Severance council approves placing 3% lodging tax question on November ballot to preauthorize revenue for public safety and infrastructure

The Severance Town Council voted to approve an ordinance calling a November 4, 2025, ballot question that would authorize a 3% lodging tax on purchases of lodging services inside town limits and to approve the ballot title and text. The ordinance and ballot language were approved at the council’s August 26 regular meeting.

Why it matters: Council members said the preauthorization is intended to allow the town to collect lodging taxes if hotels, motels or short-term rental (STR) operators establish services in Severance later, rather than passing a tax after development begins.

The ordinance and what it would do The measure, if approved by voters, would add a 3% tax on short-term lodging (hotel/motel and similar services, including short-term rental platforms where applicable). Town staff explained that the ballot language required under the Colorado Taxpayer Bill of Rights (TABOR) lists an initial annual amount of $0 because no taxable lodging revenue exists in the town today; the tax would only bring revenue once taxable lodging activity occurs.

Council comments and examples Councilmember Bruin (first name not provided in the transcript), who supported placing the question on the ballot, said the action is “in anticipation of someday having hotels motels nearby instead of waiting until they start to build or start to show interest and then suddenly putting a tax in place.” Mayor Friess emphasized that approving the ordinance does not immediately raise existing residents’ taxes: “this is not going to increase anybody’s current taxes,” he said, pointing to the TABOR-required initial $0 amount in the ballot language.

Staff and fiscal details Town Manager Nick Wharton told the council the proposed ballot language had been revised to clarify permitted uses (“including, but not limited to, public safety, infrastructure, public parks and trails”) and that the ordinance is the same template previously reviewed except for that clarified language. Wharton and council members said short-term rentals would be covered if and when the town regulated or permitted them.

Votes and next steps Councilmember Vandermark moved to approve the ordinance; Councilmember Hessler seconded. In a roll-call vote the council approved the ordinance unanimously (yes votes recorded for councilmembers Joseph, Hessler, Burrett, Vandermark, Friess and Bruin). The ordinance authorizes the ballot question for the November 4 election; the tax will not be collected unless voters approve it and taxable lodging operations exist in town.

Ending Staff said they will provide outreach and answer public questions ahead of the election so residents understand how the tax would be applied and how the revenue could be used if the ballot measure is approved.