Manitou Springs residents and business owners gathered at the Garden of the Gods Trading Post Thursday night to discuss their opposition to Manitou Springs ballot initiative 2A, which would increase the City’s excise tax on ticket sales and admission fees from 5% to up to 14%. The proposed tax increase would impact just a handful of local businesses – the Iron Springs Chateau, the Pikes Peak Cog Railway, Adventures Out West Ziplines, Manitou E-Bike Company, and the Cliff Dwellings Museum.
“Fourteen percent is unheard of in a tax increase,” said Greg Wellens, owner of Adventures Out West. “I have never heard of a 14% tax. I used to operate a business down in Arizona on a Native American reservation, and eventually we got to 16% on the on the tax for the reservation and then another $5 trail fee, and another thing, and pretty soon it was 25% out the door and I said, ‘Sorry we can’t make it at this point,’ and and so we closed the business.”
Business owners warned that the increased tax could lead to an overall loss of revenue for Manitou Springs. “What we’re worried about is losing business for the entire town of Manitou,” said Rob Hefner, owner and operator of the Manitou Cliff Dwellings. “We’re asking for you guys to vote ‘no’ so that we can go back to the drawing board and get an opportunity or a chance to get together with the mayor, get together with city council, get together with residents and business owners and figure out what we need to do and do better. I’m not sure what that solution is what the right answer is, but at least have an opportunity to work together and figure that out as opposed to just, ‘Hey, there’s a triple tax on you guys.’”
Pikes Peak Region Attractions, which endorsed a “no” vote on 2A, reported that revenue from attractions is down an average 12% this year. A study conducted by the Manitou Springs Chamber of Commerce found that August hotel occupancy in Manitou is down 7% from last year.
“Our tourist base in the summer is coming from Kansas, Oklahoma, Missouri, Texas,” said Lori Adams-Miller, owner of the Iron Springs Chateau. “These are places that still have a $7-and-change minimum wage, and we’re having to pay 14 year-olds $15 an hour to bus tables.”
If the measure passes, Manitou Springs would have one of the highest tax rates on tickets and admission fees in the state. “Now Denver, their current amusement tax is 10% and that only applies to its city owned buildings,” said Ted Johnson, general manager of the Cog Railway. “Manitou would be immediately surpassing Denver, going to 14%. I mean, do you want to put a sign out front of town that says, ‘Welcome to Manitou Springs – the highest tax in the state of Colorado?’”
The ballot initiative is the result of the “balanced approach” plan for addressing the City’s projected $4.3 million budget shortfall, advocated by Manitou Springs Councilor John Shada and Mayor Pro Tem/mayoral candidate Natalie Johnson. In addition to increasing the tax, the City will also need to divert $1.9 million of parking revenue to the streets department.
“A balanced approach would have been looking at all the potential sales tax, property tax, amusement tax, lodging tax, and seeing what other ways there could be to increase the revenue for the city,” said Ted Johnson. “We recognize there’s a shortfall and that needs to be made up, but come talk to us. There’s a lot of really smart business people, not just in this group – other businesses in town – who would be willing to sit down with the City and help work through those issues.”
The excise tax on ticket sales and admission fees has not been adjusted since 1972, and would only apply to businesses charging admission fees or utilizing tickets. “A zip line ticket, a $99 zip line ticket would be an increase of $9,” explained Johnson during a July 29 town hall. “A train ticket, $67, would be an increase of $6 … and then, again, an admission ticket of $12.75 would be an increase of $1.15.”
The proposed increase has business owners considering their options. “I’m looking at other beautiful canyons around the area to put a zipline in,” said Wellens.
Editor’s note, Oct. 28, 2025: This story was updated to remove reference to the Penny Arcade as a business that would be impacted by the passage of 2A.
