Basin Coop, along south Camino del Rio, will likely enter Durango city limits next year, which means customers will pay city sales tax on some products.
Durango Planning Commission approved the annexation of Basin Coop and the Ampride gas station Monday.
The annexation was required by a 2008 agreement between Basin Coop, when the co-op built a storage building. The co-op’s board was not interested in annexing at the time and negotiated a delay, according to city documents.
As part of the annexation, three parcels totaling 25.9 acres will enter the city. The co-op will not be required to improve landscaping or curbs as part of the annexation, and it is not receiving any new city services, such as water or sewer, as part of the change.
The city will collect about $50,000 to $75,000 in city sales tax from the co-op, President and CEO Lynn Forssberg told the Planning Commission.
Any agricultural items, such as feed and seed, that are not subject to state sales tax will not be subject to city sales tax because of an ordinance previously passed by the city, he said.
City sales tax will also not apply to products delivered to the county.
The Durango City Council will likely review the annexation in January.