|Loveland's Independent News Source
|The Competition For Retailers
Why Loveland's Centerra is losing ground and may fall
short of revenue projections again in 2016 costing the city
special investigative report
Local Taxes - Overview
States and their local municipalities have
traditionally relied on the "three legged stool"
approach to local taxation. State and local
governments divide the three revenue sources
of property, sales and income taxes to fund
most local and state governmental services.
In Colorado, our state government relies heavily
on income tax revenue, counties and schools
upon property taxes while cities have grown
increasingly more dependent upon sales taxes.
In fact, following TABOR (Taxpayer's Bill of
Rights) cities in Colorado have seen the
property tax portion of their revenue decline
especially from residential properties.
For the past twenty years Colorado cities have
become increasingly aggressive in attempts to
lure retail stores into their cities as a way to
grow revenue without the need of raising
property taxes (which requires voter approval).
In 2004, the City of Loveland signed a 25-year
agreement with McWhinney to divert
significant property and sales taxes in hopes of
securing a long-term source of city revenue.
The story on the left details why those
assumptions were false and how Loveland is
now entering the worst period of any phony
"urban" blight tax scheme. The city's sales tax
revenue is falling while Centerra's increasing
adjustable rate financing needs to be repaid by
2021 but current annual metro district taxes
Below is an analysis of Best Buy in Centerra
personal property taxes actuals for 2015 and
real property taxes (assuming a building value
of $2 million) and how they will change when
the metro district mill levy is increased to repay
the growing public debt (click to enlarge)