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Park City sales taxes slowly recovering from weak winter

Old Town Park City is seen from above.
Wangkun Jia
/
Adobe Stock
Old Town Park City is seen from above.

Park City’s April low sales tax numbers show the ongoing effect of an abnormally warm winter, but the broader sales tax base showed resiliency.

Park City manager Adam Lenhard said April continued this year’s trend of low sales tax numbers.

Revenue was down almost $112,000, or about 5%, compared to April 2025. The figure excludes transient room taxes from hotel stays and short-term rentals.

“We have the numbers for April, and what we're seeing is a continuation of a very weak winter,” Lenhard said on KPCW’s “Local News Hour” July 8.

April accounts for about 5% of annual sales tax collections. According to a staff report, the shortfall suggests the abnormally dry winter with record-low snowpack affected spring activity more than expected.

Earlier winter sales taxes showed more resilience this year, but citywide collections for February through April were down almost 12%, or about $1.9 million. The lackluster winter hit hardest in March, when sales taxes were down about 20% compared to 2025.

Still, Lenhard said there’s a bright side. Year-to-date collections are only about 4% lower than in 2025, which shows the city’s adjusted budget absorbed most of the shortfall.

“The silver lining is that the broader sales tax base showed some great resiliency, and so that gives us a little bit of cautious optimism as we look forward,” he said. 

The staff report says the clearest area of pressure remains overnight visitor spending. Transient room tax was down almost 32% compared to April 2025.

May visitation and lodging projections suggest the situation will stabilize further into the summer.

Park City Municipal is a financial supporter of KPCW.