July 29, 2015 1% local option sales tax distribution flat in July
Following last month’s 8.6% increase, the Tax Commission’s July 2015 distribution for the 1% local sales tax at $38.98 million was up 0.3% compared to a year earlier. This is consistent with what we talked about last month:
“ …it is possible that extraordinary inclusions of May transactions bolstered the June distribution; this would cut into next month’s distribution.”
A better gauge for the recent trend is the sum of the distributions for the last three months. which has increased 4.4%. In addition, total distributions for first 11 months of fiscal year 2014-15 are up 5.2%.
Nationwide, retail sales rose 2.7% in May, while new light-vehicle sales were up 6%. Disposable incomes were up 3.5% in May compared to a year earlier.
Distributions in Salt Lake County (up 1.2%) for July 2015 were mixed. On the plus side, Holladay’s distribution rose 13%, followed by South Jordan’s 4.1% and Salt Lake City and Draper’s 3.6%. Distributions in Midvale, West Valley and West Jordan were less than in July 2014.
Distributions in Davis County (up 2.3%) were a bit stronger. Farmington’s 9.3% gain was followed by a 6.2% increase in Kaysville and a 4% gain in Layton. Bountiful and Centerville posted lower distributions.
Lower distributions were also found in most of Utah and Weber counties.
Resort cities (Moab up 14.4%, and St. George up 5.7%) fared better than most cities along the Wasatch Front.