The City of Loveland uses various revenue sources to operate and provide services to the community. Sales tax are a significant part of this. Other sources include but are not limited to property and use taxes, service fees, state and federal funding, and grants.

Sales Tax

Retail sales tax is a vital source of funding for City services and amenities in Loveland. This tax, collected on retail purchases, is crucial because it makes up a significant portion of the City's budget. In 2022, retail sales tax accounted for about half of the revenue in the City’s general fund. This fund is essential as it supports various critical City services like public safety, parks, road maintenance and community programs.

The retail sales tax rate in Loveland is currently set at 3%. However, in 2023, residents voted to exempt groceries (food for home consumption) from this tax. As a result, a projected $13.2 million annual revenue shortfall is projected in 2024 and beyond.

 

Property Tax

Larimer County is responsible for assessing property taxes that fund schools, the County itself, the City of Loveland (and other cities), and other voter-approved initiatives. The provided breakdown illustrates the distribution of the property tax mill levy — the “tax rate” applied to the assessed value of a property. This breakdown is applicable to residences in Loveland outside of metro districts, which are specific areas in the city funded through their own distinct taxes or fees.