HB 25-1247

House Bill 25-1247, also known as the County Lodging Tax Expansion, allows counties in Colorado to increase their lodging tax from a maximum of 2% to 6%, but only if local voters approve it. The extra money collected can be used for maintaining and improving public infrastructure or enhancing public safety measures like funding law enforcement, fire protection, and emergency medical services. If a county had previously received voter approval to use the existing lodging tax revenue for specific purposes before January 1, 2025, this bill ensures those allocations are protected while allowing new funds from the increased rate to be used flexibly as needed by the county. The bill has been signed into law and is now in effect.

Official Summary

Subject to local voter approval, the act increases the maximum allowed rate of a county lodging tax levied on the purchase price paid or charged to persons for rooms or accommodations from 2% to 6% and expands the allowed uses of lodging tax revenue to include: Public infrastructure maintenance or improvements; or Enhancing public safety measures by funding local law enforcement, fire protection services, and emergency medical services. 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 act 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. (Note: This summary applies to this bill as enacted.)

Related Legislation

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