Tax revenue down in Colorado Springs
Story By: Bill Folsom
Source: KOAA
Revenue from retailers is a good indicator of local economic trends. A gauge of that comes through reports of city sales and use taxes. The numbers for the first of the year just came out and they show a big drop.
The average is a four and three quarter percent decrease compared to the same period a year ago. According to UCCS Economist, Fred Crowley “It's bad news, but it's too early in the budget year to call it terrible.” He says, “To have just kept up with inflation the cost of providing government services and population growth we should have seen about a six and a half percent growth in sales and use tax, but again they're down about four and three quarter percent. That's about a 10% spread."
Crowley adds that when the national economy turns around, Colorado will still face lower budgets because TABOR (Tax Payer Bill of Rights) laws limit tax growth.
