Loveland voters approve Proposition 300 to get rid of 3% tax on groceries

Voters in Loveland this week overwhelmingly opted to eliminate a sales tax on groceries. Proposition 300 in the Northern Colorado city will get rid of a 3% tax on goods starting in January, and the tax will never be allowed to be implemented again.  

The change might not be that noticeable for residents right away, but by the end of each year it's predicted that many families will save hundreds of dollars on their grocery store bills.

The vote on Election Day was nearly 2 to 1 in favor of the proposition.

In recent years the grocery tax money has come out to be nearly 16% of the city's annual sales tax income.

One Loveland resident said this will give them more money to spend elsewhere.

"The money that's being saved is going to go right back into the economy. It might not go into the city coffers, but it will go into some other business right away. And so it's not money lost, it's just being transferred to a different place," said George Garklavs.

City leaders say they'll have to make cuts to their budget and will create a plan to address the revenue shortfall.

The state of Colorado doesn't have such a tax, but individual cities and towns can create one of their own.