The latest sales tax data from Cortez shows increased economic activity compared with last year.<\/p>\n
June was a particularly good month for retail sales in Cortez, with the city seeing a boost in sales tax collections to $927,000, from $868,000, an increase of about 6.8 percent, compared with the same time last year.<\/p>\n
The city is also having a good year overall, with sales tax collections increasing to $4.6 million, from $4.4 million last year, for an increase of about 3.79 percent.<\/p>\n
\u201cIf we can sustain it, it will be fantastic,\u201d said City Manager Shane Hale.<\/p>\n
Business owners saw sales tax refunds this spring from a local economic incentive program and lodgers taxes show increased tourist activity, but it is unknown how much these circumstances contributed.<\/p>\n
\u201cThere are always a thousand little factors that go into your local economy,\u201d Hale said.<\/p>\n
The city has been trying to stimulate economic growth through a sales tax incentives approved by the city council in 2012 and implemented in 2013. Any business that saw a sales taxes increase received a 10 percent rebate on the increased amount.<\/p>\n
So if an establishment paid $1,000 in sales taxes during 2012 and $1,030 in 2013, the business would receive 10 percent of the $30, according to the city resolution.<\/p>\n
The idea behind the program was to partner with business owners that are out there really working hard, Hale said.<\/p>\n
The program was a bit more successful than projected when the payments came due.<\/p>\n
The city refunded about $38,000 to 132 business that saw increased sales. This was about $8,000 more than the city expected.<\/p>\n
\u201cI was happy to be over budget,\u201d Hale said.<\/p>\n
The program is based on the financial growth of business and doesn\u2019t put pressure on the city\u2019s coffers.<\/p>\n
It is also particularly friendly to new businesses that are refunded 10 percent of the total they pay in taxes in their first year.<\/p>\n
The program will be in place through 2015, at which point the city will address the question: \u201cIs this a program that really moved the needle?\u201d Hale said.<\/p>\n
Right now, he said, it\u2019s too soon to tell.<\/p>\n