Senate committee advances bill letting counties ask voters to raise lodging tax cap

House Bill 12-47, a measure that would let Colorado counties ask voters to raise the county lodging tax above the current 2% cap, advanced out of the Senate Local Government and Housing Committee after roughly four hours of testimony and one adopted amendment.

The bill, presented by Senator Chris Simpson, would authorize counties—subject to voter approval—to increase the lodging tax rate and expand allowable uses for revenue, including housing, childcare, public infrastructure maintenance and certain public safety expenses. “This is really dependent on county commissioners’ submittal and voter approval of ballot measures,” Simpson said during opening remarks.

Why it matters: Counties that host tourists say the current 2% limit constrains their ability to fund the local services that tourism strains, including roads, emergency response and workforce housing. Supporters said the proposal is permissive—counties must decide whether to put any rate increase before voters—and is intended to preserve local control. Opponents, chiefly lodging and resort groups, warned higher lodging taxes could reduce competitiveness, shift visitor behavior and place a disproportionate share of public funding responsibility on visitors and the lodging industry.

What the bill would change: Sponsors told the committee the bill restores parity with many municipalities by…