CHV City Council approves sales tax ballot issue


After conducting significant research and education of Cherry Hills Village residents on the issue, including presentations at multiple homeowner association meetings, mailing of postcards, and articles in The Crier and this newspaper, at its regular meeting on August 16, the CHV City Council unanimously approved a resolution placing the Remote Sales Tax Ballot Issue before CHV voters on November 8.

It states:  

“Without changing the city’s existing 3.5% sales tax rate, shall the sales tax code of the City of Cherry Hills Village be amended, as a voter-approved tax policy change, to require persons “engaged in business in the city,” which may include persons making deliveries to city residents, that including remote sellers, to collect tax, and further shall any increase in revenues resulting from these changes to the code, regardless of amount, constitute a voter-approved revenue change for the city within the meaning of Article X, Section 20 of the Colorado Constitution?”

CHV City Attorney Kathie Guckenberger explained that the Wayfair decision by the U.S. Supreme Court in 2018 “effectively invalidated the city’s version of the physical presence rule that is in its sales tax code.” She added, “Given the state of the law here in Colorado, any kind of change to a tax policy that directly may cause a revenue gain to the city requires voter approval,” noting, “This language does not create a new tax,” adding, “It will not increase the tax rate of 3.5% that exists in the city code currently.”

CHV Mayor Russell Stewart summarized the effect of this code change as extending the requirement to collect the city sales tax to those engaged in business in the city, rather than only those that have a physical location within the city.