Cortez Overcollected Recreation Tax for Years, County Residents Affected

City officials in Cortez acknowledged an administrative lapse that allowed a recreation center sales tax to remain at 0.55 percent despite a 2018 vote to reduce the rate to 0.35 percent. Reporting published on November 10, 2025 details how staff and multiple city councils failed to implement the ordinance required to change the tax, and how the mistake persisted until it was recently discovered and reported to councilors by the City Manager.

The tax in question was designated to fund operations of the Cortez recreation center. According to the reporting, the center's associated debt was reportedly retired in 2022, a development that changes the rationale for continued collection at the higher rate. The Journal article outlines the mechanics of the tax, the timeline from the 2018 vote through the 2022 debt payoff and the eventual disclosure of the error in 2025. It also examines the potential scope of overcollection and the legal and administrative steps city leaders may pursue to address the situation.

The immediate implications divide into legal, financial and civic dimensions. Legally, Cortez faces questions about whether overcollected funds must be refunded to taxpayers, credited against future bills, or reallocated through other authorized means. Administratively, the city will need to document how the lapse occurred, determine the total amount collected in excess of the voter approved rate, and coordinate with state and local tax authorities on corrective procedures. Financially, the error affects municipal revenue projections and budget planning, particularly because revenue initially justified by debt service is no longer required for that purpose.

For Dolores County residents, the practical effects could be direct or indirect. Residents and businesses that made purchases in Cortez may see credits or other remedies if refunds are required. Businesses that operate across municipal boundaries could face new accounting or compliance requirements once Cortez adjusts its tax collections. More broadly, the episode raises questions about institutional oversight in local government and about how voter decisions are implemented by elected officials and staff.

City leaders have signaled plans to address the mistake through public and administrative channels. The unfolding response will test municipal transparency and procedural safeguards that ensure voter approved changes are carried out. Residents concerned about fiscal accountability should monitor upcoming council meetings and request clear timelines for audit results, remedial actions and any proposed changes to revenue treatment that could affect local taxpayers.