Punitive and Risky 20-year 9% STR Tax Heading to November 2022 Ballot

On Tuesday, July 19, City Council passed the second and final reading of the revised proposed STR tax with the updated language reading as follows:  

An ordinance for the purpose of submitting to a vote of the electors of the City of Steamboat Springs, Colorado the question whether the City should impose a tax on short-term rental accommodations for a period of twenty (20) years at a rate of 9% and dedicate the proceeds for the purpose of increasing the stock of affordable and attainable housing at locations including, but not limited to, Brown Ranch by providing incentives, contributions, and funding infrastructure associated with affordable and attainable housing, including, without limitation, energy, stormwater, water, wastewater, and multi-modal transportation; setting a hearing date; and providing an effective date.

The first reading of the ordinance passed 5 – 1 with only Councilman Buccino opposing. The second reading passed 6 – 1 with only Councilman Buccino opposing. 

THREATS:

• With a recession predicted, this is very bad timing for a tax of this magnitude, which will affect demand for the destination of Steamboat.

• Steamboat’s reputation as a family-friendly and more affordable destination will be tarnished when the word spreads through social media and news that Steamboat is gouging its customers.

• All businesses will experience a decline in business as a result of this tax. A small decline in demand will cost the community significantly more than the tax revenues that will be raised. 

• We need a balanced funding solution that does not harm jobs and local businesses. 

• We cannot afford to have a lodging tax (20.4%) that is double that of neighboring resorts like Vail (9.8%).

• 20 years is too long and too risky. The world economy is volatile, and a tax of 20.4% will damage tourism and businesses that have taken generations to build.

ACTION:

• We intend to take action to oppose this ballot measure in any way possible
• Sign up for updates and let us know if you can help
• We will be mobilizing a City-wide campaign and could use your help to spread the word
• We will work on a solution that does not risk our economy once this is defeated.

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