Ballot Issue 1A in Colorado mountain county would double lodging tax to fund child care shortcomings

Voters in Eagle County will soon decide whether to double the county's lodging tax from 2% to 4%. It's a move that would help fund mostly child care, but it would also support housing and public safety for locals working in the valley as well.

Ballot Issue 1A would raise the county's lodging tax on short-term rentals and hotel stays in unincorporated Eagle County and the town of Gypsum. The measure would not apply to the mountain towns of Avon, Basalt, Eagle, Minturn, Red Cliff or Vail, which already have their own lodging taxes.

Under the proposal, 90% of the roughly $4.5 million raised annually would go toward child care costs for the local workforce, as well as first responder support. The remaining 10% would fund tourism marketing.

Commissioner Jeanne McQueeney, who is in favor of the proposition, said the increase focuses on two major issues driving locals out of the mountains -- housing and child care.

"Year after year, we have an outflow of residents in their thirties," McQueeney said. "When it's time to start a family, that's when they leave. It's housing and child care that's forcing this outflow of our residents."

McQueeney said the county's first 2% lodging tax that was approved in 2022 funded stipends for child care providers to the tune of $500 a month for full-time employees. That helped reopen classrooms and retain staff. The new focus will center on those using that stabilized childcare. 

"We've now stopped the outflow of childcare providers," McQueeney said. "Now, this next 2%, we're hoping what we'll be able to do is create ways to lower the cost for families."

McQueeney argues the measure won't add costs for locals since visitors largely pay the tax. 

"It recognizes that the visitors are paying this tax," McQueeney said. "They're really helping to support high-quality visitor experiences by supporting the workforce."

However, not everyone agrees. In a Vail Daily opinion letter, Howard Fleishon, the Beaver Creek Property Owners Association president, urged voters to reject the measure. He warned it could increase costs for short-term rental hosts and drive away visitors.

"Higher lodging costs mean fewer visitors, harming small businesses, reducing sales tax and undercutting the very services Prop 1A is supposed to support," Fleishon wrote.

Still, McQueeney believes Ballot Issue 1A offers a sustainable path forward. 

"We don't want to impact the tourists' ability to come here," McQueeney said, "But we do want to take really good care of them when they're here."

The full ballot language and details on how to submit public comments are available on the Eagle County website, and more information can be found about mountain community lodging taxes in the complete guide to Colorado's state and local elections in November.