HB25-1247: County Lodging Tax Expansion
February 13, 2025
Representatives Katie Stewart (D, District 59 - Archuleta, La Plata, Montezuma and San Juan Counties) and Karen McCormick (D, District 11 - Boulder County) along with Senators Dylan Roberts (D, District 8 - Clear Creek, Eagle, Garfield, Gilpin, Grand, Jackson, Moffatt, Rio Blanco, Routt and Summit Counties) and Cleave Simpson (R, District 6 - Alamosa, Archuleta, Conejos, Costilla, Dolores, La Plata, Mineral, Montezuma, Montrose, Ouray, Rio Grande, Saguache, San Juan and San Miguel Counties) presented the County Lodging Tax Expansion bill on February 12, 2025 in an effort to give counties the ability to expand their current lodging tax from 2% up to 6%. In addition to this expansion, which would be subject to ballot initiative and voter approval, the bill increases the options for methods to utilize the funds collected under the lodging tax. Read on for the bill summary, copied directly from the Colorado Legislative website and continue below for CLARA’s position on this legislation as currently written.
Bill Summary
Under current law, counties may levy a county lodging tax (tax) of up to 2% on the purchase price paid or charged to persons for rooms or accommodations. Revenue from the tax is allowed to be used for the following purposes:
Advertising and marketing local tourism;
Housing and childcare for the tourism-related workforce; or
Facilitating and enhancing visitor experiences.
Subject to local voter approval, the bill increases the allowed rate of the tax to up to 6% and expands the allowed uses to the following additional purposes:
Public infrastructure maintenance or improvements;
Preservation of natural landscapes and wildlife habitats and promotion of sustainable tourism practices;
Cultural and historical preservation through restoration and maintenance of historical sites, museums, and cultural institutions; or
Enhancing public safety measures by funding local law enforcement, fire departments, and emergency medical services.
If a county received voter approval before January 1, 2025, to specifically allocate portions of revenue from the lodging tax to allowed uses for designated purposes, the bill clarifies how those previously approved allocations are preserved and how revenue attributable to an increase in the tax rate may be allocated by the county.
(Note: This summary applies to this bill as introduced.)
CLARA’s Position Statement on HB25-1247
The Colorado Lodging and Resort Alliance is opposed to HB25-1247 as currently written. Vacation rentals throughout Colorado are subject to multiple types of sales, excise and lodging taxes, plus annual fees and licensing requirements. CLARA believes that the expanded uses for the increased lodging tax are outside of the responsibility of visiting guests to Colorado’s vacation rental communities and resort destinations. As such, CLARA believes that these categories of allowed uses should receive funding from more broad sources such as uniform sales taxes, rather than a tax that specifically targets vacation rentals.
CLARA would consider supporting HB25-1247 if the bill were amended to only allow for the increased lodging tax to be allocated directly to the development of affordable housing. This specific use has been cited as the inspiration for most, if not all, regulations, taxes and fees related to vacation rentals in recent years.
CLARA will continue to monitor HB25-1247 and will solicit advocacy support from members as the bill proceeds through the legislative session. Members should prepare to engage with public comment and/or lawmaker outreach via email. Campaigns and messaging will be shared with CLARA members when the time is appropriate for activation.
