Town staff model shows vacant and underused homes create an estimated $943,000 annual revenue gap; council directs staff to return with detailed modeling on scope, exemptions, and a companion property tax rebate.
Crested Butte’s 465 non-primary residences generate an estimated $943,000 less per year in town taxes and fees than if those homes were occupied full time, according to a financial model presented to the town council Monday night. Staff asked the council whether to pursue an excise tax on vacant and underused properties as a November 2026 ballot question. The council directed staff to return with detailed modeling on the tax’s scope, possible exemptions, and a companion property tax rebate — and heard public comment from speakers who opposed the proposal.
The special meeting convened at 8:00 p.m. after a two-hour work session on long-range financial planning. The council approved the agenda without changes before moving to the consent calendar.
Finance & Administrative Services Director Lauren Hawcroft and Interim Finance & Administrative Services Director Rob Sweeney presented the findings. Of the town’s 1,291 residential units, 826 are primary residences and 465 are non-primary. Of those non-primary homes, 182 carry short-term rental licenses; the remaining 283 hold no STR license and sit unused for long stretches of the year.
Staff estimated full-time households contribute roughly $3,200 annually in town revenues. Non-primary households contribute approximately $1,200 — a gap of about $2,000 per home per year. Across all 465 non-primary residences, that gap totals an estimated $943,000 annually in unrealized taxes and fees.
Staff modeled three fee levels for the proposed excise tax. At $2,500 per unit applied to all 465 non-primary residences, gross annual revenue would reach roughly $1.16 million. At $5,000 per unit, the figure rises to approximately $2.33 million. At $7,500 per unit, it approaches $3.49 million.
Applied only to the 283 non-STR non-primary units, the low scenario produces approximately $707,500 annually. A split approach — lower fees for STR properties, higher for fully vacant homes — could generate roughly $2.58 million per year. Staff framed potential uses for any new revenue: transit and mobility operations, parks and trails, capital lifecycle needs, affordable housing, and community spaces.
Mayor Ian Billick opened council discussion by drawing a distinction between revenue generation and behavior change, noting that a low tax functions differently from one set high enough to push second-home owners to sell or rent. Council members said the goal is revenue generation.
The council discussed which properties to include. Council Member Beth Goldstone raised whether properties with occupied accessory dwelling units should be exempt, arguing that a year-round tenant on the property addresses the core concern. Council Member Gabi Prochaska said she was not convinced, noting that the primary home itself would still sit vacant.
Billick proposed that short-term rentals used more than 183 days per year could qualify for an exemption. Staff said defining residency through voter registration, a driver’s license, or tax filings would be simpler to administer than tracking individual day counts.
Staff also presented a companion option: a property tax rebate drawn from the General Fund’s residential mill levy, set at 1.889 mills in 2026. A rebate of the residential share would total roughly $70,000 annually. Staff noted that Colorado’s property tax uniformity requirements would likely require any rebate to apply to all residential properties rather than primary residences alone. A longevity-based approach — tied to years of continuous ownership on title — could be legally defensible, staff said. The council asked for further modeling on that option.
Staff outlined a working timeline: council direction on scope and exemptions by June, community outreach and professional polling through summer using $30,000 budgeted for that purpose, and a final go or no-go decision by the August 17 council meeting. Ballot language would be confirmed with Gunnison County in September for a November 2026 election. No vote was taken during the work session.
The council also discussed an alternative raised in a written letter from John Simmons, a Crested Butte Land Trust board member. Simmons proposed a seasonal sales tax increase during peak months as an alternative to the excise tax. Billick asked staff to model that option, including scenarios that would exclude groceries to reduce the regressive impact on lower-income households.
Public comment after the break produced several speakers in opposition. Jim Day, a retired part-time homeowner who said he bought his Crested Butte property 36 years ago, told the council the proposed tax functions more like a Band-Aid than a long-term financial fix. Day said sustained pressure on older part-time owners could push them to sell, bringing wealthier buyers into the market. He urged the council to weigh other revenue options before moving forward.
Liz Collins, a 33-year full-time resident, told the council she does not support the proposal. She said when budgets fall short the answer is to look within, called the approach divisive, and said some community amenities may need to be deferred if revenues cannot support them. A speaker who identified herself as president of the Crested Butte Senior Center did not address the tax; she invited council members to a May 27 luncheon at the Oh Be Joyful Church.
Billick also summarized written communications received since the last meeting. Audrey Anderson asked the council to consider switching town lighting to red spectrum to reduce wildlife impacts. Dave Fox wrote about Delhi trail easements and suggested the county explore a trail on the west side of Highway 135 near the Whetstone development to improve connectivity. Other written comments expressed opposition to the empty-home tax concept.
The council approved all four consent items unanimously. Those items were: the April 20 regular meeting minutes; spring 2026 community grant recommendations totaling $51,484 distributed among local nonprofits selected from 22 applications; adoption of the Parks, Recreation, Open Space and Trails Plan; and the first reading of Ordinance No. 7, Series 2026, approving a lease of town property at 308 Third St. to the Gunnison County Metropolitan Recreation District at $3,472 per month for the first year.
Town Attorney Karl Hanlon said he had no legal matters requiring council attention at the regular session. He noted the state legislative session ends the following week and said he would provide a fuller update at the next meeting.
Town Manager Dara MacDonald reported during staff updates that 33 volunteers had registered for the May 16 Trash Bash. Building Inspector Josh Staab passed his commercial building inspector exam, giving the town two staff members certified for both residential and commercial inspections. MacDonald said the 816 Gothic housing lottery ran without problems; two Mount Crested Butte council members attended to observe the process ahead of their own guidelines update.
Under council reports, Billick noted that Scott Truex, executive director of the Gunnison Valley RTA, is preparing a summary of RTA discussion takeaways for an upcoming council packet. Under other business, the council agreed to send Gunnison County a letter supporting exploration of a trail on the west side of Highway 135 near the Whetstone site to supplement the planned underpass. Council Member Prochaska raised exploring dark-sky lighting standards; the council agreed to place the topic on a future work session list.
The council confirmed upcoming meetings: work sessions and regular sessions on May 18, June 1, and June 15. A previously discussed June 8 financial planning work session was removed from the calendar. The empty-home excise tax question returns to the council in June, when staff will present modeling on scope, fee structures, exemptions, and the property tax rebate options the council requested Monday night.
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