· Lakewood was incorporated on June 24, 1969 and is the fourth largest city in Colorado.

· Lakewood voters authorized a 2% sales tax to take effect in 1972 as a revenue source to fund most of the operations of the City.

· In November 2005, The City of Lakewood Taxpayers voted in favor of a 1% tax increase. The resulting sales tax rate changed from 2% to 3%, effective January 1, 2006.

· Sales tax was collected by the State of Colorado Department of Revenue until 1985.

· In 1983, the voters approved a home-rule charter for the City.

What is a home-rule city?

Article XX of the Colorado Constitution states cities may attain home-rule status if authorized by a majority vote of their citizens. Among the many characteristics of a home- rule city is the legal authority to levy and collect taxes within their city limits.

How many home-rule cities are there in Colorado that collect their own sales/use taxes?

There are currently 52 cities that collect their own sales and use tax of which 18 are located within the Denver/Boulder metropolitan area. The Colorado State form DRP-1002 - (PDF File) also shows the tax rates of these home-rule cities.

When did Lakewood begin self-collection?

· In 1985, the City began collecting its own sales tax.

· The City began imposing and collecting a use tax in 1986.

Where does Lakewood's sales/use tax go?

· 75% of the revenue goes to the City's general fund and is used for such expenditures as police, street maintenance, park maintenance, municipal court administration, and other general city expenses.

- The monthly average cost of electricity to provide street lighting and operate traffic signals in Lakewood for one month is $116,667. For the year, the total cost is $1.4 million.

· 25% of the revenue is used for capital improvements of the City such as street replacements, bridge replacements, new parks and structures.

How important are sales and use tax revenues to the City?

Almost 46% ($29.7 million) of the City's general fund revenue comes from sales tax and almost 11% ($7.2 million) comes from use tax.

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