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Fighting for our Tourism...Out West!

Vote NO on 2A

– The Manitou Springs Unfair Tax –

The highest amusement tax in the Pikes Peak region

Our business and way of life is at risk, and the City Council is leading the attack.

By Greg Wellens, Business Owner

Manitou is at a crossroads and needs to reevaluate its priorities.  Our town has hundreds of million dollars in deferred maintenance, but the city council choose to fritter it away on administration and poorly run projects.  Since losing the goose that laid the golden egg (Marijuana tax) the city refuses to go back to pre-Marijuana expense levels and services.  Like a child who now has to pay its own rent they are trying to steal cash at any expense.  Tourism is the bread and butter, the life juice of Manitou.  A million people a year come to Manitou for the healing spirit that is water, food and recreation.  The tourist spends money and takes their problems home to Oklahoma.  Manitou needs to embrace these visitors as the #1 source of income and not chase them away.

 

Manitou Springs can do better.  Council needs to prove themselves as good stewards of our money.  They have lots of plans but very little ability to execute.  Parking lots are decades in the making, businesses are vilified, Creative ideas are comprehended, and city employees are chewed up and spit out in an ever-revolving door of hiring.  Unelected Administrators are paid big city wages for a small-town job.  Poorly negotiated contracts were never honored and have been graciously nullified.  Citizen led initiatives?  The concerns are real and the leadership is questionable.  They have not earned an extra million dollars per year.

 

The source of angst is dressed up as the tourist from Kansas, but the congestion and expense is started when the Incline opened for business.  This single incident started a debate that has never been solved and is the source of conflict.  For 25 years the Incline has drawn hundreds of thousands of people to our town.  Likely more people then ride the COG, zip across canyons or frequent our dwellings and chateaus.  They Incliners congest the city, but City Council would never reject them as the source of the problem.  The perception is that they must spend their money at the retail shops and should never be charged for access.  They pay their way via retail tax and should be embraced and not chased away.  The secret to civic success!  Do they really?  The City has to run a “free” bus to serve the incline at an expense of $200,000.00 per year.  And then they get dropped in the city owned paid parking lot at the far end of town and leave.  But the real villains, the visitors to the COG and other amusement venues, do pay the tax, 5% on every dollar.  They then frequent the shops, spending the day in the cutest little town west of the ol’ Miss and pay more tax and more overpriced parking.  But what gives?  Economic laws prove that higher taxes change behaviors and the tourist is no fool.  They have lots of choices in Colorado and other states that charge or less or nothing at all.  Those states seem to manage alright, the trails are tidy, bathrooms clean and no potholes exist in the road.

 

Let the people do the dirty work.  After a failed attempt in 2025 to raise the Amusement Tax by triple the City Council referred a measure again in 2026 to nearly double the Tax to 9.3%.  The misleading statements surrounding the tax referral are several but the most egregious is that its Citizen lead.  The Council wrote and referred the measure as a forever tax to fund the same debacle.  A citizen group has now taken the lead in the campaign to shield their buddies on the council. Recent large investments have been made in Manitou.  Are these owners the citizens who are leading the charge?  It makes me suspicious of the authenticity of the efforts.  Who is really going to benefit from the tax increase?  I bet not the people living on Minnehaha or the other far reaches of town.  Ruxton will remain a mess until they reroute traffic along the old railroad grade.  Pipes will go unfixed in the neighborhood streets but the lights around the arcade and downtown Manitou ave will shine bright (like the obnoxious roman candle streetlights on east Manitou ave. I thought it was a runway.)

 

The bonus payment.  The widely discussed and public lawsuit with the COG is finally settled.  The COG has given the City of Manitou Springs a gift.  After several years of questionable tactics by council to sidestep the commitments it made to the COG, the COG has agreed to void their contract in exchange for a $3.5 million dollar payment.  This may seem like a lot, but the city will recoup this money in a few short years.  Amusement tax payments made by the COG at the current rate will be nearly double what the contract committed.  That’s an extra $500,000.00 the city will be receiving in perpetuity.  That is already half the budget shortfall they project (and the budget is questionable).  Why then increase the Tax further?  Greed, Power and Money son, its all politics.

