A newer Target store in Denver’s Lowry neighborhood is notifying shoppers that a 1% “public improvement fee” is being added to their purchases at the store located at 93 North Lowry Blvd.
One employee at the 30,000-square-foot store said they are getting a lot of questions about the fee.
“I wish I knew more,” he said. “You get questions here and there. People want to know if they’re getting charged extra money.”
The questions were apparently triggered by signs around the store notifying shoppers of the additional PIF fee.
“Of the total amount you are paying in retail sales taxes and fees, 1.00% is a Public Improvement Fee payable to Boulevard at Lowry to help pay for the costs of public improvements… within Boulevard at Lowry,” reads the sign. It goes on to state, “This Public Improvement Fee is not a tax and is charged in addition to the 8.81% sales tax that normally applies in Denver.”
The project developer told CBS News Colorado the fee is being used to pay for “public improvements of the property.”
Carolynne White, a Denver-based attorney who has worked for years with municipalities and developers on public improvement fees says they are widespread.
“They’re really common. They’ve been used in Colorado the last 25 to 30 years in almost every new shopping center I’ve worked on and every major one you’ve probably thought of,” said White.
The fee typically pays for improvements to roads, water and sewer lines and other public upgrades.
“One way or another,” said White, “the consumer is paying it. This way there’s a separate line item and disclosure so you know what you’re paying for.”
The fees typically go away when the improvements are all paid off, but the developer of the shopping center did not identify a specific end date.
“It is anticipated the fee will expire upon repayment of the debt associated with the qualified public improvements on the Property,” wrote a communications consultant for the developer.
