Despite COVID-19 financially hampering some commerce around the Rifle community, the city saw an overall increase in sales tax revenue in 2020, according to a city official.

“It’s actually pretty great news for us, considering the pandemic and everything else that was going on,” Rifle Finance Director Michelle Duran said in late May. “Our total sales tax receipts actually exceeded what we budgeted.”

Prior to the pandemic, in 2019 the city anticipated up to a 3% increase in sales tax receipts for 2020. Instead, 2020 saw more than a 4% increase, Duran said.

Overall, 2019’s $9.97 million in total municipal revenue increased to $10.45 million in 2020, which is nearly a $500,000 increase. With the incorporation of building and motor vehicle use tax receipt collections, the grand total jumped from $11.03 million in 2019 to $11.59 million 2020.

For Quarter 1 of 2021, meanwhile, total municipal revenue is $2.62 million. In 2020 at this same time, that figure was about $2.25 million. For the grand total, Q1 2021 is $2.94 million, nearly a $400,000 increase compared to 2020’s $2.54 million for Q1.

City Council member Sean Strode suspected the unanticipated increase in tax revenue is thanks to bumps in online purchases made during quarantines.

According to charts presented by Duran, there are several factors that come into play.

Though sales taxes collected from categories like bars and restaurants, oil and gas, lodging, hardware, contracting and utilities all saw financial decreases, 10 areas saw increases from 2019 to 2020.

One of the most significant increases came through general retail, food and marijuana retail.

General retail tax receipts increased from $3 million in 2019 to about $4.8 million in 2020. Revenue generated from food sales increased from about $1.64 million in 2019 to about $1.74 million in 2020.

Meanwhile, marijuana retail increased from $82,536 in 2019 to $162,496 in 2020.

Even for quarterlies, marijuana shot up from $31,963 in Q1 2020 to $43,791 in 2021.

“One of our marijuana grows has greatly increased,” Duran said.

But with the good comes the bad.

Bars and restaurants went from about $1.07 million in sales tax receipts in 2019 to $967,398 in 2020. Sales tax revenue generated from lodging decreased from $423,943 in 2019 to $321,275 in 2020.

Meanwhile, oil and gas revenue dropped from $291,571 in 2019 to $194,432 in 2020.

Yearly revenue has shot up from a little less than $7 million in 2013 to a projected $9.5 million in 2021.

Reporter Ray K. Erku can be reached at 612-423-5273 or rerku@citizentelegram.com.