City Sales Tax

Source: 2017 Budget Message pg. 20-21

The City has adopted a number of sales tax measures over the years. This is summary of the taxes collected and what they can and can't be used for: 

Sales Tax Interpretation 

Year Passed

Ordinance

Restrictions

Rate

Year Modified 

1971

607

None - can be spent for any operating or capital needs of the City.

1% 

n/a

2012

1979

739*

Capital Improvements - any (not limited to streets). Per C.R.S. Section 29 2-111(4), capital improvement funds can be used for: (a) paying the cost of acquiring or constructing any capital improvement; (b) acquiring land or equipment; (c) the costs of issuing bonds; (d) the costs of capitalized interest and reserves; and (e) the costs of operating and maintaining the capital improvements to be financed.

1%

33%

2012

Repairing and replacing water utility infrastructure at least three years old at the time of repair or replacement. NOTE: In any given year, council's authorization of transfers is subject to TABOR limitations that could postpone the transfer to a subsequent year.

33%

2012

Repairing and replacing sewer utility infrastructure at least three years old at the time of repair or replacement. NOTE: In any given year, council's authorization of transfers is subject to TABOR limitations that 

could postpone the transfer to a subsequent year.

33%

2012

1999

917

Street Improvements. 2009 attorney opinion provides examples such as 1) asphalt overlay, 2) chip and seal, 3) crack sealing, 4) pot hole repair, 5) general street maintenance, 6) equipment used exclusively or nearly exclusively for street repair and maintenance, 7) consumables directly related to street repair and maintenance. Expenditures for salaries and benefits for employees to perform these functions may also be included with the caution that only the percentage of time for streets work may be included in such employee costs. 

1%

n/a

Notes 

  • Ordinance 748 creates a capital improvement fund (and authorizes bonds) 
  • Ordinance 917 refers to this ordinance and states it was to be used for capital improvements consisting of certain streets improvements; however, it is not in fact limited to streets. 
  • Ordinance 1015 allocates 2/3 of the existing sales tax for water and sewer utility infrastructure 
  • The "Waste-Water System Payment Plan Agreement" between the Northlands GID property owners and the City of Walsenburg provides in paragraph 8 that the City will transfer revenues | derived from capital improvement sales tax collected within the boundaries of the GID by to the GID to use for debt payments, reserve requirements and funding of short-lived assets. 
  • The transfer of 2/3 of this tax should be computed first.