Despite a 34 percent year-to-year reduction in the construction of new single family homes and a 49 percent reduction in commercial construction, the amount of money El Paso County has collected from use taxes on building materials has more than doubled.
That’s because the county has overhauled its collection process, county officials said.
The new tax formula assumes that 40 percent of the value of any commercial, residential or other building project is in material. The Board of County Commissioners approved the new method earlier this year.
Members of the construction and home-building sector opposed the measure, however.
For the first six months of this year, the county collected $1,024,794 in use tax revenue compared to only $314,253 for the same period last year. The data indicates another $1 million will be collected when current projects are completed.
Combined county use and sales taxes were still off 10.5 percent, compared to the same time last year.
Work on the 2010 El Paso County budget is set to begin on July 30.