Voters in Greeley will decide this November whether or not to keep the city’s grocery tax indefinitely.

The Greeley City Council passed an ordinance on Tuesday that puts the extension of the three percent grocery tax up for a vote.

The tax has been in effect for Greeley residents since 1990. Since then, there has been a debate about whether to keep it or change it every five years. This time, the City Council is proposing to keep the tax indefinitely until an ordinance is introduced to abolish it.

The grocery tax generates an estimated $11 million per year for the city, with funds going toward facilities, park maintenance, safety improvements and critical infrastructure investments throughout the city.

Specifically, city officials plan to use some of the grocery tax revenue to pay off a $65 million loan that is also on the ballot in November. The loan will fund transportation improvements such as new interchanges on U.S. 34 at 35th and 47th avenues.

The city originally raised money for the interchanges on US 34 in 2019 when it partnered with the Colorado Department of Transportation. Although the city raised the necessary funds for the planned interchanges, CDOT failed to live up to its part of the agreement. Faced with rising costs, the city has turned to other avenues to finance the project.

To reduce the impact on low-income people and families, the city has also offered a grocery tax rebate program since 1990. Eligible residents can receive a rebate of up to $100 per person per year. Applicants can also receive an additional $100 from the Utility Assistance Program when they apply for a rebate.

In 2023, 5% of the city would receive reimbursement totaling $562,600, according to Deputy Budget and Policy Director Kalen Myers.

The city government expects to provide more refunds over the next few years as it works to expand the requirements to include more people and reflect current living costs. Mayor John Gates also expressed interest in increasing the refund amount for each person and confirmed that the council could do so.

“My conclusion is that the rebate program is being used, but it could be used more widely,” Gates said.

Loveland eliminated its 3% grocery tax in early 2024. In 2023, Loveland residents voted to eliminate the tax. Since then, the city says the loss of the grocery tax has caused it to lose $13 million in sales tax revenue. According to Brian Waldes, Loveland’s chief financial officer, if the city doesn’t find a way to offset the loss of 20% of its sales tax revenue, it will be difficult to continue beyond 2024 without making serious cuts to staff and services.

“The city of Loveland is desperately looking for ways to fulfill its duty to its citizens, and I don’t want Greeley to be in that position,” said Tom Donkel, a member of Citizens for Driving Greeley, as he expressed support for the tax during Tuesday’s public hearing.

However, many Greeley residents want to follow Loveland’s example. In a poll presented to the City Council last month, only 53% of Greeley residents surveyed said they would support keeping the grocery tax. Many residents have expressed opposition to the tax and are looking for ways to keep extra money in their pockets.

This includes Mike Dickerson, who moved to Greeley in 2021.

“We as citizens have had to do more with less, and the city, just as we as citizens, will have to do more with less,” Dickerson said.

Greeley resident Brandon Wark founded Free State Colorado, a group that is urging Greeley residents to eliminate the grocery tax. The group cites rising food prices and calls on the city to cut spending.

“The grocery tax is unethical,” Wark wrote in an article on the Free State Colorado website. “It steals people’s hard-earned money. The stolen money could have been used to buy more food, gasoline, housing, electricity, child care, among other things.”

Citizens who support the tax view it as a small cost in exchange for all the services provided by the city.

“I complain to people about the cost of things, but when I think about how it’s only $3 per $100 for me, but I get so many services from the city of Greeley,” said resident Julie Jensen after calling into the public hearing.

The grocery tax is currently set to expire on December 31, 2026. If voters do not approve the extension, the City Council could try to bring the matter back to a vote in November 2025.