Strong Sales Tax Collections Continue 

Over the past several years, the town has experienced a remarkable increase in sales tax collections due to pent-up travel demand, inflation and increased appeal of Vail’s outdoor offerings coming out of the pandemic. 2023 sales tax collections remained strong; however, the town began to see a leveling out as visitation and inflation normalized.  The general 4% sales tax collections totaled $41.8 million in 2023, a $1 million or 3% increase over the prior year.  The year started off strong, with January through April collections totaling $20.3 million, up 6% or $1.2 million over 2022. Visitation over the summer dipped slightly, with collections down 2% or $230,000 compared to summer of 2022. Going into the 2023/24 ski season, November and December sales tax collections came in flat compared to the prior year.   

During the 2021 election, Town of Vail voters passed a ballot initiative to collect a 0.5% housing sales tax. Over 2022 and 2023 the town has collected a total of $10 million dedicated toward housing initiatives, projects and programs. Collections and uses of these funds are tracked in the town’s Housing Fund. To-date, these funds have been used toward the initial planning and design phase for a new housing development located at West Middle Creek as well as the buy down of deed restricted homes sold in community lotteries.

Town reserves remain healthy at a projected $88.6 million at the end of 2023, but down 39%, or $56.7 million from $145.3 million in 2022. The Vail Town Council has strategically used the financial strength of town reserves to cash finance capital projects where appropriate. For example, the 2023 budget included several high-dollar projects utilizing reserves:

This strategy is projected to continue for the next several years, with reserves funding the following large projects:

• Redevelopment of Dobson Arena, estimated at over $55 million, to be repaid by the Vail Reinvestment Authority by 2030
• Infrastructure including site and podium costs for the redevelopment of Timber Ridge Village, estimated at $38.6 million, to be repaid in 2026/2027 upon the sale of homes
• Subsidy of other potential housing projects such as West Middle Creek and development of the East Vail parcels

Reserves are projected to decrease as low as $34.1 million in 2025 with gradual increases over the following five years from the above-mentioned repayments. Based on conservative revenue projections and planned capital expenditures, the town will be limited in responding to new or unexpected capital needs over the next five years. However, the town’s reserves remain healthy.  

2023 Annual Report: Commitment to Community