By Laura Forbes
Wednesday, August 27, 2008 at 5:36 p.m.
Read more: Local, State
The El Paso County Board of Commissioners is considering a proposal asking voters to approve a one percent sales tax increase.
Last month, sales tax revenue in the county was down 3.9 percent since last year. Officials estimate an increase would bring in about $75 million a year. The money would go toward public safety and health services, including expansion of the county jail in two years. Food and prescription drugs would be exempt.
Some business owners are unhappy with the proposal.
Lawrence Nelson owns three Manitou Springs stores. He says, once they're in, they are often so shocked at the 8.8 percent sales tax that he lowers prices.
"If I have a hundred dollars on something, I might drop it down to 85 or 90 just to make them feel more comfortable because the sales tax is so high," he said.
If voters approve it, the sales tax in Colorado Springs would go to 8.4 percent. In Manitou, 9.8 percent.
"That's almost 10 percent. I think that's probably going to hurt business," said County Commission Chair Sallie Clark. She says crime is on the rise, and as a business owner herself, she knows that has an impact. "I want to feel safe in my community. Is that economically feasible? You bet it is," she said.
She says about 40 percent of sales tax revenue comes from outside the county. "So it really is a more fair form of taxation, rather than putting it all on property tax, which has a major impact on those with fixed incomes."
The county has already cut jobs and closed buildings on Fridays. She says without an increase more cuts are likely.
"We need to say to the people of Colorado Springs and El Paso County, 'You have a choice. This is the service we can provide at this level and at this level. Which choice would you like to have?'" said Clark.
Commissioners will meet Thursday morning. Clark believes they will approve the proposal, putting the issue on the November ballot.
Until then, they will draft two budgets: one in case voters approve the increase, the other if they don't.