During a regular meeting held by the Archuleta County Board of County Commissioners (BoCC) on Tuesday, Nov. 12, the board unanimously approved an intergovernmental agreement (IGA) with the Town of Pagosa Springs to split sales tax collections 50/50 between the town and county.
During the meeting, County Attorney Todd Weaver explained that the IGA currently in place expires at the end of this year.
“This is basically a revision of that same IGA,” Weaver said, adding the new IGA will go through 2034.
He noted that the sales tax and the 50/50 split between the two entities were approved by voters, and that the IGA lays out how the money is handled.
Weaver mentioned that the IGA was mainly revised by the Town of Pagosa Springs’ attorney and that the main changes consist of “cleaning up some language” to make it consistent throughout the document.
Weaver also explained that the original agreement between the two entities dates back to before 1958, when there was 1 percent sales tax that split 50/50.
He noted that a series of agreements have been passed since then, “basically changing the sales tax rate.”
According to the IGA approved on Nov. 12 by the BoCC, prior agreements were approved in 1983, 1988, 1994, 2001 and 2008.
“But that 50/50 split continued,” Weaver said.
Commissioner Ronnie Maez asked why the county was addressing the matter and why there would be a termination date in the agreement since the issue is voter-approved.
Weaver explained that the IGA outlines how sales tax is calculated and distributed between the county and the town, noting it sets out parameters “of how it’s going to work.”
Weaver indicated that the county will collect all of the sales tax and then distribute to the town its portion.
Weaver also noted that the termination date in the IGA does not terminate the 50/50 split.
According to the IGA attached to the Nov. 12 meeting agenda, the county currently distributes 50 percent of its 4 percent sales tax revenue to the town, but the 2014 IGA terminates Dec. 31.
“This Agreement shall be effective as of January 1, 2025, and shall continue through December 31, 2034. If the parties fail to amend, renew or otherwise extend this Agreement prior to its termination, then the Agreement shall continue to be in full force and effect on an annual basis thereafter. Either party may terminate this Agreement effective December 31st of the calendar year in which notice of termination is provided, by giving at least ninety (90) days’ prior written notice to the other party and providing a copy of such notice to the [Colorado Department of Revenue],” the new IGA states.
The new IGA also states that if an amount received is not equally divisible by two, then the Department of Revenue in its discretion will distribute one cent more to either the town or the county.
The IGA can be viewed in its entirety online at the county’s website at https://www.archuletacounty.org/AgendaCenter under the Nov. 12 regular meeting agenda.
clayton@pagosasun.com
