Six Colorado counties hike lodging taxes while two hold the line

By Rachael Wright | The Denver Gazette

Six mountain communities across Colorado voted on Tuesday to raise their lodging taxes after the state legislature passed a bill allowing counties to triple such taxes and spend the money on a wider range of projects, including public infrastructure, childcare and housing for workers. 

Lodging tax increases passed in Eagle, Gilpin, Hinsdale, Ouray, Routt and Park but failed in Chaffee and Custer counties.

Rural mountain communities have struggled for years under the pressures of increased tourism. Supporters said the new state law would allow those communities to pass along some of their increased costs to visitors. Before the new law’s adoption, the tax revenue could be used only for tourism marketing and some worker housing.

Some of the votes were narrow, reflecting the fierce debate over tax increases. On the one hand, supporters of the tax hikes argued that the new revenue would help solve incessant problems, including housing woes. Critics said they worry it would only depress tourism revenue and drive visitors elsewhere, a no-win situation for businesses depending on tourism and the governments hoping to collect the additional revenue for projects. 

In Eagle County, 50.5% of voters voted for 1A, raising lodging taxes from 2 to 4% with an annual yield of $4.5 million.  

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