By Loretta Huff
While Loretta is a member of the Citizens' Budget Advisory Committee (CBAC), these articles reflect Loretta's personal understanding and do not represent positions of the CBAC.
There is one last thing on Sales and Use Tax before we move on to Property Tax.
As described earlier, the City of Golden Sales and Use Tax rates are 3%.
The initial rate for the City was 2%, established on 8/1/1979.
In May 1991, The City of Golden took this ballot question to the citizens.
“Shall the City of Golden provide for capital improvements, including downtown improvements, a community center and other public improvements throughout the city, to be accomplished by increasing the city sales tax and use tax by an additional one cent (1¢) on the dollar or fraction thereof, effective July 1, 1991, the pledging of such tax increase specifically for such capital improvements and for no other purpose, and the creation of a sales tax and use tax capital improvement fund? “
The effect of this language was to increase the sales tax, use tax and building use tax from 2% to 3%. The ballot question was approved by a vote of 1,149 in favor and 1,138 against – a margin of 11 votes. The increase was enacted by Ordinance No. 1121 in June 1991, effective 7/1/1991.
The first two projects funded by the new 1% tax were the Downtown Golden Streetscape and the new Golden Community Center.
The new Streetscape was dedicated at the Olde Golden Christmas Kickoff in December 1992. The Golden Community Center had a formal dedication on October 8, 1994.
With such a close vote, there was pushback. Four lawsuits were filed related to the new tax. One challenged the election itself. Another challenged the use of bonds and the amount to be spent for the new community center. Another wanted the 1% to go away after the community center was built. Many articles and letters to the editor can be found in the Golden Transcript archives. None of the lawsuits were successful. The 1% tax remained in place to fund “other public improvements throughout the city….”
For example, in a 1992 article discussing sidewalks, curbs and gutters, it was recommended that the “… city look at ways of funding replacements and repairs with a portion of a 1% sales tax voters approved to pay for downtown street scape, the new community center and capital projects after the street scape and center are complete.”
The "extra" 1% sales and use tax that voters approved in 1991 goes into the City's Sales and Use Tax Capital Improvement Fund. Details about that fund can be found in the 2025 Budget Message, page 64. For 2025, the 1% tax is forecast to generate $11,348,500.
