City sales tax collections rise in February

City sales tax collections rise in February City sales tax collections edged up in February, with a big jump in collections on building materials leading the way. 35 percent. 09 percent; department and discount stores, going down 6. 06 percent; and furniture, appliances and electronics, with a 5. The breakdown: Categories showing the greatest percentage increases in sales tax collections in February were building materials, up 18. The increase in collections on restaurants, meanwhile is a sign that people are eating out more as consumer sentiment improves, Crowley said. An increase in homebuilding should lead to improved furniture sales, Crowley said. Excluding one-time revenue from audits of merchants, sales tax collections rose a heftier 6. Use tax: Collections in February on manufacturing equipment, building materials and other items bought outside the city and used in the city were up 65. Combined sales and use tax collections were up 6. 34 percent; and restaurants, 7. 36 percent year-over-year decline. Analysis: "Building activity in the community is really increasing quite a bit," said Fred Crowley, senior economist for the Southern Economic Forum. Those reflect competition from online sales and perhaps sales tax "leakage" to outlying communities including Fountain, Falcon and Monument. Why it's important: Sales and use tax collections fund more than half of the city's annual budget for police and fire protection, roads and other services. Industries with the biggest decreases were business services, declining 22. February collections reflect purchases in January. 65 percent. City sales tax collections rise in February Trade News selected by Local Linkup on 10/03/2012