Voters to decide in November on sales tax increase to maintain vital City services and ensure long-term financial security
On Tuesday, during the Regular Meeting, Lone Tree City Council unanimously approved a resolution to refer to voters in November a 1% sales tax increase to ensure Lone Tree can maintain vital City services and is positioned for long-term financial security.
“Over the past year, the City undertook an extensive engagement effort to listen to our residents and businesses’ perspectives on service reductions verses revenue increases to address the fiscal challenges facing our community. The consensus was to increase revenues to maintain the services, character and quality of their hometown,” said Mayor Jackie Millet. “Residents understood that maintaining existing service levels was not possible at our current sales tax rate and even with a 1% increase Lone Tree sales taxes remain one of the lowest in the metro region.”
At the start of this year, the City launched Mapping Our Future, a public engagement effort to discuss the City’s financial future, which included various meetings with businesses, residents and HOAs, as well as multiple town halls and one-on-one meetings with key stakeholders.
“We knew in recent years, even before the pandemic, that with the shift and increase in online shopping our current sales tax rate simply isn’t sustainable long-term and something would have to give,” said Mayor Pro Tem Cathie Brunnick. “But before proposing any changes, it was critical for us to hear directly from our residents and our businesses. So tonight, as we approve the ballot measure, we are confident that this is what our community believes to be in their best interest, and it will be reflected in November.”
The ballot measure, if approved by voters on Nov. 2, 2021, would increase the City’s sales tax revenue by up to $15,563,749 the first year and amounts generated thereafter annually for a period of 10 years by increasing sales and use tax by one percent, excluding the sale of 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
Currently Lone Tree boasts the lowest sales tax rate along the Front Range 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.
To learn more, visit cityoflonetree.com/mappingourfuture.