La Plata County officials are considering asking voters for a sales tax increase as the county grapples with a structural budget deficit.
Voters were polled last week in a county-sponsored survey on their support for a potential ballot question that would raise the sales tax by either 0.75% or 0.5% – three-quarters or one-half cent per dollar spent.
A 0.75% sales tax would generate an estimated $13.5 million in 2026; a 0.5% sales tax would generate an estimated $8.9 million. Both would require voter approval.
The county currently collects a 2% sales tax, the proceeds of which are shared with area municipalities. The state collects a 2.9% sales tax, meaning purchases in the unincorporated county are taxed at a rate of 4.9%. The city of Durango levies a 3.5% sales tax atop the county and state rates.
The results of the survey are not yet available.
The poll is an early step in what could be a lengthy process to craft a ballot question and place it before voters for approval. It comes as county officials reckon with the reality that a new revenue source is “a requirement,” said County Manager Chuck Stevens.
“We don’t have a fiscally sustainable budget right now,” he said.
The county’s 2025 budget painted a grim picture that includes vacant positions left unfilled, deferred maintenance, below-inflation raises, and a perennially underfunded road and bridge department. Commissioners and staff members spent weeks trying to fill a $6.3 million hole this year.
Stevens noted that the county’s sales tax has not been raised since 1982, and voters have never raised property taxes – although property tax revenues have risen as assessed values have increased.
“We’re running an organization in 2025 on revenue streams set in the ’80s,” he said.
The poll question initially gauged support for a 0.75% sales tax because county officials are already aware of the lack of support for a property tax increase. State lawmakers also have the ability – and, historically, the willingness – to adjust the portion of property value that is taxable, which can have ripple effects on counties and other local taxing districts. This makes a sales tax potentially more reliable and therefor appealing, although officials are aware that economic instability could mean voters are unwilling to approve any tax increase.
A few days into the survey, pollsters informed officials that they were receiving unfavorable responses to the question. They revised the question to poll favorability of a half-cent tax to gauge whether opposition existed to the figure or to any tax increase.
The question posed to voters – asking whether they would definitely or probably vote yes or no – read in full:
“Shall La Plata County taxes be increased $8,900,000 in 2026 and by such amounts as are raised annually thereafter, by an additional half of one percent (0.50%) sales tax, with the proceeds to be used to maintain vital county services for local residents including but not limited to:
- Repairing and improving county roads and bridges;
- Providing County law enforcement and emergency responders with the resources they need to ensure community safety;
- Maintaining emergency response services and reducing wildfire threat by investing in wildfire mitigation, and,
- Continuing to provide other essential county services.
and shall the resulting revenues and investment earnings thereon be collected, retained and spent notwithstanding any limitations provided by law?”
It went on to say that a half-cent increase would cost the average household $132 annually, and asked whether that swayed the voter’s opinion.
Stevens said it is too early to say whether any potential ballot question would split revenues with area municipalities.
The poll, conducted by New Bridge Strategies, surveyed 300 residents and has a margin of error of 5.66%.
If commissioners opt to proceed with a ballot question, it could be before voters as soon as November. If they don’t find some alternative revenue stream soon, county officials have made clear that it might be time to reconsider some of the county’s discretionary services.
“We’re just at the point where we might have to go back and ask the voters for something else, or we’re going to have to adjust what it is we do as a county and the services we provide,” Stevens said. “That’ll be a balancing act for the board this year in the ’26 budget.”
rschafir@durangoherald.com
