Unformatted text preview: n 2007. Overall, it appears that property tax revenue
should continue to be a stable, if not a growing source of revenue for Denver over
the next two to three years.
c. 9-3. Students will have interpreted the information provided in a variety of ways. The
following discussion provides some points the students may have considered.
Denver relies heavily on sales tax revenue, which tends to move with the health of
the economy. A review of the sales tax revenue indicates that the tax rate has
remained constant (3.5 percent) over the past 10 years. The MD&A indicates that
General Fund sales tax revenues are up and that expected growth for 2008 is 5.1
percent, the statistical tables indicate fairly flat overall sales tax growth over the
past three years. The weak growth in sales tax revenue over the past three years
reflects the reduced sales tax revenue in durable goods and automobiles.
Typically, when consumers are economically stressed sales in the areas of durable
goods decline. Stronger indicators of sales tax growth can be found in the
demographic information showing that personal and per capita income has
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This note was uploaded on 05/20/2010 for the course ACCOUNTING 580 taught by Professor Waymire during the Spring '10 term at Northern Virginia.
- Spring '10