The Crested Butte News Serving the Gunnison Valley since 1999
Council split
By Kendra Walker
The Mt. Crested Butte town council will be asking its constituents to consider an increase to the town’s current excise lodging tax on vacation rentals to help replenish its affordable housing fund and allow the town to actively pursue upcoming housing projects.
During their August 6 meeting, the split council settled on ballot language for the November election to increase the town’s excise tax that goes to affordable housing by 2%. The council will consider a resolution formally approving the ballot language at their August 20 meeting.
The current excise lodging tax for the town’s affordable housing fund is 2.9% and part of the 16.8% total required Mt. Crested Butte lodging taxes. There are currently 737 active short-term rentals in the town of Mt. Crested Butte. If passed by voters, the additional 2% would bring the total excise lodging tax on vacation rentals to 4.9%, which would all be collected for the town’s affordable housing fund.
As previously reported in the Crested Butte News, the town’s affordable housing fund is currently committed to paying for the Homestead affordable housing development over the next five years and the town does not have enough funds to support any other affordable housing projects or initiatives.
Council members Dwayne Lehnertz, Janet Farmer and Michael Bacani have consistently voted against putting the excise tax increase on the ballot. Bacani was not at the August 6 meeting, nor was council member Alec Lindeman, who has previously advocated for a substantial increase in order to make an impact on housing for the community.
Councilmember Steve Morris suggested putting a sunset on the tax increase. “We see housing studies and consultants coming in with tons of different numbers about what metrics need to be met. I think having a sunset allows for revisiting these rates,” said Morris, noting the different housing projects in the valley currently in motion or in the works. He suggested a 10-year sunset. “I like a sunset and think it’s important. I don’t like anything related to taxes that’s open ended. I think they should be revisited in different social and economic climates.”
“I honestly don’t think in 10 years we’re going to be out of this situation, but I’m with you in trying to make it more appealing to our taxpayers,” said mayor Nicholas Kempin.
The council ultimately decided that a sunset on the tax could limit the town’s abilities to leverage the money for bonds or go after larger, long-term projects.
“For me it would be a lot easier to approach this by knowing what’s our end game and then working our way backwards,” said Lehnertz. “What is the number of units that we are going to commit to developing and then working backwards from that.”
“I don’t know how we get to that number,” said Kempin. “Even if we did know that number how would we know what they cost?”
“Unfortunately, the number you’re searching for is impossible to nail down,” said councilmember Roman Kolodziej. “It’s going to be a mismatch of a number of things and programs that we can be a part of.”
“I think any amount, even if small, does something,” said Kempin. “I view this ballot initiative as taking the temperature of our community. To me a modest tax increase is not offensive and allows voters to decide if (housing) is as important to them as much as it is to us.”
The council will consider the final ballot language for approval at the August 20 meeting.
In addition to the excise tax increase question, Mt. Crested Butte also has four seats opening up on the town council and the November ballot will include a town council election if more than four eligible candidates file petitions.
The deadline to return nominaion petitions to town hall is August 26.
