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February 5, 1997

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  • Business: Sales taxes are, ahem, taxing

    By Andrew G. Bulkeley

    Staff Writer

    As if the money paid in sales taxes around Douglas County's new retail development isn't taxing enough, the price-conscious consumer is further taxed figuring which tax is charged where.

    Just look at the various numbers around Park Meadows Town Center: 5.4 percent, 5.5 percent, 4.8 percent and 3.8 percent.

    Taxed yet?

    It goes something like this: Consumers shopping in Park Meadows Town Center in unincorporated Douglas County essentially pay a 5.4 percent sales tax. That's 3 percent for Colorado and 1 percent for the county.

    The extra 1.4 percent megamall shoppers cough up is a Public Improvement Fee to fund construction of the mall's infrastructure. Shoppers actually pay sales tax on the PIF also which equals about an extra nickel on every $100.

    That in itself is confusing enough.

    But cross County Line Road into unincorporated Arapahoe County for a post-Yule Tickle Me Elmo at Toys 'R Us and you'll fork out only 3.8 percent.

    Arapahoe County is funded through property taxes, not a sales tax. In fact, an attempt to establish a sales tax was defeated in November.

    So businesses in unincorporated Arapahoe charge 3 percent for the state and .8 percent for the Regional Transportation District. Though Park Meadows enjoys limited RTD service, it'>


    Transfer interrupted!

    strict.

    But say, Elmo in hand, you need a new inline hockey stick -- Denver Sports, up the road in Lone Tree, will levy a 5.5 percent purchase tax.

    That's 3 for the state, 1 for the county and 1.5 percent for the new Lone Tree.

    Taxing.

    But the shopping spree isn't over yet.

    From sporting goods, say you need to pick up some paper goods at Wal-Mart. Don't even try to guess that figure.

    4.8 percent.

    There you're back in unincorporated Douglas County but you've entered another RTD zone. So it's 3 to the state, 1 to the county and .8 to RTD.

    If you go even further west into Littleton, you end up paying a whopping 6.8 percent.

    The taxes get so confusing, Douglas County has a detailed, informative recording when shoppers and retailers call for sales tax advice.

    "Within Douglas County we have six different rates," said Helen Kellogg, administrative assistant in the county's administrative services department. "It is kind of confusing."

    Despite the detailed recording, Kellogg said she is always ready to answer callers' questions. Often, residents need to know a sales tax figure when ordering something for delivery -- for deliveries, tax is figured on where customers live. Mass retailers like to charge based on zip codes, Kellogg said.

    "The ZIP code method is probably one of the most inaccurate references (for) looking it up," she said, citing 80124 as an example.

    That code includes Park Meadows with 5.4 percent, Lone Tree with 5.5 and the unincorporated community of Acres Green -- 4.0 percent.

    Kellogg said her office also fields a number of calls from shoppers confused about Park Meadows' 1.4 percent PIF. The callers are unsure about who collects the fee.

    "It's not the county, it's the Hahn Co.," she said. "In the last several days I've gotten a few calls."

    Trizec Hahn Co., owners of the shopping center, actually took out the bonds for the improvements and, therefore, have the responsibility of repaying them.

    "It's a user's fee basically," said Park Meadows' Janet Beaudry. "It will be retired."

    Beaudry added that the 1.4 percent will disappear from receipts in the foreseeable future.

    But, she noted, sales tax probably doesn't influence where people shop.

    "If you want something," Beaudry said. "You buy it."

    Patty Silverstein at the South Metro Denver Chamber of Commerce said sales tax does affect some consumer decisions.

    "Especially if you're looking at some larger ticket items," Silverstein said.

    Tax on a $1,500 computer can add up, she said.

    "If they know they have options" consumers will shop where taxes are lower, she said. Without options, however, Silverstein said shoppers aren't too worried about the taxes.

    "If they have to pay a few cents more to go closer to home," she said, "they're going to do it."

    For businesses, Silverstein said sales taxes can be just a bother.

    "(It's) another administrative burden for them," she said. "I think that certainly a lot of our shopping areas use sales tax (in advertisements)."

    Both Southglenn Mall and Southwest Plaza Mall make much ado about their lower taxes, Silverstein said, resulting from locations in unincorporated areas.

    "They do typically advertise what their sales taxes are," she said.


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