For the past year, the state of the nation’s economy has been precarious, and while sales tax dollars collected so far in the county and two towns seem to be following the same course, business owners and others remain hopeful.

As of June, county sales tax dollars received for 2009 total $152,591.36, as compared to $164,956.49 during the same time period in 2008. That’s a $12,365.13 or approximately 7.5 percent drop.

In the town of Westcliffe, sales tax proceeds through June dropped from $101,387.13 in 2008 to $94,083.48 in 2009, which equates to a decline of slightly more than seven percent.

In the town of Silver Cliff, sales tax dollars have plunged some 18 percent, from $41,163.55 through June 2008 to $33,688.30 through June of this year. Silver Cliff town clerk Ginny Linza attributes the town’s lag in sales tax revenue to fewer new car sales this year. “When the economy is down,” said Linza during a recent Silver Cliff trustees’ meeting, “then people don’t buy new cars.” Silver Cliff collects a tax on new car sales while the town of Westcliffe does not.

To date, the town of Silver Cliff has collected $3,661.62 in new motor vehicle sales tax dollars, as compared to $8,214.21 over the same period in 2008. Linza further noted a new business opened earlier this year and another business is open longer hours this summer and as a result, she expects sales tax dollars received from retailers to climb.

Sales tax proceeds normally include dollars collected from retail businesses, restaurants, and hotels among other sources.

The county does not collect sales tax dollars on consumer heating fuels, food and certain agricultural products, however, the two towns do collect sales tax dollars on these items. Of the total sales tax dollars collected here, which is 6.9 percent, 2.9 percent goes to the state. Typically, the state is some two months behind in forwarding sales tax revenues to the towns and county.

Therefore, the dollars received so far this year do not reflect the Valley’s busy summer tourist season, which is typically Memorial Day to Labor Day.

Westcliffe trustees and the county commissioners anticipated a downward turn in sales tax dollars for 2009, and that is reflected in their respective overall budgets for the year. Also foreseeing a downtick in overall sales the first half of 2009 were retailers.

Many local business owners said in anticipation of a slower than usual winter and spring season, they took measures to reduce overhead. Those measures included delaying ordering new merchandise, reducing hours of operation and keeping employees at a minimum.

Many also say that business has picked up recently: The recent Fourth of July celebration, bluegrass festival, fair and rodeo brought thousands of visitors to the community.

Most anticipate that trend to continue through the rest of summer and, hopefully, into the fall season and beyond.

Cindy Howard who sits on the Custer County Tourism Board, and owns and operates the Westcliffe Inn said during a recent tourism board meeting that hotel rooms are booked during event weekends, however, the weekday traffic remains slow. “We have to market Monday through Thursday,” said Howard.

– Nora Drenner