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DOUG MACDONALD – October 1% local sales tax distributions beat expectations by increasing 12.7% over the same period last year.  The total local sales tax distributions of $40.56 million by the Tax Commission in October, representing sales for August in Utah were almost $5 million higher than the $36 million distributed last year at the same time

Chart from the New York Times

Double-digit sales were common in Salt Lake County cities.  Salt Lake’s distribution of $4.18 million was up 13.5% and West Valley’s distribution was up 12.6%.  Murray’s distribution was up 16.5%, suggesting auto and light truck sales did well in August.  Higher auto sales were evident in September across the nation (see charts from the New York Times), suggesting next months distribution will also do well.  September 2012 auto sales grew almost 15% in the U.S., the highest in four years.

Tourist-heavy cities ilk St. George (+15.6%) and Park City (+19.7%) also fared well in August.

For the first two months of the cities’ fiscal year 2013, local tax distributions were up 8.7%, slightly ahead of our December forecast of 7.9%.

Doug Macdonald
Economic Policy Analyst
801 550-3161

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