Pueblo City Council weighs sales tax increase proposal
UPDATE: Pueblo City Council voted to let voters decide on raising the sales tax. The ordinance passed 5-2. City Councilmembers Mark Aliff, Brett Boston, Dennis Flores, Regina Maestri, and Sarah Martinez voted yes; Roger Gomez and Joe Latino voted no. The issue will head to the ballot in November.
PUEBLO, Colo. (KRDO) - Pueblo City Council is considering a proposal tonight that could lead to the city’s first base sales tax increase in 50 years.
The measure, listed as Item R-2 on the agenda, would put a question on the November 4, 2025 municipal ballot asking voters to approve a one-percent increase in the city’s base sales and use tax - from 3% to 4%. Combined with existing voter-approved add-ons for economic development and public safety, Pueblo’s total sales tax rate would rise from 3.7% to 4.7%.
City officials say sales tax revenue - Pueblo’s primary source of funding - has been dropping in recent quarters. They warn that without new revenue, the city will have to withdraw more money from its reserves to keep basic services running, potentially exhausting those reserves in the coming years.
If approved by voters, the increase would generate an estimated $26 million annually for the city’s general fund. That money could be used for a variety of city services and would remain in place permanently unless changed by a future vote.
How much residents would personally pay depends on their spending. For example, someone making $10,000 in taxable purchases annually would pay about $100 more per year under the proposed increase, while higher-spending households could pay hundreds more.
The proposed increase is separate from the economic development and public safety taxes, which are set to expire at the end of 2026 and 2027 unless renewed by voters.
As of 10 p.m., council was still working through its agenda and had not yet voted on R-2. If approved, the ballot measure would go before voters this fall.
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