LONGMONT — Paul Tiger wants Longmont residents to choose whether to pay sales tax on their groceries.
The local Libertarian plans to land a measure on November’s ballot asking voters to repeal the city’s sales tax on food at grocery stores.
The idea has “been knocking around for a long time,” Tiger said, and it boils down to one question:
“Why would we tax people to eat?” he asked. “Almost everyone I’ve talked to agrees it’s the most regressive tax there is.”
Colorado exempts groceries from the state’s 2.9 percent sales tax, but cities can apply local sales taxes.
Longmont shoppers pay only city sales tax on food items at grocery stores: 3.275 percent, or $3.28 on $100 worth of groceries.
City finance director Jim Golden estimated the city collected about $5.8 million last year from grocery sales.
Because some grocery items, such as paper goods and household products, would still be taxable under Tiger’s proposal, Golden estimated about $4 million would drop off the city’s tax rolls if voters passed such a measure.
More than half of that $4 million would come out of the general fund, the city’s main operating budget, Golden said. That would be about 7 percent of the $57 million city officials expect in general fund revenue next year.
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It’s a lot of money, so it wouldn’t be an easy thing to swallow,” Golden said.
City leaders already faced a tight 2008 budget and discussed cutting jobs, closing the ice rink and ending city programs. Now city officials expect next year’s general fund to be $900,000 to $1.6 million short, and they are asking for residents’ help to prepare the 2009 budget.
“So if (foods sales tax) got voted off, it would have a significant impact,” Golden said.
But Tiger said giving voters an opportunity to repeal a tax is the antithesis to what government does: ask voters to approve taxes — sometimes taxes that do not end — and spend, spend, spend.
If voters repeal the city sales tax on food, it would force local leaders to “think about their spending and be a bit more frugal,” he said.
“People are taxed, taxed and overtaxed,” Tiger said. “What would it be like if we could get a tax repeal passed? (City officials) would really be more thoughtful about sunsets and spending.”
Tiger was inspired by his friend, fellow Libertarian Frank Atwood, who led efforts to repeal Littleton’s food sales tax in 2003. Voters ended the city’s 1 percent sales tax on groceries.
While many cities in Colorado tax groceries, some are stopping the practice.
Last week, the Lakewood City Council voted to end the city’s 2 percent grocery sales tax.
Lakewood will stop collecting the grocery food tax Jan. 1. Denver, Colorado Springs and Aurora also do not collect city sales tax on groceries.
Longmont City Clerk Valeria Skitt said Tiger has until late August to collect signatures from at least 3,485 registered voters — 10 percent of the city’s registered voters.
Tiger plans to collect signatures at upcoming events like Rhythm on the River, at Twin Peaks Mall and in front of grocery stores. He is confident he will be able to gather the signatures before the August deadline.
The city also collects sales tax on food sold at restaurants. Tiger is not proposing to end that tax.
