On November 5, 2024, Avon voters made a significant decision by approving a 4% use tax on construction materials. This move has sparked curiosity about its implications for the town. Chris Dillmann from the Vail Daily archive provides insights into this development.

Unraveling the Impact of Avon's Use Tax on Construction

What is the Use Tax?

The 4% use tax specifically targets the use of construction materials. Although Avon already has a 4% sales tax on such materials, town staff has emphasized that there is a consistent shortfall in sales tax revenue. Whenever construction materials are purchased elsewhere, the town misses out on a portion of its due taxes.Eric Heil, Avon town manager, stated during the August 27 council meeting that this use tax is more easily monitored and collected. It is expected to increase the town's revenue by approximately 45%, perhaps just under 50%. This will enable more effective collection of taxes on construction projects while keeping the construction costs unchanged for the contractors.

How is the Use Tax Levied?

The use tax is collected at the time a project's building permit is issued. It is calculated as 50% of the total construction value. If the final materials cost less than the taxed amount, the town has a reconciliation process to recoup any overpaid taxes.Those paying the 4% use tax are exempt from paying the sales tax of any town or city up to 4%, including Avon itself. However, county and state-level sales taxes still apply. Those who pay the use tax will receive a certificate from the town, which they can present to construction materials vendors to obtain the sales tax exemption.For home improvement projects in Avon using under $125,000 in building materials over a three-year period, the use tax is exempted. The exemption is based on the building permit submitted to the town and is tracked by property rather than project or contractor.For example, if someone in Wildridge is building a gazebo worth $70,000 in materials and submits a building permit, it will be exempted. Even if a large and expensive hotel is building a similar gazebo, it will also be exempted as long as the materials cost is within the exemption limit. The three-year time period is in place to prevent tax gaming by pacing construction.Those receiving the exemption will still pay sales tax if they purchase materials at a local store like Home Depot but will not pay if the materials are delivered directly to their property, which is a common occurrence.Avon also provides exemptions to certain organizations already exempt from sales tax, such as governmental institutions, charitable organizations, and public schools.Although the initial filing, payment documentation, and tax reconciliation forms have not been created yet, town staff is working on them in preparation for January 1.

Where do the Funds Go?

The funds collected from the use tax go into Avon's community housing fund. Community housing is defined as housing for those who cannot afford free-market rental and homeownership prices in the town, including the workforce, seniors, retirees, and disabled community members.The town's community housing expenditures cover various aspects, from the Mi Casa homebuyer's assistance program to the construction of new community housing capital projects.Heil and Paul Redmond, the town's chief finance officer, anticipate that the use tax will generate around $500,000 per year in revenue. In comparison, the sales tax on construction materials generated approximately $300,000 per year.

Why did Voters Pass the Use Tax This Year?

This year's use tax ballot was the third attempt by Avon to impose a use tax on construction materials. Other towns like Vail, Minturn, Red Cliff, Eagle, and Gypsum already have similar taxes ranging from 3% to 4%.The first attempt in 2002 failed with 573 voting against and 379 in favor. Last year, a similar tax was rejected by 60% of the voters.This year, there were key differences. The tax included a higher exemption amount of $125,000 and designated the funds for community housing. The town also made efforts to educate voters through articles in the Vail Daily, information on its website, and a mailer. Polling conducted this summer showed that educating voters significantly increased the chances of the tax passing.

Rosita, a 19-year-old Nicaraguan, shares in one of her recent TikTok videos the hardships she endures while working in construction in the United States. With a grueling weekly workload of 56 hours and a weekly income of $900, she battles not only physical toils but also social and emotional challenges. As the lone woman in a male-dominated setting, she often faces disparaging looks and skeptical queries. Yet, with unwavering determination, she asserts, "I am strong too; I can do this just as well."

The Reality Behind the Weekly Earnings

This video that went viral quickly reveals the true picture behind those $900 a week. When considering rent, food, gas, insurance, and other essential expenses, it becomes evident that the amount left at the end is not as substantial as one might think. As Rosita points out, "Some may think $900 is a lot and a good salary, but when the math is done, it tells a different story."The first emphasizes how the seemingly decent weekly income quickly diminishes when faced with the various costs of living. It shows the practical reality that immigrants like Rosita face in their pursuit of the American dream.The second could further expand on specific examples of these expenses and how they eat into the earnings. Maybe mention how the rent alone takes a significant chunk out of the $900, leaving little for other necessities.

The Physical and Emotional Toll

Working in a male-dominated environment takes a toll on Rosita both physically and emotionally. She has to prove herself constantly, pushing through the fatigue and stress of a 56-hour workweek. The constant barrage of disparaging looks and doubts can be mentally draining. But she refuses to back down. As she says, "I am here to show that I belong and can handle this just as well as anyone else."The first focuses on the physical aspect, describing how her body endures the long hours and tough work. It could mention specific tasks or physical demands of the construction job.The second delves into the emotional aspect, highlighting how she has to deal with the negative attitudes and skepticism from her male colleagues. It might share some of the inner thoughts and struggles she has faced.

The Public Reactions and Debates

The reactions to Rosita's video came flooding in quickly. Many users shared their own experiences with difficult jobs or offered comments on her situation. There were supportive messages like "You are a warrior; I admire you" and "God bless you, Rosita; you are a brave young lady." However, there were also criticisms and debates. One user remarked, "You should be grateful as many people wish they could be in your position and can't." To this, Rosita responded bluntly, "Everyone has their complaints; in the end, it's my money to spend as I please."The first details the various types of reactions, including the supportive ones that uplift Rosita. It gives a sense of the community response.The second focuses on the criticisms and how Rosita handled them. It shows her strength in standing up for herself and her choices.

Empowering Other Women in Construction

Many women who work in construction have identified with Rosita. One commented, "I am also the only woman in my group, and I know how hard it is to work alongside them." Another added, "I am the only woman among nearly 100 men in my company, and I understand the toughness of dealing with macho attitudes, but we don't give in." Rosita's story has become a source of inspiration for these women, opening up a dialogue about female participation in traditionally male-dominated sectors.The first showcases how Rosita's story has connected with other women in the industry, highlighting their shared experiences.The second emphasizes the importance of this dialogue and how it can lead to positive changes in the workplace.

Resilience and the American Dream

Rosita's story is not just about her bravery as a young woman and immigrant but also about the daily sacrifices and the true cost of living in the U.S. As she continues to work, she shows that with effort and resilience, everything is possible, even in the toughest environments. Her story serves as a reminder that the American dream is achievable with determination.The first elaborates on how her story represents more than just her individual struggle. It touches on the broader themes of resilience and the pursuit of a better life.The second could share some inspiring examples or quotes from Rosita that further drive home the message of hope and possibility.