Voters increase Paonia sales tax

Beginning in July, taxable purchases made in Paonia will cost an extra penny per dollar after voters approved Ballot Measure 2G asking for a 1 percent sales tax increase.

Voters approved the measure, 264-241, or by a margin of 4.56 percent.

Paonia currently collects 2 percent, or 2¢ for every dollar, on taxable items purchased within town limits. Of that, 1 percent goes to the General Fund and the other 1 percent to the Capital Improvement Fund.

The increase will become effective on July 1, according to town clerk Corinne Ferguson. The town estimates the increase will raise an additional $130,000 of revenue in its first full year, with 100 percent allocated to the town's General Fund. The board of trustees will determine how to spend the new revenue through the budgeting process.

The increase raises the total amount collected on taxable goods sold in town from 6.9 to 7.9 percent and includes a 2 percent Delta County sales tax, and a 2.9 percent Colorado sales tax.