Sales tax collections in Estes Park increased in January compared with the same month a year ago, driven by gains in restaurants, retail, and lodging, though overall revenue still came in below the town’s budget projections for 2026, according to a report issued this week by the Town’s finance department.
The Town of Estes Park reported $1,025,661.11 in sales taxes collected for January 2026, up 3.58% from $990,222.35 in January 2025. Those taxes were remitted to the state in February and received by the town on March 9.
February 2026 sales tax collections of $1,045,773.68 increased by 10.22% over February 2025 collections of $948,785.75. Year to date, sales tax collections are up 6.83% over 2025.
Of the total amount collected, 80% goes to the town’s General Fund, which receives 4% of the town’s 5% sales tax. That share amounted to $820,529 this year, compared with $792,178 in January 2025.
Despite the year-over-year increase, collections for the month were 6.95% below budgeted projections, indicating revenue came in softer than expected to start the year.
Several key sectors posted notable gains
The restaurant sector saw one of the strongest increases, with collections rising 18.23%, or $26,247, over January 2025. After adjusting for delinquent returns, the sector still showed a net increase of $25,344, suggesting stronger consumer activity.
The retail sector also performed well, with collections up 17.27%, or $25,188. But town officials said much of that increase was influenced by delinquent returns and corrected filings. After those adjustments, the net increase was $7,571.
The lodging sector reported a 9.23% increase, or $18,280, compared with the same month last year. Adjusted for delinquent filings, the sector posted a net gain of $14,167, reflecting what appears to be continued visitor-related spending.
The automotive sector also showed strong percentage growth, with collections rising 40.83%, though the dollar gain was more modest at $4,345. After accounting for delinquent returns, the increase was $3,709.
The professional services sector rose 20.45%, or $5,485, but much of that increase was also tied to delinquent filings. The net increase after adjustments was $1,553.
Not all sectors saw gains
The grocery sector posted the sharpest decline, with collections down 22.81%, or $30,153, from January 2025. After adjusting for delinquent returns, the net decrease was $30,365.
The construction sector also declined, falling 19.68%, or $11,039. Adjusted for delinquent returns, the sector’s net decrease was $11,647.
The utilities sector reported a 13.44% decline, or $10,223, compared with January 2025. After adjustments, the net drop was $9,679.
Town officials noted that taxable sales for January 2026 were down 4% from January 2025, even though sales tax collections increased. That discrepancy is partly explained by the timing of late and delinquent filings, which can distort month-to-month comparisons.
Inflation may also be influencing sales tax revenue. According to the latest data from the U.S. Bureau of Labor Statistics, the Consumer Price Index for the Denver-Aurora-Lakewood area rose 2.6% over the past year through January 2026. Food prices increased 2.2%, while energy prices fell 9.1% over the same period.
The January report suggests Estes Park’s economy remains stable in some consumer-facing sectors, particularly dining, lodging, and retail, but the town’s slower-than-budgeted start and declines in groceries, construction, and utilities could warrant closer monitoring in the months ahead.