Dillon to float user-based tax increase on November ballot
In an effort to boost general fund revenues the Dillon Town Council approved in August floating a November ballot question asking voters to endorse a user-based tax increase.
The proposition, known as Referred Issue 2E, would levy an up to $1 tax on the price of admissions for certain public events, such as concerts. If passed in November, the tax would take effect in 2014 and could generate an estimated $185,000 in additional annual revenue for the general fund.
In addition to a tax on admissions to public events, the council also is asking voters to approve imposing Dillon’s 2.5 percent sales tax on all recreational rental activity in the town. If approved, that tax would also take effect in 2014 and is estimated to generate up to $20,000 annually.
Combined, the two taxes could add close to $200,000 to Dillon’s general fund. All tax increases must be approved by voters in accordance with Colorado’s Taxpayer Bill of Rights.
Prior to passing last month’s resolution, council members discussed the proposition during several work sessions to investigate ways to garner support for the initiative in light of several other tax questions slated to appear on the November ballot.
In addition to Dillon’s proposed user-based tax increase, local voters will be asked in November to support a statewide tax question aimed at increasing public school funding by $1 billion, as well as a 25 percent tax on retail marijuana sales throughout Colorado. Summit County may also present a question to impose sales tax on retail marijuana sales in unincorporated areas of the county.
“The voters already have several ballot questions coming in the next year, so we need to be able to justify this (user tax) to the public,” said town of Dillon Mayor Ron Holland during a recent work session.
That desire to justify the tax increase to local voters came in the form of a second resolution passed last week by the Dillon Town Council. Resolution No. 43-12, series of 2013, was written to show the public that the Dillon Town Council stands behind and supports the user-based tax initiative, said Joe Wray, Dillon town manager.
“The resolution is symbolic in nature and was passed unanimously by the council to show support of the ballot question because we do believe this is a good initiative,” said town of Dillon Mayor Pro-Tem Kevin Burns on Sunday. If approved, “the tax increase would provide us with additional revenue to maintain infrastructure and provide all of the services the people of Dillon have come to expect from us.”
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