Park City’s sales tax revenue in December 2024 declined roughly 3% year-over-year.
However, additional filings in the coming months are expected to close that gap.
Lodging tax revenue in December also decreased by a little over 4%.
Budget officials in City Hall wrote in a staff report that “short-term rentals may have lost some ground compared to last year, contributing to the slight decrease.”
December is a key indicator of early winter economic performance, as the month accounts for more than 12% of monthly sales tax distributions.
City staffers say in the report the numbers suggest a stable start to the ski season, however there is some concern.
Cell phone activity in Park City, which historically is correlated closely with sales tax revenue, has declined recently.
Park City uses sales tax to fund a variety of municipal operations, including police, street maintenance, open space management, the library and the PC MARC.
Lodging tax revenue is earmarked for the city’s fund to redevelop the five acres at the intersection of Bonanza Drive and Kearns Boulevard.
Park City’s base sales tax rate is 9.55% and recently increased due to the new Summit County Emergency Services Tax, which added 0.50%.
That’s relatively high compared to other similar communities, like Aspen, Jackson Hole and Sun Valley.
But property tax rates are often higher in those other ski towns.
Park City’s revenue structure instead heavily relies on sales and other use taxes, which are driven by the tourism economy, rather than property taxes.
