City council does away with landline tax once and for all

At Tuesday’s City Council meeting, the council made their second and final motion to repeal chapter 3.20 of the Gunnison Municipal Code concerning a telephone utility tax. This administrative action marks the end of a long standing, albeit relatively minor, levy on local residents. To formally rid the taxpayers of the bill, the council had to first change the Gunnison Municipal Code by ordinance. This requirement ensures due diligence and public review for any changes made to local laws. Matters such as these must be voted on by the council twice in order to move forward, separated by a mandated waiting period allowing for public opposition to be considered.

The tax, which amounted to $4 per telephone landline, only generated $1,500 of annual revenue for the city. 

With the advent of cell phones the tax has become thoroughly counter productive. At this point it costs the city about $1,500 to track, collect, process, reconcile and enforce compliance, meaning there is no impact to the city’s bottom line. The operational imbalance made the tax a target for elimination in the city’s drive towards fiscal efficiency. 

The motion is simply a modernization of municipal codes. The tax was first implemented in 1979, and now over 40 years later, the community has rendered it useless. 

“Very few people have landlines anymore,” said city manager Amanda Wilson, underscoring the tax’s obsolescence. 

The idea to eliminate the tax was brought up a few council meetings ago by Ben Cowan, the city’s finance director. 

Why get rid of it now? The city council’s job is to be responsible with city funds, Wilson said. Their financial imperative is to think about what truly benefits the community they represent, and this tax no longer does. Given the recent pressure on residents, the council felt it was important to identify and remove outdated financial burdens.

Last November, the city passed a ballot measure for the new fire station, which meant taxes would increase for citizens. This year, Wilson said, there are no plans to pass additional taxes. 

The council unanimously voted to eliminate the tax,concluding the process and officially repealing city Municipal Code chapter 3.20.