200 business owners sign a petition against sales-tax proposal

Local business owners aren't happy with El Paso County possibly asking voters in November to raise the sales tax rate at a time when rising prices and unemployment are putting the squeeze on area residents.

Citizens for Cost-Effective Government released a list Thursday of 200 businesses whose owners signed a petition saying they oppose an increase in the sales tax rate.

"It's a terrible time to be socking people with new taxes," said state Sen. Andy McElhany, R-Colorado Springs, who's co-chairman of the opposition group. "I think at some point you have to say the tax burden is high enough and governments have to live with the budget they have just like the rest of us do."

The county commissioners will decide next week whether to ask voters for a 1 percent sales tax to boost revenue for public safety agencies such as the county Sheriff 's Office, police and fire departments, and the county health department.

Supporters say the tax would raise an estimated $75 million in its first year, which would be split among the county government and eight city governments inside El Paso County. Most of the money would go to the Sheriff 's Office. If the commissioners approve putting the measure on the ballot at their Thursday meeting, voters will decide whether to approve the tax in the Nov. 4 election.

Another group, similarly dubbed Citizens for Effective Government, argues the money is needed to avoid drastic cuts in government services.

Opponents say the taxbackers couldn't have picked a worse time to ask voters for more money, given current economic troubles such as rising prices for food and fuel.

Daniel Cole, who collected the signatures, said about one in 10 businesses he approached declined to sign the petition. The signatures were gathered during July, he said.

Manitou Springs business owners were particularly eager to sign, Cole said. If the measure passes, the total sales tax rate in Manitou Springs would be 9.8 percent. Several government agencies get a cut of the tax, including the state, county, Pikes Peak Rural Transportation Authority and city.

In Colorado Springs, the total sales tax rate would be 8.4 percent if voters approve the measure.

"I think it's not going to help business," said Kamel Elwazeir, whose Café Arabica restaurant on Tejon Street in downtown Colorado Springs opened three months ago. "I would rather have the local government do something to help people spend money, like a break on taxes."

Elwazeir also owns Colorado Auto Traders, a used car lot. A new tax would hurt that business even more, he said.

"If I sell a sandwich for five bucks, people are not going to look at a five cent increase, but if I sell a $10,000 car, that's going to hurt," he said.

McElhany acknowledged the county government is hurting for money - an argument county officials have made repeatedly during recent months. The county government cut millions in spending this year and mortgaged some of its buildings to bridge a roughly $9 million budget shortfall. County officials say further cuts are on the way for 2009 unless the government gets more revenue. Colorado Springs, too, is facing a tight budget in 2009.

Here are the major elements of the proposal as presented to elected officials June 27:

• Half the money for 2009 and 2010 would go to build a jail expansion. That would be enough to pay cash for the project, rather than borrow the money.

• The other half in those years would go to health and safety agencies of the county, Colorado Springs and the other towns.

• Beginning in 2011, 10 percent of the money would be set aside to build eight other government buildings costing a combined $77.5 million.

• The other 90 percent starting in 2011 would go to operating costs in the county and municipalities.

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Contact the writer: 636-0187 or perry.swanson@gazette.com

SALES TAX VOTE

The El Paso County commissioners will decide whether to put the sales tax measure on the November ballot at a public meeting 9 a.m. Thursday in the hearing room of the Pikes Peak Regional Development Center, 2880 International Circle. Details of the proposal are on the Citizens for Effective Government Web site, www.csceg.org.