Clear Creek County Lodging Providers Unite in Opposition to Proposed Lodging Tax Increase

Clear Creek County Lodging Providers Unite
in Opposition to Proposed Lodging Tax Increase

For Immediate Release: September 15, 2026

Clear Creek County, CO, A diverse coalition of Clear Creek County lodging providers, including resorts, hotels, motels, short-term rentals, and campgrounds has formed the Clear Creek Lodging & Tourism Alliance to launch a "Vote No 1A" campaign after the Board of County Commissioners approved a 200% lodging tax increase ballot measure during the September 03, 2026 County Commissioners Meeting. The group’s unified position is that a 2%-6% rate increase, without an independent local economic-impact study, is like handing a check to the county to spend more while hurting local businesses.

“County Ballot 1A Lodging Tax Increase, if passed on November 03, 2026, will move the lodging tax from 2% to 6% (a 200% increase, more than triple!), during a period of high inflation and statewide declines in tourism,” the group said. “The measure was rushed onto the ballot without a true democratic process." While the County held Commissioner Town Hall events, no meaningful outreach was made to the local lodging industry, and many operators only learned of the proposal after ballot language had already been approved. Those who will be responsible for collecting and remitting this tax have had no voice in shaping it. Passing this increased tax onto already squeezed lodging operators will force them to increase their nightly rates, driving visitors to less expensive mountain destinations, making Clear Creek less competitive.

OPPOSITION AGAINST THE LODGING-TAX INCREASE!

Clear Creek County wants voter authority to triple its lodging-tax rate from 2% to 6%, the full rate now permitted by state law! This is not a modest adjustment. It is a 200% rate increase, requested without an independent local economic-impact study, and without a sunset date. It's handing a check to the county to spend more while hurting local businesses.

Overnight guests do more than rent rooms. They eat in local restaurants, tip servers and bartenders, buy groceries and fuel, shop in local stores, visit attractions, and hire local cleaners, contractors, and service providers. The county calls tourism its largest current industry. Even a small decline in overnight stays can mean fewer tables filled, fewer purchases, fewer tips, fewer work hours, and less sales-tax revenue for public services.

Why should voters let the County gamble with local jobs, tips, small-business sales, and existing tax revenue without first studying the consequences? The County has not shown voters a Clear Creek-specific analysis of how tripling the rate could affect bookings, visitor spending, jobs, tips, or existing tax collections. Asking voters to approve the full rate first and study the fallout later gets the order backwards.

No Blank Check for a 200% Tax Increase.

The County wants broad authority to spend this new money across multiple categories, which do not match voters’ stated priorities in the County’s own survey. Infrastructure ranked first and public safety second, while tourism marketing ranked last. Yet tourism is the primary driver of Clear Creek’s local economy, supporting local businesses, jobs, and sales-tax revenue.

The same survey found voters nearly evenly divided over whether the County spends taxpayer money wisely. Yet instead of first publishing documented visitor-service costs, results from current lodging-tax spending, and a detailed plan for every new dollar, the County is asking for a permanent tripling of the rate!

An annual audit is not enough. An audit reviews spending after the money is gone. It does not guarantee better roads, faster emergency response, lower administrative costs, or measurable results. Without a sunset or renewal vote, the County does not have to return to voters and prove the increase worked.

Don’t Triple the Tax. Demand a Better Plan.

Vote NO and require a smaller or phased tax increase approach, an independent economic-impact study, public performance benchmarks, and a sunset requiring voter approval.

A NO vote is not against public safety, housing, childcare, or making visitors contribute. It is a vote against tripling a tax without first protecting Clear Creek’s workers, small businesses, local economy, and taxpayers.

Key Concerns

Size and Timing

  • The jump from 2% to 6% is very large (200% increase).
  • There was no discussion on a phased approach of a 3-4% tax increase, which would allow for proper tourism impact studies.
  • Once enacted, the tax would be nearly impossible to roll back.
  • Waiting would let Clear Creek keep lodging prices more attractive, and allow a real public process that leads to a more thoughtful outcome.
  • During global economic uncertainty, adding discretionary costs should be avoided.

Process and Transparency

  • The tax increase proposal lacked a truly open public process and with no discussion on the negative impacts to tourism.
  • Lodging businesses were not consulted, and those paying the tax had no say before ballot approval.
  • The lodging community requests a transparent process and scaled approach to increasing lodging tax to monitor its impact.
  • There is significant uncertainty about how funds will be used because the measure casts too broad a net.

Allocation of Funds

  • The County says it needs funds to offset visItor impact, but can't provide data showing visitor vs. residence impact on County services.
  • Funds should directly benefit lodging and tourism. It does not make sense for lodging businesses and their guests to subsidize broad county needs.
  • Only 10% is guaranteed for tourism marketing, which is too little given its importance to the local economy.
  • A larger share should be directed to marketing and promotion to sustain visitation.
  • Roads and bridges are a community responsibility and should be funded broadly, not primarily by lodging guests.

Economic Impacts

  • Inflation is squeezing residents, employees, and businesses. This tax adds to that burden.
  • Tourism is down statewide. Higher lodging costs will push visitors to lower cost destinations and make Clear Creek less competitive.
  • Lodging businesses already face heavy tax and fee costs and operate on thin margins. Hotel rates are highly elastic, so operators will be forced to cut prices to meet customer expectations, further shrinking margins.
  • Clear Creek’s seasonal economy already makes year-round profitability difficult. This tax would add to that challenge.
  • Airbnb and other platforms recently raised host fees to 15.5%, compounding the impact on operators and visitors.
  • While the increase may look like “just 4 percentage points,” combined state, county, city, and lodging taxes approach 12%. That can shift dollars away from local payrolls and operations toward government receipts.
  • The proposal contemplates millions in new taxes each year. It is not accurate to say those paying will not care because each stay looks small. There is a real impact when taxes are raised, and money shifts from local businesses and employees to the government.

Background:

HB 25-1247- Last year the Colorado Legislature passed HB 25-1247, the County Lodging Tax Expansion bill. The law raised the maximum lodging tax counties can levy from 2 percent to 6 percent with voter approval and expanded allowed uses beyond tourism, housing, and childcare to include public infrastructure and public safety costs such as law enforcement, fire protection, and emergency medical services. While this creates flexibility, lodging providers are concerned it enables a broad general-fund approach that risks diverting dollars away from tourism marketing, the very sector generating the revenue.

For more information, please visit the VoteNo1A.tax website or contact info@voteno1a.tax