Do voters in Avon want a construction materials use tax?
In a survey, after receiving information about the tax, majority of polled Avon voters were in favor

Zoe Goldstein/Vail Daily archive
Last November, the town of Avon posed a question to its voters on the ballot: Should the town replace its existing 4% sales tax on construction materials with a 4% tax on the use of construction materials?
But the question began like this: “Shall town of Avon taxes be increased six million dollars ($6,000,000.00) annually in 2024, and by whatever additional amounts are raised annually thereafter, by the imposition of a four percent (4%) use tax on the privilege of using or consuming in the town any construction materials…”
Restrictions owing to the Taxpayer’s Bill of Rights (TABOR) on how tax questions are posed to the public required the town to word the ballot question this way. The majority of voters, lacking information about the purpose of the proposed construction materials use tax before seeing it on the ballot, voted against the tax.
This year, the Avon Town Council is considering whether to put the question of a construction materials use tax on the ballot again.
Avon is the only town in Eagle County that does not currently have a construction materials use tax. The 4% construction materials use tax would replace Avon’s current 4% sales tax on construction materials, which town staff has critiqued as easy to evade, with construction companies simply purchasing their materials outside of Avon. The use tax is expected to bring in approximately $6 million per year, 50% more revenue than the sales tax currently collects.

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Avon wants to implement the construction materials use tax to more effectively capture construction tax revenue, and provide another source to fund community housing, as funds from the use tax would be allocated to the construction of community housing. Avon defines community housing as housing for those of all income levels who live and work in Eagle County.
As currently written, the use tax would only apply to construction projects that cost more than $50,000, but this is something the council can change before the question goes to the ballot. Future community housing projects would also be exempt from the tax.
To evaluate in advance the worthiness of putting the use tax question back on the ballot, town staff organized voter polling through the Broomfield-based research consultant Magellan Strategies.
Survey results show education greatly increased voter approval of use tax
Voters were polled via an online bilingual 22 question survey that could be answered over text message or on the survey link on the Avon.org website. The survey was live from June 17 through July 2 and was completed by 259 registered Avon voters. Over two-thirds of survey respondents (69%) received and accessed the survey via text. The results of the survey are posted in the Town Council meeting packet.
After reading the ballot question with no other information, 40% of survey respondents said they would probably or definitely vote “yes” on the question. This statistic exactly aligns with the results of last year’s attempted ballot measure, which failed after only 40% of voters decided in favor of the use tax. Town staff chalked the failure up to a lack of voter education about the tax.
After receiving information about the construction materials use tax, including how it would be levied and why, 57% of survey respondents said they would probably or definitely vote in favor of the use tax.
Notable survey respondent opinions
Approximately half of the survey respondents said they rented their homes, while the other half said they owned their homes. The proportion of renters in favor of the use tax nearly doubled after receiving information about the tax, jumping from 36% to 62%. For comparison, the percentage of those that owned their homes and said they would likely vote in favor of the tax only increased by 8%, from 42% to 50%, with education.
Those without a university degree were also overwhelmingly in favor of the use tax after receiving education, with 74% saying they would likely vote yes, compared to 45% of those with a four-year college degree.
After receiving information on the use tax’s purpose and planned implementation, 37% of voters still said they would definitely or probably vote no on the use tax. These respondents provided a variety of reasons for their decision. Many cited concerns that the tax would raise the already high cost of living and doing construction in Avon, as well as worries about the way the Avon government currently uses tax dollars.
Voters that decided in favor of the use tax overwhelmingly explained in their survey responses that they supported the tax because it provided more avenues for the creation of affordable housing. Many also wrote that they would be in favor of the use tax because it just replaced the sales tax, rather than adding an additional tax. Several also wrote that they saw the tax as applying to wealthy developers, who could afford to pay the fee.
Many respondents, whether they said they would or would not be in favor of the construction materials use tax, wrote that the tax exemption for projects under $50,000 was too low. Responding to the feedback, Avon town staff recommended in the Town Council packet that council increase the exemption from $50,000 to $100,000.
The council will be asked to provide direction regarding the use tax ballot question and restrictions during its regular meeting on Tuesday, July 23. Town staff will also ask council to increase voter education about the tax.
Members of the public can make comments on the construction materials use tax and survey results during the July 23 meeting, which begins at 5 p.m. and can be attended in-person at the Avon Town Hall or on Zoom.