Hot Sulphur Springs residents will have two municipal questions on their ballot this election. The first is a use tax on construction materials, and the second asks voters to consider instituting a lodging tax. If approved, both taxes would be implemented beginning January 2025.
Both taxes would fund municipal services, including improving water and sewer infrastructure, as well as roads, according to Hot Sulphur Springs Town Clerk Katie LaDrig.
Because Hot Sulphur is a small community, there is not much sales tax generated by businesses to support infrastructure. For example, water and sewer services are only paid by residents’ water bills.
“We’re trying to find ways to raise funds to rebuild our infrastructure without overburdening residents,” LaDrig said.
The lodging tax would be paid overnight visitors — for example, those staying at the Hot Springs Resort would pay an extra 3% on their bill. The construction use tax will be paid by building contractors.
Ballot issue 2C – town lodging tax
Voters will be asked to approve a 3% lodging tax that would impact guests staying in hotels or short-term rentals. The new tax would fund projects and services addressing visitors impacts, as well as any other municipal purpose.
Currently, Hot Sulphur Springs is the only town in Grand County that does not have a lodging tax.
The ballot question includes a submitted statement in favor of the tax: “Travelers visiting our community have come to expect these added-on expenses associated with their travel plans — and there is no impact to the citizens of our Town as a result of voting ‘Yes’ for passage of this Initiative.”
No written comments against the ballot initiative, recommending a “no” vote, were submitted by deadline.
This lodging tax will only affect visitors who stay in hotels or short-term rentals. Hot Sulphur Springs Resort & Spa/Courtesy photo
Ballot Issue 2B – use tax on construction materials
Voters will be asked to approve a 4% tax for storing or using construction or building materials in the town. This tax increase could raise an estimated $200,000 annually. LaDrig said the tax could potentially raise more than this, depending on how many contractors build homes.
She added that the tax, if passed, will remain at 4% “for the foreseeable future.”
The ballot question includes a submitted statement against the tax: “This tax will place an unfair burden on the small number of people in our community who build or remodel their homes and businesses, while the revenue will be used to fund services (such as water and wastewater usage) that are used by all town residents. It is not reasonable to seek additional revenue from something that already costs those people too much money. Construction costs have risen significantly in recent years. Fewer and fewer people are able to afford decent homes in our community. This tax raises the cost of building by adding 4% onto the costs of building materials, an amount that would not otherwise be paid as long as a building permit is issued.”
No written comments in favor of the ballot initiative, recommending a “yes” vote, were submitted by deadline.
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