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Breaking down Cañon City's excise tax vote this November

Breaking down Cañon City's excise tax vote this November
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CAÑON CITY, Colo. (KOAA) — Cañon City residents will vote in November on whether to approve the city's first excise tax, which would fund annual maintenance of the RC Icabone Pool through charges on tourism businesses.

The 2.25% excise tax would charge tourists for activities like scenic rides and recreational excursions. If approved, the tax would apply to businesses such as the Royal Gorge Route Railroad (RGRR) and rafting companies.

The funding debate stems from a series of voter decisions regarding the pool.

The RC Icabone Pool closed in 2023, and in 2024, Cañon City voters approved a 0.3% sales tax allowing the city's recreation district to take on $24 million in debt to build a new pool. However, voters rejected a property tax increase that would have covered yearly operating costs.

Without that funding, the city would face a roughly $500,000 annual shortfall to maintain the pool. In August, the city approved placing the excise tax on the November ballot as an alternative funding source.

"For scenic rides, it would apply to the Royal Gorge Route Railroad. For recreational excursions, for example, it would apply to rafting trips," said Ryan Stevens, city administrator.

Every potential voter interviewed supports constructing a new city pool, calling it a community necessity. Tigers swim team member Connor Wiezcorek said he and his teammates currently lack access to a proper facility.

"We have to go all the way up to Florence, and it's not even a full pool so we can't have meets there," said Wiezcorek. "We have to spend tons of gas money to go up there and we don't even have a home meet."

However, support for the excise tax remains divided among business owners who would be affected.

Andy Neinas, who has operated Echo Canyon River Expeditions for nearly 40 years, opposes the targeted approach. Though his company is not headquartered within city limits, his business would be subject to the tax because his vans pick up groups downstream in Cañon City.

"I just feel targeting a handful of us is not the right solution," said Neinas.

The tax would cost each of his customers approximately $2.90 for half-day trips and $5.60 for full-day excursions.

The RGGR has also expressed concerns about the tax structure. In a letter to the city, the railroad called the tax discriminatory and offered to donate $100,000 annually to the pool as an alternative.

"Although other attractions and recreational businesses would be subject to the tax, the RGRR's tax burden represents by far the lion's share of revenue," the railroad stated.

Neinas said the additional costs could drive tourists to seek attractions in neighboring counties where similar taxes don't exist.

"We also operate in Chaffee County, and those are our peers, but they will not have to convey this financial burden to their guests," said Neinas.

If voters reject the excise tax, Stevens said it remains unclear what would happen with money already collected from the previously approved sales tax. He said the city would hold those funds while deciding whether to proceed with pool construction.

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