El Paso County to Ask for Sales Tax Increase

El Paso County voters will decide this November whether to increase the county sales tax by one percent. The El Paso County Commissioners have decided to place a question on the fall ballot asking residents to double the sales tax, boosting it from one percent to tow percent. The money raised would be used to fund health and safety departments in the county, as well as the county's eight municipalities.

The increase, which would be the largest ever for El Paso County, would raise a projected $75 million in extra funds in its first year. If approved, it would increase Colorado Springs' sales tax rate to 8.4 percent; Manitou Springs' sales tax would bump up to 9.8 percent.

According to tentative plans released in July, half of the money raised in 2009 and 2010 would go toward funding the construction of a jail expansion, enabling the county to pay in cash for the building instead of borrowing.

The other half of the money those first two years would be split between the public health, police and fire departments and other health and safety agencies in the county and the county's cities. After 2010, 10 percent of the money raised by the increase would be set aside to build eight government buildings, at a total cost of $77.5 million. The rest would go toward operating costs for the county and its municipalities.

The tax idea was introduced by Colorado Springs Citizens for Effective Government, which is made up of local groups such as the Pikes Peak Association of Realtors and the Greater Colorado Springs Economic Development Corporation.

The group argues that the tax is necessary to keep the El Paso County area safe and healthy. El Paso County was forced to cut spending and mortgage some of its buildings this spring due to a $9.1 million budget shortfall. The county predicts more budget cuts will be needed next year, as county sales tax revenues were down 3.9 percent in June compared to the same month last year. Overall, county sales tax revenues have increased just one percent this year.

"Without action on a regional level, our quality of life will be jeopardized by disturbing trends like a continued rise in crime but declining levels of public health and safety services," Citizens for Effective Government said in a statement on its web site.

Opponents to the bill, however, have organized under the name Citizens for a Cost-Effective Government and say the tax increase will hurt everyone involved. The group says the increase will hurt business owners and citizens who are already struggling due to the current economic slowdown. It could also drive customers to businesses in nearby cities, such as Denver and Pueblo, where the sales tax rates are 7.72 percent and 7.4 percent, respectively. The group has collected signatures from 200 local business owners opposed to the increase.

El Paso County voters will head to the polls Nov. 4 to decide the issue.

SOURCES:

http://www.downtowndenver.com/search_results.cfm

http://adm2.elpasoco.com/countypress/default.asp?ID=2838&itla=CTY&selectdept=all&selecttime=current&offset=0

http://car.elpasoco.com/NR/exeres/A14129D0-D68A-4C90-8875-67E19349E1CA,frameless.htm

http://www.csceg.org/Resolution.php

http://www.gazette.com/articles/county_39919___article.html/tax_pay.html