Sales tax data shows some of COVID-19's economic impact to Downtown Talkeetna

Downtown Talkeetna business income appears to be about a third of what it has been for the past two years.

That information comes from sales tax data from the Mat-Su Borough.  After a vote by those living in the Talkeetna Sewer and water district, the borough imposed a three-percent tax.  That tax data means it’s now possible to chart year-to-year changes in reported revenue.

January and February started the year off fairly close to normal.  As concerns over COVID-19 spread in March and the state ultimately shut down most businesses, revenue declined.  April, May, and June all saw reported sales from Downtown Talkeetna at about one quarter their usual level. 

As the summer continued, anectodal evidence suggested that things were getting a little better, and the data supports that.  In July, sales tax payments were about a third of the normal amount, and in August that number rose again to more than forty percent of the usual tax payments.

In addition to the actual amount of taxes paid, the number of businesses reporting as active dropped as the year went on.   In total, seventeen businesses were dropped from the active tax rolls between March and September. That does not include dozens of businesses that remained on the tax rolls, but reported zero income.

The purpose of the sales tax is to pay for operation of and improvements to the Talkeetna sewer and water system.  Mat-Su Borough Public Works Director Terry Dolan said earlier this summer that, while income was down, the loans to conduct upgrades to the water treatment facility would had not started to come due, yet.