The November 8 election ballots were mailed to residents of Boulder County on October 17, and voting centers across the Peak to Peak region opened on October 24.
Here is a brief rundown of the
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The November 8 election ballots were mailed to residents of Boulder County on October 17, and voting centers across the Peak to Peak region opened on October 24.
Here is a brief rundown of the four ballot questions pertaining to the Town of Nederland:
Town of Nederland Issue 2J: Shall Town of Nederland taxes be increased $156,250 annually in the first full fiscal year beginning January 1, 2023, and by such amounts as are raised annually thereafter by the imposition of an additional 0.25% sales tax such that
Town of Nederland tax rate increases from 4.0% to 4.25%.
The Nederland Board of Trustees (BOT) began discussing tax initiatives as an additional revenue source at a scheduled meeting on July 19, 2022.
The total sales tax assessed in Nederland is 8.985%, disbursed at 4.00% to the Town of Nederland, including .25% to road repairs, .985% to Boulder County, 2.90% to the state of Colorado, and 1.10% to RTD and other districts.
Total sales tax revenue for 2022 is projected at $1,981,047, which includes the $35,000 from marijuana sales, with $121,469 going to Streets, $242,939 going to both Sewer and Water, and $364,408 going to the Nederland Community Center. This leaves $1,009,292 from 2022 sales tax revenue going to the General Fund, which funds Health and Human Services as well as the Nederland Police Department (NPD).
Raising the sales tax by a quarter of a percentage point equals approximately $125,000 in revenue to the Town. Originally the BOT discussed the question of raising the sales tax by a full 1%, which would equate to $500,000. A survey of Nederland’s business owners was released in late July, and on August 4, the BOT were presented with the results.
Of the 47 business owners surveyed, 61.7% of them were in favor of increasing sales tax for funding for health and human services, law enforcement, critical infrastructure, and Town staff. Of the 27 responses to the question of what percentage of sales tax increase felt appropriate, 33.3% said a 0.25% increase would be appropriate, while 33.3% said a 0.50% increase.
The majority of responses from the survey spoke of concerns about the sales tax already being too high and, by raising it further, may ultimately result in Nederland businesses earning less revenue as customers may opt to shop elsewhere or online.
The information from the business survey can be found on the BOT’s August 4, 2022, official Agenda packet, under Discussion Items 8.1 at: https:// nederlandco. civicweb.net/ Portal/ MeetingInformation.aspx?Id=560
From July 19 to September 6, the BOT discussed the draft ballot language and to what services the tax revenue should be directed. The revenue from the 0.25% sales tax increase would fund law enforcement personnel, equipment, and facilities, as well as personnel to support other Town services.
The Town of Nederland has been struggling to retain staff in the Nederland Police Department and other Town departments, which the BOT first discussed on July 19. A 2022 supplemental budget has been passed to help alleviate the concerns of poor staff hiring and retention rates due to comparatively low wages and outdated and deteriorating equipment and facilities.
As of this date, the Town of Nederland does not have a dedicated Town Marshal or any officers in the NPD. The Boulder County Sheriff’s Office has been providing overnight coverage, as per their current contract, and provides daily coverage based on officers volunteering for extra-duty shifts at an elevated pay rate, paid for by the Town.
The Town of Nederland and the BOT, based on much deliberation and feedback from the public, are dedicated to rebuilding the NPD, with recruitment efforts currently underway for a Marshal and at least three full-time officers and one sergeant.
Town of Nederland Issue 2K: Shall Town of Nederland taxes be increased by $160,000 annually in the first full fiscal
year beginning January 1, 2023, and by such amounts as are raised annually thereafter by the imposition of a 5.0% special sales tax on the sale of retail marijuana and retail marijuana products to consumers, retail marijuana stores, or retail marijuana product manufacturers as such is authorized by state law, to be in addition to the Nederland sales tax.
Retail marijuana is currently subject to Nederland’s 8.985% sales tax, as well as a 15% sales tax imposed by the state, with 10% of that collected tax being returned to Nederland. The Town of Nederland does not collect its own Special Retail Marijuana Sales Tax, while neighboring municipalities such as Central City and Winter Park collect 5%, and Lafayette and Manitou Springs collect 10%.
The BOT originally discussed the question of instituting a 10% special retail marijuana tax at their scheduled work session on July 26. With the projected marijuana sales for Nederland reaching $2,333,333, a 10% Special Retail Marijuana Sales Tax would provide an annual revenue increase of $233,333, on top of the $35,000 revenue from the State’s retail sales tax on marijuana.
