Three western Colorado communities are seeking to support child care initiatives by raising new funds through lodging taxes paid by out-of-town visitors staying in hotels or short-term rentals. La Plata and Grand counties, along with the City of Montrose, have measures on the November ballot to allocate some of the lodging tax revenue to make child care more accessible and affordable for local residents.
The trend of using lodging taxes for child care emerged in Colorado after a 2022 state law allowed counties and local marketing districts to use these funds to support child care or housing with voter approval. Previously, lodging taxes were primarily used for tourism efforts. About a dozen counties, towns, or marketing districts in Colorado currently levy lodging taxes that can be used for child care initiatives.
La Plata County’s measure reallocates existing revenue from the tax to housing and child care, while Montrose seeks to increase the lodging tax rate to allocate funds for child care initiatives. Grand County is looking to boost the lodging tax rate and allocate a portion of the revenue to housing and child care services.
Local leaders in these communities recognize the importance of supporting child care in order to maintain a stable workforce and address the high costs of child care, which can consume a significant portion of family income. By utilizing lodging taxes for child care initiatives, these communities aim to address the pressing needs of their residents without increasing local taxes.
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