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The City Café

For those interested in sharing ideas and perspectives regarding local government.

DOUG MACDONALD

The 1% local sales tax distribution of $38.32 million in June 2014, representing mostly April sales grew 9.8% compared to a year earlier.  Sales and purchases growth rates have been improving since the March distribution, when they only rose 0.8% for the prior three months.  Nationwide, retail and food service sales rose 4.6% in April and 4.3% in May.  U.S. consumer sentiment edged back to 81.2 in June after scoring 84.1 in April.

June 2014 1%

The largest city in the State, Salt Lake City, saw its distribution rise 10.3% in June.  Other than South Jordan, most of the other larger cities in Salt Lake County saw impressive gains:  Sandy (up 16.4%), West Valley (up 13.5%), Murray (up 14.7%), West Jordan (12.8%).  Draper’s distribution was up 18.6%, suggesting a 27.4% increase.

In Utah County, Provo and Lehi recorded 16% increases, while Orem’s distribution was up 12.4%.  Similar gains were made in Davis and Weber counties.  Ogden’s distribution (up 11.8%) suggest sales were up 13.8%.  Farmington’s distribution increase of 22.7% means sales were up almost 36%, due to continued increases at Station Park.

Off the Wasatch Front, St. George’s distribution increase of 17.3% suggests a sales increase of 24.9%.

A word of caution though:  these large gains may mean the Tax Commission’s distribution includes significant advance payments for May or included larger than usual amounts of late payments in the June distribution.  Still, it is good to have a double-digit gain following anemic in four out of the last five distributions.

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