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SALT LAKE CITY (AP) -- Sales-tax revenue is increasing in many Utah cities with in-migration and "echo boomers" getting much of the credit.
"There are a lot more people here than we thought," said Doug Macdonald, chief economist for the state Tax Commission. "You have Southern Californians and all kinds of retirees coming in."
Also cited was the spending by the echo boomers -- the children of the baby boomers.
Those factors affect the significant percentage change in forecast sales tax reports.
Projected sales tax distributions for 2007 indicate 24 Utah cities will have an increased local sales tax, according to the annual sales tax distribution report released by the Tax Commission.
"Gross taxable sales have been running 20 percent to 25 percent for the past few years," said Workforce Services regional economist Lecia Parks Langston, who works in St. George. "Part of it is population-driven, and we've also reached the critical mass size that attracts all these big-box stores. Retail certainly has been very, very strong."
Fast-growing St. George had the highest percentage change in sales-tax distribution, with a 19 percent increase forecast for 2007. Vernal came in second with a 13.3 percent change, and Cedar City third with a 13.1 percent change.
Washington County Economic Development Director Scott Hirschi said, "It's not big news. It's what we've seen for the last three years,"
Park City, fifth in the report with an 11.4 percent growth, is also seeing sales tax percentages soar to record numbers.
"I would say 90 percent of the reason is for increased destination tourists," said Colin Hilton, economic and capital development director for the city. "Yes, we are experiencing rapid growth and a crazy real estate market, but still 73 percent of city revenues comes from tourists."
(Copyright 2006 by The Associated Press. All Rights Reserved.)
