TC Res. No. 1992-21TOWN OF AVON
RESOLUTION NO. 92 - 21
SERIES OF 1992
A RESOLUTION OPPOSING A STATEWIDE INITIATIVE
TO RAISE THE COLORADO SALES TAX FROM 3% TO 4%.
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 for elementary and secondary
education; and to make massive reforms in the Colorado education
system; and
WHEREAS, the combined state-local sales tax rate in Colorado
is among the highest in the nation; and
WHEREAS, increasing the state sales tax rate will be
economically harmful to municipalities, counties, and other local
governments which rely'primarily on'local sales.tax-'revenue; and
WHEREAS, an additional one cent,state sales tax will make it
more difficult to increase local sales.tax for important local
government needs and harm the-Colorado,economy and quality,.of
services to Colorado residents and visitors; 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; and
WHEREAS, the Town of Avon supports quality and equal education
for all students of Colorado, but believes communities and school
districts that want to go beyond that level should not be limited;
and
WHEREAS, additional funding for education should be
accomplished in a progressive manner, rather than in the form of a
regressive sales tax; and
WHEREAS, the 1988 school finance act should be,repealed or,
modified to solve funding problems as well as to accommodate the
above concerns.
NOW, THEREFORE, BE IT RESOLVED that the Avon 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
compensating school districts with extraordinary transportation
(bus) costs and other approaches which avoid the problems raised
herein.
This resolution shall take effect immediately upon its
passage.
INTRODUCED, READ, APPROVED AND ADOPTED this 28th day of July,
1992.
ATTEST:
Patty Neyh rt, wn Clerk
Jer Dav' , Mayor