Montrose to put air guarantee tax on ballot
If voters agree to raise sales taxes by one-half of a percentage point, the city of Montrose can ensure continued funding for the airport’s air-guarantee program.
The tax question on the Nov. 4 ballot will affect money spent at short-term lodging, restaurants and car rentals, City Manager David Spear said.
The new tax would raise $291,000 for the air-guarantee program, cash incentives to airlines to guarantee a certain number of seat sales, Spear said.
In past years, the city has contributed $300,000 per year to the air-guarantee program from its general fund, paying for approximately 12 percent of the program, Spear said. The rest is provided by Telluride through its own dedicated funding source, he said.
Dedicating funds from the tax increase would make the city’s annual contribution to the air program more secure, Spear said.
All of the city’s funding sources, with the exception of hotels, feed the general fund, he said. If the ballot question is passed, the money raised by the increase will go into a special account.
The idea for new funding came from a request the Montrose City Council made to the Montrose Air Service Committee, which recommended a dedicated tax and wrote the ballot question, Spear said.