Voters decide to increase VAT in November in order to maintain the city’s vital services and ensure long-term financial security
On August 17th, during its regular session, the Lone Tree City Council unanimously passed a resolution allowing voters to increase their sales tax by 1% in November to ensure that Lone Tree can maintain vital city services and set up for long-term financial security is.
“Over the past year, the city has made extensive efforts to hear our residents ‘and businesses’ perspectives on reduced benefits versus increased sales to help address our community’s tax challenges. The consensus was to increase revenue to maintain the services, character and quality of their hometown, ”said Mayor Jackie Millet. “Local residents understood that maintaining the existing level of service was not possible with our current VAT rate and even with a 1% increase, Lone Tree’s sales taxes remain one of the lowest in the metropolitan area.”
At the beginning of this year, the city launched Mapping Our Future, a public engagement to discuss the city’s financial future, which included various meetings with companies, residents and HOAs as well as several town halls and one-on-one meetings with key stakeholders.
“In recent years, even before the pandemic, we knew that with the postponement and increase in online shopping, our current sales tax rate would simply not be sustainable in the long term and would have to give way,” said Mayor Pro Tem Cathie Brunnick. “But before we suggest any changes, it was important for us to hear directly from our residents and our businesses. Tonight, as we approve the voting action, we are confident that our community believes this is in their best interests and will be reflected in November. ”
The vote, if approved by voters on November 2, 2021, would increase the city’s sales tax revenue by up to $ 15,563,749 for the first year, and the amounts generated annually thereafter for a period of 10 years by increasing sales – and increase use tax by one percent. excluding the sale of groceries for personal use and of motor vehicles. These additional revenues would be used to maintain vital city services, including:
- Repair, maintenance and improvement of city streets and aging infrastructure;
- Maintaining service and response times for public safety; and
- Maintenance and improvement of parks, paths and open spaces
Currently, Lone Tree has the lowest sales tax rate along the Front Range at 1.8125%, including a 0.3125% sales tax approved by voters for the Construction of Recreational Projects and the Lone Tree Arts Center in 2008. If the election is approved, the Lone Tree would still be among the lowest in the area. Likewise, Lone Tree taxes less things than neighboring communities, as it has neither a property tax nor a professional privilege tax or “poll tax” and also does not tax groceries for personal use or motor vehicles.
To learn more, visit cityoflonetree.com/mappingourfuture.