Saturday, October 14, 2017

County of Boulder 1A – Worthy Cause Sales Tax Extension

The county commissioners are asking voters to approve for the fourth time a tax of 1 penny on a $20 purchase to pay for capital improvements and equipment for local housing authorities and non-profit groups. Each time voters have approved the tax or its extension – see below – it has been for longer terms. This time 1A is for a 15-year tax extension.

2000 new tax for 3 yrs
2003 extend for 5 yrs
2008 extend for 10 yrs

For the first 3 years of the proposed 15 years, the county commissioners listed the following specific areas as probable, but not guaranteed, recipients. Recipients are not limited to unincorporated Boulder County; they may be located within municipalities.
$2M - Permanently Affordable Housing
  The county could easily spend all the Worthy Cause funds on housing.
$900K – Expanded Health and Mental Health Care
  No specific facilities or equipment were listed.
$600K – Senior and Aging Services including Meals on Wheels (MoW)
  Presumably includes $ for future facility for city of Boulder’s MoW.
  See ballot issue 2M for more information on the MoW building fund.

This year’s 1A would create a new fund or cost center to account for the deposits and expenditures of the Worthy Cause tax. The county commissioners would annually determine appropriations from the fund. Non-profit groups may apply for funding on an annual basis. Tax revenues may also be used for “administration of the Worthy Cause program, including but not limited to a dedicated staff position to serve as liaison with participating agencies.”

Various exemptions to paying the sales tax are listed in Resolution No. 2017-89. For example, purchases made with “food stamps” are exempt.

Recommendation: yes

One might want the county to have more flexibility with tax revenue in order to spend money on providing direct services and not just on equipment and facilities. Careful reading seems to give the commissioners that discretion, but the point may be irrelevant. With housing costs so high, the revenue from this tax is only a drop in the bucket toward solving affordable housing challenges.

The Boulder County budget summary for 2017 detailed $422M for the entire budget, including $130M for health and human services/economic development of which less than $4M is for Worthy Cause. The county commissioners believe they can get voters to agree to this feel-good measure. They are probably right; as with many tax issues, the decision and timing for putting the issue on the ballot are very political. See comments under this year’s 2M for a similar situation in the city of Boulder.

By the way, the 5-year 0.185% flood recovery sales tax expires at the end of 2019. If the Worthy Cause tax is extended, don’t be surprised to see a request to extend the flood recovery tax on the ballot in 2018 or 2019, perhaps relabeled with a different name. The open space tax that was due to expire in 2019 was renewed last year for another 15 years but will divert half the revenue to sustainability rather than open space.

Website for the Yes side
No known website – Info on a supporting website appreciated.

Website for the No side
No known website – Info on an opposition website appreciated.


Approved Ballot Language

COUNTY ISSUE 1A (Worthy Cause 0.05% Countywide Sales and Use Tax Extension):
WITH NO INCREASE IN ANY COUNTY TAX, SHALL THE COUNTY'S EXISTING 0.05% SALES AND USE TAX FOR HEALTH AND HUMAN SERVICES BE EXTENDED TO AND INCLUDING DECEMBER 31, 2033 FOR THE PURPOSES OF FUNDING CAPITAL FACILITIES AND EQUIPMENT FOR NON-PROFIT HUMAN SERVICES AGENCIES AND HOUSING AUTHORITIES WITHIN BOULDER COUNTY PROVIDING HEALTH, MENTAL HEALTH, TRANSITIONAL AND PERMANENTLY AFFORDABLE HOUSING, AND OTHER HUMAN SERVICES, INCLUDING BUT NOT LIMITED TO CHILDCARE AND EARLY CHILDHOOD EDUCATION, BASIC NEEDS SUCH AS FOOD AND CLOTHING, AND SERVICES FOR THE ELDERLY AND PEOPLE WITH DISABILITIES; AND SHALL THE PROCEEDS AND THE EARNINGS ON THE INVESTMENT OF THE PROCEEDS OF SUCH TAX CONSTITUTE A VOTER-APPROVED REVENUE CHANGE; ALL IN ACCORDANCE WITH BOARD OF COUNTY COMMISSIONERS' RESOLUTION NO. 2017-89?

Yes ___
No ___

See Resolution No. 2017-89 to put Issue 1A to the voters
https://www.bouldercounty.org/government/county-ballot-issues/

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