DURANGO AND LA PLATA COUNTY TAX BASE

Local taxes are collected through two means: sales and property taxes. The city taxes retail sales at 2.5 percent, and the county taxes retail sales at two percent. Since much of the county retail sales occur in Durango, the effective local tax rate on retail sales is 4.5 percent (2.5 percent city plus two percent county). In addition, Colorado imposes a three percent statewide sales tax. Thus, the sales tax rate on items purchased in Durango is 7.5 percent. The growth of the retail sales tax base is a good indicator of the economic health of any area. Also, the behavior of retail sales during a business cycle can provide an indication of the underlying stability of the area's economy.

It should also be noted that the growth of property values and the distribution of assessed values among various property classifications provides additional evidence regarding economic growth and stability as well as the kinds of economic activity in an area. This section presents such data.

Retail Sales

Retail sales have increased substantially in the Durango/La Plata County area during the 1990s. Table VI-5 shows retail trade statistics for La Plata County, with an index of growth since 1990. Table VII-5 illustrates the distribution of retail trade within the county for the year 1999.
Retail Sales, Bank Deposits, and Assessed Valuation

TABLE VI-5
Retail Sales, La Plata County
Calendar Years 1990-1999
($1,000)

TABLE VII-5
Retail Sales By Area of La Plata County, 1999
($1,000)

Area	Retail Sales	Percent of Total
Bayfield	23,878	3.0
Durango	665,063	75.0
Ignacio	15,362	2.0
Remainder of County	180,325	20.0
Total	884,628	100.0

SOURCE: Colorado Department of Revenue

Source: Business Opportunities in Durango and La Plata County, 2000
Sponsored by: Durango Industrial Development Foundation, Durango Area Chamber Resort Association & La Plata Electric Association
Research: Fort Lewis College Office of Economic Analysis & Business Research