Colorado State Legislature has introduced House Bill 1247, a significant piece of legislation aimed at expanding the use of county lodging tax revenues. Introduced on April 11, 2025, the bill seeks to empower county commissioners to allocate lodging tax funds for additional purposes beyond their current limitations, specifically targeting tourism marketing and local infrastructure improvements.

The bill allows counties that previously approved a lodging tax to propose new uses for these funds, including enhancements to public facilities and community services. This proposal must be referred to voters in the affected areas during the next general or coordinated election, ensuring that local residents have a say in how these funds are utilized.

One of the key provisions of House Bill 1247 is the adjustment of the maximum allowable lodging tax rate. The bill proposes increasing the cap from 2% to 6%, which could significantly boost revenue for counties that rely on tourism. This change has sparked debates among lawmakers and community stakeholders, with proponents arguing that the increased funding is essential for maintaining and improving local tourism infrastructure. Critics, however, express concerns about the potential burden on travelers and the implications for local businesses.

The economic implications of this bill are noteworthy. By expanding the use of lodging tax revenues, counties could enhance their marketing efforts, attract more visitors, and ultimately stimulate local economies. Additionally, the increased tax cap could provide a much-needed financial boost for communities that have struggled with funding for essential services.

As House Bill 1247 moves through the legislative process, its potential impact on Colorado's tourism sector and local economies remains a focal point of discussion. If passed, the bill could pave the way for more robust funding mechanisms that support community development and tourism initiatives, reflecting a proactive approach to addressing the needs of Colorado's diverse regions. The next steps will involve further debates and potential amendments as lawmakers consider the bill's implications for both residents and visitors alike.