Larimer County officials: Property tax loss would hurt county, other taxing districts

“Under the proposed Foothills Mall finance plan, Fort Collins will defer collection of half the sales taxes from the redeveloped retail center, but only for three years.

That difference has county officials crying foul.

“The city of Fort Collins is giving up sales tax for three years, and then they get a big windfall,” Commissioner Tom Donnelly said. “We’re going to lose property taxes for 25 years.”

Johnson sent a strongly worded email message to the six Larimer County members of the Colorado Legislature, knowing that the current session’s clock leaves no time for a solution but hoping for their support once it ends.

“We need your help!” Johnson’s message began. “The city of Fort Collins is out of control with regard to tax increment financing.”

Johnson’s letter contained an analysis of how losses from urban renewal finance plans mounted during 2012. The tally of nearly $18.4 million in property tax diversion shows:

A loss of $3.5 million to Larimer County;

$7.5 million in losses to Thompson and Poudre school districts, and other county school districts, that by law was refunded, or “backfilled,” by Colorado taxpayers;

About $7.5 million in shortfalls shared by library, health and fire districts and Foothills Gateway, a nonprofit agency for developmentally disabled children and adults.”

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Hacker, Tom. Reporter Herald .com 24 April 2013.

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