According to an announcement made by a group of civic leaders and businesses in Colorado, they are trying to gather signatures in order to persuade voters to vote for a sales tax hike of 0.62 per cent in the coming November election. The money collected from the increase will help the state get the billions of dollars they need in order to fund for infrastructure growth and development. This is necessary in addition to taxes paid by businesses that obtain a tax ID in Colorado which contributes to the states’ funding.
The executive director of Club 20, a county association in the Western Slope, is Christian Reece and he said that this is a crucial time for them to consider serious investment when it comes to the transportation sector of the state. The roads in Colorado are starting to crumble right in front of their eyes. The initiative aims to answer the problem before the transportation infrastructure of the state progresses into a worst state.
The members of the coalition are business groups and elected officials from all over the state. They said that they are planning to collect signature petitions by spreading it all over Colorado as soon as possible. In order for the petition to be included in the November ballot, they must be able to gather a total of 98,492 supporting signatures.
The proposal for the sales tax hike pertains to a 0.62 per cent increase and the money will be able o cover the transportation bonds of the state worth $6 billion. When considering the interest altogether, the taxpayers will have to cover $9.4 billion within the next two decades. If the proposal is to be passed into a bill, the first year of the sales tax hike will generate the state a total of $767 million. In addition, this 2018, voters will have alternative funding options for transportation.
Another alternative for the ballot this November is that the Independence Institute will have to borrow an amount of $3.5 billion which will pay for the roads but there will be no new taxes included. If none of the plans are to be approved this coming November, the state legislature would refer other plans for the 2019 ballot. For the meantime, businesses and entities are required to obtain a tax ID in Colorado in order to help the funding problem of the state.