Loveland considers new sales tax after grocery tax cut

Less than a year after Loveland residents voted to eliminate the sales tax on groceries, the city is facing a significant budget shortfall of $10 to $13 million. This financial strain has prompted some residents to advocate for the introduction of a new 1% sales tax to help offset the lost revenue. The group 'Save Our Services, Loveland' argues that many residents did not fully understand the implications of the tax cut on city services when they voted for it in 2023. The city has begun planning for a reduced services budget for 2025, which may include cuts to personnel and hours at the library due to staffing shortages. While the city has not directly linked the budget shortfall to the grocery tax cut, the spokesperson acknowledged that the elimination of the tax has contributed to the financial challenges. Residents are concerned about the potential impact on essential services that rely on stable funding. Some residents, like Aleta Davy, express concern about the broader implications of budget cuts on various programs, emphasizing that while library hours may be affected, other services could face more severe reductions. The sentiment among residents is mixed, with some feeling that a new sales tax may be the most straightforward solution to address the budget crisis. As the city considers a new sales tax, the community is left to weigh the necessity of funding essential services against their own financial situations. The upcoming ballot will feature several tax increase measures, and it remains to be seen how voters will respond to these proposals amid their personal economic challenges.