Tax revenues and other economic indicators have been increasing over the past five years in the city, pointing to continued growth in Danville, according to a recent report from Danville’s Office of Economic Development & Tourism.
“Collected sales tax, meals tax, lodging tax … are increasing or are on track from previous years, with an upward trend in the last five years,” the report states.
The report showed the status of economic indicators as of March and throughout the previous four fiscal years from July 1 to June 30.
“This report highlights tax collected, building permits issued, unemployment rates and other factors that affect our community positively and negatively,” the report states.
The median price of housing as well as the value and number of business licenses in the city are also going up, according to the report.
City Manager Ken Larking said the figures illustrate the results of the city’s efforts to improve its economic climate.
“It shows that what the city’s been doing in its focus on economic development and economic opportunity is paying off,” Larking told the Danville Register & Bee.
Inflation has also played a role in the increased revenues, especially those for the sales tax and meals tax, since the 2020-21 fiscal year.
Sales tax figures in the report do not include the 1% sales tax for improvements to Danville Public Schools.
The city of Danville collected about $12 million in sales tax in 2022-23, up from nearly $9 million in fiscal year 2020. Those figures had been steadily climbing in the years between, according to the report.
Those numbers are on track to continue to increase, according to revenue figures through March. The city collected $10 million in sales tax revenue from July 1, 2023 to March 31.
Meals tax revenues are also moving up — from about $8 million in 2019-20 to slightly more than $11 million in fiscal-year 2023, according to the report. During 2023-24, the city had collected about $9 million through March 31.
Revenue generated from visitors staying in the city’s lodging establishments such as hotels and Airbnbs has also surged, spiking from nearly $1.5 million in 2019-20 to more than $2.5 million in 2022-23. Danville collected nearly $2.4 million through March 31 in 2023-24, according to the report.
In addition, the number of lodging stays — or nights spent by each registered guest at the city’s lodging establishments — has climbed higher and higher each year.
The number of nights spent by guests in Danville since 2019-20 have jumped from nearly 150,000 nights to roughly 225,000 nights in 2022-23, according to the report. The upward trend continued into March, when the figure reached nearly 200,000 nights from July 1, 2023 through March 31.
As for business licenses, the city issued about 2,000 in 2020, with a slight increase in 2020-21. The next year saw a similar number of business licenses granted before the city saw an increase to more than 2,500 issued in fiscal year 2023.
There were nearly 2,500 issued from July 1, 2023 to March 31, with three months left in that fiscal year, according to the report.
The value of business licenses has increased in the city, as well. Their value comes from businesses paying annual license renewal fees based on the amount of income they received.
Increased revenue from taxes and license fees not only benefit the city, but highlight how well businesses are doing in Danville, Larking said.
“There are people who are owning businesses and who have started businesses who are seeing success and increasing their wealth through their successful operation,” Larking said. “That’s really the more important part. We want Danville to be seen as a place to build opportunities and for people to have a lifestyle they can enjoy.”
The city brought in about $7 million in business license fees in 2022-23 and roughly the same amount through March 31 in fiscal year 2023-24.
The median sales price of housing consistently rose from 2018-19 through 2022-23 in Danville and Pittsylvania County, according to the report.
The median sales price of a home in the county was nearly $120,000 five years ago. By 2023, that figure had increased by more than 50% to slightly more than $180,000.
In Danville, homes sold at a median price of just above $100,000 in 2019, but climbed to nearly $160,000 in 2023, according to the report.
Unemployment in Danville in 2023 was slightly lower than in 2019, when it was about 5%. That rate doubled to 10% in 2020 during the pandemic but by 2023, it had dipped to slightly more than 4%.
Read the original article here (John Crane, Danville Register and Bee)