MANITOU SPRINGS, Colo. (KOAA) — Manitou Springs voters will decide on a major tax increase in November. City council passed an ordinance to voters this week that could nearly triple the tax on admission tickets and door fees.
The excise tax would jump from 5% to as much as 14%. The tax affects businesses, including museums, tours, and attractions. It hasn't been raised in more than 50 years.
This ordinance comes as the city faces a $4 million budget deficit.
Councilwoman Judith Chandler says the city lost significant sales tax revenue when Colorado Springs started selling recreational marijuana. She says it hurt the two dispensaries in Manitou Springs.
Voters will also see a $37 million school bond on the same ballot.
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The Cost of Competition: Manitou Springs funding could take a hit due to COS marijuana sales
Since the sale of recreational marijuana was legalized in Colorado Springs, though it's been a benefit to dispensaries there, Manitou's mayor says the lack of sales at dispensaries may result in a significant decrease in city funding.
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