HB 25-1247
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1247: COUNTY LODGING TAX EXPANSION
Prime Sponsors:
Rep. Stewart K.; McCormick
Sen. Roberts; Simpson
Published for: Senate Local Govt. & Housing
Drafting number: LLS 25-0781
Fiscal Analyst:
Amanda Liddle, 303-866-5834
amanda.liddle@coleg.gov
Version: First Revised Note
Date: March 20, 2025
Fiscal note status: This fiscal note reflects the reengrossed bill.
Summary Information
Overview. The bill increases the allowed county lodging tax rate and expands the purposes for which
county lodging tax revenue may be used.
Types of impacts. The bill is projected to affect the following areas on a continuous basis:
Minimal State Workload Local Government
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
March 20, 2025 HB 25-1247
Summary of Legislation
Subject to local voter approval, the bill increases the allowed county lodging tax rate to
5 percent and expands the allowed uses of lodging tax revenue to the following additional
purposes:
public infrastructure maintenance or improvements; or
enhancing public safety measures by funding local law enforcement, fire departments, and
emergency medical services.
For counties that previously received voter approval before January 1, 2025, to allocate portions
of lodging tax revenue to different services, the bill clarifies how previously approved allocations
are preserved and how revenue attributable to an increase in the tax rate may be allocated by
the county.
Background
Under current law, counties may levy a county lodging tax up to 2 percent on the purchases of
lodging services including hotels, motels, condominiums, and camping spaces. Revenue from
the tax may be used for:
advertising and marketing local tourism;
housing and childcare for the tourism-related workforce; and
facilitating and enhancing visitor experiences.
Counties may seek voter approval to allocate portions of lodging tax revenue to be used for
other purposes.
County lodging taxes do not apply in municipalities that levy a lodging tax themselves. As of
December 2024, there are 35 counties and at least 105 municipalities that levy a lodging tax. Of
all the counties that levy a lodging tax, 31 of them levy the tax at the current maximum rate of
2 percent. Municipal lodging tax rates vary greatly by municipality, and there is no statewide
allowable maximum for cities and towns.
In 2023, the most recent year of available data, county lodging tax revenue totaled $15.9 million,
with reported annual county revenue collections ranging from $5,000 in Bent County to
$3.8 million in Summit County.
State Expenditures
Conditional on local voter approval of an increased lodging tax rate, the Department of Revenue
will have minimal additional workload to adjust local lodging tax rates; this work can be
accomplished within existing appropriations. Page 3
March 20, 2025 HB 25-1247
Local Government
Counties that seek and receive voter approval to increase their local lodging tax rate will see
increased revenue up to two and a half times the level of current allowed lodging tax revenue.
Municipalities that have a revenue sharing agreement with their respective county may also
receive additional revenue. In addition, due to the expansion of allowable uses of lodging tax
revenue, counties may have more operating and capital budget flexibility, potentially allowing
for expanded local services.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
Counties
Information Technology
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 the General Assembly website.