2022 Proposed Climate Tax

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the boulder flatirons on a late-summer aftenoon

Boulder taxpayers have supported the city’s climate work for decades, contributing about $4 million annually to climate and sustainability programs. Early next year, a portion of this funding is set to expire, creating a gap in funding.

To close this gap, the city is proposing the creation of a new climate tax. As designed, the new climate tax would raise approximately $6.5 million per year to fund climate and resilience efforts. If approved by council, the climate tax would require voter approval in the November election.

Funding Proposal: New Climate Tax

By creating a new climate tax,

Boulder taxpayers have supported the city’s climate work for decades, contributing about $4 million annually to climate and sustainability programs. Early next year, a portion of this funding is set to expire, creating a gap in funding.

To close this gap, the city is proposing the creation of a new climate tax. As designed, the new climate tax would raise approximately $6.5 million per year to fund climate and resilience efforts. If approved by council, the climate tax would require voter approval in the November election.

Funding Proposal: New Climate Tax

By creating a new climate tax, the city can simplify climate investments, tackle high-impact projects, better align with the scale of investment necessary and address inequities created by the current tax.

Tax Proposal Details

Note: Details subject to City Council changes.

  • New climate tax to be collected 2023 to 2040

  • Replace existing taxes that fund climate work

  • Fund climate and wildfire resilience projects

  • Continue to collect tax on Xcel Energy utility bills

  • Raise revenues by approximately 6.5 million per year

  • Change rates for customer classes

Proposed Changes to Average Annual Costs, By Customer Type

Customer Type

Current Annual Cost (CAP + UOT)

Proposed Annual Cost (Climate Tax)

Residential

$42.95

$49.66

Commercial

$292.42

$487.37

Industrial

$1,084.11

$1,806.85

Total Revenue for Climate Efforts

$3.9 million

$6.5 million


What would it fund?

If approved, revenues from this tax would support ongoing and new climate and resilience projects. Those could include:

  • Direct cash assistance to homeowners, landlords and businesses to fund energy efficiency upgrades
  • Projects such as microgrids and energy storage to support resilience and renewable energy development
  • Residential and commercial building electrification
  • Expansion of transportation electrification projects and electric vehicle charging stations; and
  • Advancement of natural climate solutions.

Wildfire resilience projects could include:

  • Funding for a dedicated fire risk assessment team;
  • Grants to support residential wildfire risk prevention measures like vegetation management, fence reconstruction and roofing/siding replacement;
  • Strategic undergrounding of power lines; and
  • Ecosystem restoration
Page last updated: 18 Aug 2022, 10:24 AM