Gov. Jared Polis signed House Bill 22-1117 into law on March 31, and with that Colorado counties got the freedom to decide for themselves how best to spend most of the revenue they receive from the lodgers tax. The new law is a welcome recognition of the realities of Colorado in the 21st century.
It also promises a healthy process. That should include a wide-ranging discussion of a series of concerns.
Tourism is a key element of this state’s prosperity and HB 22-1117 will not diminish that. What it will do is give counties the flexibility to address the impacts of tourism and to do what is needed to ensure that tourists have the quality experience they deserve.
Some examples clearly work both ways. A trailhead or other infrastructure used heavily by tourists may show the effects of that use and need to be kept up. But that maintenance also means the next round of tourists can enjoy the place.
Other examples may not be so immediate or direct. Two other issues being talked about for redirected lodgers tax revenue are child care and affordable housing. On the surface those may not seem clearly connected to tourism. But if young mothers cannot find suitable child care or families cannot afford to live here, who is going to clean the tourists’ rooms, cook their meals or guide their rafts? For that matter, who will respond if someone is in an accident or injured?
That spending could benefit locals as well. And that is a deliberate feature of the new law, not a side effect.
All lodgers tax revenue, in La Plata County about $750,000 per year, has been required to go to marketing. HB 22-1117 simply recognizes that there is more to tourism than marketing - and more to Colorado than tourism.
This bill was widely supported by counties as well as statewide county organizations. It was sponsored by two Democrats and two Republicans, including our own state Sen. Don Coram.
It is also democracy in action. HR 22-1117 mandates that a minimum of 10% of a county’s lodgers tax still go to marketing, but each county can decide what to do with the rest. And that decision will require a vote of the people.
The city of Durango is not affected. As a home rule city, it already has the authority to decide how to spend its tax revenue. In April 2021, Durango voters approved the city’s lodgers tax increase from 2% to 5.25%. Of the new revenue, City Council decided 55% would be spent on sustainable tourism efforts, 20% on transportation, 14% on arts and culture, 11% to be determined by the council and the final 2% for administrative fees.
But city residents are also county residents and, as such, will be included in the discussion. The county has its own priorities, and we will see later how they differ.
The county now has no plans to take anything to a vote. And County Commissioner Marsha Porter-Norton has said clearly that before anything is put before the voters, there would be a thorough and transparent public process.
That is as it should be. Reallocating tax money – particularly for something as complex as “housing” – demands a serious discussion, agreed-upon definitions and a well-understood plan.
How to implement HB 22-1117 raises a number of questions. How they are answered should be quite a civics lesson.
