Several tax increases and changes approved by voters or the Colorado State Legislature in 2022 have taken effect as of Jan. 1, 2023.
Pueblo West Metropolitan District sales tax is now 5.9%
Locally, the voter-approved 1% sales tax increase to fund Pueblo West roads maintenance has taken effect in Pueblo West Metropolitan District businesses. The ballot language also requires the Metro District transfer road maintenance responsibilities to Pueblo County government. In addition, proceeds collected from the tax increase will be passed through to Pueblo County. The Metro District will not retain any funds from this tax increase. Per the ballot language, an annual maximum of $5 million can be collected. Due to the 1992 Colorado Taxpayers Bill of Rights, the use of any sales tax funds collected over $5 million must be approved by voters. The tax increase is temporary, and will sunset in 2032.
Current Pueblo West sales tax breakdown
- Colorado sales tax: 2.9%
- Pueblo County sales tax: 1.0%
- Base sales tax in Pueblo County. Funds Pueblo County general fund.
- Pueblo West Metro District: 2% (temporary)
- Roads sales tax (passed through to Pueblo County, approved by voters in 2022)
- Funds fire protection in Pueblo West (approved by voters in 2020)
- Per the original 2020 ballot language, a maximum of $2.5 million could be collected annually from the sales tax.
- Voters approved Ballot Question 6D in 2022, which asked voters to retain sales tax proceeds collected above the $2.5 million cap to use for fire protection in Pueblo West.
- The temporary sales tax sunsets in 2030.
- TOTAL PUEBLO WEST SALES TAX: 5.9%
Miscellaneous tax updates
Colorado carryout bag fee
A 10-cent plastic carryout bag fee is now being assessed at Colorado stores and restaurants. In 2021, the Colorado General Assembly enacted House Bill 21-1162 to authorize this fee in attempts to transition consumers from plastic bags to paper. Four cents (40%) from each fee goes to the business while six cents (60%) is collected by municipalities or counties. Note: Pueblo West is not a municipality and therefore receives no taxes collected from the Colorado carryout bag fee.
Diapers and menstrual products tax exemption
Starting January 1, 2023, sales of diapers and menstrual products in Colorado will be exempt from the state sales tax as a result of H.B. 22-1055, enacted in June 2022.
Colorado property tax decrease
The assessed property tax rate in Colorado will fall in 2023 from 7.15% to 6.77%.