Park City had a tough year when it comes to sales tax revenue.
The lackluster 2025-2026 winter hit hardest in March, when sales taxes were down about 20% compared to 2025. April and May numbers showed some resiliency. According to a staff report, June sales taxes continue to show numbers are leveling out — sales tax revenue was nearly flat compared to 2025.
City Manager Adam Lenhard said year-to-date revenue isn’t without a silver lining — the situation could have been worse.
Revenue from July 2025 to June 2026 was almost $43.5 million. That’s down almost $1.8 million during the same period the year before, or about a 4% drop.
Still, Lenhard said the town could suffer if there are multiple bad winters in a row.
“A 4% drop is not insignificant, and our budget is heavily reliant on sales tax revenue for a lot of the services we provide,” he said on KPCW’s “Local News Hour” Sept. 2. “If we had another year that was 4% … that is material, that matters, and we will have to make adjustments.”
He said the city did have to cut some spending to make up for the shortfall. Lenhard said more adjustments would be needed if sales taxes continue to remain low.
Lenhard and other city leaders are also concerned visitors are spending their money elsewhere.
“We're seeing significant sales tax leakage outside of the city, and so that's something that we're very aware of and concerned of and making plans for the future,” Lenhard said.
During an Aug. 20 meeting, Councilmember Tana Toly pointed to Deer Valley Resort’s new East Village, Ogden’s revamped Main Street and Snowbasin Resort events as new competition for Park City’s ski resorts and Main Street.
Park City Municipal is a financial supporter of KPCW.
