In a unanimous vote at their special meeting on January 31st, the Chaffee Board of County Commissioners approved directing a portion of the Lodging Tax Reallocation Fund to the Chaffee Housing Authority.
In 2023, the CHA will receive $260,000 from these restricted-use funds. This funding will be utilized to support CHA’s affordable housing programs and to provide collateral for debt service on the Jane’s Place 17-unit housing project being constructed in Salida this year. In future years, the contribution from the Lodging Tax Reallocation Fund to CHA is planned to increase to as much as $300,000-$350,000, subject to lodging tax funds’ availability and TABOR restrictions, and will taper down over time. The BOCC’s planned yearly financial commitment to CHA represents approximately 25-30% of the estimated total annual Lodging Tax that comes into Chaffee County.
The Chaffee County Lodging Tax Reallocation Fund was established in late 2022 following voter approval of a local ballot measure that allows for up to 60% of the total excise tax revenues collected from short-term lodging county-wide to be redirected to affordable housing, childcare, and enhancing visitors’ experiences in the community. State legislation passed in 2022 (House Bill 22-1117) authorized this expansion of local lodging tax use through an amendment to Colorado Revised Statutes (CRS) § 30-11-107.5. A minimum of 40% of annual Lodging Tax revenues will continue to be channeled directly to the Chaffee County Visitors Bureau (CCVB) each year to support tourism marketing.
In addition to the CHA support provided in this fiscal year, the BOCC has approved up to $270,000 of the 2023 Lodging Tax monies to fund staffing of the Chaffee County Recreation Rangers program, which hires seasonal field staff to educate visitors on responsible recreation through partnerships with Arkansas River Headwaters Area – Colorado Parks and Wildlife, United States Forest Service – Salida Ranger District, and the Bureau of Land Management – Royal Gorge Field Office. The Rec Rangers positions were also previously funded by Lodging Tax revenues in 2022 that were passed through the CCVB.
After 2023, the BOCC has not directed the remaining Lodging Tax to a specific area or organization, beyond the 25-30% that is intended for the Chaffee Housing Authority’s housing-support efforts and the minimum 40% dedicated to the Chaffee County Visitors Bureau. The BOCC intends to build a fund balance with these unallocated amounts that can be leveraged for future affordable housing projects, childcare supports, special tourism-related needs, and other community priorities that fit within the allowable uses for the Lodging Tax revenues.
Chaffee County voters originally approved a 1.9% local lodging tax in 1988, authorized by CRS § 30-11-107.5 as first codified in 1987. This lodging excise tax is collected from all hotels, motels, guest ranches, campgrounds, short-term rentals and similar accommodations in all areas of the county, including Buena Vista, Poncha Springs, and Salida. Chaffee County is one of 33 counties and 6 local marketing districts in Colorado that levies this type of lodging services tax. Chaffee County voters approved the current expanded use of these revenues through Chaffee County Ballot Question 1A in November, 2022, with >63% of voters voting yes on the proposed measure.
