Title
Ordinance No. 15-97 Amending Article 7 (Sales and Use Tax) of Chapter 2 (Business Licensing, Liquor Regulation and Taxation) of the Code of the City of Colorado Springs 2001, as amended, Pertaining to a Change to the Sales and Use Tax Rate from Two and Five-Tenths Percent (2.5%) to Three and Twelve One-Hundredths Percent (3.12%)
Body
From:
Kara Skinner, Chief Financial Officer
Summary:
At the November 3, 2015, special municipal election, the voters of the City approved a ballot question authorizing a temporary additional levy of zero point six two percent (0.62%) in City sales and use tax dedicated solely to road repair, maintenance and improvements.
The attached Ordinance modifies the relevant sections of the Code of the City of Colorado Springs to amend the rate of sales and use tax from two and five-tenths percent (2.5%) to three and twelve one hundredth's percent (3.12%).
The tax levy established in this ordinance shall apply to all transactions occurring on or after January 1, 2016.
Previous Council Action:
N/A
Background:
By voter approval, the City of Colorado Springs is authorized to temporarily increase its sales and use tax by 0.62% (6.2 pennies on a $10 purchase) for five years to fund only road repairs and improvements, and be permitted to retain all such revenues generated and to expend the same only for road repairs and improvements, exempt from spending and revenue limitations. As approved, the existing sales and use tax rate of 2.5% established by the City Code is increased by 0.62% dedicated to road repairs and improvements to make an effective City tax rate of 3.12% as of January 1, 2016. This tax will sunset (expire) exactly five (5) years from the date of its implementation and will not affect or apply to purchases of food for domestic home consumption, prescriptions, residential utility bills or other items exempt from City sales and use tax under the City Code. This temporary increase in sales...
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