Nov. 29, 2023

People dining out and otherwise spending on experiences are helping keep the city’s sale tax revenue even with last year.

Sales tax revenue in October, which largely represents September sales, was up 0.6 percent compared with last year. For the 12-month rolling average, sales tax is up 3.8 percent.

“People are still spending money on experiences, restaurants, going out, hospitality, things of that nature, so we’re still seeing that come in strong,” director of finance Shawn Pritchett said.

Sales tax revenue tied to eating establishments in October was up $4.1 million, or 9 percent.

That’s also reflected in the entertainment tax, which was up 5.3 percent in October and is at an 8.8. percent increase for the 12-month rolling average.

Still, the numbers represent three straight months of “lackluster sales tax returns,” Pritchett said.

By industry, the most noticeable drops are in manufacturing; lumber, hardware and garden supplies; and wholesale trade.

“The consumer is still buying, but we’re certainly seeing that softness occurring with the economic slowdown impacting our business sectors,” Pritchett said.

The lodging tax was up 11.6 percent in October and 4.8 percent for the 12-month rolling average, but some of the monthly increase was a matter of timing for when the tax was remitted, he said, while calling it “still slightly positive on trending overall.”

Inflation is showing some improvement at 3.2 percent overall, down from its 9 percent peak in June 2022. Food costs are up 3.3 percent, while energy costs are down 4.2 percent.

“We’re seeing some positive things happening there but still not hitting the 2 percent where the Federal Reserve would like to be,” Pritchett said.