Loveland voters could eliminate sales tax on many groceries, city warns it could cut public services
Voters in the City of Loveland will soon decide whether or not to rid of sales tax on groceries consumed at home. Proposition 300 is on the November ballot, and leaves it up to the voters to decide whether or not they want to keep paying the 3% tax on their goods.
"Let Us Vote Loveland," a group of voters in the city, advocated for the initiative. George Garklavs, a resident and supporter, said the idea is to return dollars to those who are lower income and in greater need of their money.
"There is a lot of folks that have a tough time keeping up with the cost of living, and every little bit helps," Garklavs said.
The sales tax would only be removed from certain groceries deemed for consumption at home. Other foods, including those prepared at restaurants and more, would still be taxed.
"(Creating this proposal) was an ethical thing," Garklavs said. "It is a regressive tax, it hurts people at lower income levels much more than other folks."
Garklavs suggested the average shopper would save hundreds of dollars a year if the proposal was approved.
However, city officials warn that eliminating the tax would come at a cost to public services many enjoy.
"We are able to forecast a $10.5 million revenue reduction in 2024 if we make that exclusion," said Brian Waldes, Chief Financial Officer for Loveland. "That kind of revenue reduction would have a big impact on our general fund."
Waldes said the city brings in just over $65 million in annual sales tax revenue. So, just more than 16% of the city's annual sales tax revenue would be eliminated starting in 2024 if the measure was approved.
Waldes said that would result in the city cutting spending.
"It would necessitate changes to our operational programs, our capital programs or both. Because we are in a break-even position in our general fund," Waldes said.
A pamphlet created by the city suggested services like road repairs, first responder training, library hours and even maintenance of pickleball courts would be in jeopardy.
However, Waldes said the city does want to do its best to keep public safety a priority through any potential budget cuts.
"If we try to mitigate the impacts to public safety, there will be more impacts elsewhere," Waldes said.
The city's employees and council have been meeting in recent months already making tentative plans to prepare for the budget cuts if they are approved. Garklavs said he expects residents to approve the measure.
"The response from the public has been so overwhelming I have really strong hopes that it will pass quite easily," Garklavs said.
You can read the city's full explanation of the possible reduction here:
