Colorado Ballot Initiatives

Ballot initiatives to increase taxes on STRs to support initiatives to offset or counteract the effects of STRs have become increasingly popular. These efforts are particularly popular in mountain towns, which face critical housing shortages for resort workers. For example, in November 2019 Telluride voters approved a 2.5% tax on all STRs, effective January 1, 2020, to be applied to an affordable housing fund.

In 2021, voters in Avon, Crested Butte, Leadville, and Ouray considered similar taxes. Avon voters approved a 2% tax on STRs. The proceeds from the tax, which went into effect on January 1, 2022, are earmarked for community housing funds and expected to generate between $1 and $1.5 million in revenue annually. Crested Butte voters approved a 2.5% increase on STRs, increasing the total excise tax on STRs to 7.5%,to support workforce housing. Leadville voters approved a 4.92% accommodation tax on STRs units, among other accommodations, to fund affordable and community housing. Ouray voters approved a 15% excise tax to support workforce housing and wastewater treatment facilities.

In 2021, Telluride voters also raised the business license fees for STRs, with the increased revenue to be dedicated to Telluride’s Affordable Housing Fund. In addition, Telluride voters considered two competing ballot initiatives on capping STR licenses. Voters rejected a cap on short-term rental licenses at 400 and an annual lottery system for permits, which would have cut the existing number of licenses nearly in half. Instead, Telluride voters approved a cap to limit the number of STR licenses to the number that had been issued as of election day, November 2, 2021.

(More Coming….)