Use Tax, Marijuana Tax and Tax to support Regional Transit
Potential Ballot Measures:
The Town is considering three different ballot measures for this November’s election, below is more information on each of these potential tax questions.
One ballot measure would replace the Town’s current 4% sales tax on construction materials with a 4% Use Tax. Avon is the only town in Eagle County without a use tax. Collection of a Use Tax is much more efficient for both contractors and the Town. In addition, this 4% Use Tax would have an annual $50,000/year exemption to exclude small home improvement projects. The revenue generated by this tax would be allocated to the Town’s general fund. Click here for more information.
Another ballot measure that the Town is considering is a 5% retail tax on marijuana to match the tax in Eagle County. Although the Town currently does not allow marijuana businesses or retail sales, if this tax passes, the Town would adopt regulations to allow a limited number of marijuana businesses in only designated areas. The revenue from the Marijuana Tax would be allocated to Community Housing, Recreation, and Community Health. Click here for more information.
Sales Tax / Lodging Tax / Property Tax to support Regional Transit:
Another ballot measure that the Town is considering is a tax to support Regional Transit. As you may know, Eagle County and the towns of Avon, Eagle, Gypsum, Minturn, Red Cliff, Vail, and the Beaver Creek Metro District have collectively pursued the formation of a Regional Transit Authority (RTA). These entities are currently considering a 0.5% sales tax increase and a 0.6% lodging tax increase to support enhanced transit service.
A 0.5% sales tax increase in Avon would apply to all retail, including groceries. A 0.6% lodging tax increase in Avon would apply to all lodging, including commercial hotels and short-term rentals. An alternative to a lodging tax increase to support the RTA is a property tax. The total mill levy for property in Avon is 62.346 (if you do not reside in a metro district or the general improvement district), which includes the Town of Avon’s mill levy of 8.956. A property tax mill levy of 1.2768 mills would generate the same revenues as a 0.6% lodging tax. The cost for this increase would be $68.47 per year on a home valued at $750,000. Click here for more information.
We value feedback and welcome any public comments. The Mayor and Town Council may be emailed as a group at firstname.lastname@example.org.