Sales tax collections in Estes Park continued to run ahead of last year in July, with strong restaurant activity helping offset declines in grocery and retail collections, according to data released this week.
The town collected $3.41 million in sales taxes for July 2026, up 2.49 percent from $3.33 million in July 2025. Through the first seven months of the year, total collections reached $13.18 million, 5.57 percent above the $12.49 million collected during the same period last year.
The town’s general fund receives 4 percentage points of the 5 percent sales tax. That portion totaled $2.73 million in July, compared with $2.66 million a year earlier, an increase of about $66,300. General fund collections through July reached $10.55 million, up about $556,700 from $9.99 million through July 2025.
Collections are also running ahead of the town’s budget. Through July, general fund sales tax revenue was 4.1 percent above projections, a difference of about $415,700. July alone came in 2.98 percent, or nearly $78,900, above budget.
The July report showed considerable differences among business sectors.
Restaurants recorded one of the largest gains, with general fund sales tax collections increasing 12.6 percent, or $80,205, from July 2025. After removing the effect of delinquent tax returns, the increase was $73,396, which the town attributed to increased economic activity.
Lodging, the largest source of July sales tax revenue, increased 2.36 percent, or $23,220. But the underlying increase was substantially larger because delinquent returns were $85,832 lower than a year earlier. After adjusting for those late filings, lodging collections increased $109,052.
Construction collections rose 13.39 percent, or $10,286, while automotive collections increased 22.97 percent, or $4,447. Professional services were up 12.50 percent, recreation increased 7.07 percent, and utilities rose 2.86 percent.
Groceries moved in the opposite direction. Collections fell 13.03 percent, or $41,412, compared with July 2025. The change was almost entirely unrelated to delinquent filings, according to the town’s analysis.
Retail collections also declined, falling 3.94 percent, or about $20,000, from July 2025.
The sector breakdown underscores the importance of tourism to the town’s summer revenues. Lodging generated 37 percent of July general fund sales tax revenue, restaurants accounted for 26 percent, and retail represented 18 percent. Groceries accounted for 10 percent. For the year through July, lodging represented 32 percent of collections and restaurants 24 percent.
Taxable sales offer another look at the economy
Cash collections do not always provide a precise picture of economic activity during a particular month, because businesses can file tax returns late. The town also tracks taxable sales according to the month in which a purchase actually occurred and revises historical figures as late returns arrive.
On that basis, July 2026 taxable sales totaled about $67.15 million, approximately 2 percent higher than July 2025. Restaurants generated about $17.48 million in taxable sales, lodging $25.05 million, and retail $11.87 million. Grocery taxable sales fell to about $6.9 million.
Inflation also affects sales tax growth, because higher prices can increase tax collections even when the quantity of goods and services purchased does not increase.
According to the town’s report, the Denver-Aurora-Lakewood Consumer Price Index was up 3.9 percent over the 12 months ending in July. Prices excluding food and energy increased 3.5 percent, food prices rose 3.4 percent, and energy prices declined 9.6 percent.
The town’s additional 1 percent sales tax is restricted to voter-approved purposes. The tax, renewed by voters in 2024 through June 2034, is divided among street maintenance, stormwater management, trails expansion, wildfire mitigation, and powerline wildfire mitigation.