High Country Advocate – Staff Report
Chaffee County voters are being asked to approve Ballot Measure 1A, a proposal that would more than triple the county lodging tax rate and make it among the highest in Colorado. Supporters say the increase would help fund infrastructure and local amenities. But a closer look suggests the measure could do more harm than good for the very businesses and workers that sustain the county’s economy.
A Steep Jump by Any Measure
If approved, 1A would raise the combined lodging and sales tax rate in Chaffee County to roughly 14 percent—a rate on par with large metropolitan areas and substantially higher than most resort communities across the state. Several other Colorado counties have proposed increases this year, but Chaffee’s would be one of the steepest and the only one to apply inside incorporated municipalities such as Buena Vista, Poncha Springs, and Salida. Visitors staying within town limits would effectively be taxed twice for similar services.
Tourism Dollars at Risk
Proponents often claim that tourists, not residents, pay lodging taxes. While technically true, the broader economic effects ripple through the community. Higher lodging prices discourage visitation, especially during shoulder seasons when occupancy already dips. Hotels, vacation rentals, and campgrounds may have to lower their prices to remain competitive, reducing profit margins and potentially cutting jobs or hours.
Tourism drives much of Chaffee County’s economy. Visitors support restaurants, retail shops, art galleries, guiding services, and the tradespeople who keep them running. Fewer visitors mean fewer customers for small businesses—and less sales tax revenue for local governments. Raising taxes in a fragile economic climate risks upsetting that balance.
Government Growth Outpacing the Economy
Public data show county spending has more than doubled over the past five years, even as population growth has remained modest. From roughly $37 million in 2019 to over $75 million in 2024, the county’s budget has expanded far faster than its tax base. Staffing levels have increased as well, outpacing both inflation and population growth.
Rather than raising taxes again, local officials could focus on improving efficiency, prioritizing spending, and supporting private enterprise—the same principles that guide successful local businesses.
A Permanent Decision in an Uncertain Economy
Inflation, tariffs, and high interest rates have already strained the hospitality and service sectors. A sharp lodging tax increase during this period could discourage investment and long-term growth. Once enacted, such taxes rarely go down. The result could be a permanent disadvantage for Chaffee County in competing with neighboring destinations for tourism dollars.
Time for a More Collaborative Approach
Several counties across Colorado are exploring modest, targeted tax adjustments—but only after consulting business and tourism representatives. Chaffee’s measure was advanced quickly, with limited public discussion. A more transparent, inclusive process could produce a balanced proposal that meets community needs without undermining its economic foundation.
Rejecting Ballot 1A does not mean rejecting progress. It means pressing pause to ensure that any future plan reflects genuine collaboration among county officials, residents, and the lodging industry.
The Bottom Line
Chaffee County’s economy depends on its visitors as much as its residents. A lodging tax rate approaching big-city levels could drive those visitors elsewhere. Until a clear plan is developed with broad community input, voters should reject Ballot 1A and call for a fair, data-driven approach to funding local priorities.
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