MANITOU SPRINGS, Colo. (KOAA) — Manitou Springs voters will decide this Election Day whether to give city council the authority to raise the city's excise tax from 5% to as high as 14%.
The proposed ballot measure would allow the city to increase taxes on tourism services, including ticket sales at attractions, which include the following:
- Manitou Cliff Dwellings
- Pikes Peak Cog Railway
- Adventures Out West
Mayor John Graham said an increase would be implemented immediately if voters approve the measure.
"I expect it to be the higher end, in (the) 12-14% range," said Graham.
The mayor emphasized that visitors, not residents, would bear the cost of the tax increase.
"The tax would basically be paid for by visitors," said Graham.
However, some tourism businesses have opposed the measure. The owner of Adventures Out West advocated for a smaller increase to 9% instead of 14%, expressing concern about the impact on tourism.
In a statement Adventures Out West's owner said tourists "are the bread and butter for Manitou" and warned that "Manitou is progressively chasing the tourist away."
Visitors like Bobby Gutierrez, who traveled from Oregon with his family to visit the historic Penny Arcade, said the tax increase could affect their spending decisions.
"If it's already at a point where it's becoming cost prohibitive, that's when I'll start looking for other things to do," said Gutierrez.
The city is considering the tax increase after losing sales tax revenue when recreational marijuana sales began in Colorado Springs.
Graham acknowledged the difficult position the city faces.
"I'd prefer to not have to do this, let's put it that way. We need to figure out how we're gonna pay the city's bills," said Graham.
If voters reject the excise tax increase, Graham said the tax burden may eventually shift to residents, though that consideration is likely years away.
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