A coalition of Colorado business groups and civic leaders on Friday announced it will collect signatures to try to ask voters in November for a 0.62 percent sales tax increase that would raise money for the state’s billions of dollars in infrastructure needs.
“It’s about time we make a serious investment in our transportation infrastructure. Our roads are literally crumbling beneath our feet,” Christian Reece, the executive director of the Western Slope county association Club 20, said in a written statement. “This initiative is a responsible and modest approach to provide an immediate solution before our infrastructure goes from bad to worse.”
The coalition’s members, which include elected officials and business groups from across the state, said they would begin circulating signature petitions immediately. They need 98,492 signatures to get on the November ballot.
The sales tax increase proposal would raise sales taxes by 0.62 percent to pay off $6 billion in transportation bonds. With interest, they would cost taxpayers $9.4 billion over 20 years.
If passed, the sales tax increase is estimated to raise $767 million in its first year.
Voters will have other transportation funding options to choose from this year.
One measure offered for November’s ballot by the libertarian-leaning Independence Institute would borrow $3.5 billion for roads without new taxes.
Another plan referred by the state legislature would appear on the 2019 ballot if the others aren’t approved. It would borrow $2.34 billion without new taxes under a bonding proposal that dedicates $50 million a year from the state budget.
That proposal comes as part of Senate Bill 1, passed in the waning days of the legislature, which already has dedicated $645 million to transportation needs in the next two years.
Kelly Brough, the president and CEO of the Denver Metro Chamber of Commerce, said the 0.62 percent sales tax increase was chosen by the coalition — among several proposed levels up to a full penny — in part out of hope that Colorado can cash in on tourists to help foot the bill for an estimated $9 billion in identified infrastructure needs over the next decade.
“Every year, 80 million people visit Colorado and use our roads,” Brough said in a statement. “This approach will allow them to leave a little something behind to help us out.”
Colorado’s current state sales tax rate is 2.9 percent.
The Associated Press contributed to this report.
