Town of Dillon voters approve lodging-related taxes but workforce housing ballot question remains too close to call
Voters in the town of Dillon approved two lodging-related taxes, but a third ballot issue to address a workforce housing shortage was too close to call as of print deadline, according to a second batch of results posted at 9:30 p.m. Tuesday, Nov. 8.
Ballot Issue 2A, which would implement a 4% excise tax on lodging, saw 252 people voted yes while 140 residents voted no. Ballot Issue 2B, a 5% short-term rental tax, recorded 255 supporting votes and 138 votes to reject it. Ballot Issue 2C, which would allow sales and use taxes to support workforce housing and let the town increase its debt, received 213 votes for approval and 175 in rejection of the measure.
Ballot Issue 2A
Ballot Issue 2A aims to bring funding for projects and address essential town of Dillon infrastructure needs through the 4% excise tax on lodging within town limits. Because it is a tax on lodging, folks visiting Dillon and staying in hotel or rental unit will pay the tax, instead of Dillon voters.
Dillon officials said the initiative will help the town maintain a safe, healthy and vibrant community through improvements to public safety, street improvements, parking improvements and town center redevelopment.
Ballot Issue 2B
This new tax will help fund the town’s infrastructure needs and provide recreation opportunities to the community, town officials say.
Like ballot issue 2A, most Dillon voters will not be paying the tax. Rather, it will be paid by short-term visitors who rent housing.
Visitors renting a room or accommodations for 30 days or less will have to pay the tax, except for visitors renting rooms in a hotel, motel, bed and breakfast, dormitory, group home or a time shared interval unit.
The passing of the issue will also allow Dillon to fall in line with many other communities who impose short-term rental taxes in order to pay for the expenses of the service created by visitors.
The tax revenue received annually will help address recreation, public safety, street improvements, parking improvements, town center redevelopment and any other governmental purposes approved by the Dillon town council, according to the ballot issue’s text.
Ballot Issue 2C
Ballot Issue 2C addressed the financing of workforce housing in Dillon.
If the ballot measure passes, the 0.125% and the 0.6% existing sales and use taxes will be used to pay for workforce housing projects in the town of Dillon.
Workforce housing has been a hot-button topic throughout Summit County and the Western Slope as rent and home prices continue to increase along with the number of short-term rentals and growing number of second-home owners.
The ballot issue is aimed at helping address the lack of workforce housing in Dillon without residents paying any additional taxes. The issue would also increase the town of Dillon debt to $20 million with a maximum repayment cost of $35 million.
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