Public Improvement Fee (PIF) (Denver, Lakewood: sales, neighborhood, buying)

[chilicheesefries]

I've been noticing a lot of the new developments in the area charge a Public Improvement Fee in addition to the sales tax. As the signs say, it's 'not a tax' so we pay sales tax on the PIF. These are very annoying because they are usually about 1% and so the total sales tax goes up to around 9% in some cases! In addition, in the areas that don't charge a food sales tax, you still have to pay this 1%.

I'm interested in all of the areas that the PIF exist. The Streets At Southglenn are opening soon in my neighborhood and I wanted to know if they were going to have one. I shopped at the Whole Foods that just opened at didn't pay sales tax on the food or a PIF.

Also, it's my understanding that the PIF goes to the developer, not the city, so it's not increasing revenue for the city. In some cases, such as Lakewood

Anyways, here's where I've found PIF:

Riverpoint at Sheridan
SuperTarget center at Lincoln & Yosemite
Colorado Mills - 1.4%
Belmar - 2.5%
Creekside (Lakewood) - 1.5%!!!!
At least Lakewood decreases the Sales Tax somewhat in those areas. But what happened to developers being able to pay for their own developments!

Others?

[bethyb123]

I would like to do something like what you are doing...create a list of places that charge these PIF fees. If you look at the Lakewood city website on the section of PIF's they discuss it. Of course the cities/communities love it because they are getting extra tax revenue. Why shouldn't the developer pass on that cost to the renters?!? Weird.

[livecontent]

I have seen this same issue with the Target on Kipling in Arvada. It annoys me that it is charged and then it is treated as a taxable item. How can you pay tax on another tax. You are saying they do not call it a tax. How can it be taxable???

I try to address it with our city people but I ran into some roadblocks as in "we do not know what you are talking about" It was a time that I was more sick than normal and I did not pursue the issue. Perhaps I need to push a little more. However, I am dealing with the city on other issues, and I know from experience with dealing with local government--you have to tread very lightly, carry a big stick, but keep it hidden; as government employees are easily offended.

Livecontent

[chilicheesefries]

If I understand correctly, it doesn't go to the city but rather the city collects it to give to the developer - that's why it's a fee not a tax because it's going to a private entity. There was a nice article in the Post a couple months ago talking about how the developer of Park Meadows was wishing they had kept the PIF (Park Meadows had one when it opened). Also I believe Lakewood lowers the sales tax in the areas where they have a PIF so that the total the consumer pays is similar to that elsewhere in the city - therefore the city collects less revenue! It also irks me that the PIF is collected on all purchases - even those that would normally be exempt like Groceries (at least in some cities that don't charge sales tax on groceries like Sheridan, Englewood, Denver, etc. - don't get me started on the topic of avoiding buying groceries in cities that charge sales tax on them. That could be a different thread!). Anyways with the sales tax sky high already because of the Fastracks tax putting it around 8.5% in some cities an extra 1% makes it even higher.

Looks like Streets of Southglenn doesn't have a PIF, at least not at the places I've shopped there.

[EscapeCalifornia]

Why is the city taxing your purchases and giving the money to a developer?

[zenkonami]

Originally Posted by EscapeCalifornia

Why is the city taxing your purchases and giving the money to a developer?

I would like to know the same. Perhaps it's more complicated than it sounds, but it sounds like a cost the developer should build into their own immediate charges to the buyer, not something the city should be collecting on their behalf.

[chilicheesefries]

Originally Posted by zenkonami

I would like to know the same. Perhaps it's more complicated than it sounds, but it sounds like a cost the developer should build into their own immediate charges to the buyer, not something the city should be collecting on their behalf.

Here's how Sheridan explains it: Riverpoint - Public Improvement Fee

My response is if I pay an extra 1% at Riverpoint why are there crosswalks that go to curbs with ramps and then no sidewalk!

[EscapeCalifornia]

I like how they say it's not a tax. They can call it whatever they want, but when government takes money from me, I call it a tax.

[chilicheesefries]

Originally Posted by EscapeCalifornia

I like how they say it's not a tax. They can call it whatever they want, but when government takes money from me, I call it a tax.

Hey - I dislike it as much as anybody and try to avoid places like this. If there are shopping centers that can make it work without this BS. They did it for years and years.

[Consider_Again]

Just another data point for you, the newer Conifer Square center on Hwy 285 in Conifer/Aspen Park charges a PIF, at least the Safeway does. My understanding was this was a concession to the developer and builder to build in that area.

To put in that shopping center was an expensive civil project including building a new dedicated overpass over Hwy 285 and leveling a big piece of a hill.