During its June 10 work session, the Archuleta County Board of County Commissioners (BoCC) discussed the possibility of proposing a lodging tax increase for unincorporated parts of Archuleta County.
Commissioner Veronica Medina initiated the discussion, explaining that the state passed House Bill 25-1247, allowing counties to increase their lodging tax rate up to 6 percent, along with allowing for expanded uses of lodging tax revenues. The bill was signed by Gov. Jared Polis on May 13.
Medina mentioned that this may be “potentially one way that we could get more money” to go toward the county’s infrastructure needs.
She explained that Archuleta County currently has a lodging tax rate of 1.9 percent and the Town of Pagosa Springs has a lodging tax rate of 4 percent.
“This would only be for county lodging tax,” Medina clarified, explaining that roughly 70 percent of the county’s lodging tax revenue stems from short-term rentals (STRs).
She noted that the county receives approximately $500,000 in revenues annually through its current lodging tax rate, adding that if the county were to raise its rate to 4 percent, projected annual revenues would come out to around $1 million.
“We need to make the tourists pay for coming here,” Medina said, explaining that raising the lodging tax may be a way to do that.
She also mentioned that STR owners and property managers have expressed to her that increasing the lodging tax rate is “doable.”
She went on to explain that under the new bill, counties have the ability to “expand the use” of their lodging tax revenues.
According to the bill summary from the Colorado General Assembly, the expanded use of those funds can include public infrastructure maintenance or improvements, or enhancing public safety measures by funding local law enforcement, fire protection services and emergency medical services.
“This would be expanded use that this would be able to go towards,” Medina said, referring to public infrastructure maintenance.
She also noted that the same rule still applies under the new bill in that at least 10 percent of lodging tax revenue is to be used for marketing and advertising of local tourism.
“So, that’s still required in statute,” Medina said, explaining that is not something the BoCC nor the Pagosa Springs Area Tourism Board decides.
She went on to explain that the BoCC may by resolution approve a proposal for increasing the county’s lodging tax rate for registered voters of unincorporated areas of the county to vote on.
She noted the matter would have to go to the ballot.
She also explained that if the county seeks to use lodging tax revenues for a specific purpose, that must be specified on the ballot, noting the county would need voter approval for specific allocations of those funds.
The deadline to have the issue put on the ballot is Aug. 11, Medina indicated.
She noted that going from roughly $500,000 to $1 million in lodging tax revenues is not a huge leap, “but it is additional funds” that could help with other needs in the community.
Commissioner Warren Brown commented that based on the numbers presented by Medina, an increase to 6 percent on the lodging tax rate would equate to approximately $1.5 million annual, explaining that he wants to be clear in that this is not going to solve the county’s road maintenance needs, though it would be something “that would help us.”
Brown also mentioned that the community has not been a “fan” of tax increases “for nearly anything,” but raising the lodging tax rate would transfer some of those “burdens upon visitors.”
He acknowledged that increasing the lodging tax rate may dissuade some visitors, but noted that lodging establishments in many metropolitan areas have higher tax rates and additional fees.
“We continue to go,” he added.
Brown mentioned that the county and community should give this “thorough consideration.”
Commissioner John Ranson also expressed support for a possible lodging tax increase, commenting, “I like the thought of this,” explaining that visitors would be paying their share for using the county’s infrastructure, specifically for roads.
Ranson mentioned that if the county were to move forward with proposing a lodging tax increase, he’d like to have specifics “nailed down” so that the community can see exactly what the money would be spent on.
Ranson also commented that the increase would translate to roughly $4 a night.
Ranson also expressed concerns with the county attempting to have the matter on the ballot for this year, noting that the county should be “well ahead” of where it is now in the process.
“That is a concern for me,” he said, noting he believes the issue could be approved by voters, but not within the given timeframe.
Ranson also noted that the going to the ballot next year may be challenging as well, considering other matters that may also be on the ballot, like a possible bond election for Archuleta School District.
Brown noted that it is not the county’s fault for being delayed on the ballot process as the bill was just recently approved by state legislation.
Medina added that the lodging tax increase would not be a tax on the county’s constituents, adding that she has been told by multiple constituents “this is an easy sell.”
She explained this would not be increasing property taxes or sales taxes, adding, “this is coming straight from the tourists when they stay here.”
Medina also mentioned that she would be open to considering raising the rate to 6 percent, and that this is an opportunity “that we should not shy away from.”
Medina acknowledged Ranson’s concerns about other ballot measures possibly coming in 2026, saying, “There is no way that I would want to be on the ballot next year.”
Medina also acknowledged that “there’s a lot to be done” if the county wants this on the ballot for this November’s election.
Brown commented that he would like a community survey distributed to see what the general consensus is amongst constituents on whether it’s a good idea or not for the county to go to the ballot this year.
Ranson suggested the BoCC hold a community meeting to specifically discuss the matter and inform the public on the possibilities of what uses the revenues could be used for.
In a later interview, Ranson explained the county is planning to have a public meeting in early August and have a survey distributed before then.
Tourism agreement
Following the conversation on raising the lodging tax rate, Medina informed the BoCC that during the last joint meeting between the BoCC and Pagosa Springs Town Council on May 19, it was agreed on replace the word “marketing” with “promotion” in the intergovernmental agreement (IGA) between the town and county regarding the tourism board.
Medina explained that state statute specifically says “advertising” and “marketing.”
“We have to call that out,” she added.
Medina went on to explain that “a lot of questions” have come up with a new lodgers’ association that has been formed, noting that the tourism board gets its direction from elected officials from the county and town.
Medina suggested that if constituents have questions about or concerns about how money is being spent or not spent, “I think they would be better served if they were to ask the electeds, versus Jennie (Green).”
Green is the executive director of tourism, employed by the town.
Medina also suggested that questions could be directed to Pagosa Springs Town Manager David Harris.
clayton@pagosasun.com
