In 2013 city voters approved 2B, 2C and 2D to impose and restructure some sales taxes. All three of these ballot issues involved changes occurring at the beginning or end of 2019. Let’s recap.
2B – a NEW 6-year 0.15% tax to fund transportation - expiring Dec 2019
2C – make PERMANENT a 0.33% tax and move a portion of the tax from dedicated open space to the general fund beginning in Jan 2019
2D – REPURPOSE a 0.15% open space tax expiring Dec 2039 toward transportation from 2020 to 2029 and the general fund from 2030 to 2039
The effect of these three tax changes was to
* Fund transportation through 2029
* Increase general fund revenue forever
* Increase open space funding in the long term
* Decrease open space funding in the short term
Ballot issue 2H asks voters to continue the 2013’s 2B “temporary” tax for 20 more years but dedicate it to open space. The city is, in effect, saying that it decreased open space funding prematurely and that they didn’t mean it when they asked for a 6-year “temporary” 0.15% tax.
Let’s look at the city sales and use tax rates:
2013 3.41%
2014 3.56% (effect of 2B)
2015 3.86% (effect of new 0.30% culture tax)
The city sales tax rate since 2015 has been 3.86% and will continue to be 3.86% if this tax passes. If this tax doesn’t pass, then the rate will be 3.71%.
Ignoring 2H for the moment, open space receives a dedicated 0.77% sales tax in 2019 and then 0.62% for the next 15 years, and then the tax goes to 0.50% in perpetuity. People and groups have argued that the city’s open space department knew about this shift and should be focusing more on maintenance and less on acquisition.
Another part of the current 3.86% sales tax is a 0.25% sales tax for Parks and Recreation expiring in 2035. While acknowledging that open space is different from Parks & Rec, the two buckets often appeal to the same voting groups.
No doubt to attract yes-votes, the ballot issue stipulates that the first year of revenue would purchase a conservation easement at Long’s Iris Gardens.
Recommendation: No/Against
If the city had asked for a 1-year extension to purchase a Long’s Gardens easement, I would have supported that. I don’t think the city has clearly made the case that it needs to extend a temporary tax for 20 years and repurpose it for open space.
Several council members worry, justifiably so, that this tax may adversely impact council’s ability to put a future sales tax on the ballot for other needs such as affordable housing. Let the temporary tax expire and have the city make the case next year that we need a new tax, perhaps for a shorter time span.
Boulder has the highest sales tax in the region. Sales taxes are regressive, affecting lower-income people most. I’d like to see the sales tax go back to its 2013 or 2014 level. Maybe we could then encourage more shopping and use of services in Boulder.
Website for the Yes Side – Open Space Yes!
http://openspaceyes.com/
Website for the No Side
No known website – Info on an opponents’ website appreciated.
Approved Ballot Language
City of Boulder Ballot Issue 2H
Sales and Use Tax Extension for Open Space and Long's Gardens
Without raising additional taxes, shall the existing 0.15 cent city sales and use tax for transportation purposes, approved by the voters by Ordinance No. 7913, be extended beyond the current expiration date of December 31, 2019 until December 31, 2039; and beginning January 1, 2020 until December 31, 2039 designating the revenues collected to fund the maintenance, restoration, acquisition and preservation of open space land including the use of funds generated in the first year to purchase a conservation easement at Long's Gardens located at 3240 Broadway as a voter approved revenue change?
Yes/For _____
No/Against _____
Ordinance No. 8346 to put issue 2H to the voters
https://www-static.bouldercolorado.gov/docs/Ord._No._8346_Open_Space_Tax-1-201909051530.pdf?_ga=2.74049938.1609871116.1571366190-2002241055.1571366190
2B – a NEW 6-year 0.15% tax to fund transportation - expiring Dec 2019
2C – make PERMANENT a 0.33% tax and move a portion of the tax from dedicated open space to the general fund beginning in Jan 2019
2D – REPURPOSE a 0.15% open space tax expiring Dec 2039 toward transportation from 2020 to 2029 and the general fund from 2030 to 2039
The effect of these three tax changes was to
* Fund transportation through 2029
* Increase general fund revenue forever
* Increase open space funding in the long term
* Decrease open space funding in the short term
Ballot issue 2H asks voters to continue the 2013’s 2B “temporary” tax for 20 more years but dedicate it to open space. The city is, in effect, saying that it decreased open space funding prematurely and that they didn’t mean it when they asked for a 6-year “temporary” 0.15% tax.
Let’s look at the city sales and use tax rates:
2013 3.41%
2014 3.56% (effect of 2B)
2015 3.86% (effect of new 0.30% culture tax)
The city sales tax rate since 2015 has been 3.86% and will continue to be 3.86% if this tax passes. If this tax doesn’t pass, then the rate will be 3.71%.
Ignoring 2H for the moment, open space receives a dedicated 0.77% sales tax in 2019 and then 0.62% for the next 15 years, and then the tax goes to 0.50% in perpetuity. People and groups have argued that the city’s open space department knew about this shift and should be focusing more on maintenance and less on acquisition.
Another part of the current 3.86% sales tax is a 0.25% sales tax for Parks and Recreation expiring in 2035. While acknowledging that open space is different from Parks & Rec, the two buckets often appeal to the same voting groups.
No doubt to attract yes-votes, the ballot issue stipulates that the first year of revenue would purchase a conservation easement at Long’s Iris Gardens.
Recommendation: No/Against
If the city had asked for a 1-year extension to purchase a Long’s Gardens easement, I would have supported that. I don’t think the city has clearly made the case that it needs to extend a temporary tax for 20 years and repurpose it for open space.
Several council members worry, justifiably so, that this tax may adversely impact council’s ability to put a future sales tax on the ballot for other needs such as affordable housing. Let the temporary tax expire and have the city make the case next year that we need a new tax, perhaps for a shorter time span.
Boulder has the highest sales tax in the region. Sales taxes are regressive, affecting lower-income people most. I’d like to see the sales tax go back to its 2013 or 2014 level. Maybe we could then encourage more shopping and use of services in Boulder.
Website for the Yes Side – Open Space Yes!
http://openspaceyes.com/
Website for the No Side
No known website – Info on an opponents’ website appreciated.
Approved Ballot Language
City of Boulder Ballot Issue 2H
Sales and Use Tax Extension for Open Space and Long's Gardens
Without raising additional taxes, shall the existing 0.15 cent city sales and use tax for transportation purposes, approved by the voters by Ordinance No. 7913, be extended beyond the current expiration date of December 31, 2019 until December 31, 2039; and beginning January 1, 2020 until December 31, 2039 designating the revenues collected to fund the maintenance, restoration, acquisition and preservation of open space land including the use of funds generated in the first year to purchase a conservation easement at Long's Gardens located at 3240 Broadway as a voter approved revenue change?
Yes/For _____
No/Against _____
Ordinance No. 8346 to put issue 2H to the voters
https://www-static.bouldercolorado.gov/docs/Ord._No._8346_Open_Space_Tax-1-201909051530.pdf?_ga=2.74049938.1609871116.1571366190-2002241055.1571366190
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