Today marks the 120th and final day of the 75th session of the Colorado General Assembly. In four short months, legislators have worked to draft, gain support for and pass bills to benefit their constituencies.
One bill that is close to the finish line that now awaits signature by Gov. Polis is HB25-1247: County Lodging Tax Expansion. This bill is of considerable importance to our region, and really all of Colorado’s tourism-dependent communities.
HB25-1247 triples the amount of lodging tax, from two to six percent, that counties can ask voters to approve and diversifies how that revenue can be spent to meet a broader range of community needs.
The Herald’s editorial board extends its thanks to Rep. Katie Stewart (D-Durango) and Sen. Cleave Simpson (R-Alamosa) for recognizing and responding to the need and being two of the prime sponsors of this bipartisan bill.
Current state law allows tax revenue to be used to advertise and market tourism-oriented properties and amenities – think hotels, restaurants, local tourist attractions; to facilitate and enhance the visitor experience; and for housing and child care for the tourism-related workforce.
In November, La Plata County voters approved a reallocation of up to 70% of its lodger's tax revenue to include housing and child care, two woefully underfunded and unmet needs in our region that hamstrings parents and hurts our economy, as parents stay at home instead of working.
For FY2025, the county budgeted $850,000 in lodger’s tax collections. Thirty-percent of the county lodger’s tax – $255,000 this year – must remain dedicated to advertising and marketing tourism.
News of the county withdrawing from its contract with Visit Durango hit yesterday (Herald, May 6), which is mostly a formality since the entity no longer exists. Its board voted Apr. 11 to disband the organization and Apr. 28 the city folded it into its new Prosperity Office.
The county previously passed through all of its lodgers’ tax collections, approximately $1 million per year, to Visit Durango. The county has requested its share of any unspent funds.
The county must now determine how it will spend lodgers tax dollars and how it will market the county’s diverse and growing tourism industry.
HB25-1247 expands the use of lodgers tax funds to include public infrastructure maintenance and improvements, and public safety including law enforcement, fire departments and emergency services. All areas of critical need that support tourism and more.
These questions will first be posed to the three new members of the county’s lodger’s tax panel: Denise Leslie, Elizabeth Philbrick and Kirk Sowers.
One question on the top of the commissioners mind is how to make sure that all parts of La Plata County benefit from county lodging tax dollars. Have the towns of Bayfield and Ignacio received adequate support? What about Vallecito and businesses in the Pine River Valley? And outfitters and the growing agritourism industry?
One thing is clear, as stated by La Plata County Commissioner Marsha Porter-Norton, “the city marketing the county, and the county marketing the city, are mutually beneficial.” The Herald’s editorial board agrees and hopes for a new and positive start on city and county collaboration with this issue.