 

2026 was a dismal year for tourism in Manitou.  Economic forces are against amusement industry businesses.  Ever increasing fees from processors and online resellers chew up profit.  Increasing minimum wage reduces the wage of veteran employees.  Gas and related expenses are ever increasing.  Land manager relations are strained, and an additional tax will be the straw that breaks the camel’s back.  AOW loves being in Manitou and wants to see Manitou thrive.  AOW would love to develop its land holdings for the benefit of all parties.  But it is daunting and nerve racking to think one would invest further or recommend to others a commitment to Manitou Springs.

VOTE NO ON 2A Manitou Springs
 
 

Four False Claims by
the Unfair Tax Proponents

 
 
 
Frequently Asked Questions About the Manitou Springs Unfair Tax
 
 

 

What is the Manitou Springs Unfair Tax?

 

The Unfair Tax will raise the excise tax rate on ticket sales from 5% to 9.03% on local businesses in Manitou Springs, such as the Iron Springs Chateau, the Pikes Peak Cog Railway, Adventures Out West Ziplines, the Cliff Dwellings Museum and Manitou Comedy Festival.
 
 

If 2A passes, how will the additional revenue be spent?

Poorly.  Manitou needs bond measures and taxes that Sunset tied to specific infrastructure projects.  An unrestricted addition to the general fund will surely wither away over time buying flowers and decorations.  Manitou Springs is $100,000,000.00 behind in maintenance to sewer and streets.  We can do better by raising funds for specific projects.
 
 
 

How are 2A tax proponents misleading voters?

Manitou Springs’ sales-tax rate is 3.9%—not 9.03%. The 9.03% figure combines taxes imposed by four separate governments: 2.9% for the State of Colorado, 1.23% for El Paso County, 1% for PPRTA and 3.9% for the City. The City’s own website confirms this breakdown. Manitou already collects a higher local tax on amusement admissions—5%—than the 3.9% City sales tax imposed on ordinary retail purchases. Raising the amusement tax to 9.03% would not make the two City tax rates equal. It would make the City’s amusement tax alone equal to the entire combined sales tax imposed by the City, county, state and regional transportation authority. And keep in mind – attractions operators pay sales tax on retail items on top of the amusement tax on admissions!

 

On its homepage the Unfair Tax proponents’ website urges voters to “Close the Tax Loophole.” Is the difference between the sales tax rate and the amusement tax rate a “loophole?”

Characterizing the difference between Manitou’s sales tax rate and its amusement tax rate as some kind of “loophole” that is exploited by Manitou’s attractions operators is false and misleading. Council must stop treating tax increases and parking takeovers as substitutes for responsible financial management. How can voters have confidence in sending more unrestricted revenue to a City that has not demonstrated that it can manage the revenue it already has?

 
 
 
When voters rejected last year’s amusement-tax increase, they were warned that failure would require serious budget cuts. Have those cuts happened?
 
Budget cuts never materialized through the transparent, line-by-line process this financial situation demands. Instead, voters are being presented with another tax increase on the same local amusement operators.
 
 
Will a 9.03% amusement tax rate alone address Manitou’s structural deficit?
 
During Council’s August 15th budget meeting, staff told Council they still would have to cut another $2.5 million by 2029 to maintain a 30% reserve level in the event 2A passes – $1 million in 2027; $700,000 in 2028 and $800,000 in 2029. The Unfair Tax proponents’ website says, “A yes vote this November ‘can’ keep our public parks open, keep the community pool and fitness center running…” – another of many misleading and outright false claims made by tax proponents. Passing 2A does NOT fix Manitou’s structural deficit, nor does it preserve services and amenities from consideration for cuts next year.

 

Is the amusement tax increase permanent, or will it expire?

The Tax is forever and will not expire.  This provides opportunity for unchecked expenses into the future.

 

How do Manitou’s sales and amusement tax rates compare to surrounding communities?

 
 
Vote NO on 2A, and let’s choose a path that supports our town’s future while keeping Manitou Springs a welcoming place for both residents and visitors.

 

Call for Information 719-578-0935