Log In


Reset Password
News Education Local News Nation & World New Mexico

Economic impact study favors property tax to fund airport

Elected officials seek voter approval of tax increase this fall
A new economic impact report suggest visitors who arrive here via the Durango-La Plata County Airport spend $43.7 million annually.

A study quantifying the impacts of expanding the Durango-La Plata County Airport found that funding the project through a sales tax increase, as opposed to property tax increase, has greater potential for job losses.

Martin Shield, director of the Regional Economics Institute and economics professor at Colorado State University, presented the findings of the analysis Tuesday to county and city leaders.

“Sales tax is a less efficient way of paying for it in terms of job losses,” Shield said. “When you impose a tax on sales, people have less purchasing power when they’re shopping, and businesses subsequently layoff workers. With a property tax, the economic burden is lesser, because as you earn more, a lesser share is spent on taxable goods.”

The study, which was conducted using economic and passenger boardings data, estimated about 53 jobs could be lost annually from a sales tax increase, as opposed to 29 from a property tax increase.

Local officials intend to seek a property tax increase ballot measure this fall to raise $40 million, about half the cost of an airport terminal expansion. The difficulty in selling the tax increase, as Councilor Sweetie Marbury said, is convincing the infrequent flier of the benefit.

Roger Zalneraitis, executive director of the La Plata County Economic Development Alliance, which commissioned the study, pointed to jobs: According to the study, the airport supports about 2,400.

“It supports good-paying jobs, raises household income and lowers taxes,” he said.

Shields declined to say whether an expansion would definitely generate additional jobs, but said a more efficient facility would make it more competitive in the eyes of airlines.

County Commissioner Julie Westendorff said Wednesday that improvements to the airport in the long-term could remedy one of the biggest problems with the facility: ticket prices.

“Price for a ticket is one of the things we hear about most,” she said. “If the terminal is built, and I can’t make this promise, but I feel that we would have room to invite airlines in, and that’s what will help bring down prices.”

The study identified the airport’s five major impact channels: airport operations and capital improvements, visitor spending, increased economic productivity, the region’s attractiveness as a result of the airport, and benefits of access to local residents.

The analysis concluded that airport visitor spending exceeds $43 million annually, and related economic activity generates $154 million in household income and $4.7 million in local tax revenue.

jpace@durangoherald.com

Airport economic impact report (PDF)

Mar 8, 2016
Property tax increase for airport likely November ballot question
Mar 1, 2016
Property tax increase favored for Durango-La Plata County Airport expansion
Jun 9, 2015
Voters favor airport sales tax
Mar 23, 2015
Airport growth goes beyond terminal
Mar 3, 2015
Public split on airport upgrade


Reader Comments