A Bill for an Act
Page 1, Line 101Concerning expansion of the county lodging tax.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Under current law, counties may levy a county lodging tax (tax) of up to 2% on the purchase price paid or charged to persons for rooms or accommodations. Revenue from the tax is allowed to be used for the following purposes:
- Advertising and marketing local tourism;
- Housing and childcare for the tourism-related workforce; or
- Facilitating and enhancing visitor experiences.
- Public infrastructure maintenance or improvements;
- Preservation of natural landscapes and wildlife habitats and promotion of sustainable tourism practices;
- Cultural and historical preservation through restoration and maintenance of historical sites, museums, and cultural institutions; or
- Enhancing public safety measures by funding local law enforcement, fire departments, and emergency medical services.
Subject to local voter approval, the bill increases the allowed rate of the tax to up to 6% and expands the allowed uses to the following additional purposes:
If a county received voter approval before January 1, 2025, to specifically allocate portions of revenue from the lodging tax to allowed uses for designated purposes, the bill clarifies how those previously approved allocations are preserved and how revenue attributable to an increase in the tax rate may be allocated by the county.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 30-11-107.5, amend
Page 2, Line 3(1), (1.5)(a)(II), (1.5)(b), (2)(c), (3)(a), (3)(a.5), (3)(b)(II), (3)(g), and
Page 2, Line 4(4)(a); amend as it will become effective July 1, 2025, (3)(f)(I); and add (1.5)(a)(IV), (1.5)(a)(V), (3)(a.7), and (3)(h) as follows:
Page 2, Line 530-11-107.5. Lodging tax. (1) In accordance with the procedures
Page 2, Line 6set forth in this section, the board of county commissioners of each
Page 2, Line 7county, for one or more of the purposes specified in subsection (1.5) of
Page 2, Line 8this section, may levy a county lodging tax of not more than
twoPage 2, Line 9percent on the purchase price paid or charged to persons for rooms or
Page 2, Line 10accommodations as included in the definition of "sale" in section
Page 2, Line 1139-26-102 (11);
No tax shallPage 2, Line 12(1.5) (a) Subject to the limitation set forth in subsection (1.5)(b)
Page 2, Line 13of this section, a county board of commissioners may levy the tax
Page 2, Line 14specified in subsection (1) of this section for the purpose of:
Page 3, Line 1(II) Housing and childcare for the tourism-related workforce, including seasonal workers, and for other workers in the community;
orPage 3, Line 2(IV) Public infrastructure maintenance or improvements; or
Page 3, Line 4(V) Enhancing public safety measures by funding local
Page 3, Line 5law enforcement, fire departments, and emergency medical services.
Page 3, Line 6(b) If, after January 1, 2022, there is a new lodging tax created or
Page 3, Line 7the allowable uses of an existing lodging tax are expanded in accordance
Page 3, Line 8with subsection (3)(a.5) or (3)(a.7) of this section, at least ten percent of
Page 3, Line 9the lodging tax revenue must be used for the purpose of advertising and marketing local tourism.
Page 3, Line 10(2) (c) Any person or entity providing rooms or accommodations
Page 3, Line 11as included in the definition of "sale" referred to in subsection (1) of this
Page 3, Line 12section
shall bePage 3, Line 13equivalent of up to
twoPage 3, Line 14quarterly, unless otherwise provided by law, make a return to the
Page 3, Line 15executive director of the department of revenue for the preceding
Page 3, Line 16tax-reporting period and remit an amount equivalent up to the said
twoPage 3, Line 17(3) (a) The board of county commissioners may, by resolution,
Page 3, Line 18approve a proposal for a county lodging tax or to increase the rate of
Page 3, Line 19an existing lodging tax; thereupon, such proposal for the county
Page 3, Line 20lodging tax or increased rate shall be referred to the registered electors
Page 3, Line 21of the unincorporated areas and the municipalities subject to the lodging
Page 3, Line 22tax at a
specialheld for suchPage 4, Line 1
purpose. Any such election may be combined with any other specialPage 4, Line 2
election. On and after January 1, 1989, such tax may only be approved at a general election.Page 4, Line 3(a.5) If, prior to January 1, 2022, the voters of a county approved
Page 4, Line 4a county lodging tax for the purpose of advertising and marketing local
Page 4, Line 5tourism, the board of county commissioners may, by resolution, approve
Page 4, Line 6a proposal to allow the county lodging tax revenues to also be used for
Page 4, Line 7any of the additional purposes specified in
subsection (1.5)Page 4, Line 8(1.5)(a)(II) or (1.5)(a)(III) of this section. The county shall refer the
Page 4, Line 9proposal to the registered electors of the unincorporated areas and the
Page 4, Line 10municipalities subject to the lodging tax at the next general or coordinated election.
Page 4, Line 11(a.7) If, prior to January 1, 2025, the voters of a county
Page 4, Line 12approved a county lodging tax for the purposes specified in
Page 4, Line 13subsection (1.5)(a)(I), (1.5)(a)(II), or (1.5)(a)(III) of this section, the
Page 4, Line 14board of county commissioners may, by resolution, approve a
Page 4, Line 15proposal to allow the county lodging tax revenues to also be
Page 4, Line 16used for any of the additional purposes specified in subsection(1.5)(a)(IV) or (1.5)(a)(V) of this section.
