SHALL THE TOWN OF SUPERIOR TAXES BE INCREASED $282,457.00 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY IN EACH SUBSEQUENT YEAR, AND IN CONNECTION THEREWITH, SHALL AN ORDINANCE BE APPROVED, SUCH THAT ORDINANCE PROVIDING FOR AN INCREASE IN THE TOWN'S SALES AND USE TAX RATE FROM 2% TO 3%, SUCH INCREASE TO BE IN EFFECT AS OF JANUARY 1, 1996, AND SHALL THE REVENUE CHANGE IN EVERY YEAR CAUSED BY SUCH INCREASED SALES AND USE TAX RATE BE APPROVED, PERMITTING ALL OF THE PROCEEDS OF SUCH INCREASE IN THE TOWN'S SALES AND USE TAX TO BE COLLECTED AND SPENT IN ANY YEAR WITHOUT LIMITATION OR CONDITION AND WITHOUT LIMITING THE COLLECTION AND SPENDING OF ANY OTHER REVENUES OR FUNDS BY THE TOWN UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW?

Major Provisions: Under this proposal, the sales and use tax rate in Superior will increase from 2% to 3%, starting in January, 1996.

Background: Use taxes, paid primarily on construction materials, provide 34% of the town's revenue at this time. Another 26% comes from building permit fees, 10% from sales taxes imposed on purchases of new cars and other items, and less than 5% from property taxes.

Those in FAVOR say:

-- Looking ahead, growth will slow down. This measure will yield more revenue from future retail businesses, compensating for a lesser amount from building permit fees and the use tax on construction materials.

-- The proposed sales and use tax rate is in line with rates in neighboring communities. Sales tax rate is 3.375% in Louisville, 3.25% in Lafayette, 3.75% in Broomfield, and 2.86% in Boulder.

-- Revenues from sales and use taxes could enable the town to fund capital projects such as improvements to McCaslin Blvd. at U.S. Hwy 36, a fire/police station in Rock Creek, and parks. The town could also better serve the disabled and elderly.

-- The sales tax is imposed equally on everyone who makes purchases in the town, residents and non-residents alike. Property tax, however, is collected only from those owning real estate in Superior.

-- In most communities, the sales tax rate matches the use tax rate, as proposed here.

Those OPPOSED say:

-- The use tax increase will result in higher prices for new homes, thus fewer home sales, and less revenue to the Town. This is especially true of homes in the lower price range, resulting in an imbalance with relatively fewer lower priced homes within Superior.

-- A sales tax is regressive, putting more burden on those least able to pay.

-- Taxes are high enough already. The town should support only those projects and services which can be funded with existing sources of revenue.

-- If the sales tax rate remains at 2%, consumers will pay less tax in Superior than they would if making the same purchase elsewhere. This attracts shoppers to Superior and is good for retail business.

-- The ballot question does not specify how the town intends to use the money collected if the measure passes. And there is no limit how long the tax rate will stay at 3%.