The Crested Butte News Serving the Gunnison Valley since 1999
Only applied to residential units
by Kendra Walker
The Mt. Crested Butte town council is moving forward with a November ballot measure proposing a 5% short-term rental (STR) excise tax increase applied exclusively to residentially assessed properties. This proposed increase is to the current 4.9% excise tax in place that applies to both residential and commercial STR units. The tax, which is paid by STR guests, goes toward the town’s community housing fund and the council’s hope is that if voters pass the increase in November it will help the town with better capacity to fund future workforce housing projects and initiatives.
During their July 21 meeting, the town council debated a 5% increase across all STRs or a 5% increase targeted only at residential properties. Council members Steve Morris and Roman Kolodziej initially leaned toward a uniform tax across all properties.
Council member Bruce Nation argued that residential short-term rental homes should bear the increase to avoid giving them an unfair advantage over commercial lodging like hotels, which also pay commercial taxes.
“Are we essentially penalizing commercial companies acting in a commercial way vs. commercial companies that are paying residential taxes, “ he said.
Nation continued, “An Airbnb is no different than a small hotel, but they get taxed significantly less.”
Nation also emphasized the council’s desire to encourage more STRs closer to the base area near transit and town amenities vs. Airbnbs operating in residential neighborhoods and impacting neighbors’ quality of life. “Airbnbs are in neighborhoods where we’d prefer housing to be. I don’t want to give them an advantage over a hotel. Affordable housing is a problem that has nothing to do with hotels.”
Mayor Nicholas Kempin reiterated that the funds raised from the excise lodging tax are solely dedicated for the town’s housing fund to address unmet affordable housing needs, and not going into the town’s general fund.
Town manager Carlos Velado told the council the town might need to consider a sales tax increase to pay for roads or other needed town projects in the future. “We might need to go to voters to raise sales tax. Maybe take that into consideration as you consider this,” he said, noting that the increase might impact how voters consider another tax increase in the future.
Nation made a motion to move forward on ballot language for a 5% increase on residential STR units only, and it passed in a split vote with Nation, Morris and Kempin voting in favor and Kolodziej and council member Bobbie Sferra voting against. Council members Alec Lindeman and Valeda Scribner were not in attendance. The council plans to continue polishing up the ballot language and must approve the final language for the county by early September.
Additionally, three council seats are opening up this November, and interested Mt. Crested Butte residents are encouraged to run for office. Town clerk Tiffany O’Connell said candidates must obtain a nomination petition at town hall and submit it back to her by 5 p.m. on August 24.
