The Pagosa Springs Town Council approved an intergovernmental agreement (IGA) with Archuleta County at its Nov. 21 meeting, with the new IGA detailing how sales tax revenues will be distributed between the two entities.
The approved IGA renewed what the two entities agreed to in 2014, when the previous IGA was approved, maintaining an even split of the county’s sales tax revenues between the two entities.
According to an agenda document on the matter, prior to 2014, the county “retained 3% of all sales tax revenues committed to the Town.”
It adds, “With the approval of the agreement in 2014, the Colorado Department of Revenue began sending 50 percent of the sales tax directly to the Town, rather than routing the funds through the County Treasurer’s office, thereby allowing the Town to not have to pay the 3%.”
The county currently disburses 50 percent of its 4 percent sales tax to the town, pursuant of the IGA approved in 2014.
However, the 2014 IGA terminates after a 10-year period, with that date coming on Dec. 31, necessitating the approval of another agreement.
Town Manager David Harris said, “We have negotiated with both attorneys, the county attorney and our town attorney, and we have before you a new agreement for another 10 years of this same distribution.”
When a motion was made to approve the new IGA, it was passed unanimously by the council. It was approved by the Archuleta County Board of County Commissioners on Nov. 12 and will take effect on Jan. 1, 2025.
derek@pagosasun.com
