How Lodging Tax Works Here
Colorado lodging tax is layered: a state sales tax applies to every stay, the City of Durango levies its own lodgers' tax by ordinance, and La Plata County levies a separate lodging tax on unincorporated-area stays. Allowed uses have expanded in recent years to include tourism marketing, transit, arts & culture, and — more recently — workforce housing and child care.
| Item | Figure |
|---|---|
| City of Durango lodgers' tax rate | 5.25% (raised from 2% via 2021 Ballot Measure 1-A); combined "guest tax" with sales tax is 13.65% |
| City lodgers'-tax allocation | 55% sustainable tourism marketing (Visit Durango) / 20% transit / 14% arts & culture / 11% council discretion |
| La Plata County lodging tax rate | 2% (unincorporated county only) |
| County tax reallocation (Nov. 2024, Ballot 1A) | Up to 70% now directed to affordable housing and child care, leaving 30% for tourism marketing |
| Visit Durango 2023 funding from lodgers'/lodging tax | $1.9M from the city + $924K from the county |
Sources: City of Durango, Visit Durango, Durango Herald, Colorado General Assembly (HB25-1247).
Current Priorities
Lodgers'-Tax Transparency
Durango hotels generate a significant share of lodgers'-tax revenue. As allocation decisions evolve — including the county's 2024 shift toward housing and child care — DAHLA advocates for a clear, consistent voice for lodging operators in how those dollars are prioritized.
Workforce Housing
Workforce housing availability directly affects every member's ability to staff their property. DAHLA supports policy that expands housing options for the hospitality workforce.
Short-Term Rental Rules
DAHLA tracks STR permitting requirements, zoning, and fee changes that affect the broader lodging landscape in the Durango area.
Sound Local Business Policy
From permit fees to labor costs, DAHLA advocates for policy that keeps Durango hospitality businesses viable and competitive.