Residents of the newly incorporated town of Keystone will have the opportunity to weigh in on a potential lodging tax in this year’s election. 

The ballot measure asks voters if they support implementing a 2% lodging tax for any booking that is less than 30 consecutive days. If approved, the tax would kick in on Jan. 1, 2025, and the money collected from the tax would then be spent on capital infrastructure projects, U.S. Highway 6 safety and maintenance, improvements to streets and trails and public safety. 

Keystone Mayor Ken Riley offered some clarification on what the new lodging tax will do for the burgeoning town. 

One of the first things Riley made clear to those voting in Keystone is that the proposed 2% lodging tax is meant to replace the one that was in place before Keystone was recognized as a town. 

“When the town became incorporated, the county lodging tax was extinguished within the town limits effective July 1, 2024,” Riley said. “The proposed town 2% lodging tax will replace the former 2% county lodging tax.”

The county lodging tax supported issues in unincorporated areas under its jurisdiction. The proposed Keystone lodging tax can only be used for Keystone infrastructure as well as public safety and will be used only within town limits.

Riley and the Keystone Town Council estimates that the new lodging tax would bring in between $1.6 to 2 million annually. Although lodging rates have gone down throughout the county, Riley believes that the new tax would not deter visitors from booking within Keystone.

“Unlike other towns in Summit County, since incorporation, Keystone has seen a slight increase in sales tax revenue,” Riley said. “Even if the tax is approved by the voters, Keystone will still have a significantly lower tax burden than any of our comparable resort communities. If this is approved, the total tax on lodging in Keystone will be 8.35%. The total tax on lodging in other Summit County towns ranges from 12.28% to 19.875%.”

As a resident of Keystone himself, Riley understands local’s concerns about the proposed lodging tax. One of the main claims Keystone residents have made is that the town does not need a lodging tax to support the initiatives incorporation supporters have been campaigning on.

Riley addressed this claim as a person directly involved with the incorporation of the town. He said the incorporation committee was clear that if the town did not raise taxes that it could provide all the services at the level currently provided by the county and have a small surplus of $300,000 a year to address necessary infrastructure needs. Seeing only a small surplus on a yearly basis, Riley says the committee was also very clear that the town would need to increase lodging taxes in order to fully pay for future infrastructure projects. 

“Future lodging taxes were always part of the incorporation discussion,” Riley said. “The choice of a lodging tax was based on having the visitors to Keystone pay for the impacts they have on the community. This tax simply maintains the tax rate status quo, which existed prior to incorporation while allowing the town to accelerate infrastructure and public safety initiatives direly needed in Keystone to support both residents and visitors.”

Riley and fellow Keystone resident Carol Kerr, who serves on the Keystone Town Council — both view the lodging tax as a fundamental step in the future success of the town. 

“The lodging tax will allow Keystone to significantly accelerate fixes to Keystone’s infrastructure,” Riley said. “Since incorporation, the town has found that there are a significant number of matching grants from the state and federal government that the town may be able to receive if we have sufficient funds for the match to get these very expensive projects moving sooner rather than later.”

“I expect lodging tax funds to be committed to major projects,” Kerr said. “Keystone people have expressed interest in sidewalks, traffic control devices, trail connections and improvements and more. Around here, these infrastructure projects come with sticker shock. Next year’s comprehensive planning study will be the way that residents will sort out priorities for big projects.”

Riley urges Keystone residents to support the ballot measure because it will ultimately shape the town into a better place to “live, stay and play.”

“It will allow the town to begin implementing these projects years faster than originally anticipated,” Riley said. “This tax will not be paid by members of the Keystone community.”