The amount of the proposed tax was set to 5.0% after Trustees heard from Nederland’s retail marijuana businesses.
“The cannabis industry nationwide is suffering from the current economic uncertainty and Colorado cannabis specifically is experiencing a very large contraction in the market that is a combination of inflation and what many are calling the end of the pot tourism boom,” said Stacy Johnson, owner of Harvest House since 2010 and Nederland area resident from 1997 to 2018, in her letter of Public Comment to the BOT, posted on September 6.
“I myself am in the middle of closing a store that I opened less than 12 months ago in Crested Butte. In the last month I canceled a transaction to buy a new cultivation facility because of the slowdown and I know that one of the other licensees in Nederland closed several cultivation facilities recently,” Johnson’s letter continues.
“What we are seeing in the cannabis industry is a market that is moving past being a novelty and moving toward a more mature market that doesn’t rely on tourism. It is my opinion that this is the wrong time to place an additional tax on an industry that already contributes nearly 20% tax on every sale.
“The Colorado cannabis Industry is in the beginning of a prolonged correction. Please consider the impact that the additional Town marijuana tax and additional Town sales tax may have on businesses in what is anticipated to be a continued shrinking market,” Johnson said in her letter.
The BOT voted on the draft language for the question of instituting a 5.0% special retail marijuana sales tax on September 6, and approved the revenue from the tax be specifically allocated to the Parks department through the Town’s General Fund.
Trustees expect the majority of the revenue from marijuana sales to generate from tourists and that revenue should go to the Parks department to bolster the protection and upkeep of the parks and trails that both locals and visitors enjoy.
Town of Nederland Issue 2L: Shall Town of Nederland taxes be increased by $45,000 annually in the first full fiscal year beginning January 1, 2023, and by such amounts as are raised annually by an increase in the occupational tax paid by every person or business that furnishes short-term lodging to the amount of $4.00 per day per bedroom or per other accommodation without defined bedrooms. This is a $2.00 increase to the current occupational tax of $2.00 imposed on Short Term Rentals (STR), which is charged per night, per bedroom. The
occupational tax amounts to an estimated $35,000 annual revenue. As of July, 2022, Nederland has 37 registered STRs that range across four different licensing types, which limits the rental time span based on license types..
STRs have been a hot-button topic for the public as well as for the BOT, with the consensus from Nederland residents being a desire for the tourists and the tourism industry to incur more tax cost than locals. The BOT, as of October 18, have begun discussing the prospect of updating the Town’s current STR regulations, as resident complaints over unattended fire pits and alleged “flouting” of the current regulations have increased.
The BOT originally discussed leaving the question of raising the occupational tax off the ballot, but Trustees desired to include it due to the public outcry against tax initiatives that affect locals more than visitors.
On September 6, the BOT discussed the draft ballot language and to what services the revenue from the $2.00 occupational tax increase on STRs should go. The ballot language specifies the revenue as being for Health and Human Services programs and activities and also for law enforcement services.
Health and Human Services includes local programs and activities that focus on health, science, care, social services, prevention, and wellness, with an aim to ensure the well-being of all people. The Nederland Food Pantry is undergoing much-needed facility improvements in an increased effort to better serve residents of the Peak-to-Peak region with a cleaner and safer building that is fully ADA compliant.
Nederland Fire Protection District Ballot Issue 6A: Shall Nederland Fire Protection Taxes be increased by up to $250,000 annually and in each year thereafter by whatever additional amounts are raised from a phased-in operating mill levy imposed at a rate of 1 mill in 2022, an additional 1 mill in 2023, and an additional 1 mill in 2024, and continuing thereafter as provided by law. The revenue from the proposed increase would fund vehicle maintenance and replacement as well as facility maintenance and construction for the Nederland Fire Protection District. October 31 is the last day to be mailed an official election ballot, and the recommended last day for returning ballots by mail. Ballots can be placed into a drop box at the Nederland Community Center at 750 North Highway 72, or any participating voting center until November 8, 2022.
For help with finding a drop box or voting center in your area go to: https://townofnederland.colorado.gov/ press-release/november-2022-generalelection be-vote-ready
To view a sample of the November 8 ballot go to: https://assets.bouldercounty. gov/wp-content/uploads/2022/09/2022- General-Election-Compiled-Sample- Ballot.pdf
For general information about the election go to: https://townofnederland. colorado.gov/press-release/november- 2022-general-election-be-vote-ready