Aspen
Sales Tax Referendum
In 1990, Aspen, Colorado voters approved a referendum to increase the sales tax by .45 percent dedicated to “providing affordable housing and day care” within Aspen and Pitkin County. Ordinances extending the .45 percent sales tax were approved in 1999 and 2008. Revenue generated is set-aside in a separate fund through 2038. In 2014, about $1.3 million was generated through the sales tax for child care use. Funds are used for a wide range of purposes from child care subsidy to professional development for child care providers.
Population of Aspen and Pitkin County
Children Under Age Five
Challenge
Garnering Support for a Sales Tax
While a sales tax is levied in a broad- based manner, it was helpful that the local economy was driven by tourism and the perception was that tourists would be contributing to the local community.
Getting to Action
Workforce support was essential to economic stability and growth for employers within Aspen and Pitkin County. In a bipartisan effort, business leaders and advocates, in partnership with the City Council, spearheaded the housing and child care initiative.
| 1988-1990 | Development of a community child care plan, raising public awareness. |
| 1990 | Ordinance No. 81 to increase sales taxes by .45 percent and set aside such funds in the “Affordable Housing Fund and the Day Care Fund” was approved with 53 percent of the vote. |
| 1999 | The sales tax was renewed with 66 percent of the vote. |
| 2008 | The sales tax was renewed with 67 percent of the vote through Referendum 2E, extending the .45 percent tax through 2038. |
Results
The Kids First program helps families find and afford child care and assists providers in improving the quality of child care. While Kids First is part of Aspen City government, it assists families and providers throughout Pitkin County. Slightly more than half of the .45 percent sales tax is allocated to Kids First. Since it is a sales tax, there are annual variations in collections related to the economy with a high of $1.6 million and a low of $1 million over the years. In 2014, the tax generated $1.3 million for Kids First and in 2015, it is predicted to raise about $1.6 million. For child care subsidies, the Kids First program assists families with income up to 500 percent of the federal poverty level, thereby assisting families who do not qualify for a state subsidy. The Kids First program also offers grants to child care providers for quality improvements, professional development, infant and toddler operational support and start-up costs, as well as bus passes for employees, training and technical assistance, substitute staff, quality improvement coaches, grant writing and resource development assistance.
Keys To Success
