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The City Café

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As expected, following the 15.9% increase last month, the December 1% sales tax distributed to local governments fell by 1.7%.  Remember, the December distribution represents mainly October sales.

On a fiscal year-to-date basis (September through December) the 1% tax is up 5.5%, indicating an economy that is turning around.  Our latest “baseline” forecast is looking for 7.9% growth in FY2012, with a “pessimistic” estimate of 2.4% (if there is a European recession).

The largest city in the state, Salt Lake City, saw its distribution fall 0.4%, not as far down as the statewide average.  Murray’s distribution was up 9.3%, perhaps due to continued rebounding in auto and truck sales.

Click on the following links for more: 1% Tax Distribution Dec 2011

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