Rooms and Meals Tax Data Released
Burlington Business Association Based on tax filings, economic activity is down about 10%. This reflects what we have been hearing from our BBA members, with some reporting even softer sales numbers. The report released Monday shows the following:
- Meals
down 10.3% - Alcohol down 13.7%
- Rooms down 3.2%
When compared to the same period last Fiscal Year (Jul. to Feb.) The city raised the taxes on these sales. Beginning Aug. 1, 2024, the taxes changed:
- Meals - from 2% to 2.5%
- Alcohol- from 2% to 2.5%
- Rooms - from 2% to 4%
In an effort to raise revenue and with the assumption that sales numbers would stay the same or grow. The result is the city is getting about 19% more tax revenue even though sales are lower.
The tax increase on meals and alcohol was set to sunset in July, at this point we have no reassurance from the city that that will happen.
The BBA continues to follow this data. We will be asking the question locally as to what steps the city may take to boost sales. The BBA is also looking at programs that could attract more people downtown. Please share your thoughts. Email Kelly.
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