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Voters in three western Colorado communities approved lodging tax measures in Tuesday’s election that will send money to efforts aimed at making child care more affordable and easier to find.
The measures passed easily in La Plata and Grand counties and by a slimmer margin in the City of Montrose, according to unofficial election results.
With Tuesday’s lodging tax victories, the three communities join about a dozen others in Colorado’s mountain resort regions where voters have agreed to allow some lodging tax proceeds to be used for child care efforts. Often, the funding is used to help families pay for child care or to boost wages for teachers.
Lodging taxes have recently become an appealing way to generate new funding for local workforce needs such as housing and child care. That’s because of a 2022 state law that allowed Colorado counties and local marketing districts to use lodging taxes for these purposes if they get voter approval. Lodging taxes are often palatable for voters since they are generally paid by out-of-town visitors, not locals.
In La Plata County, where Durango is the county seat, the ballot measure approved Tuesday will reallocate 70% of lodging tax proceeds from tourism efforts to child care and housing. That shift could mean about $500,000 a year for local child care efforts.
Heather Hawk, executive director of the Early Childhood Council of La Plata County, said she was excited about Tuesday’s lodging tax victory, especially its nearly 70% approval rate. She said a group of local advocates will complete a strategic plan for the funding by the end of the year, but the final decision on how it will be distributed will rest with La Plata County commissioners.
Hawk said $500,000 a year is not a huge sum of money, but it will be a reliable stream that can help the county leverage grants and other funding sources that require local dollars. She said the money may help with efforts such as financing construction of a new child care center or boosting wages for hard-to-retain infant and toddler teachers.
Hawk said the money may also help parents with babies and toddlers cover the cost of child care. Infant care can cost up to $21,000 a year in the county, she said.
“We know that we have a serious affordability gap in our community, especially for families that are working in the tourism industry,” said Hawk. “They often are making too much to qualify for child care subsidies or Head Start, but not enough to really afford the cost of care.”
Grand County’s lodging tax measure passed with about 60% of the vote on Tuesday. It will boost the county’s existing lodging tax from 1.8% to 2% and allow the county to use 30% of the proceeds — or about $675,000 a year — for housing, child care, or services that benefit visitors.
A county official previously told Chalkbeat how the money is spent could vary from year to year, with a housing initiative one year, a child care initiative the next, and so on.
Voters in the City of Montrose, the largest city in Montrose County, agreed to raise the hotel room tax from .9% to 6% Tuesday, with 52% of voters in favor of the measure. Of the revenue from that tax, 17% — or about $158,000 a year — will go toward child care initiatives. The rest will fund street maintenance, affordable housing, and tourism services.
A city official previously told Chalkbeat the city would likely draft a plan for spending lodging tax money dedicated to child care by next spring. One of the greatest needs in the area is for more child care slots, he said.
Ann Schimke is a senior reporter at Chalkbeat, covering early childhood issues and early literacy. Contact Ann at aschimke@chalkbeat.org.
