Two ballot measures in the city of Pueblo have to do with sales taxes. One aims to increase the sales tax to help with the general fund. The other would extend an existing sales tax for economic development.
Here’s the language you’ll see on your ballot:
Shall the ordinances of the Pueblo be amended:
Question No. 2A - Shall the City of Pueblo Sales and Use Tax be increased an estimated $26,142,985.56 annually in the first fiscal year beginning on January 1, 2026, and by such amounts as are raised annually thereafter, by an increase in the city’s Sales and Use Tax rate from 3.7% to 4.7% by adopting ordinance No. 11000, and such additional 1% in Sales and Use Tax revenue to be collected, retained, and spent as a voter-approved revenue change notwithstanding any revenue or expenditure limit contained within Article X, Section 20 of the Colorado constitution or any other law.
A yes vote means the City of Pueblo sales and use tax in the city of Pueblo will increase by 1 percent beginning 2026.
A no vote means the proposed City of Pueblo sales and use tax will not go into effect.
Question No. 2B - Without raising additional taxes, shall the existing one-half percent city sales and use tax rate for economic development be extended for a five year period from its current expiration of December 31, 2026 through December 31, 2031 by adopting ordinance no.11001, and the revenues therefrom to be spent together with all investment income thereon with all investment income thereon as a voter approved revenue change and an expedition to the limits which would otherwise apply pursuant to Article X, Section 20 of the Colorado constitution or any other law, and by continuing to dedicate the revenues from the one-half percent sales and use tax rate for primary jobs, creating capital improvement projections within the city and the Pueblo Memorial Airport boundaries, creating a special fund for the deposit of such revenues, and by continuing to deposit revenues from the one-half percent sales and use tax rate into a special fund for the deposit of such revenues to be used consistent with the criteria established for use of such funds, and finding and determining that the expenditure of such revenues are public purposes and municipal functions?
A yes vote means the existing half cent sales tax will be extended until the end of 2031.
A no vote means the half-cent sales tax will sunset at the end of 2026.
The half-cent sales tax explained
If approved, Question 2B would extend an existing half-cent sales tax that's set to sunset at the end of 2026. The tax has been in place for more than 40 years. Funds go toward attracting new business to Pueblo, (do we have examples of what it's paid for?)
The tax establishes a fund to provide incentives for bringing companies and jobs to Pueblo. The companies that receive the incentives must create primary jobs, like manufacturing, mining, or construction.
The companies often work with the Pueblo Economic Development Corporation (PEDCO), a non-profit agency that helps connect prospective businesses with the city government. PEDCO does not manage the half-cent funds,or administer incentives or contracts with the companies, rather PEDCO makes the connections and presents proposals to the city.
PEDCO receives around $250,000 from the city to pay for certain costs. However, City Council recently voted to end its 40-plus year long contract with PEDCO.
City Councilor Dennis Flores voted against ending the contract with PEDCO and said the cancelled contract would likely jeopardize the approval of the half-cent sales tax
Voting yes on 2B would extend the sunset date. Voting no would allow the sales tax to expire at the end of 2026.
The 1 percent tax explained
Pueblo, like many other cities across the U.S., is facing a shortage in revenues for this year. As of May, revenues are short around $12 million dollars.
The proposed 1 percent sales tax could generate around $26 million dollars in additional revenue.
Proponents of the sales tax say it would keep city services, like park maintenance, functioning.
Others say the tax would be regressive and would put a further financial burden on lower income families.
Pueblo currently has a combined sales tax rate of 7.6 percent–that's combined county, city and state–which is close to the state's average combined sales tax of 7.86 percent. The increase would bring the city's tax to 8.6 percent.
Neighboring cities of Trinidad, Canon City, Colorado Springs, and La Junta all have overall sales taxes in the 8.4-8.7 percent range.
