Midvalley voters will weigh in on one of a set of tax questions on Nov. 4, testing voters’ willingness to impose higher taxes on visitors for various public services.
Elected officials in both the town of Basalt and Eagle County voted to put a 2% lodging tax on this year’s ballot.
If the county’s ballot measure 1A passes, the total lodging tax would rise to 4% in unincorporated Eagle County. If the town’s ballot measure 3A passes, Basalt’s lodging tax would hit 6%.
Revenue from 1A could bring in up to $9 million in its first year for Eagle County. Per ballot measure language, 90% of the funding would go toward child care for the local workforce, public safety enhancements, fire protection and emergency medical services. Ten percent would go to advertising and marketing for local tourism.
According to Vail Valley Economic Development, a regional business group, about 20% of Eagle County’s population lives in the Roaring Fork Valley in and around El Jebel.
Eagle County Commissioner Jeanne McQueeney said that none of the potential revenue has been preemptively split and that anyone in the Roaring Fork Valley’s share of unincorporated Eagle County is as eligible to the funds as the Eagle River Valley, which runs from Dotsero to Vail.
The town of Basalt’s tax increase would yield no more than $300,000 in its first year. Unlike the county’s measure, 3A is dedicated solely to affordable housing efforts.
It’s a small dollar amount compared to the town’s growing real estate costs, but proponents of the ballot question say it’s worth it.
Hannah Berman, a Basalt council member, said she does not think either ballot measure will solve the affordability issues, but putting the tax burden on visitors is the right approach — and the time is now.
“I feel like the cost of waiting is increasing,” Berman said. “The longer it takes us to go after affordable housing or climate or child care, the more expensive those problems get to fix, and I think it's up to the community to decide whether this is something that's worth putting some money towards or not.”
The Basalt municipal boundary includes the Willits Town Center side of Highway 82, which means taxes on either side of the highway could even out or become drastically different, depending on the outcome of the election.
The Hoffmann Hotel is in unincorporated Eagle County, and the Element Basalt-Aspen is in the town of Basalt. If Eagle County’s tax question passes and the town of Basalt’s fails, lodging taxes would be equal at each hotel. Conversely, if Eagle County’s tax question fails and Basalt’s passes, the Element’s taxes could be triple the Hoffmann’s.
Kris Mattera, president and CEO of the Basalt Chamber of Commerce, said while there are greater macroeconomic trends affecting tourism in the region, these potential outcomes for the two ballot measures could play out in interesting ways.
“It'll be something to watch in terms of occupancy,” she said. “This is not going to be a controlled experiment. There's too many variables at play, and I think we're just going to try to gauge what the general sense and mood is among both the lodgers and our visitors coming to the area.”
According to Tracer, the issue committee opposing the Eagle County’s measure, Citizens For A Healthy Tourism Economy, have outspent their opponents Yes On 1A: Visitors Can Help, largely with funding from Beaver Creek Resort Company.
Citizens For A Healthy Tourism Economy group reported $45,728 in spending during the last reporting period from Oct. 9–22.
Yes On 1A reported spending $4,750 between Sept. 25 and Oct. 9, but they have not reported any further expenditures since then.
Money doesn’t appear to be flowing on the Roaring Fork Valley side for either ballot question.
Basalt’s ballot question 3A hasn’t drawn much attention, despite a controversial town council vote earlier this year to impose an annual $2,500 fee per bedroom on short-term rentals.
There are no official committees supporting or opposing Basalt’s ballot question, and the town did not receive any pro or con statements for election materials.
Editor's Note: Editor's note: A previous version of this story incorrectly stated the maximum revenue from ballot question 1A.
