Cherry Hills Villagers for Tax Code Clean-Up

ATTENTION, CHERRY HILLS VILLAGERS

Dear Fellow Villagers,

Cherry Hills Village has an issue on the ballot this November, asking voters to support an update to the City Code concerning sales tax collection from remote vendors and internet sellers, with NO CHANGE to the 3.5% sales tax rate.? This is critical to ensure the Village is correctly receiving these funds, and to avoid a significant hit to our city budget, putting pressure on city services. ?A brief summary of the issue is at the end of this article.

A group of your neighbors has formed a committee to support the issue and to conduct a campaign to educate Villagers, encouraging them to vote “YES” in November.?Our goal is to raise $26,000 in campaign funds to be used for digital advertising, mail, social media, signs and grassroots communication with voters.

I’m personally supporting the issue with a donation and I’m asking you to do the same.

To donate, please contact me and I'll provide you with the necessary information.

If you have any questions, please let me know.?

? Thank you very much for your most kind attention to this matter and know that the campaign committee and I would very much appreciate your support!

?--Doug Tisdale

???????Mayor, 2012 – 2015

???????Councilmember, 2000 – 2008

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Committee Members and Supporters:

Randy Weil, Co-Chair

Alex Brown, Co-Chair

Susan Weil, Treasurer

Russell Stewart

Katy Brown

Al Blum

Mike Gallagher

Afshin Safavi

Dan Sheldon

Janney Carpenter

Mark Griffin

Earl Hoellen

Kevin Iverson

Bill Lucas

Dan Lynch

Susan Maguire

Charlie Maguire

Ann Polumbus

Kevin Schwall

Shelly Sibelius

Doug Tisdale

Scott Roswell

Klasina VanderWerf

John Love

Hal Roth

Norm Brownstein

Dr. Dean Vicksman

Fred Wolfe

Nancy Wolfe

Laura Christman

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Important Facts:

• The City’s sales tax code, as currently written, was adopted in 1985 and imposed a sales tax on businesses physically located within the City.?That was the legal standard back then.
• The growth of on-line sales with home delivery led to changes in the law.?The U.S. Supreme Court ruled in a 2018 case (Wayfair v. South Dakota) that states and local governments can impose sales taxes on deliveries from remote sellers.?Virtually all Colorado home rule municipalities and the State of Colorado now collect sales tax on these transactions.
• This ballot issue will update the City’s sales tax code in a manner consistent with all other metro area local governments, so that Cherry Hills can clearly and legally collect sales tax on remote sales.?It will also allow the City to join the State’s Sales and Use Tax System that tells remote sellers the tax due based on the customer’s address.?Most Colorado cities, and the State, participate in this program.
• The City has been receiving sales tax revenue from some on-line vendors, despite efforts to explain the tax code to vendors such as Amazon that we don’t currently have the authority to collect that tax.?About $1.2 million is received annually and is used to support basic city services.?That’s what’s at risk.?Updating the Code will clarify the legal status of the revenue and avoid any consideration of service cuts.
• The current sales tax rate will remain the same (3.5%).