Durango and La Plata County Tax Base

Local taxes are collected through two means: sales and property taxes. Both the city and county tax retail sales at two per cent. Since much of the county retail sales occur in Durango, the effective local tax rate on retail sales is four per cent (city: two per cent plus county: two per cent). In addition, Colorado imposes a three per cent statewide sales tax. Thus, the sales tax rate on items purchases in Durango is seven per cent. 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 area over the past several years. Retail sales were relatively flat in Durango and La Plata County from 1985 through 1988, probably reflecting the effects of unstable energy markets. Since 1988 retail sales have increased substantially, reflecting strong local economic growth. Table VI-5 shows retail trade statistics for Durango and other areas of La Plata County. Table VII-5 provides an index of growth since 1980.

Year	Durango ($1,000)	Ignacio ($1,000)	Bayfield ($1,000)	Remainder of County	Total ($1,000)
1980	$158,991	$4,013	$4,520	$51,071	$219,595
1981	183,714	4,348	5,770	54,167	247,999
1982	216,530	4,736	6,703	59,295	287,264
1983	219,497	4,868	6,280	58,972	289,617
1984	245,190	4,944	6,899	68,966	325,999
1985	257,810	5,725	7,898	64,271	335,704
1986	268,608	5,376	7,524	56,465	337,973
1987	251,186	6,104	7,464	66,241	330,995
1988	245,639	8,799	8,266	89,728	352,432
1989	253,867	8,048	7,969	99,306	369,190
1990	282,530	9,904	9,193	106,010	407,637
1991	320,221	4,295	11,856	115,017	461,389
1992	349,248	12,750	12,499	119,441	493,937
1993	392,702	7,545	13,465	135,150	548,861
1994	433,240	7,245	15,499	156,573	612,556

*SOURCE: Colorado Department of Revenue, Annual Report, 1980-94.