Council supports a Yes vote on sales tax increase to maintain vital City services and ensure long-term financial security
On Tuesday, the Lone Tree City Council unanimously approved a resolution outlining the reasons they support a yes vote on ballot question 2E.
“More than four in five residents believe the City is heading in the right direction and want us to continue to prioritize public safety, infrastructure investments and parks and open space enhancements and access” said Mayor Jackie Millet. “As a Council, we believe this 1% sales tax increase will ensure Lone Tree maintains the quality and character of our community and long-term financial security.”
Lone Tree’s current sales tax rate for operations, which hasn’t been increased since the City’s inception in 1995, combined with increased online shopping trends is projected to result in a financial deficit of over $100M between projected revenues and expenses over the next 15 years.
The ballot measure, if approved by voters on Nov. 2, 2021, would increase the City’s sales and use tax rate by 1% for a period of 10 years, excluding taxes on food for home consumption and motor vehicles. This added revenue would be utilized to maintain vital City services including:
- Repairing, maintaining, and improving City streets and aging infrastructure;
- Maintaining service and response times for public safety; and
- Maintaining and improving parks, trails, and open space.
The revenues generated from the sales tax increase, if approved in November, would be subject to oversight by a citizen-led audit committee and an independent financial audit.
“Given that approximately 95% of the City’s sales tax revenue is generated from shoppers outside of Lone Tree, this solution would have the least impact on our residents,” said Millet. “Estimates indicate an impact of about $7 per month for Lone Tree households, and City sales tax would still remain one of the lowest in our area.”
Currently Lone Tree has the lowest sales tax rate in the region at 1.8125%, which includes a .3125% sales tax approved by voters in 2008 to build recreation projects and the Lone Tree Arts Center.
If the ballot measure is approved, Lone Tree would still remain among the lowest in the area. Likewise, Lone Tree also taxes fewer things than neighboring municipalities as it does not have a property nor an occupational privilege tax or “Head Tax”, and it also does not tax food for home consumption or automotive vehicles.
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