BOULDER COUNTY, Colorado (CBS4) – As Marshall Fire victims struggle to raise enough money to rebuild, the State, Boulder County, City of Louisville and RTD will all see a tax windfall from the disaster. Together, they will receive some $20 million in use taxes, which are taxes applied to materials and devices used to build or, in the case of fire victims, rebuild homes.

This is tax revenue that homeowners say governments did not expect before the disaster and should now be paying back.

Marshall Together and Superior Rising, organizations comprised of fire victims, are now seeking a waiver or refund of use taxes. Of nearly 1,100 homes destroyed in the Marshall Fire, only about 90 have enough insurance to rebuild.

“People are tinkering dollar by dollar how to do this,” said Tawnya Samauroo, whose home in Louisville was among those burned. Due to factors beyond the owners’ control, such as inflation, the cost of rebuilding skyrocketed.

Samauroo says it will take $840,000 to replace her 1,700 square foot home, even if she downgrades some things.

“Everyone has to make a bet, even in the best of times. Will you have enough money when you get to 80% for the project or 90%? You try to imagine where all these pots of money are,” she said.

User fees are one such source of money. Superior reimburses its use tax, but Louisville, Boulder County, RTD and the state do not. Marshall Together and Superior Rising sent letters asking them to follow Superior’s lead.

“They didn’t plan to have that money initially because they didn’t plan for 1,000 houses to burn down when the Marshall fire happened,” Samouroo said.

Depending on where the owners live, combined use taxes can be as high as 8.5%, or about $25,000 for a $550,000 home.

Louisville wouldn’t say if he would refund his use tax because he said he hadn’t received the letter by the Our Story deadline. RTD said it would consider the request. Boulder County says its use taxes are earmarked for a specific purpose, so it should consult its attorney.

Senior Administrator Neal Shah says where there is a will, there is a way. The county, he notes, could top up the money from its general fund.

“We all need to be a little more creative. There are plenty of lawyers here ready to roll up their sleeves and find a way to make it work,” Shah said.

After all, Samauroo notes, owners have no choice but to make it work.

“As owners, we have to take a lot of risks at the moment. We don’t know if the price of wood is going to double or if the cabinets are going to be 30% more expensive,” she said.

A spokesman for Gov. Jared Polis said he “supports tax relief for the victims of the Marshall fire” and “welcomes the state legislature continuing to work towards suspending taxes for the victims of fire, either through an interim committee or in future legislative sessions”.

During the final week of the 2022 legislative session, the House Appropriations Committee withdrew an amendment to a bill that would have removed user taxes for fire victims, noting that it would have a negative impact on the budget. Samouroo says many homeowners already paid use tax when they built their homes and shouldn’t have to pay it again for a rebuild they didn’t want.

She says they can’t wait for the next legislative session for a decision. Most insurance policies only cover living expenses for two years, and rebuilds will take at least that long.

“It all helps, and knowing as soon as possible so people can make decisions and move on.”

Marshall Together and Superior Rising are asking the Legislature to pass a bill in the next session that automatically waives use taxes in the event of future disasters. Shah says California, Oregon and Washington are already doing it.