San Juan County debates lodging tax increase and how to split new revenue

San Juan County commissioners spent a lengthy portion of their meeting reviewing options to change and reallocate the county lodging tax, after staff presented revenue estimates and local lodging operators urged restraint.

The discussion began with staff presenting modeled outcomes if the county were to raise the lodging tax by increments between 1% and 4% using two baselines: the 2025 total and a five‑year average. Staff said a 3% increase on the 2025 baseline would generate roughly $250,000 in new annual revenues, while a 4% increase could produce roughly $330,000–$358,000 depending on assumptions about underlying lodging receipts. The presenter also outlined a sample allocation proposal—40% tourism promotion, 30% child care, 15% affordable housing and 15% visitor enhancement—that commissioners used as a starting point.

Why this matters: the county’s lodging tax both funds tourism promotion (which tends to boost lodging occupancy) and supports local programs such as childcare and affordable housing. Commissioners noted a legal requirement that ballot language define funding categories, but they emphasized that actual distributions remain a board decision and can be held in reserve for future budgeting rather than being automatically spent as receipts arrive.

During public comment, Casey Lashley, a Silverton lodging owner, urged the board to consider competitive tax rates in neighboring counties and warned a 2% or larger increase could make San Juan County less attractive to guests, reducing nights stayed and local spending. Lashley also raised a separate operational concern: a local $6 per‑bed town fee lodging owners currently pay out of pocket. Casey Lashley said, “Another 2% on top of it will not be good for people to stay here,” and offered to provide the county with detailed comparisons to neighboring jurisdictions.

Deianne, the Chamber of Commerce executive director, presented cellphone‑tracking and lodging analytics showing San Juan County’s average length of stay is trending downward while per‑night lodging rates remain relatively high compared with most regional peers—Telluride being a primary outlier. She promised a regional breakdown of 2025 data for commissioners and urged “we need to look at actual data” before deciding on a ballot measure.

Commissioners weighed alternative splits, including options that put a larger share toward childcare and housing (e.g., 60% combined for childcare and affordable housing, 30% tourism promotion, 10% enhanced experience) versus options concentrating more on tourism promotion (to support lodging demand). They also discussed limiting broad “enhanced experience” language on the ballot to preserve voter confidence and cited the July 1 deadline to provide clerks the language or an intent to place a question on the ballot.

What’s next: staff will prepare follow‑up materials, including the regional lodging data and a breakdown of currently earmarked fund balances, and commissioners said they will take more time to consider whether to place an increase on the ballot and, if so, how to frame categories and allocation percentages. Any final board direction or motion to place an item on a ballot will be recorded in a future meeting. The board emphasized sponsors of any ballot measure must conduct outreach themselves—the county cannot spend public funds promoting a ballot question once it is placed on the ballot.

Ending: Commissioners left the item open for further review and requested staff and the Chamber deliver the requested regional and historical lodging data for an upcoming decision meeting.