COLORADO SPRINGS —City sales tax collections got back on track in November, a month after they had declined for the first time in nearly two years, according to a report from the Colorado Springs Finance Department.
Revenue collected from the city’s 2 percent sales tax – levied on items such as motor vehicles, appliances, furniture, clothing and building materials – totaled $10.4 million in November, a 5.5 percent increase over the same month a year ago, the report showed. November revenues are based on sales activity in October.
The November increase came after October revenues dipped 0.07 percent from a year earlier, marking the first drop since December 2011.
Year to date, revenue from the sales totaled nearly $104 million, a 5.7 percent gain over the same period in 2012.
The city’s sales tax is a key funding source. Unlike many municipalities where property tax revenue is the biggest revenue source, Colorado Springs’ sales and use tax pays for more than half of the city’s general fund budget, which includes police and fire protection, and roads.
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