🎯 STRisker: Bulletin - Vail, CO
Vail’s STR Tax Vote Highlights Tensions Over Funding Workforce Housing
Vail’s Close Vote on Short-Term Rental Tax Reveals Deep Divide on Housing Fixes
As of early Wednesday morning, the ballots in Vail told a story of a town split nearly down the middle. The proposed 6% excise tax on short-term rental (STR) income — known locally as Ballot Issue 2A — was narrowly trailing, with 895 votes opposed and 863 in favor. Final results may take days, but one thing is clear: residents are grappling with how best to fund the community’s mounting housing challenges.
The tax would apply specifically to short-term rental properties, not traditional hotels, effectively raising the lodging tax for STR hosts from 10.8% to 16.8%. Town officials estimated it could generate about $7.2 million annually — money earmarked to support workforce and attainable housing projects.
Supporters, including the Vail Town Council and Vail Locals for Housing, argued the measure is a fair way to make vacation rentals contribute more to the local housing supply. “This is about balance,” one supporter noted, pointing to the town’s InDeed program, which has already paid $12.7 million to restrict 176 homes for local workers.
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Opponents, however, called the plan inequitable. Condotel managers and the Colorado Short Term Rental Association said it unfairly singled out STR owners while letting hotels off the hook. Their case gained traction after Airbnb poured $30,000 into the opposition effort, arguing the town should apply the same tax to all lodging types.
Meanwhile, neighboring Basalt passed its own lodging tax increase — from 4% to 6% — to fund affordable housing, showing how communities across Colorado are turning to STRs as revenue sources.
Whether or not 2A passes, the debate has already reshaped local politics. It’s no longer just about taxes — it’s about defining fairness between property owners, renters, and tourism operators. And as housing prices keep climbing, Vail’s voters are making one thing clear: they expect solutions, but they want them shared across the board.
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