While it hasn’t officially been signed into law yet, the County Lodging Tax Expansion Bill, or HB25-1247, is likely to become a new option for Colorado communities looking to beef up their lodging tax.
When it passes, communities can raise local lodging taxes from 2% to 6% to generate money for additional goals, not just childcare, affordable housing, or advertising and local tourism, as was previously allowed in a 2022 law.
While this change would take a county-wide vote from residents to pass, it will give counties the opportunity to ask for more taxes to be added when people stay the night in their areas, provided it’s used in the right categories. It also introduces more options in that category that are qualified for funds.
“I think, particularly, when we’re talking about roads, when we’re talking about public safety, those are two big areas that a lot of smaller rural counties are really struggling with,” Summit County Commissioner Tamara Pogue said. “The 2%, because they are so much smaller, really wasn’t making a meaningful contribution.”
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While Pogue believes this was an overwhelmingly popular bill — garnering support from 90% of counties in Colorado — changing the lodging tax rate for Summit County is not on her agenda any time soon.
“We haven’t talked about it at this point, but speaking for myself personally, I’m not particularly interested in doing it right now,” she said. “I do see a situation in the future where future boards may be in a position where they really need to do that.”
“The possibility of a looming recession and just so much of the economic unaffordability that Summit County residents are facing right now makes me leery of having that conversation,” she went on.
Still, the ability to have a conversation and option at all gives counties the freedom to utilize funds for projects they believe need it most, so long as it pertains to the visitor experience.
“No one wants to come to a county where law enforcement or EMS can’t respond if that person has an accident or if there’s not water and sewer or if the roads simply can’t function,” Pogue said.
While there are no particular plans to make changes, Pogue said she’s been happy with the implementation of the previous 2% lodging tax and being able to help fund childcare and affordable housing in Summit County instead of being locked into having to spend that money on additional advertising.
“There is no question that there are thousands of parents in Summit County who have benefited from having additional tuition assistance available,” she said. “There is no question that there is a great need for affordable housing in Summit County and that the funds that we have collected thus far have supported projects like Nellie’s Neighborhood.”
HB25-1247 has passed both the State House and State Senate and is expected to be signed into law by Gov. Jared Polis soon.
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