GRAND JUNCTION, Colo. (KKCO) - The City of Grand Junction has declared a State of Emergency in light of the COVID-19 spread. Part of their goal moving forward is to keep the local economy as stable as possible.
One of the results so far of this declaration is a tax deferment hoping to help struggling businesses. The City will defer sales, use, and lodging taxes collected in February 2020 until July of 2020. The City estimates this will infuse $4 million back into the local economy. This is in order to give businesses more cash flow during what may be tough times for them.
"I think it sends a clear message of how outside the box thinking by our local government entities and our economic development partners are going to find ways to help our small businesses. To my knowledge, I think we are if not the first, one of the first cities in the state to actually state this action. So we have become a leader in those out of the box ideas,” says Diane Schwenke, CEO of the Grand Junction Chamber of Commerce.
These $4 million of deferred taxes affect the City's general fund. We’re told this subtracted revenue won't impact any current operations but will just affect future plans, like beginning new City projects.