Customers shopping at the new Elbert County Wal-Mart are in for a surprise -- they will be paying more than the 3.9 percent sales tax for all purchases. A 4 percent public improvement fee is included on every sale on top of the sales tax.

It’s all part of an agreement signed three years ago between the town of Elizabeth and the developer of the commercial and residential project where the Wal-Mart is located.

“The citizens I have been talking to are madder than hell, and they feel betrayed,” said Elbert County Sheriff Bill Frangis.

Frangis said he just learned of the public improvement fee when cashiers were being trained for the new store and realized the tax button was 7.9 percent on the registers. That’s more than double the county sales tax of 3.9 percent.

“There was never a word that this was mentioned as a sales tax,” said Frangis.

Town Administrator Chris LaMay said the additional 4 percent is not a tax, but a fee.

“If it walks like a duck and quacks like a duck, it’s a duck,” said Frangis.

“This additional fee is no different from when they shop at Park Meadows Mall or Colorado Mills,” said LaMay. “There is a public improvement fee.”

Park Meadows Shopping Center did have a public improvement fee when it first opened. It was 1.4 percent, however it no longer exists.

Colorado Mill’s public improvement fee is 1.4 percent. Belmar’s is 1.5 percent. The Metropolitan District where the Wal-Mart is located, also known as Elbert and Highway 86 Metropolitan District, will charge a 4 percent public improvement fee.

A total of 40 percent of that 4 percent then goes to the town of Elizabeth for the use of its sewer system.

“When the development sought a site application approval from the Colorado Department of Health for a waste water treatment facility, we suggested to the department of health that they deny that application,” said LaMay.

Then according to LaMay, the health department encouraged the developer to discuss using the town’s sewer.

“This agreement was necessary for the town to protect its interests,” said LaMay.

LaMay admits the high public improvement tax is not for the use of the sewer, but rather so the sales tax at the Wal-Mart is not less than sales tax at any store inside the town of Elizabeth.

“The loss we see from Safeway, which we will as people shop at Wal-Mart instead, can be recouped by the public improvement fee that is being assessed,” said LaMay.

Wal-Mart has nothing to do with this deal. It was agreed upon prior to Wal-Mart even considering the location.