Steamboat Springs' December Sales Tax Collections Drop Nearly 5%

Warm weather and reduced tourism negatively impacted the city's monthly sales tax revenue.

Feb. 4, 2026 at 8:07pm

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Steamboat Springs saw a nearly 5% decline in its overall monthly sales tax collections for December 2025 compared to the previous year. The drop was attributed to warm, dry weather that reduced tourism numbers and demand for utilities. While grocery sales were up, other key categories like lodging, short-term rentals, and utilities saw significant declines.

Why it matters

Steamboat Springs' sales tax revenue is a critical component of the city's budget, funding essential services and infrastructure. The December decline, along with projections of continued lower collections in the coming months, could require the city to reevaluate its budget and find ways to cut costs.

The details

City sales tax revenue for December 2025 came in 4.96% lower than in December 2024, according to Steamboat Springs' financial director Kim Weber. Utilities and groceries are normally the city's most consistent sales tax categories, but the warm weather led to a 10.94% drop in utility sales. Other key declines were seen in lodging (-7.54%), short-term rentals (-6.16%), sporting goods (-9.73%), marijuana sales (-8.54%), and liquor sales (-7.59%).

  • December 2025 sales tax collections were 4.96% lower than December 2024.
  • Overall, Steamboat Springs reported a 2.31% increase in sales tax revenue for 2025 compared to 2024, just short of the budgeted 3% increase.

The players

Kim Weber

The financial director for the city of Steamboat Springs.

Laura Soard

The senior director of marketing and communications for the Steamboat Springs Chamber.

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What they’re saying

“'Utilities and groceries are normally our most consistent categories. Groceries were up by 3.8%, but because of the warm weather, the need for utilities fell off in December. Grocery stores help fill those times when our tourism slows down.'”

— Kim Weber, Financial director, City of Steamboat Springs

“'December is pretty low at the beginning of the month and then it ramps up toward the end. At the end of the month occupancy gets up closer to 70% but the average throughout the month was 32%.'”

— Laura Soard, Senior director of marketing and communications, Steamboat Springs Chamber

What’s next

The city will need to reevaluate its budget and find ways to cut costs in response to the continued lower sales tax collections projected in the coming months.

The takeaway

Steamboat Springs' reliance on tourism and seasonal visitors makes its sales tax revenue vulnerable to fluctuations in weather and travel patterns. The city will need to find ways to diversify its revenue sources and build resilience in its budget to weather these types of economic challenges.