City of Boulder 2A – Public Accommodations Tax

The city of Boulder proposes increasing the special tax on lodging from 5.5% to 7.5%. The increased revenue (about $1 million in the first year) would go into the general fund, but the city council would like to use up to 20% of the new money to promote tourism. (Nine percent of the current lodging tax goes to the Boulder Convention and Visitors Bureau.) The Boulder Convention and Visitors Bureau was a major force behind this ballot issue.

Proponents say that the current accommodations tax is lower than neighboring and peer cities. The city would, no doubt, also like to increase its general fund revenue.

Recommendation: against

Boulder already gets a lot of attention. It is home to CU’s flagship university, Naropa, federal labs, some spectacular scenery, and many locally owned shops. In addition, it is well known as a bike-friendly city, a foodie city, and a healthy lifestyle city. I have not heard a strong case that we need to spend more on advertising our city or that we would increase tourism much with increased marketing. I would rather build a convention center than spend more money on marketing.

This tax will seem less painful to voters than most taxes because it hits visitors, not residents. I think we should welcome visitors and not charge them more in taxes. If visitors are pleased with their hotel experience, they might be inclined to spend more money in some of our locally owned businesses.

Yes, the city would like the extra revenue, but I don’t think increasing the accommodations tax is the way to go. If the city wants more revenue, let them state their case directly, educate voters on the fiscal situation and win votes that way.


CITY OF BOULDER ISSUE NO. 2A (Approved Ballot Language)

PUBLIC ACCOMMODATIONS TAX

SHALL CITY OF BOULDER TAXES BE INCREASED BY UP TO $1 MILLION (IN THE FIRST FULL FISCAL YEAR) ANNUALLY AND BY WHATEVER AMOUNTS AS MAY BE COLLECTED ANNUALLY THEREAFTER BY THE IMPOSITION OF AN INCREASE IN THE TAX ON PUBLIC ACCOMMODATIONS WHICH INCLUDES WITHOUT LIMITATION THE LEASING OR RENTAL OF ANY HOTEL ROOM, MOTEL ROOM OR OTHER PUBLIC ACCOMMODATION USED FOR LODGING PURPOSES FROM 5.5% UP TO 7.5% AS PROVIDED IN ORDINANCE NO. 7733; AND
SHALL THE FUNDS BE AVAILABLE TO PAY FOR THE GENERAL EXPENSES OF GOVERNMENT, INCLUDING WITHOUT LIMITATION MUNICIPAL IMPROVEMENTS AND SERVICES TO THE RESIDENTS AND VISITORS OF THE CITY, AND TO PROMOTE PROGRAMS AND SERVICES THAT BRING INCREASED TOURISM TO THE CITY;
AND IN CONNECTION THEREWITH;
SHALL THE FULL PROCEEDS OF SUCH TAXES AT SUCH RATES AND ANY EARNINGS THEREON BE COLLECTED, RETAINED, AND SPENT, AS A VOTER-APPROVED REVENUE CHANGE WITHOUT LIMITATION OR CONDITION, AND WITHOUT LIMITING THE COLLECTION, RETENTION, OR SPENDING OF ANY OTHER REVENUES OR FUNDS BY THE CITY OF BOULDER UNDER ARTICLE X SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW?

FOR THE MEASURE ____ AGAINST THE MEASURE____


See Ordinance No. 7733 to refer 2A to the ballot.
http://www.bouldercolorado.gov/files/Elections/2010/Ord__7733_-_Public_Accommodations_Tax-1004.doc