April sales tax numbers are up not only compared to this time last year. They’re also higher than April 2019.

The borough collected $241,011 in sales tax in April, up 46% from 2020, and up 16% from 2019, according to a recent sales tax report.

A reopening economy is one explanation for the uptick in revenue, but it doesn’t explain the increase compared to pre-pandemic months. A number of factors are likely at play, according to Haines Borough chief fiscal officer Jila Stuart.

Online sales tax was up 410% in the month of April compared to the same time in 2020, the borough sales tax report says. An increasingly large number of online retailers are remitting sales tax to the borough through the efforts of the Alaska Remote Sellers Sales Tax Commission.

“As the Alaska Remote Sellers Sales Tax Commission ramps up, they are reaching out to more vendors and increasing compliance for online sales,” Stuart said.

A reopening economy is also part of the equation.

“As COVID vaccinations roll out, the economy has started to open up again. The heliski season came back this year… People are doing things now they have put off for the last year,” Stuart said.

The borough report shows businesses in the tourism, lodging and food services industries saw some of the greatest increases compared to last April.

Inflation is likely another factor, Stuart said. “Fuel prices are up. Costs of materials are up because supplies are low due to supply chain issues,” she said.

Nationwide, news outlets are reporting rising costs for products across the board, and particularly manufactured items, due to a mismatch in supply and demand as consumers return to spending.

“The Consumer Price Index for All Urban Consumers increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April,” according to a press release from the U.S. Bureau of Labor Statistics. “Over the last twelve months, the all-items index increased 5.0 percent before seasonal adjustment; this was the largest twelve-month increase since a 5.4-percent increase for the period ending August 2008.”

In Haines, many retailers are reporting price increases.

“My vendors normally put out price lists good for the whole year, but roughly seventy percent have sent out at least one price adjustment this year. Ammo manufacturers have sent out three,” Alaska Sport Shop owner Douglas Olerud said. “Depending on the item, we’ve seen five to eighteen percent increases.”

In a May CVN article, Lutak Lumber owner Chip Lende said the price of lumber items such as plywood and studs had increased more than 200% since the same time last year.

“Literally everything we sell, even smaller items, are up. Furniture has gone up quite a bit just because of shortages of components to make furniture, and also appliances, they’re both up at least ten percent,” Miles Furniture co-owner Candy Bradford said.

Grocery prices have also increased.

“We do mostly craft beer. The six packs were stable (retailing) at $10.95, and now they’re $11.95. Beer isn’t something we usually mark up much,” said Mike Borcik, who handles liquor store ordering for Mountain Market.

Borcik said it’s hard to give specifics for food items but prices are definitely increasing faster than normal. “Typically, when prices go up, it’s five to ten cents per item, but we’ve been seeing increases closer to fifty cents to $1,” he said.

While the higher prices are a hardship for consumers, if they keep up, it could help bolster borough finances in another year with a dampened tourism economy.

Last year, the assembly at the time approved a budget with a 50% reduction in sales tax revenue, anticipating a loss due to COVID-19. Sales tax revenue for the fiscal year is tracking closer to 40%, according to past borough finance reports. The budget for the upcoming fiscal year anticipates a 35% sales tax reduction compared to the last pre-pandemic fiscal year.