2008-04-15_REVISION - M1980244 (307)

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Local Sales, Property, and Net Proceeds Tax Payments CC&V pays a variety of taxes to Teller County and the State of Colorado. These include prop- erty taxes, net proceeds taxes, sales taxes, severance taxes, and income taxes. The economic benefits of the property, net proceeds, sales tax and income tax payments generated by CC&V are already included in the multipliers and calculations of the previous tables. The benefits of the severance tax payments are also included in these tables as an additional effect. However, it is beneficial to look at the sum of those payments in isolation because they help pay for govern- mental services provided to CC&V, its employees and others. CC&V makes, or causes to be made, property tax payments that benefit the Cripple Creek and Victor School District, Teller County government, the cities of Cripple Creek and Victor, the S.W. Teller County Hospital District, the Four Mile Fire Protection District and the Teller County Library District. CC&V also pays sales tax upon certain purchases that it makes within the state and pays a net proceeds tax, similar to a property tax, to the county. Personal property tax payments by CC&V totaled $1,274,040 in 2006 and net proceeds tax pay- ments were another $1,348,368. This amount is expected to rise with the completion of im- provements begun in 2007 and 2008. For 2006, total property taxes were about $1,663,000. In future years this is expected to fluctuate, depending on the price of gold. . Total sales tax payments paid by CC&V were $213,000 in 2006. Severance tax payments equaled $718,000 in 2006. Future severance tax payments are dependant on production and gold prices. In addition to the tax revenues detailed above, the county and municipalities also receive sales tax revenues from the expenditure of the direct and induced earnings supported by the mining activities, and from sales taxes applied to direct purchases by CC&V. County sales tax revenues that can be expected from the current expenditures of the total direct and induced earnings are shown in Table 20. They are based on estimated sales tax revenues to be collected on the expenditures made possible by all of the earnings effects shown in Table 16. The sales tax revenue estimate is based on national data showing that about 55% of all earnings are spent on taxable goods and services. Since the economy of Teller County is not as fully de- veloped as larger economies, a conservative assumption was made that only a portion of the tax- able purchases would take place within the county. Based on the 2006 ratio of sales tax revenues per capita (Table. 22) in Teller County and the region to statewide averages, it was assumed that 47% of the expenditures would occur inside the county, and 78% in the region, resulting in the sales tax revenue collection estimates shown in Table 20. As can be seen in Table 20, sales tax revenues to the county from the current mining related earnings will total about $62,700 in 2007, and remain relatively constant through 2023. Sales tax revenues to Teller County municipalities will total another $156,800 in 2007. At the regional level, El Paso, Fremont and Teller Counties and their municipalities will receive a combined to- tal of about $737,000 in 2007. The State will receive about $1,072,000 in additional sales tax C 31