Forecasting

The big month is finally here! We now have a month with sales tax numbers reflecting the increased sales tax rate for the Grand Forks. We are all so happy that we could… Alright, enough of that. The results are somewhat to be expected. From the May 2018 total June was down over $200,000. Costs go up with the sales tax increase and people and businesses adjust if they are able. The more problematic part really is that June 2018 is down almost 1% fro June 2017, more than $120,000. These are not outcomes we particularly like even though they are somewhat predictable.

Continue reading June 2018 Grand Forks Sales Tax Forecast

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The May release came out earlier this week and was a real whopper. It was quite high and well outside the 95% confidence interval of the forecast from last month. We need another month, or months, of data to determine the impacts of the tax increase though. This number could be high in anticipation of the higher rate, or it could be pent up demand shifted to March due to bad weather in January or February. Easter also occurred in March this year and, as my forecasting class saw, that increased sales tax collections in Grand Forks in the past so it could be that situation again. It could also be related to tax cuts at the federal level though I am a bit skeptical that it would just start showing up in spending data for March. Like I said though we need to see where it is at over the next few months before determining the longer term trajectory. Here is the updated forecast.

Continue reading Grand Forks Sales Tax Forecast, May 2018

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Alright, we got the update from the city and it was not pleasant. Year-to-date collections are down more than 10%, and cities preferred measure (though we do not know why it is preferred) is down 6.87%. The forecast was for $1.35 million in collections and it came in at $1.02 million. So my pessimistic forecast was still too rosy. Based on this the updated forecast for May is revised down to $1.3 million.

Continue reading Grand Forks Sales Tax Forecast – April 2018

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