Facing a projected $650 million shortfall to fund road improvement and infrastructure projects over the next 25 years, Larimer County Commissioners voted unanimously this morning to refer a 0.15% sales and use tax measure to the November 2025 ballot to fund transportation infrastructure projects.
If approved, the additional sales and use tax would generate approximately $15 million annually, which would be used for roads, bridges, and intersection improvements across unincorporated Larimer County.
According to a page on the County’s website, “Without additional revenue by 2027 we will have less than 25% of the total funding we need for road safety, traffic flow, and intersection improvements. We will also lack matching funds that help bring outside grant money to our county. Our community has a choice — and we’re asking for your input. We can either decide not to fund these important road safety and improvement projects or consider alternative funding to sustain them.”
The proposed tax measure would exempt groceries, gasoline, diapers, and prescription drugs. If passed, the additional tax would equate to 15 cents on every $100 spent and would sunset in 15 years.
The revenue would be used for priorities identified in the county’s newly adopted transportation plan, Larimer on the Move. The plan identified more than 500 potential projects involving travel safety, emergency preparedness, traffic congestion reduction, and mobility improvement.
A public survey was conducted in March asking Larimer County residents to weigh in on the need to address the transportation infrastructure. The survey was completed by 1,381 county residents.
Larimer County planners have identified funding problems for maintaining roads and bridges due to rising costs, aging infrastructure, and regional growth that has outpaced the current funding allocations.
Property owners currently pay approximately 75 cents monthly on a $600,000 home to fund maintenance costs for the county’s transportation infrastructure. However, road and bridge construction materials and labor have increased 50% in the past five years, outpacing the revenue allocated to maintain the county’s roads and bridges.
Currently, Larimer County’s mill levy is 21.571 mills, set in 1992, and cannot be increased without voter approval, and General Fund dollars cannot be used to fund transportation projects. The Board of County Commissioners sets the road and bridge mill levy as a portion of mills – for 2025, this was 0.427 mills. However, if the County Commissioners allocated more property tax revenue to transportation by increasing the road and bridge mill levy, it would necessitate taking General Fund dollars away from other programs and services.
Adoption of an additional sales tax may prove challenging as voters watch their own spending in the face of an uncertain economy and what some economists predict may be a potential recession by the end of the year.
Administrators are working to trim $6 million in the county’s General Fund expenditure in its 2026 budget to offset the new state policy on property tax relief passed by the Colorado legislature during a special session in August 2024. Additionally, the governor has called the legislature back into a special session again this summer on Aug. 21 to address a $783 million shortfall in the state’s current budget caused by provisions in the recent federal domestic policy law.
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