HomeMy WebLinkAbout1992-10 Opposing a Statewide Initiative to Raise the Colorado Sales Tax from 3% to 4%r
r ~~
RESOLUTION NO. 10
SERIE51992
A RESOLUTION OPPOSING A STATEWIDE INITIATIVE
TO RAISE THE COLORADO SALES TAX FROM 396 to 490.
WHEREAS, a statewide initiative petition is being circulated which would increase the
Colorado sales tax rate from 3~° to 4% to raise $320 million in new revenue far elementary and
secondary education; and to make massive reforms in the Colorado education system; and
WHEREAS, the combined state-focal sales tax rate in Colorado is among the highest in
the nation; and
WHEREAS, increasing the state sails #ax rate will be eeonomicafly harmful to
municipalities, counties, and other local governments which rely primarily on local sales tax
revenue; and
WHEREAS, the tourism industry is very important to Colorado's economy as the second
largest industry in the state, and an additional one cent state sales tax will make it mare difficult
to increase local sales tax for important local government needs and could increase visitor and
guest resistance to travel to Colorado to recreate and vacation by increasing the cost of retail
purchases, lodging, and food thereby discouraging sales within Colorado and harming the
Colorado economy; and
WHEREAS, an additional one cent sales tax will particularly cause financial hardship on
low and moderate income residents because of its inherent regressive tendencies; and
WHEREAS, the proposed tax increase would generate $3.8 million from Eagle County to
the State of Colorado, but the Eagle County School District budget would not be increased above
its current level; and
WHEREAS, state and local sales taxes are not deductible for purposes of computing
federal income tax.
1
1
i
NOW, THEREFORE, BE IT RESOLVED that the Vail Town Council opposes the statewide
initiative to increase the state sales tax rate from 3% to 4% because of the myriad problems and
unanswered questions it raises; and
BE IT FURTHER RESOLVED that, if, indeed, new state revenues are necessary for
education, other avenues of enhanced revenue be explored and considered such as removing
most or all the present state sales tax exemptions or increasing the state income tax, or other
approaches which avoid the problems raised herein.
This resolution shall take effect immediately upon its passage.
INTRODUCED, READ, APPROVED AND ADOPTED this 2nd day of June, 1992.
ATTEST:
Martha S. Raecker, Town Clerk
Ma ret A. Ostertoss, tlilayor
2