This requirement became effective on June 1, 2019.
While the Town received a small boost from this change in sales tax law, it was not nearly as significant as the power of shopping locally. While summer months are often better sales months due to tourist season, the increases from tourism dwindle when compared to the power of shopping locally.
Invest in your community! Local businesses are owned by your friends and neighbors—who reside in the community, are less likely to leave, and are more invested in the community’s future— just like you.