COLORADO SPRINGS — For Sparkles and Lace Boutique in Colorado Springs, the holiday season brings in the most sales than any other time of year.
"People who don't tend to shop local all the time, a lot he will do it just during the holidays, of course, we wish it was that way year round," said co-owner Lisa Raulie.
The city of Colorado Springs reported an increase in December sales tax revenue when compared to the same time period in 2022.
"We are very pleased to see an increase in the sales tax from the same month of the prior year, but we are still cautious about our long-term revenue," said the city's chief financial officer, Charae McDaniel.
City staff were expecting to collect nearly $253 million in sales tax for the entire year but fell about $6 million short.
McDaniel believes more people were watching their spending because of inflation and high-interest rates.
Staff at Mackenzie and West Boutique in Old Colorado City said December was the slowest they had in years compared to other holiday shopping seasons.
"We just had a surge after 2020, so 2021 was easy, 2022 was easy and 2023 seem to be people were buying groceries and gas and eggs," said co-owner Glynis Hartwig.
She said she's thankful they don't have to rely only on the holiday season splurge. "July and December, we usually count on those for our big months so for us, we're kind of lucky that it gets spread out."
Based on local economic spending reports, city officials say they expect a 2% increase in sales tax revenue this year.
That projection brings hope for small business owners.
"I would just want to thank people who supported us and welcome people who want to check us out," said Raulie.
More than half of the city's sales tax revenue goes into the general fund, which pays for street repairs, park maintenance and public safety.
"Being able to contribute in a positive way definitely makes us feel good and I grew up here and I love to see it grow," said Raulie.
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