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Ballot Issue 7A: Higher Taxes on Tap for Front Range Municipalities

The cost of living along Colorado’s Front Range may become much higher after this year’s election because of Ballot Issue 7A, the ‘Coco’ passenger rail tax, along with several other local sales tax increases. 

The Data 

Of the 31 municipalities with Issue 7A on their ballots, 7 already pay at or above 9% in combined state and local sales taxes. 

If 7A passes and all other local sales tax measures that affect those 31 municipalities pass, 13 cities will be taxed at or above 9%, and 1 of those—Wheat Ridge—will be taxed above 10%. 

The table below shows how the combined state and local rates will change if 7A and other local sales tax measures are passed. 

Table 1 

Municipality  Counties  Before  After   Change 
Arvada  Jefferson & Adams  8.21% & 7.96%  9.543% & 9.293%  +1.333% 
Boulder  Boulder   9.295% 

 

9.628%  +0.333% 
Bow Mar  Arapahoe & Jefferson  4.25% & 4.50% 

 

4.583% & 4.833% 

 

+0.333% 
Broomfield  Broomfield  8.25%  8.583%  +0.333% 
Centennial  Arapahoe  6.75%  8.083%  +1.333% 
Cherry Hills Village  Arapahoe  7.75%  8.083%  +0.333% 
Colorado Springs  El Paso  8.20%  8.533%  +0.333% 
Columbine Valley  Arapahoe  7.25%  7.583%  +0.333% 
Denver  Denver  9.15%  9.483%  +0.333% 
Edgewater  Jefferson  8.00%  9.583%  +1.583% 
Englewood  Arapahoe  8.05%  8.383%  +0.333% 
Federal  Heights  Adams  8.75%  9.083%  +0.333% 
Fort Collins  Larimer  8.30%  8.933%  +0.633% 
Glendale  Arapahoe  8.00%  8.333%  +0.333% 
Greenwood Village  Arapahoe  7.25%  7.583%  +0.333% 
Lafayette  Boulder  9.205%  9.538%  +0.333% 
Lakeside  Jefferson  7.30%  7.633%  +0.333% 
Lakewood  Jefferson  7.50%  9.083%  +1.583% 
Littleton  Arapahoe, Jefferson, & Douglas  8.00%, 8.25%, & 8.75%  8.333%, 8.583%, & 9.083%  +0.333% 
Longmont  Boulder & Weld  8.865% & 7.53%  9.528% & 8.193%  +0.663% 
Louisville  Boulder  9.11%  9.443%  +0.333% 
Loveland  Larimer  6.95%  7.583%  +0.633% 
Manitou Springs  El Paso  9.03%  9.363%  +0.333% 
Mountain View  Jefferson  8.50%  8.833%  +0.333% 
Pueblo  Pueblo  7.60%  8.350%  +0.750% 
Sheridan   Arapahoe  7.75%  8.583%  +0.833% 
Starkville  Las Animas  4.40%  4.733%  +0.333% 
Superior  Boulder  9.11%  9.443%  +0.333% 
Trinidad  Las Animas  8.40%   8.733%  +0.333% 
Westminster  Adams & Jefferson  9.00% & 8.75%  9.333% & 9.083%  +0.333% 
Wheat Ridge  Jefferson  8.00%  10.083%   +2.083% 

 Why This Matters 

Consumers are highly sensitive to sales tax. When local governments differ significantly in their sales tax rates, people are more likely to cross jurisdictional borders to avoid higher taxes. 

As a rule of thumb, one can expect cross-border shopping tends to increase when combined state and local sales taxes approach or exceed 10%, although differences between neighboring jurisdictions matter more. 

In an election where politicians are pitching “affordability” and “tax fairness,” it is interesting that many of those same politicians want to increase one of the most regressive taxes that citizens pay. 

Meanwhile, the small business climate is already tenuous in several of these municipalities. Sales tax increases will be passed on to consumers, especially low-income consumers. 

This could lead to less-than-expected revenue for several of the higher-tax municipalities. 

Unfortunately, this potential increase to Front Range sales taxes comes on top of local mill levy overrides, debt questions, and the major statewide tax measures in Proposition NN, Amendment 87, and Proposition 137 that Coloradans may also end up paying for. 

Coloradans and those municipalities concerned about affordability and fiscal stability need only wait—they may be due for a reckoning come November 3.