A Public Improvement Fee (PIF) is a privately added fee to the bill at certain locations in Colorado. It’s not a government tax and typically shows up at more modern business locations and retail centers.
The purpose of the PIF is to raise money (pass the cost onto the customer) to build and maintain the infrastructure. This could be parking lots, roads, sidewalks, landscaping and other general upkeep of the property.
Are Public Improvement Fees Legal?
Yes, PIFs are legal, and you will see them from time to time. They range in percentage of the bill anywhere from 0.5% and up. In the above photo, there was a 2.5% PIF added to the total at a restaurant in Lakewood’s downtown district known as Belmar.
PIFs show up at the bottom of your receipt at select retailers around the state. They are added on by the developer or landowner to aid the infrastructure.
A “Public Improvement Fee” is unique to this state, though other states may have something similar, just worded differently. Florida, for example, has a PIF called the “Public Infrastructure Fee”.
Ideally, businesses would disclose the fact they will be charging you a PIF before you dine or check out. More often than not, though, it’s a surprise at the end of the experience when you go to pay.
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