Vote NO on 2A
– The Manitou Springs Unfair Tax –
The highest amusement tax in the Pikes Peak region
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?
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.
