The Town of Gypsum is presenting a ballot question on the November 5, 2024 ballot regarding implementing a lodging tax. If passed, a 3% lodging tax would be imposed on the purchase price of lodging within Gypsum, beginning January 1, 2025. The lodging tax is estimated to generate $198,000 in revenue in 2025. In subsequent years, revenue could exceed this amount in conformance with TABOR.
Purpose of the Tax
Revenue from this lodging tax could be allocated for the following purposes:
- Capital costs for roads, parks, and recreation facilities
- Support for Special Events
- Other uses as determined by the Town Council, that benefit both residents and visitors
Financial Implications
- The proposal indicates that revenues collected and any investment earnings would be treated as a voter-approved revenue change.
- Due to the Taxpayer’s Bill of Rights (TABOR), the Town of Gypsum cannot collect more revenue than specified in the ballot title ($198,000) in the first year. In subsequent years, there is no limit on the revenue the town can collect from the lodging tax.
- If Gypsum voters approve this municipal lodging tax, it will replace the county’s 2% tax currently assessed within the Town of Gypsum.
- The lodging tax would apply to all charges for hotels, motels, inns, bed & breakfasts, apartments, short-term rentals, campsites/campgrounds, and trailer parks. Exemptions apply to lodging for governments, charities and long-term rentals for residents. See the complete lodging definition in Gypsum Ordinance No. 08 (Series 2024) available at this link.
- Lodging taxes typically generate revenue primarily from visitors and tourists.
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