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County proposes lodging-tax increase to fund roads, public safety and municipal shares; commissioners may send measure to November ballot
Summary
Chaffee County commissioners outlined a proposed roughly 4 percentage-point lodging-tax increase (from ~1.9%) that could raise roughly $3.3M–$3.5M and would fund the visitors bureau, roads, public safety and a municipal shareback; the measure could appear on the November ballot if the board advances it.
Commissioner Wood presented a county proposal to increase Chaffee County’s lodging tax to generate additional revenue for county and municipal priorities.
Wood said the county’s lodging tax is currently about 1.9% and produces roughly $1.2 million annually for the Chaffee County Visitors Bureau (CCVB) and related housing authorities. Under a recent state change, counties may raise lodging tax up to 6% with voter approval; the county is discussing a 4 percentage‑point increase that officials estimate would raise about $3.35 million (ballot language may conservatively list $3.5 million).
Wood outlined rough allocations the county is considering: about 15% of the new revenues for the CCVB (roughly $500,000), about $1.1 million for county road and bridge needs, roughly $800,000 for public safety (including fire, sheriff and EMS), and a little over $800,000 proposed to be shared with municipalities. Wood said the county would like to "carve off 25%" for municipalities, but participants later referenced 20% in questions; allocation percentages and the method (population or point-of-sale) remain subject to further discussion.
Wood framed the tax as one of the few available options for county revenue growth, saying the county’s road and bridge budget has been essentially flat for two decades and that rising construction and equipment costs have increased demand for outside funding. He said public-safety funding could cover additional sheriff deputies (to fill overnight coverage gaps), support volunteer fire districts and search-and-rescue missions, and fund EMS transport and radios.
Council members asked whether the lodging and short-term-rental industries and the CCVB had been consulted. County Administrator Don Armer said the concept had been introduced at a recent CCVB meeting and that more in-depth CCVB discussions are planned before ballot placement. Officials said they have not found robust, peer-reviewed evidence that small lodging-tax changes (1–4%) consistently reduce visitation; they acknowledged some lodging-sector leaders may object and said they plan outreach.
Asked whether the tax would sunset, Wood said the county intends the tax to be permanent and would not include a sunset provision. He also noted a Department of Revenue letter dated 2009 on the table indicating a county lodging tax would be placed on top of a municipal occupational lodging tax (meaning Salida’s local tax would remain separate).
Next steps: the topic is on the county’s agenda the following day; if the board approves, the measure would move through the ballot process toward a potential November vote. County staff and commissioners said they will refine allocation formulas and continue stakeholder outreach before any final ballot language is set.