Page 4, Line 17(b) (II) If any additional lodging tax or statewide tax on lodging
Page 4, Line 18facilities is enacted or levied after January 1, 1987, which in combination
Page 4, Line 19with the lodging tax authorized by this section exceeds
twoPage 4, Line 20the tax under this section shall be reduced by that amount that the total tax
Page 4, Line 21exceeds the
twoPage 4, Line 22(f) (I) If a proposal for a county lodging tax or an increase in
Page 4, Line 23the rate of an existing lodging tax under subsection (3)(a) of this
Page 5, Line 1section is approved by a majority of the registered electors from the
Page 5, Line 2municipality or unincorporated area subject to the lodging tax voting
Page 5, Line 3thereon, the county lodging tax or increased rate becomes effective as
Page 5, Line 4provided in part 2 of article 2 of title 29. If a proposal to expand the
Page 5, Line 5allowable uses under subsection (3)(a.5) or (3)(a.7) of this section is
Page 5, Line 6approved by a majority of the registered electors from the municipality or
Page 5, Line 7unincorporated area voting thereon, the county may also use the lodging
Page 5, Line 8tax revenue for any of the additional approved uses as specified in subsection (1.5) of this section.
Page 5, Line 9(g) If a county seeks to use lodging tax revenue for a purpose
Page 5, Line 10specified in
subsection (1.5)(a)(II) or (1.5)(a)(III)Page 5, Line 11this section, then the ballot issue authorizing the use must specify how the
Page 5, Line 12county will spend the lodging tax revenue under either subsection;
Page 5, Line 13except that, this requirement does not apply if a county seeks to
Page 5, Line 14use lodging tax revenue for the purpose of advertising and
Page 5, Line 15marketing local tourism set forth in subsection (1.5)(a)(I) of this section.
Page 5, Line 16(h) (I) If, prior to January 1, 2025, voters of a county
Page 5, Line 17approved specific allocations of lodging tax revenue for
Page 5, Line 18designated purposes and the county subsequently seeks voter
Page 5, Line 19approval to increase the rate of the existing tax, the previously approved allocations are preserved as follows:
Page 5, Line 20(A) The dollar amount or percentage of the lodging tax
Page 5, Line 21revenue dedicated to voter-approved purposes under the tax
Page 5, Line 22rate in effect at the time of the voter approval remains in effect
Page 5, Line 23as a baseline regardless of any subsequently approved tax rate
Page 5, Line 24increase or approval of additional allowable uses. Any
Page 6, Line 1additional allocation of revenue pursuant to subsection
Page 6, Line 2(3)(h)(II) of this section does not reduce or otherwise affect the baseline allocation preserved in this subsection (3)(h)(I).
Page 6, Line 3(B) The preserved allocation set forth in subsection
Page 6, Line 4(3)(h)(I)(A) of this section is calculated based on the tax rate in
Page 6, Line 5effect at the time of voter approval, regardless of any subsequent increase in the overall tax rate.
Page 6, Line 6(II) A county that receives voter approval for an increase
Page 6, Line 7in the tax rate after January 1, 2025, in accordance with
Page 6, Line 8subsection (3)(a) of this section and that before January 1, 2025,
Page 6, Line 9received voter approval to specifically allocate lodging tax
Page 6, Line 10revenue under a lower rate may allocate the revenue
Page 6, Line 11attributable to the difference between the previously approved
Page 6, Line 12lower rate and the newly approved increased rate for any
Page 6, Line 13purposes allowed in subsection (1.5)(a) of this section including
Page 6, Line 14the designated purposes that previously received voter
Page 6, Line 15approval for specific allocations of lodging tax revenue under
Page 6, Line 16the tax rate at the time of that voter approval. The county must
Page 6, Line 17be able to clearly delineate the amount of lodging tax revenue
Page 6, Line 18that is specifically allocated in accordance with prior voter
Page 6, Line 19approval based on the tax rate at the time of that voter
Page 6, Line 20approval, any additional allocations the county makes to the
Page 6, Line 21purposes that received voter approval for the specific
Page 6, Line 22allocations, and allocations of lodging tax revenue for
Page 6, Line 23additional purposes specified in subsection(1.5)(a)(IV) or
Page 6, Line 24(1.5)(a)(V)of this section that the county receives voter
Page 6, Line 25approval for in accordance with subsection (3)(a.7) of this section.
Page 7, Line 1(III) Nothing in this section prevents a county from
Page 7, Line 2seeking voter approval to modify previously approved specific
Page 7, Line 3allocations of lodging tax revenue for the allowed purposes set forth in subsection (1.5)(a) of this section.
Page 7, Line 4(4) (a) All revenue collected from such county lodging tax, except
Page 7, Line 5the amounts retained under subsection (2) of this section, shall be credited
Page 7, Line 6to a special fund designated as the county lodging tax fund, hereby
Page 7, Line 7created. The fund shall be used only for the purposes approved by voters
Page 7, Line 8and to reimburse the general fund of the county for the cost of the election
Page 7, Line 9in accordance with subsection (3)(d) of this section. No revenue collected
Page 7, Line 10from such county lodging tax shall be used for any capital expenditures,
Page 7, Line 11with the exception of capital expenditures for the purposes set forth in subsection (1.5)(a) of this section.
Page 7, Line 12
(I) Capital expenditures for housing and childcare for thePage 7, Line 13
tourism-related workforce, including seasonal workers, and for other workers in the community;Page 7, Line 14
(II) Capital expenditures related to facilitating and enhancing visitor experiences; orPage 7, Line 15
(III) Tourist information centersPage 7, Line 16SECTION 2. Safety clause. The general assembly finds,
Page 7, Line 17determines, and declares that this act is necessary for the immediate
Page 7, Line 18preservation of the public peace, health, or safety or for appropriations for
Page 7, Line 19the support and maintenance of the departments of the state and state institutions.