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January 23, 2024 SB 24-024
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0381
Sen. Bridges; Van Winkle
Rep. Kipp; Taggart
Date:
Bill Status:
Fiscal Analyst:
January 23, 2024
Senate Finance
Amanda Liddle | 303-866-5834
amanda.liddle@coleg.gov
Bill Topic: LOCAL LODGING TAX REPORTING ON SALES RETURN
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill aligns reporting requirements related to remittance of a local lodging tax to
reporting requirements for remittance of other local taxes. It minimally increases
state workload and may increase or decrease expenditures for local governments.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, which was recommended by the Sales and
Use Tax Simplification Task Force.
Summary of Legislation
The bill requires local taxing jurisdictions—including any home rule locality—to apply the same
standards to an accommodation intermediary as to a marketplace facilitator that is obligated to
collect and remit a local lodging tax. It also prohibits local taxing jurisdictions from requiring
additional reporting information from accommodation intermediaries that are not similarly
required from other marketplace facilitators. The bill declares standardized reporting
requirements to be a matter of statewide concern.
Background
Accommodation intermediaries and marketplace facilitators. An accommodation
intermediary facilitates the sale of an accommodation unit—such as a short-term rental unit,
hotel room, or other lodging unit—and is not the accommodation provider itself. Similarly, a
marketplace facilitator facilitates the sale of a seller’s product and is not the seller itself.
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January 23, 2024 SB 24-024
State lodging taxes. The state does not impose a lodging tax, although the state sales tax is
imposed on lodging. Because it is part of the state sales tax base, lodging is also subject to sales
tax in local governments and special districts that have state-collected sales taxes.
State-collected and state-administered local lodging taxes. There are two types of lodging
tax districts that are in state law: local marketing districts and county lodging tax districts. The
Local Marketing District Act allows counties and municipalities to create local marketing districts
either by themselves or as a group. There are currently six local marketing districts with lodging
tax rates ranging from 1.4 percent to 5.5 percent. Separately, any county in the state may
impose a county lodging tax up to 2.0 percent. There are currently 33 counties with a lodging
tax. Both types of tax are collected and administered by the Department of Revenue. Revenue
generated by each type of tax has limitations on its use.
Other local lodging taxes. In Colorado, home-rule municipalities can impose lodging taxes
under their own authority, setting both the tax base and rate, and locally administering and
collecting the tax.
State Expenditure
The bill minimally increases workload in the Department of Local Affairs (DOLA) to provide
technical assistance, upon request, to counties or municipalities that have formed a local
marketing district and/or levy lodging taxes concerning implementation of the bill’s
requirements. This workload can be accomplished within existing appropriations.
Local Government
The bill’s provisions regarding reporting requirements and audit activities may impact local
government workload, depending on current local practices. To the extent that a local entity
relies on extensive reporting information from lodging taxpayers, the change to reporting
requirements may impact the locality’s licensing and regulation processes, driving administrative
changes and/or the elimination of existing processes.
Effective Date
The bill takes effect January 1, 2025, assuming no referendum petition is filed.
State and Local Government Contacts
Counties Local Affairs Municipalities
Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.