The state won’t begin collecting a new sales tax in Manitou Springs on Jan. 1, despite city voters having narrowly passed a ballot measure in November.

The earliest that the 0.3% Manitou Springs Arts, Culture and Heritage sales tax would take effect would be July 1 — and that’s only if the new City Council passes an ordinance to authorize it, a spokesman for the Colorado Department of Revenue confirmed.

On Dec. 10, the sitting council voted 4-3 to reject an ordinance that would have enshrined the new tax into law and outlined how the revenue would be budgeted.

Three new council members and a new mayor will take office on Jan. 7, and at least two of the newcomers have said they will support an ordinance to levy the tax.

The Nov. 5 ballot measure, which passed by five votes, didn’t include language that levied the tax, said city Finance Director Rebecca Davis in a post to Manitou Springs’ Facebook page this week. So, under state law, the council has to approve that tax levy with an ordinance.

“Per the Colorado Department of Revenue, ‘all state collected city/county sales taxes or rate changes may become effective only on Jan. 1 or July 1,’” Davis said. “We are now past the deadline for including this tax in the collections starting Jan. 1, 2020.”

The council’s rejection of the ordinance drew the ire of many people in the community, who said the decision went against the will of voters.

Council members Becky Elder and Bob Todd, who voted against the ordinance, have expressed concerns about the city not having a plan for how the money will be distributed among projects. Councilman Jay Rohrer, who also cast a ‘no’ vote, has said the tax is problematic and “doesn’t take into account all the needs of the community.” Councilwoman Susan Wolbrueck voted against the ordinance without explanation.

John Graham, who was elected to succeed Mayor Ken Jaray, told the council at its Dec. 10 meeting that he disagreed with the decision to vote down the ordinance.

The tax is “what the voters of Manitou wanted,” Graham said.

Julie Wolfe, Judith Chandler and John Shada were elected in November to the at-large seats held by Elder, Rohrer, and Gary Smith.

Wolfe said she would support the ordinance levying the tax.

“I am disappointed that the City Council voted as they did,” Wolfe said. “I believe that in a democracy that the voters should have the right to vote and that their vote should be honored.”

Chandler and Shada did not respond to calls from The Gazette requesting comment Thursday.

The MACH tax, or Issue 2D, passed 1,035-1,030. The razor-thin margin triggered an automatic recount, which confirmed the results, the El Paso County Clerk & Recorder’s Office has reported.

Wolfe noted that the six-month delay means the city will miss out on $200,000 — half of what the ballot measure says would be generated annually by raising the city’s sales tax rate from 3.6% to 3.9%.

The measure also specified that 66% of the revenue generated by the increase was to be put into a special fund for “facility improvements and operations” at the Carnegie Library, Miramont Castle Museum, historic Hiawatha Gardens building and Manitou Art and Heritage centers. The remaining 34% was to be “allocated to a special fund, for distribution by the City Council through awards and grants to foster the arts, culture and heritage” within the city.

A cyclist rides past the Manitou Arts Center and a mural of Manitou Springs artist Floyd Tunson in this 2016 file photo. The mural was painted by two graffiti artists, El Mac and Fuse.

Christian Murdock/The Gazette