(PUEBLO, Colo) — Voters in Pueblo may soon decide on a proposed one percent sales tax increase, which could generate over $26 million in revenue for the city.

The proposed tax increase, brought forward by Mayor Heather Graham, aims to address a multi-million-dollar budget shortfall and enhance economic development by attracting larger retailers to Pueblo.

Mayor Graham’s proposal also includes changing the criteria for the city’s existing half-cent sales tax to use the funds as incentives for attracting major retailers like Costco or Buc-ee’s.

“If voted and passes on Nov. 4, that we will be able to see an increase in Economic Development,” said Mayor Heather Graham.” I do not feel like the city should be limiting itself to only being able to use 15% of the money.”

Councilmember Rodger Gomes expressed concern, stating, “We have a new mayor that comes in and they want to turn everything upside down and doesn’t even have the respect to go to places that have been doing this forever and ask for advice or ask for suggestions.”

The ordinance proposing the tax increase passed its initial reading with a five-to-two vote in the city council. However, there is ongoing debate about whether the measure should be split into two separate ballot questions.

City staff responded that the measure satisfies the single-question requirement because it deals with the same subject matter, but noted that it could be separated if desired.

A public hearing is scheduled for Aug. 11, which will determine if the measure appears on the November ballot.

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