By High Country Advocate Staff
A new Colorado law has opened the door for mountain counties to sharply raise lodging taxes, setting off debate across the High Country over whether more visitor taxes will solve local budget strains—or simply drive tourists away.
House Bill 25-1247, adopted earlier this year, increased the ceiling on county lodging taxes from 2 percent to 6 percent and expanded how those funds may be used, allowing counties to direct revenue toward infrastructure, public safety, and workforce housing in addition to traditional tourism promotion.
Some counties, facing rising costs and shrinking federal support, have moved quickly to seize the new authority. Others are holding back.
Chaffee County: From Debate to the Ballot
Chaffee County acted first, placing Ballot Issue 1A on the November ballot to raise its lodging tax by four percentage points—from 1.9 to 5.9 percent—expected to generate about $3.3 million annually.
Under the county’s adopted plan:
• 35% to municipalities (Buena Vista, Salida, Poncha Springs)
• 35% to the County Road and Bridge Fund
• 20% to public safety and emergency services
• 10% to the existing tourism program
An intergovernmental agreement divides the municipal shares each year based on population and lodging activity.
Public Debate Emerges – September 2025
At the September BOCC meeting, residents and former county staff voiced strong opposition, warning that tripling the lodging tax could hurt small operators and reduce overnight stays. Commissioners responded that the Board of County Commissioners—not the Visitors Bureau—would control the new revenues, reserving only about 10–15 percent for marketing while the remainder would fund roads, housing, and emergency services.
By October 14, the board formally endorsed Ballot 1A through Resolution 2025-46—their only act of advocacy allowed under Colorado’s Fair Campaign Practices Act.
The following evening, the Buena Vista Board of Trustees heard a county presentation. Trustees took no official position but noted voter confusion and the likelihood of a combined lodging-tax rate above 14 percent inside town limits.
Park County: Rising Costs, Shrinking Aid
Park County’s October 8 meeting revealed similar pressures driving its own lodging-tax proposal. During budget review, commissioners said revenue from the county’s short-term-rental and lodging-tax fund has become vital for grants, the tourism board, search and rescue, and law enforcement.
“Depending on what the people say November 4th, we’ll either have those additional funds or not. That’ll be critical,” one commissioner said.
Finance staff warned that public-works costs exceed revenues and that federal Payments in Lieu of Taxes (PILT)—which offset untaxable federal land—were both delayed and smaller than expected. Commissioners described the 2025 budget as “not sustainable,” saying the county has been drawing on reserves. The new lodging-tax measure, enabled by HB 25-1247, aims to stabilize funding for essential services.
A Mixed Response Across the High Country
Elsewhere, counties are charting divergent paths:
• Grand County – Placed Ballot 1A on the November ballot to fund tourism, public safety, and infrastructure.
• Custer County – Discussed a 4 percent increase earlier this year but has not taken recent action.
• Rio Grande County – Voters will decide whether to expand allowable uses of existing funds without raising rates.
• Fremont County – Authorized intent to draft ballot language in July but did not certify a measure; officials say current receipts remain strong.
• Lake, Teller, Jackson, and Archuleta Counties – No lodging-tax questions on the 2025 ballot.
By the Numbers
Public financial records show Chaffee County’s spending rose from $37 million in 2019 to $75 million in 2024, with staffing increasing from 211 to 261 positions. Officials say those figures reflect inflation and service demand, not overspending. Across neighboring counties, similar pressures are mounting as tourism surges and federal aid levels off.
A Region at a Crossroads
The High Country is now split between counties seeking to expand revenue under HB 25-1247 and those preferring to wait. Supporters argue that tourists should help fund roads and emergency services they depend on. Opponents warn that continual tax hikes risk chasing visitors away and fueling unchecked spending.
Voters from Fairplay to Salida will decide this November whether higher lodging taxes represent sound planning or just another bill for those who keep the High Country economy alive.
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