John LaConte, Vail Daily
Colorado’s historically low snowpack is affecting Vail’s economy, prompting town officials to lower revenue forecasts and recommend millions of dollars in budget reductions for 2026.
In a financial update to the Vail Town Council on Tuesday, staff from the town’s finance and economic development departments said early indicators from sales tax, lift tax, parking revenue and lodging data all point to a softer-than-expected winter season.
But that news came as final sales tax numbers for last year were starting to become apparent, and it looks like — according to preliminary estimates — the town’s revenues for 2025 were more than projected.
December sales tax collections came in only slightly below last year — down 1.3% (about $60,000) to $5.78 million.
Town staff now project that sales tax revenue will decline 10% for the remainder of the winter season and 4% for the rest of the year. The revised sales tax projection for 2026 is $40.3 million — a 5% decrease from the what was projected in the 2026 budget. Lift tax revenue is expected to total $6.1 million, down 9% year over year, while parking sales are projected to fall 7% compared to 2025.
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