The Custer County Board of County Commissioners (BOCC) convened on July 30, 2025, to discuss a proposed increase to the lodging tax, which is set to be presented to voters in a coordinated election on November 4, 2025. The primary agenda item focused on adopting Resolution 25-32, which outlines a ballot initiative to raise the existing lodging tax from 2% to 6%.

Commissioner Dan initiated the discussion by clarifying the wording of the resolution and emphasizing the importance of public understanding before the ballot is published. The proposed increase aims to allocate funds for housing and childcare for the Custer County workforce, while maintaining a portion for tourism marketing. Specifically, one-third of the new tax revenue will be dedicated to childcare, another third to housing, and the remaining third will continue to support local tourism efforts.

During the meeting, concerns were raised regarding the potential impact of the tax increase on tourism. Some commissioners noted that while the tax is aimed at visitors, there is apprehension about whether it might deter tourists from choosing Custer County as a destination. The discussion highlighted the need for effective marketing strategies to attract visitors despite the increased tax burden.

Public input was also a significant part of the meeting. Local business owner Brian Klitz expressed skepticism about the necessity of the tax increase, arguing that existing state programs already address childcare and housing needs. He cautioned against the slippery slope of increasing taxes, suggesting that it could lead to a cycle of continuous taxation without addressing the root issues.

Barry Keane, representing the Custer County workforce housing community, provided data indicating a decline in the prime workforce age group and emphasized the urgent need for affordable housing and childcare to attract and retain younger families. He pointed out that a significant portion of the local workforce earns below the area median income, underscoring the economic challenges faced by the community.

The meeting concluded with a motion to adopt the resolution, which was seconded and opened for further discussion. The commissioners acknowledged the complexities of balancing tourism with the pressing needs of the local workforce, indicating that further deliberation would be necessary as the election date approaches.

Overall, the meeting underscored the county's efforts to address workforce challenges while navigating the implications of increased taxation on tourism and local businesses. The outcome of the upcoming election will be pivotal in determining the future of the lodging tax and its intended benefits for the community.