The town’s total sales collection on retail, restaurants and lodging is 12.8 percent, giving Snowmass Village the third-highest rate in Colorado behind Winter Park and Mount Crested Butte, Town Council was told.
Finance director Marianne Rakowski said she queried six economists in the state to discern what, if any, impact increasing or decreasing sales tax has on consumer spending.
The experts all said that no studies have been done in this area, but one said he believes “that most travelers … are very familiar with tax rates above 10 percent and are probably unlikely to be using tax rates as a determinant in vacation planning or decision making,” Rakowski’s memo says.
Snowmass Village by itself levies a 2.5 percent tax on retail, restaurant and lodging sales that funds marketing efforts, and a separate 2.4 percent tax added to rental bills that goes toward bringing in group business.
The two rates have resulted in “a very healthy budget for both marketing and group sales compared to” other communities, said Russ Forrest, town manager.