In reluctant support of sales tax increase

Letters to the Editor

Posted

Editor: 

In this year’s ballot filled with tough choices, the one I probably struggled with the most was the county’s proposed sales tax increase. I support it, but reluctantly. 

It’s not that I don’t believe in the need for more money to maintain county roads and bridges. I support proper maintenance and upkeep of our local transportation arteries, and former Public Works Director Marlene Crosby has been warning of a systemic funding failure for this purpose for decades. 

You would think that gasoline taxes (and the related substitute fees for electric vehicle drivers) would be the logical place to look to increase road work revenue. But, sadly, this is America, where the pursuit of cheap petroleum products seems to be the highest ideal to which we can strive as a society. 

Thus, I realize increasing gas taxes is a pipe dream, no matter the “pipeline nightmare” this unquenchable thirst for fossil fuels creates. 

Still, my more immediate, and locally focused, concern is the effect another half-percent sales tax will have on our local mom-and-pop businesses. If passed, the sales tax rate in Gunnison will rise from 8.9% to 9.4%; in Crested Butte that rate would go from 9.4% to 9.9%.  

But, you say, it’s the consumer who pays this tab, not businesses. And Commissioner Liz Smith has equated the price of this extra half-percent tax to one dinner out a year for a family of three. Not a huge deal, right?  

I fear the impact to local businesses could be much more significant. 

It’s no secret that Gunnison’s economy isn’t exactly sizzling. As an owner of two sales tax generating retail businesses myself, I feel this. 

From what I can tell, the problem isn’t so much a revenue one. It’s that increased expenses are wiping away any gains in sales. Profitability — which is an elusive goal in Gunnison’s retail environment in the best of times — takes the hit. 

Tacking on another half-percent sales tax is simply adding on to the bottom line of what consumers buy. Price conscious shoppers might be forced to hold even tighter on to their purse strings. 

So, will I sell fewer ice cream cones as a result of higher sales tax? It’s certainly possible. 

Will I lose enough sales to force me to consider whether it’s worth it to plug in the freezers in the first place? That’s a worst case scenario that I don’t foresee, but I know that I’m not alone in pondering these potential impacts. 

Facing make-or-break business decisions is a tad trickier than deciding whether to dine out or eat in. 

One thing is certain: If this tax increase passes — and, again, I hope it does — we as a community (including governmental agencies) need to re-commit to a shop and support local mentality. If people start shopping elsewhere even more than they already do to save a few bucks on taxes, that would be adding insult to injury. 

We are, after all, in this Gunnison Valley boat together.

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