Berthoud Fire Protection District

Sales Tax Revenue Update, July 15, 2026

 

The Berthoud Fire Protection District is committed to transparency, fiscal stewardship, and maintaining the public's trust. We would like to provide an update regarding the District's voter-approved 1% sales tax.

When the sales tax ballot measure was presented to voters, Colorado law required the District to provide a good-faith estimate of the maximum fiscal impact of the sales tax for the first full fiscal year. To develop that estimate, the District worked with the Colorado Department of Revenue's Office of Research and Analysis, the agency responsible for administering and collecting the tax. Based on the best information available at the time, including guidance from the Department of Revenue, the estimated first-year fiscal impact for 2026 was projected to be $363,984.06. The Department of Revenue also noted that its methodology could not accurately estimate revenue from certain online sales, making any projected maximum fiscal impact an estimate based upon assumed economic factors.

Since the tax took effect in June 2025, collections have exceeded the original estimate. The underestimate was primarily due to higher-than-anticipated internet and online sales, which have significantly increased in recent years. While this reflects stronger-than-anticipated taxable sales activity within the District, the Board of Directors recognizes its obligation to comply with the requirements of Colorado law governing voter-approved tax revenues.

The District Board has decided to return the overage, and is working closely with legal counsel to determine the appropriate method of addressing revenue collected in excess of the estimated 2026 fiscal impact. The Board is committed to implementing a legally compliant, fair, and transparent process while continuing to responsibly manage the public resources entrusted to the District.

The sales tax remains an important component of the District's long-term financial strategy, providing a stable funding source to support firefighter staffing, emergency response equipment, fire apparatus, facility improvements, and the construction of future fire stations to ensure the delivery of vital emergency services. The District appreciates the confidence placed in us by our community and will continue to provide updates as this process moves forward.

 

FAQ for Berthoud Fire's Sale Tax Overcollection

1. Why is the District communicating about sales tax revenue?

In May 2025, voters approved a 1% sales tax to fund fire protection and emergency services in Berthoud. Colorado law requires the District to estimate how much revenue will be collected during the first year (2026). The District has learned that actual revenues will exceed that estimate, and we are providing full transparency about the situation and the next steps.

 

2. What caused the overage?

The underestimate was primarily due to higher-than-anticipated internet and online sales, which have significantly increased in recent years. The estimate was based on available data from the Colorado Department of Revenue at the time of the ballot measure.

 

3. Was this mistake intentional or a misuse of funds?

No. This was an honest and unintentional forecasting error. All funds have been and will continue to be managed according to law. The District made the estimate in good faith using the best available information.

 

4. What does the law say the District must do?

Under Colorado’s Taxpayer’s Bill of Rights (TABOR), if a government entity collects more than its voter-approved estimate in the first year, it must take corrective action. The law provides four options:

1.      Ask voters in the next election (November 2026) to allow the District to retain the overage;

2.      Refund the overage to property owners; or

3.      Refund the overage to registered voters; or

4.      Temporarily lower the property tax rate to offset the overage.

The Board has determined that the funds will be returned to the community and, based upon legal and financial counsel, will identify and communicate the method by which the District will proceed. 

 

5. Does this mean my taxes will go up?

No. The sales tax rate remains 1%, exactly as approved by voters. The overage only concerns the amount collected compared to the original estimate, not any change to the rate.

 

6. Will this affect future funding for the Fire District?

No. The limitation applies only to the 2026 calendar year. Starting in 2027, the District is not restricted by the initial estimate and will continue to collect the voter-approved 1% sales tax.

 

7. How will the District decide which option to take?

The BFPD Board of Directors will review all available options in consultation with legal and financial advisors before making a decision. Any final action will be publicly announced and documented.

 

8. When will a decision be made?

A decision is expected in 2026, before the November election cycle. Updates and meeting dates will be posted on the District’s website and shared via newsletters and social media.

 

9. How can residents stay informed or participate?

·         Visit https://www.berthoudfire.org/berthoud-fire-protection-district-sales-tax for ongoing updates.

·         Attend a District Board meeting (a schedule is available at https://www.berthoudfire.org/board-meetings)

·         Follow the Berthoud Fire Protection District on Facebook

·         Submit questions by email to info@BerthoudFire.org.

 

10. What is the District’s message to the community?

The District deeply values the community’s trust. This was an honest forecasting error, not a misuse of funds. BFPD is committed to transparency, accountability, and doing what’s right under Colorado law.

 With the approval of the 1% Berthoud Fire Protection District sales tax, the existing sales tax for the areas in the fire district will increase by 1%.   For example, if the current sales tax rate is 7.70%, it will increase to 8.70%.

These taxes shall be remitted to CDOR on the DR0100 using the same method they currently use to remit their sales tax (i.e., paper form, ROL, SUTS).

The Colorado Department of Revenue has many resources to assist in the process of reporting sales tax:

• Colorado Sales Tax Lookup Tool for Sales Tax for a specific address/location:  https://colorado.ttr.services/ 
• Sales Tax Exemptions:  https://tax.colorado.gov/sales-tax-exemptions-deductions 
• Retail Sales Tax Return Information:  https://tax.colorado.gov/DR0100
• Sales Tax Filing Information:  https://tax.colorado.gov/sales-tax-filing-information 

The Department of Revenue’s Taxpayer Helpline is available for assistance Monday – Friday at 303-238-7378 or  https://tax.colorado.gov/contact-us

Frequently Asked Questions:   

BFPD Resources for Sales Tax Assistance.pdf