Sales tax revenue in Mancos has increased more than 12% this year, boosted by a new law, online shopping and marijuana.
Before COVID-19 became an everyday obstacle for local governments, sales tax law changed statewide at the end of 2019. The new law allowed towns and cities to receive sales tax revenue from online shopping, which they hadn’t received before.
In Mancos, the new law greatly increased sales tax revenue per month in 2020 despite the pandemic. Through June, sales taxes have brought over $435,000 in 2020 compared with about $387,000 in 2019.
“The timing is significant in light of COVID-19 because it will allow the town of Mancos to continue to provide the same level of services that the citizens are used to receiving,” said Heather Alvarez, town administrator, clerk and treasurer of Mancos. However, that does not mean COVID-19 has not affected local businesses, she said.
The industries that brought in the most sales tax revenue were retail and marijuana, with over $171,000 from “necessities” retail, almost $3,000 in “art, gift and souvenir” retail and over $126,700 in marijuana through June.
At this point, it is difficult to say for sure why retail sales tax revenues have risen so much under the new law despite the pandemic, Alvarez said. But the “general consensus is that people are shopping more online for their necessities,” she said.
And the cannabis industry’s growth in 2020 is outpacing its growth last year. After a sharp spike in March, sales stabilized around April 20, though higher than expected.
Many buyers stocked up on marijuana products, unsure when their next visit to a dispensary would be. But other industries have not fared as well during the COVID-19 shutdown.
Tax revenue from the lodging tax – an extra tax paid for a stay at a hotel, motel or an RV park – is significantly down because of travel restrictions, totaling just over $3,900 through June.
“This decrease will have the highest impact on the Mancos Valley Chamber of Commerce because the majority of its revenue is based on lodgers tax receipts,” Alvarez said. And without a strong Chamber of Commerce, local businesses have less support in overcoming the impacts of COVID-19.
To help combat the problem and boost local businesses, the Mesa Verde Country Tourism Office is pivoting to a different marketing strategy, said Director of Tourism Kelly Kirkpatrick.
Normally, the office markets to Europeans who often visit U.S. national parks. But given the international travel restrictions, the tourism office has focused on marketing to people within a two- or six-hour range, Kirkpatrick said.
“There’s no denying that visitation is down,” she said. “It is starting to come back, but it is sporadic.”
The office has launched its long-term marketing plans for Montezuma County with less money because of the decreased revenue from the lodgers tax. Other plans have halted completely.
To help small businesses, especially industries that rely on tourists, the tourism office is giving visitors who stay for at least two nights in Montezuma County $50 in Cortez Cash if they book a stay directly through the hotel or motel.
The Cortez Cash program, managed by the Cortez Retail Enhancement Association, is a card with money loaded on it. It encourages visits to local businesses in Cortez and the surrounding area, including Mancos and Dolores.
As a result, Kirkpatrick said, people are staying in the area longer. Many visitors from the Front Range are using vacation time during the pandemic to drive to Mesa Verde, she said. However, the tourism office is seeing a high number of visitors from Arizona and Texas, and some from the East Coast.
“COVID-19 has created the new American road trip,” Kirkpatrick said, since many are hesitant to fly because of the virus and can’t travel abroad. In addition to Mesa Verde National Park, “our area provides arches, the Canyons of the Ancients (National Monument) and other attractions,” she said.
Moving forward, however, Montezuma County will still feel the effects of limited travel. Europeans plan their travel about a year or more in advance, so even if coronavirus restrictions ease, international travel will remain limited.
“We’re doing more with less, but that doesn’t deter us,” Kirkpatrick said.
ehayes@the-journal.com
