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SALES TAX REVENUE Distribution: General Fund 83%

Parks and Recreation Fund 17%

Source:

Visitors and residents in Parker

Collection:

In 1981, the citizens of Parker voted to install a 1% sales and use tax. In 1982, the citizens voted to increase the sales and use tax rate to 2.5%. In 1984, Parker became a home rule municipality with power to self-govern in matters of local and municipal concern. In 1990, the citizens voted to increase the sales tax rate to the current level of 3%, with the extra .50% to be earmarked for parks and recreation improvements. Sales tax is charged on certain services and all retail purchases.

As a home rule Town, Parker collects and administers its own sales and use tax. In late 2020, the Town signed an intergovernmental agreement with the State of Colorado that enables the Town to collect sales tax through their portal also. This should increase the level of collections from market place facilitators.

Businesses remit tax to Parker on a monthly, quarterly or annual basis. Taxes collected are due to the Town by the 20th of the month following collection. Online payments account for more than 95% of all payments. The remainder are paid through a lockbox. The Town utilizes a number of enforcement procedures to collect from delinquent accounts including taxpayer education, delinquency notices, personal phone contact and visits, audits, summons to municipal court and seizures.

Trend: 60,000,000 Year 2016 2017 2018 2019 2020 Projected 2021 Adopted

50,000,000 40,000,000 30,000,000 20,000,000

General Fund 32,214,593 34,103,607 35,462,173 37,712,688 38,580,000 39,735,000

P&R Fund 6,443,350 6,820,721 7,092,435 7,541,505 7,717,286 7,948,286

Total % Change Revenue (YoY) 38,657,943 40,924,329 5.9% 42,554,608 4.0% 45,254,193 6.3% 46,297,286 2.3% 47,683,286 3.0%

10,000,000 0 2016

2017

2018

2019

2020 2021 Projected Adopted

• The sales tax growth rate declined from 2015 to 2018 and recorded strong growth in 2019. The 2020 projected growth rate is 2.3%.

• The overall declining growth rate occurred against a backdrop of increasing population and number of commercial and retail businesses. The population and business growth positively impacted sales tax collections in 2019.

• The amount of collections related to internet sales has continued to grow. Revenue Manual

214

Town of Parker 2021 Annual Budget


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