MANITOU SPRINGS — Manitou Springs is counting on the passage of its 2A excise tax — levied on sales at local attractions — to help offset a shrinking budget. With the measure now approved, city number crunchers can work the new revenue into the budget.
Mayor Natalie Johnson is projecting an additional $1.1 million in revenue from the tax.
"We live in a community of less than 5000 people and we have over 300,000 visitors a year and so certainly when we talk about wear and tear on our community it is often those additional people that create that," Johnson said.
The tax is intended to offset part of the $3 million in tax revenue that used to come in from marijuana sales. That money was lost when Colorado Springs approved retail marijuana.
Johnson said there have already been more than $1 million in budget cuts, and even with 2A, another $400,000 still needs to be trimmed.
"If we had to go into our next year, our 2027 budget and cut an additional 1.1 million we would start losing really integral important city services like the ambulance, like our chamber of commerce, our pools," Johnson said.
The tax applies mostly to five businesses that cater to tourists, and some of those business owners have questioned the equity.
"There's lots of options, why is it always raise the taxes," Greg Wellens, the owner of Adventures Out West, said prior to the election.
Johnson said she believes visitors will absorb the increase without much notice.
"I truly believe that visitors understand and will pay and not even notice that that has gone up because when they buy a t-shirt, they're paying 9.03%. Now when they buy a ticket, they're paying 9.03%," Johnson said.
The mayor said time will tell how the tax plays out.
"I think business will continue as usual. However, if there is an unnecessary impact, of course we would reevaluate," Johnson said.
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