Pueblo Mayor Heather Graham defends grocery tax, says city budget needs 'immediate' relief
Days after protestors demonstrated against a possible 3.5% city tax on groceries, Pueblo Mayor Heather Graham said the tax would provide necessary and "immediate" relief to the city budget.
The possibility of a grocery tax was floated during a Jan. 6 Pueblo City Council work session and in Graham's Jan. 24 State of the City address. Such a tax would need to be approved by Pueblo City Council and city of Pueblo voters.
While Graham has advocated for a grocery tax, several members of Pueblo City Council were critical of it at the Jan. 6 work session. Additionally, community protestors outside Pueblo City Hall decried the tax as placing an unfair burden on working and middle-class residents to generate revenue.
"Obviously, we need taxes," community member Sydney Haney told the Chieftain on Feb. 5. "They really support our infrastructure. They support our schools. They support things that we use every single day, but we believe that a grocery tax is the wrong way to go about taxing the citizens because it hurts the most disenfranchised in our communities."
Citing information from the Bureau of Economic Analysis, the financial advising website unbiased.com reports that Colorado families of four spend an average of about $1,366 per month on groceries. A 3.5% tax would add almost $48 to that monthly bill.
Following a request for comment on the protests, Graham sent a written statement to the Chieftain on Feb. 10 in which she defended the proposed tax.
"Last week protestors gathered to petition the government because of multiple issues, one being the potential of the proposed grocery tax which could generate anywhere from $8-12 million annually to assist the current $8.6 million shortfall in the City's budget," Graham said in a written statement to the Chieftain.
She added that while she has evaluated the city budget to see where expenditures could be cut and worked toward "long-term solutions" like bringing additional housing stock and businesses, city taxes have not been raised in 50 years.
In her statement, the mayor also addressed protestors' calls for a vacancy tax that would target corporate landlords and real estate investors as opposed to the broader population in the city. Graham said the city currently has vacant property registration requiring an annual fee of $500.
"In 2024, over $91,000 in fees were collected through this program which includes both residential and commercial properties. Nearly $100,000 in revenue in one year does not even begin to touch the $8.6 million deficit the City of Pueblo faces," Graham's statement reads.
If Pueblo were to implement a grocery tax, the city would not be the first to do so. About 77% of Colorado's 66 home-rule cities have implemented taxes on "food for home consumption." Money generated from these taxes may be used for road paving, parks and recreation improvements, and special interest projects, according to the mayor's office.
To assist with the city's current budget shortfall, about $3 million was allocated for capital improvement projects, compared to the $15 million to $20 million that was allocated in previous years. Additionally, the city has implemented a hiring freeze and eliminated 18 positions.
"While this initiative is up to the vote of the people and will appear on the ballot if approved by Pueblo City Council later this year, a trusted revenue source must be secured to address quality of life, essential services and a healthy, vibrant Pueblo remain for generations," according to a statement from the mayor's office.
Grocery tax protests: Pueblo protesters say grocery tax would be 'burden' on working class families
Pueblo Chieftain reporter James Bartolo can be reached at JBartolo@gannett.com. Support local news, subscribe to the Pueblo Chieftain at subscribe.chieftain.com.
This article originally appeared on The Pueblo Chieftain: Why Pueblo Mayor Heather Graham is pushing a tax on groceries
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