Park City sales tax revenue in January 2025 came in slightly above levels reported a year earlier, according to a budget staff report.
Lodging tax revenue in January decreased by less than one percentage point from the year before.
Hotel occupancy was flat and average daily rates were up 4% for the month.
But the report says the short-term rental market weighed down the increase in higher rates.
Between December and March, when the winter tourism season is at its peak, Park City typically generates more than half its sales tax revenue for the year.
January coincides with the tail end of the holiday season in Park City and the Sundance Film Festival, which brings in thousands of visitors from out of state.
Park City officials are considering one of the most conservative budgets in years because of projected slowing in sales tax revenue.
Budget staffers wrote that the performance of the first two winter months “can provide some reassurance.”
They remain cautiously optimistic tax revenue figures in February and March will align with the city’s projections.
However, staffers say there is broader concern about weakening consumer confidence. That’s been driven by uncertainty at the national level, primarily due to the raft of new tariffs recently announced by the Trump administration.
Thursday and Friday the U.S. stock market had its worst two trading days since March 2020, when the COVID-19 pandemic rattled investors. The Dow Jones Industrial Average, S&P 500 and the tech-heavy Nasdaq all dropped more than 5% Friday.
Federal Reserve Chair Jerome Powell said Friday the U.S. economy is likely to face higher prices and weaker growth because of the new tariffs.
So far, Americans are spending less on air travel and hotels than this time last year, Forbes recently reported.
Park City Municipal is a financial supporter of KPCW.
