A tax tiff between the City of Manitou Springs and the cog railway atop Pikes Peak has reached new heights, with the city now claiming it was tricked into giving the railway generous tax breaks and the railway claiming the city is trying to triple its tax rate as a punishment.
The Broadmoor Manitou and Pikes Peak Cog Railway, which is owned by the Anschutz Corp., dates to 1891 but its dispute with Manitou Springs has its origins in 2017, when the rail line closed for repairs and renovations. The city and railway negotiated a tax incentive deal then.
Their 50-year agreement required the railway to make payments in lieu of taxes while the railway was undergoing its $97 million renovation between 2018 and 2021. In exchange, the city would reimburse any annual amusement taxes paid by the rai