Trustees to consider business incentives
Sales tax rebates, fee discounts are on the table
The town board on Wednesday plans to discuss economic incentives to bring businesses to Mancos, including sales tax rebates and discounts on business fees.
At its Wednesday meeting, the board will discuss returning 10 percent of all new taxes if the business is paying 3 percent more in taxes than it did the previous year.
For example, if a business paid $1,000 in taxes last year and this year owed $1,030, the town would give the business a rebate of $3, according to documentation provided by the town. No application would be necessary.
"We looked at many different options for business incentives, but were especially interested in a sales tax rebate as it is a performance incentive," said Andrea Phillips the town administrator.
The town will also discuss temporarily reducing all town fees for new construction by half or up to $3,000. Currently, new businesses looking to build have to pay for building permit based on the valuation of the construction and $155 in flat fees.
A matching grant program to help offset the cost of improving store front facades, particularly along Grand Avenue, will also be considered.
At the meeting, the board will consider offering a 50 percent match of up to $1,000.
If approved, incentives would be in effect through 2015.
Encouraging economic development and increasing sales tax to help pay for capital improvements has been an ongoing discussion in town.
In 2013, the town collected about $387,000 in sales tax and in 2012 the town collected $328,000. So far this year, sales taxes from retail necessities have brought in the most revenue for the town.
In the past 12 months, the town has received one application to build and one application for remodel in the highway business corridor, which is a current focus.