For several months, the Chamber has been working with a large coalition of partners from across the state to file language for a November ballot issue asking Coloradans to invest in our transportation infrastructure through an increase in sales tax.
Why do we need to invest?
Colorado has critical needs that have gone unmet for decades. In fact, it’s been almost 25 years since our state has received an increase in tax revenue for transportation. During that same period, Colorado’s population has grown by almost 2 million people and technology is delivering mobility solutions that we aren’t able to take advantage of. The Colorado Department of Transportation has a $9 billion project list, $7 billion of which has no secure funding.
Our failure to invest is costing us real money. Colorado drivers are, on average, paying more than $1,600 a year because of traffic congestion delays, damage to vehicles, accidents and lost gas efficiency. Those costs really add up — in total, Coloradans are paying $6.8 billion annually due to the poor condition of our transportation system.
The coalition has identified critical elements to meet our needs:
1. Focus on a statewide approach to ensure our economic engine of the Front Range and the quality of life delivered by our mountains and plains can be maintained.
2. Allocate funding to address the large, high-priority statewide projects like I-70 and I-25.
3. Ensure local governments (cities and counties) have the resources to meet their needs. Many of us don’t know whether we’re driving on a state highway or a local road — both need to be addressed.
4. Encourage regions to continue to work together to find solutions that allow regional issues to be addressed based on local priorities. Such solutions can include bus or van services that allow seniors to get to doctor appointments, improvements for pedestrians or roadway connections.
What’s on the ballot?
The coalition submitted five titles. Those range in sales tax increases from 0.35 percent to 1 percent. At their core, our goal is to provide funding for state and local transportation projects, and those titles range because the coalition wants to keep all options on the table now that we have a clearer picture of the additional review available to the state because of changes in federal tax policy and increased economic activity.
This additional one-time revenue is helpful, but we know there are a number of needs at the state in addition to transportation: education, Colorado’s pension system’s unfunded liability, implementing the state water plan and more.
There are a number of reasons the coalition is focusing on sales tax over other options:
1. Gas tax is diminishing over time as cars get more efficient and electric and hybrid vehicles don’t pay their fair share.
2. A small increase in sales tax raises more revenue than very large increases in vehicle registration or gas tax.
3. Unlike a vehicle registration tax, sales tax ensures that those 80 million visitors to Colorado contribute to maintaining and improving our roads.
4. Local governments rely heavily on sales tax, and a significant portion of the money raised will go straight to supporting local priorities.
What’s next?
The coalition will determine the title it will take to voters in November; stay up-to-date with the latest business policy news at
denverchamber.org/policynews.
Sara Crocker is the communications manager for the Denver Metro Chamber.
This article was originally published on Business Altitude. Click here to view the issue.