Cortez Restores Recreation Center Sales Tax Rate After Overcollection

City officials in Cortez announced on November 14, 2025 that the City Council had passed an ordinance restoring the Cortez Recreation Center sales tax rate to 0.35 percent, the level voters approved in 2018. The action followed discovery in late September that the city had continued to collect the previous 0.55 percent rate for years, prompting an immediate effort to quantify any overcollection and to correct the tax code.

Municipal staff and council members said they were still calculating how much may have been overcollected. A preliminary estimate by The Journal placed the potential overcollection at about $2.6 million for the period from early 2022 through September 2025. City leaders have not yet released a final figure or a timetable for reconciling accounts and communicating next steps to businesses and residents.

The council ordinance returned the tax to the voter approved rate and directed staff to complete a full audit of receipts and remittances related to the recreation center levy. Officials emphasized transparency in the process and committed to safeguards intended to prevent a repeat of the error. Those safeguards were described as procedural reviews and stronger internal checks to ensure ordinance language and point of sale systems reflect voter approved tax measures.

For Dolores County residents the correction has practical implications. Cortez functions as a regional commercial hub, and changes to local sales taxes influence consumer behavior at stores and restaurants that draw shoppers from surrounding towns. Municipal budgeting could also be affected while officials determine whether to issue refunds, credits or accounting adjustments for overcollected funds. The outcome will have a bearing on funding available for the recreation center and on budget clarity for other city services that rely on sales tax administration.

Local businesses will need clear guidance from the city on how to change point of sale settings and how past transactions may be handled in accounting and tax filings. Residents who make purchases in Cortez may see adjustments in receipts and may have questions about eligibility for any potential reimbursements.

The incident underscores the wider importance of precise tax administration for public trust and regional economic stability. As Cortez completes its review and publishes final figures, county residents and business owners should watch for official notices from the city about reconciliations and any measures to prevent similar oversights in the future.