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The City Café

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Feb Distribution 13The Tax Commission released its distributions on Monday.  This is the largest distribution of the year, representing not only December sales, but also sales for fourth calendar quarter accounts and  small annual accounts.  The total distribution of the 1% local tax of $48.22 million was up 4.2% compared to a year earlier.  This was a better showing than earlier reports a week ago of a possible 2.5% decline.  Distributions are up 5.7% for the cities’ fiscal year.  This is slightly lower than the 6.6% forecast we made for CY2013 last November.

At $4.89 million, Salt Lake City, saw its distribution increase 8.2% for December sales.  This may have been partially due to the new City Creek development.  Sandy’s 13.3% gain may have been forged by the addition of the new Scheels store.  Similarly, Farmington’s 7.8% gain probably reflected new restaurants at Station Park.  Other cities where growth beat 6% were: Draper (6.8%), South Jordan (7.1%), Bountiful (8.1%) and St. George (6.6%).

Given the hits to consumer confidence in December as the federal government came dealt with its “fiscal cliff”, it is probably no wonder that cities with large stakes in auto sales like Orem and Murray saw low growth in December.

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