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For months, the Eagle Town Board has grappled with the question of how to finance a community marketing effort. On Tuesday night, members honed in on a possible solution — increasing the current lodging occupation tax by $2.
Since the mid 1990s, the town of Eagle has charged a hotel lodging occupation tax of $2 per night, per rented room with the proceeds going to the town's open space fund. In November, the town board will bring a new proposal to the voters that would increase that fee to $4 per night, per rented room with the estimated annual proceeds of $110,000 going to marketing efforts.
“The intent of what we are trying to do is to promote business in the town of Eagle,” said town board member Scott Turnipseed. “I'm all over this. I think we should do it.”
Mike Stevens, president of the Eagle Chamber of Commerce, said the business organization also supports the lodging tax increase.
“We need the funds to do events,” Stevens said. “It is our objective to fill all the hotels and all the restaurants with people who have some here.”
The lodging occupation tax proposal is getting a very different launch from the original bed tax question of the 1990s. The original $2 per room, per night fee drew scathing criticism from Eagle lodge owners and resulted in a lawsuit that held up receipts for years as it made it all the way to the Colorado Supreme Court. The state's high court eventually ruled that Eagle could charge the fee.
In contrast, today some of the town's innkeepers are heading up a drive to levy the additional charge.
“I wouldn't support this if I didn't believe, 100 percent, that it will bring me more business,” said Lonnie Leto, general manager of the AmericInn Lodge and Suites of Eagle.
The town board had originally contemplated presenting a $1 increase in the lodging tax to the voters, but some members lobbied for the $2 fee. Mayor Ed Woodland urged the board to settle on the $2 per night figure noting people likely wouldn't reject or approve the proposal on the swing of a single dollar.
“It will be on whether they agree with the tax or not,” said Woodland.
“I absolutely think it would be $2. I have never had a guest ask me about the fee,” said Leto. “I think if we don't do the $2 we will regret it.”
But while Leto and some of the other lodge operators in town favor the fee, some other local innkeepers are less enthused.
“Personally, I don't think it's fair that only the hotels are going to be taxed,” said Arthur Sobczak of Comfort Inn. “I am not against the idea, I just want everyone to contribute.”
“I am trying to understand the objection, because this would hopefully bring in more guests for you,” responded town board member Yuri Kostick. “The only failure I see in your logic is that this is not punitive to your business.”
Woodland put a finer point to the issue. He noted that the attraction of a lodging occupation tax is that by and large people from outside the community pay it, not people who reside in the community.
“I hear your fairness argument,” said Woodland. “Increasing the sales tax would be a fairer spread of the burden, but it's not as popular to raise the sales tax in town.”
Stevens agreed. “And I have never walked into a hotel and then walked out over a $2 fee.”
Now that they have agreed in principle to the $2 lodging tax proposal, town board members are on a tight schedule to get the proposal on the ballot. The language of the ballot question must be finalized and submitted to the Eagle County Clerk by Sept. 2 for the Nov. 1 election that will be held by a mail-in ballot. That means the town board must take final action on the issue at its Aug. 23 meeting.
Eagle Town Manager Willy Powell said he would set up a committee that includes staff, town board members, hotel operators and chamber representatives to hammer out the ballot question over the coming two weeks in anticipation of that Aug. 23 meeting.
Since the mid 1990s, the town of Eagle has charged a hotel lodging occupation tax of $2 per night, per rented room with the proceeds going to the town's open space fund. In November, the town board will bring a new proposal to the voters that would increase that fee to $4 per night, per rented room with the estimated annual proceeds of $110,000 going to marketing efforts.
“The intent of what we are trying to do is to promote business in the town of Eagle,” said town board member Scott Turnipseed. “I'm all over this. I think we should do it.”
Mike Stevens, president of the Eagle Chamber of Commerce, said the business organization also supports the lodging tax increase.
“We need the funds to do events,” Stevens said. “It is our objective to fill all the hotels and all the restaurants with people who have some here.”
The lodging occupation tax proposal is getting a very different launch from the original bed tax question of the 1990s. The original $2 per room, per night fee drew scathing criticism from Eagle lodge owners and resulted in a lawsuit that held up receipts for years as it made it all the way to the Colorado Supreme Court. The state's high court eventually ruled that Eagle could charge the fee.
In contrast, today some of the town's innkeepers are heading up a drive to levy the additional charge.
“I wouldn't support this if I didn't believe, 100 percent, that it will bring me more business,” said Lonnie Leto, general manager of the AmericInn Lodge and Suites of Eagle.
The town board had originally contemplated presenting a $1 increase in the lodging tax to the voters, but some members lobbied for the $2 fee. Mayor Ed Woodland urged the board to settle on the $2 per night figure noting people likely wouldn't reject or approve the proposal on the swing of a single dollar.
“It will be on whether they agree with the tax or not,” said Woodland.
“I absolutely think it would be $2. I have never had a guest ask me about the fee,” said Leto. “I think if we don't do the $2 we will regret it.”
But while Leto and some of the other lodge operators in town favor the fee, some other local innkeepers are less enthused.
“Personally, I don't think it's fair that only the hotels are going to be taxed,” said Arthur Sobczak of Comfort Inn. “I am not against the idea, I just want everyone to contribute.”
“I am trying to understand the objection, because this would hopefully bring in more guests for you,” responded town board member Yuri Kostick. “The only failure I see in your logic is that this is not punitive to your business.”
Woodland put a finer point to the issue. He noted that the attraction of a lodging occupation tax is that by and large people from outside the community pay it, not people who reside in the community.
“I hear your fairness argument,” said Woodland. “Increasing the sales tax would be a fairer spread of the burden, but it's not as popular to raise the sales tax in town.”
Stevens agreed. “And I have never walked into a hotel and then walked out over a $2 fee.”
Now that they have agreed in principle to the $2 lodging tax proposal, town board members are on a tight schedule to get the proposal on the ballot. The language of the ballot question must be finalized and submitted to the Eagle County Clerk by Sept. 2 for the Nov. 1 election that will be held by a mail-in ballot. That means the town board must take final action on the issue at its Aug. 23 meeting.
Eagle Town Manager Willy Powell said he would set up a committee that includes staff, town board members, hotel operators and chamber representatives to hammer out the ballot question over the coming two weeks in anticipation of that Aug. 23 meeting.
Other action
In other action the town board:• Discussed the recent action by the Eagle Planning and Zoning Commission to deny the Hernage Gulch trail extension. The board noted that in the future, it may decide to change the town's regulations so that changes to the Travel Management Plan — which covers issues such as the Hernage proposal — would be decided by the town board instead of the commission.
• Approved a zone change from Residential Medium Density to Commercial Limited for the property located at 546 Grand Avenue. The property, which includes the white house with green trim visible from U.S. Highway 6, will house American Lawncare In, a landscape maintenance business.
