Lodging tax

30-11-107.5. Lodging tax. (1) In accordance with the procedures set forth in this section, the board of county commissioners of each county, for one or more of the purposes specified in subsection (1.5) of this section, may levy a county lodging tax of not more than six percent on the purchase price paid or charged to persons for rooms or accommodations as included in the definition of sale in section 39-26-102 (11); except that the tax does not apply within any municipality levying a lodging tax. (1.5) (a) Subject to the limitation set forth in subsection (1.5)(b) of this section, a county board of commissioners may levy the tax specified in subsection (1) of this section for the purpose of: (I) Advertising and marketing local tourism; (II) Housing and childcare for the tourism-related workforce, including seasonal workers, and for other workers in the community; (III) Facilitating and enhancing visitor experiences; (IV) Public infrastructure maintenance or improvements; or (V) Enhancing public safety measures by funding local law enforcement, fire protection services, and emergency medical services. (b) If, after January 1, 2022, there is a new lodging tax created or the allowable uses of an existing lodging tax are expanded in accordance with subsection (3)(a.5) or (3)(a.7) of this section, at least ten percent of the lodging tax revenue must be used for the purpose of advertising and marketing local tourism. (2) (a) The county lodging tax shall be collected, administered, and enforced as specified in part 2 of article 2 of title 29. (b) The department of revenue shall perform, on an annual basis, an analysis to determine the net incremental cost of such collection, administration, and enforcement. The department of revenue shall retain only the amount determined to be necessary by the cost analysis, and in no event shall that amount exceed three and one-third percent of the amount collected. Such amount retained shall be transmitted to the state treasurer, who shall credit the same to the general fund, and such amount shall be subject to appropriation by the general assembly for the net incremental cost of such collection, administration, and enforcement. (c) Any person or entity providing rooms or accommodations as included in the definition of sale referred to in subsection (1) of this section is liable and responsible for the payment of an amount equivalent of up to six percent of all such sales made and shall quarterly, unless otherwise provided by law, make a return to the executive director of the department of revenue for the preceding tax-reporting period and remit an amount equivalent up to the said six percent on such sales to said executive director. (3) (a) The board of county commissioners may, by resolution, approve a proposal for a county lodging tax or to increase the rate of an existing lodging tax; thereupon, such proposal for the county lodging tax or increased rate shall be referred to the registered electors of the unincorporated areas and the municipalities subject to the lodging tax at a general or a coordinated election. (a.5) If, prior to January 1, 2022, the voters of a county approved a county lodging tax for the purpose of advertising and marketing local tourism, the board of county commissioners may, by resolution, approve a proposal to allow the county lodging tax revenues to also be used for any of the additional purposes specified in subsection (1.5)(a)(II) or (1.5)(a)(III) of this section. The county shall refer the proposal to the registered electors of the unincorporated areas and the municipalities subject to the lodging tax at the next general or coordinated election. (a.7) If, prior to January 1, 2025, the voters of a county approved a county lodging tax for the purposes specified in subsection (1.5)(a)(I), (1.5)(a)(II), or (1.5)(a)(III) of this section, the board of county commissioners may, by resolution, approve a proposal to allow the county lodging tax revenues to also be used for any of the additional purposes specified in subsection (1.5)(a)(IV) or (1.5)(a)(V) of this section. The county shall refer the proposal to the registered electors of the unincorporated areas and the municipalities subject to the lodging tax at the next general or coordinated election. (b) (I) A proposal for a county lodging tax under subsection (3)(a) of this section must contain a description of the proposed tax, must state the amount to be imposed, and must describe any municipality within the county that has such a tax and is therefore excluded from the election proposed in subsection (3)(a) of this section and any resulting lodging tax. (II) If any additional lodging tax or statewide tax on lodging facilities is enacted or levied after January 1, 1987, which in combination with the lodging tax authorized by this section exceeds six percent, the tax under this section shall be reduced by that amount that the total tax exceeds the six percent maximum specified in subsection (1) of this section. (c) Repealed. (d) No public moneys from any source shall be expended directly or indirectly to urge electors to vote in favor or against the imposition of the lodging tax. Nothing in this paragraph (d) shall be construed as prohibiting an elected official from expressing his personal opinion concerning the imposition of the lodging tax. (e) Upon the adoption of the resolution by the board of county commissioners approving a county lodging tax proposal in accordance with subsection (3)(a) or (3)(a.5) of this section, the county clerk and recorder shall publish the text of the proposal four separate times, a week apart, in a newspaper of general circulation within the county. The cost of the election must be initially paid out of the general fund of the county. If the county lodging tax is approved, the general fund of the county must be reimbursed out of the county lodging tax fund described in subsection (4)(a) of this section. The conduct of the election shall conform, so far as practicable, to the general election laws of the state. (f) (I) If a proposal for a county lodging tax or an increase in the rate of an existing lodging tax under subsection (3)(a) of this section is approved by a majority of the registered electors from the municipality or unincorporated area subject to the lodging tax voting thereon, the county lodging tax or increased