Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Tourism topic
No spam. Unsubscribe anytime.
San Juan County moves to impose optional 0.25% transient room tax increase to access outdoor recreation mitigation grants
Summary
Commissioners voted to adopt an ordinance allowing the county to impose an additional 0.25% transient room tax (TRT), increasing the county maximum to 4.5%. The county said the step is required to be eligible for state outdoor recreation mitigation grant funding created by this year’s state legislation.
San Juan County commissioners on June 3 approved an ordinance authorizing the county to add up to 0.25 percentage points to the local transient room tax (TRT), bringing the county’s potential maximum to 4.5% when combined with the state increase that takes effect July 1.
The action follows passage this year of state House Bill 456, which raised the statewide TRT rate and established a new outdoor recreation mitigation grant program funded by part of the state increase. County staff said third-class through sixth-class counties must impose the optional 0.25% county share to be eligible to apply for the mitigation grants, which can fund EMS, road, solid-waste and other tourism-impact costs.
Why it matters: the increase is optional but would let San Juan County apply for state mitigation grants expected to support infrastructure and services strained by visitation to national parks and monuments. Local lodging operators expressed concern staff has been contacting affected businesses to explain timing and compliance because many set nightly rates and contracts months in advance.
What commissioners heard
Tourism director Allison (last name in packet) told the commission that the increased funds would be used for tourism-related mitigation efforts and that the county’s tourism advisory board had reviewed the marketing program. She said the state’s schedule required the county to adopt the 0.25% increase to be eligible for the new mitigation grant program.
Commissioners and staff noted the increase will be collected starting July 1 as the state’s increase takes effect; they also discussed timing for notifying lodging operators so hotels, short-term rentals and tour operators can adjust booking systems and price sheets.
Decision and next steps
The commission adopted the ordinance by motion and voice vote. Commissioners said staff will alert lodging operators and provide details about the mitigation grant program once the Office of the State Tax Commission clarifies application timing and funding rules.
Discussion vs. decision
Discussion: Commissioners discussed outreach to lodging businesses and how the grant money could be used for EMS, roads and solid-waste costs associated with tourism.
Decision: Ordinance adopted to authorize a county-level TRT increase up to 0.25% (bringing county maximum up to 4.5%). The county will now be eligible to apply for the state outdoor recreation mitigation grant pool, contingent on guidance and application windows from state agencies.
Ending
Commissioners and staff emphasized outreach and the need to give operators time to update booking systems and contracts; the county will publicize details and guidance about how mitigation funds may be requested once the state releases application materials.
