Longmont sales still down in December: City ends year well below projections for sales tax revenue

Buoyed by holiday sales, economic activity in Longmont increased nearly 60 percent in December over the previous month, but sales — as indicated by sales and use tax revenues collected by the city — still were less than in December 2008 and less than the city had budgeted, according to a tax revenue report released this week by the city of Longmont.

Sales and use tax revenues were down 2.4 percent in December 2009, compared to December 2008, leaving total sales for 2009 down 7.4 percent compared to 2008.

Longmont collected $42.7 million in sales and use tax in 2009 compared to $46.1 million in 2008. The city budget had presumed $48.2 million in sales and use tax revenue for 2009.

The city collected $4.6 million in sales and use tax in December, up 58 percent from November, but still less than the $4.8 million collected in December 2008.

December sales were down in nearly every retail category compared to 2008, the report said. Apparel sales were down 6.4 percent, automotive was down 5.1 percent, general retail was down 4.8 percent and even food sales were down 2.7 percent.

The only sector that saw an increase in December was home furnishings, in which sales increased 5.1 percent over last year.