rate becomes effective as provided in part 2 of article 2 of title 29. If a proposal to expand the allowable uses under subsection (3)(a.5) or (3)(a.7) of this section is approved by a majority of the registered electors from the municipality or unincorporated area voting thereon, the county may also use the lodging tax revenue for any of the additional approved uses as specified in subsection (1.5) of this section (II) If a majority of the registered electors voting thereon fail to approve the county lodging tax, the question shall not be submitted again to such electors for a period of one year following the date of said election. (g) If a county seeks to use lodging tax revenue for a purpose specified in subsection (1.5)(a) of this section, then the ballot issue authorizing the use must specify how the county will spend the lodging tax revenue under either subsection; except that this requirement does not apply if a county seeks to use lodging tax revenue for the purpose of advertising and marketing local tourism set forth in subsection (1.5)(a)(I) of this section. (h) (I) If, prior to January 1, 2025, voters of a county approved specific allocations of lodging tax revenue for designated purposes and the county subsequently seeks voter approval to increase the rate of the existing tax, the previously approved allocations are preserved as follows: (A) The dollar amount or percentage of the lodging tax revenue dedicated to voter-approved purposes under the tax rate in effect at the time of the voter approval remains in effect as a baseline regardless of any subsequently approved tax rate increase or approval of additional allowable uses. Any additional allocation of revenue pursuant to subsection (3)(h)(II) of this section does not reduce or otherwise affect the baseline allocation preserved in this subsection (3)(h)(I). (B) The preserved allocation set forth in subsection (3)(h)(I)(A) of this section is calculated based on the tax rate in effect at the time of voter approval, regardless of any subsequent increase in the overall tax rate. (II) A county that receives voter approval for an increase in the tax rate after January 1, 2025, in accordance with subsection (3)(a) of this section and that before January 1, 2025, received voter approval to specifically allocate lodging tax revenue under a lower rate may allocate the revenue attributable to the difference between the previously approved lower rate and the newly approved increased rate for any purposes allowed in subsection (1.5)(a) of this section including the designated purposes that previously received voter approval for specific allocations of lodging tax revenue under the tax rate at the time of that voter approval. The county must be able to clearly delineate the amount of lodging tax revenue that is specifically allocated in accordance with prior voter approval based on the tax rate at the time of that voter approval, any additional allocations the county makes to the purposes that received voter approval for the specific allocations, and allocations of lodging tax revenue for additional purposes specified in subsection (1.5)(a)(IV) or (1.5)(a)(V) of this section that the county receives voter approval for in accordance with subsection (3)(a.7) of this section. (III) Nothing in this section prevents a county from seeking voter approval to modify previously approved specific allocations of lodging tax revenue for the allowed purposes set forth in subsection (1.5)(a) of this section. (4) (a) All revenue collected from such county lodging tax, except the amounts retained under subsection (2) of this section, shall be credited to a special fund designated as the county lodging tax fund, hereby created. The fund shall be used only for the purposes approved by voters and to reimburse the general fund of the county for the cost of the election in accordance with subsection (3)(d) of this section. No revenue collected from such county lodging tax shall be used for any capital expenditures, with the exception of capital expenditures for the purposes set forth in subsection (1.5)(a) of this section. (b) Upon approval of a lodging tax for the purpose of advertising and marketing local tourism by the electors pursuant to this section, the county commissioners shall select a panel of no less than three citizens to administer the lodging tax fund; except that, if the money in the fund may also be used for any other purpose, then the panel shall only administer the portion of the fund that the board of county commissioners identifies as being available for advertising and marketing local tourism. The county commissioners shall appoint members from the tourism industry within the municipalities or unincorporated areas from which the lodging tax is collected. Where there is an established and proven marketing entity within the county formed for the purpose of advertising and marketing tourism, the panel is encouraged to use that entity, and that entity shall provide an accounting to the panel and to the county commissioners. (c) The panel, to the extent feasible, shall advertise and market tourism for the benefit of those unincorporated areas and municipalities from which the lodging tax originated. (5) Nothing provided in this section shall in any way prohibit municipalities and counties from cooperating to create countywide uniform lodging taxes with voluntary abandonment of municipal lodging tax ordinances. (6) Repealed. Source: L. 87: Entire section added, p. 1203, � 1, effective May 6; (3)(a) amended and (3)(c) repealed, p. 1207, �� 1, 2, effective June 20. L. 90: (6) repealed, p. 1453, � 1, effective April 3. L. 91: (3)(b)(II) amended, p. 713, � 1, effective March 12. L. 94: (2)(b) amended, p. 317, � 1, effective March 29. L. 2022: (1), (3)(b)(I), (3)(e), (3)(f)(I), (4)(a), and (4)(b) amended and (1.5), (3)(a.5), and (3)(g) added, (HB 22-1117), ch. 62, p. 315, � 4, effective August 10. L. 2024: (2)(a) and (3)(f)(I) amended, (SB 24-025), ch. 144, p. 567, � 19, effective July 1, 2025. L. 2025: (1), (1.5)(a)(II), (1.5)(b), (2)(c), (3)(a), (3)(a.5), (3)(b)(II), (3)(f)(I), (3)(g), and (4)(a) amended and (1.5)(a)(IV), (1.5)(a)(V), (3)(a.7), and (3)(h) added, (HB 25-1247), ch. 187, p. 826, � 1, effective May 13. Cross references: For the legislative declaration in HB 22-1117, see section 1 of chapter 62, Session Laws of Colorado 2022.