ASPEN — Revenues from Aspen’s new, additional 1 percent lodging tax devoted to marketing came up about $20,000 short of projections in January — the first month of its collection, according to the latest sales tax report from the city’s finance office.
Voters approved the tax last November; it was added to an already existing .5 percent tax devoted to tourism promotion. The combined 1.5 percent sales tax is applied only to lodging bills rather than all retail sales.
The 1.5 percent tax produced $250,592 in January revenues, a sum that’s down about $20,000 from the $270,480 that was budgeted for the month. January was expected to produce the single largest infusion of marketing funds of any month, according to projections.
Over the course of the year, the “bed tax” is expected to generate $1.47 million for resort marketing.
The Aspen Chamber Resort Association has budgeted the spending of the money with a focus on marketing Aspen in the spring, summer and fall; the Aspen Skiing Co. takes the lead in promoting the resort during the winter months.
With the increased tax, revenues for marketing were up 190 percent in January compared to the same month in 2010, when just .5 percent was collected.
Without the added tax approved by voters, collections would be down. The city’s .5 percent lodging tax devoted to transportation produced $83,531 in revenues in January — down 3 percent from the same month a year ago.
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