The announcement of the Town’s recent budget reduction due to Parker’s decreased rate of sales tax growth generated several great questions, comments and discussions within our community regarding Town finances. Since we received quite a few inquiries, we’ve compiled a Q&A to make it easy to access and review all of the answers in one place. We appreciate everyone’s engagement on this topic and we’ll be sure to keep you informed about future plans. You may read the original post here.
How much sales
tax does Parker receive?
total sales tax rate in Parker is 8%, of which the Town receives 3%. Of the
remaining 5%, the State of Colorado receives 2.9%, Douglas County receives 1%,
RTD receives 1%, and SCFD receives 0.1%. Sales tax accounts for approximately
87% of all taxes collected by the Town.
Parker Sales Tax Rates Within RTD:
Parker Sales Tax Rates Outside
of RTD (all of Parker is located within SCFD):
I shop in Lone
Tree because they have lower sales tax.
Tree’s total sales tax rate (6.8125%) is slightly lower than Parker (8% -- of
which the Town receives 3%). This difference equates to approximately a $1.19
overall tax savings on a $100 purchase ($6.81 vs. $8.00). While this may save
residents some funds long term (subtracting out the cost of fuel, wear and tear
on a vehicle and your valuable time), it also doesn’t keep your local sales tax
dollars in the Parker community to provide funding for road improvements,
parks, community events or other amenities enjoyed by our residents.
stop building homes because there is already too much traffic.
know that growth can be difficult for a community (and for the State of
Colorado as a whole!). All
land within the Town of Parker’s incorporated limits is already zoned for a
specific use. Land owners have a legal right to develop their privately owned
land, as long as the development meets the Town’s current zoning requirements
(i.e. the Town does not have the authority to deny a commercial development on
a property that is zoned commercial, or a residential development on land that
is zoned residential, as long the project meets the Town’s standards and requirements). The Town works to
ensure that Parker developments are of a high quality and help pay their
portion of any community impacts, for instance, contributing to road
enhancements, trail connections, etc. You can view the Town’s boundary map
to see which developments are occurring in the Town of Parker, as many of the
projects under construction are located on our Town borders in Lone Tree and
unincorporated Douglas County.
Parker doesn’t care
about traffic congestion and isn’t doing anything to make improvements:
has comprehensive transportation network improvement plans in place. Since road
projects can be very expensive, we have to build them over time as funding
allows. You can read more about our current capital improvement plans at www.ParkerOnline.org/CapitalProjects.
How does Parker have a decrease in revenue?
With all the people moving here to the new housing developments and apartments,
aren't they bringing in more money for Parker?
believes the decrease in sales tax revenue growth can be at least partially
attributed to an increase in online shopping, which doesn’t currently have the
same sales tax collection requirements as brick and mortar stores. People
leaving Parker to shop, dine and play also has an impact on local sales tax revenues.
Once the single-family
and multi-family developments currently under construction are completed and
new residents come to Parker, we are hopeful that they will also support our
great community by shopping locally!
Parker collects a high amount of property
tax and it keeps increasing every year.
property tax has increased over the years, the Town of Parker’s portion has
remained the same (2.602 mills) since 1997. This amount equates to approximately $75 annually on a $400,000
home. You can view a full breakdown of your property tax and what
entities it is paid to by visiting www.douglas.co.us/assessor and typing your
street address in the search bar. An example of the property tax breakdown is
local” include big box stores?
If you make a $100 purchase at any store located in the Parker Town limits
(locally owned or a chain), the Town receives 3% sales tax (of the total 8%
collected) on that sale, which is used to pay for Town services, facilities,
events and more. However, if you make a $100 purchase in Parker at an
independent, local store, approximately $48 stays in your community (including
payroll, goods/services purchased, profits spent local by owners, and
charitable contributions). A chain restaurant/store located in Parker keeps $14
local, while only about $1 of a $100 online purchase comes back to Parker.
I’m confused by
this decline in revenue. I sell on Amazon and collect Colorado sales tax. I was
under the impression that a portion went back to the town the company is
registered in? It certainly looks like it does when I pay the taxes to the
state every quarter. Can you clarify?
otherwise noted, items sold by Amazon.com LLC are subject to sales tax in
Colorado and Parker in accordance with the applicable laws of the state. If
your order contains one or more items from a seller other than Amazon.com LLC,
it may be subject to state and local sales tax, depending upon the seller's business
policies and the location of their operations. When a Colorado vendor
collects sales tax through Amazon Marketplace, the vendor is responsible for
the collection and remittance of the tax. Amounts remitted to the state
(Colorado Department of Revenue) remain with the state and are not sent to the
Does the town
have the ability to see a breakdown of what portion of local retail sales tax
is generated by the small, independent shops we love - versus the big box
chains and anchors in shopping centers?
The Town can create a variety of sales tax
reports based on many different variables. Many of our locally owned and
operated businesses do remit significant sales tax dollars. Examples of
these businesses include local restaurants, franchise restaurants, and liquor
stores. However, sales at big box stores, chains and national retailers do
generate a majority of the sales tax revenue in Parker.
Can we do more to
market Parker as a destination to generate consistent, substantive sales tax
the last several years, the Town has conducted extensive Visit Parker marketing
campaigns, which included a variety of elements promoting the Parker community
to our neighboring communities. Unfortunately, with the recent budget
reductions, this was one of areas that was significantly reduced in 2018.
The Town of
Parker does not plan for the future.
Town has a strategic plan in place, which serves as a guiding document for the
Town, outlining how we can best serve our residents in the future. The current
strategic plan can be found at www.ParkerOnline.org/StrategicPlan. Other similar
long-range planning documents include the Parker 2035
Parker Road Corridor Plan, Parker Parks and
Recreation Master Plan, and the TransportationMaster Plan.
Water in Parker is so
Parker Water and Sanitation District, which is a separate entity from the Town
of Parker, provides water to the majority of Parker and you can read more about
their services at www.PWSD.org.