STEAMBOAT SPRINGS, Colo. — Steamboat Springs recorded a nearly 10% increase in sales tax revenue this past spring.
New data shows April sales, use and accommodations tax revenue was up 9.28% over 2022 — an increase of about $182,000, which will help fund new affordable workforce housing.
The increase is partially due to a new 9% accommodations tax on short-term rentals, which took effect this year.
“Here in Steamboat, the city council landed on a 9% tax, and that started this year. Supporting workforce housing is key there,” said John Bristol, executive director of the Routt County Economic Development Partnership.
Bristol said near-record snowfall also didn’t hurt this past ski season.
“This year, specifically in Steamboat Springs and northwest Colorado, we had such a strong snow year. Visitation increased,” Bristol said. “People are chasing that powder.”
Bristol said new ski passes that allow users to track the best snowfall also helped.
All of this is good news for workforce housing projects in a mountain town with an affordability crisis, especially when it comes to seasonal workers. Back in December, Denver7 told you about an ambitious housing development on the west side of Steamboat called the Brown Ranch.
“It was definitely expensive,” said Jason Peasley of the price tag on the ranch. “But if you think about controlling the future of our community’s housing, it’s sort of priceless.”
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Peasley is the executive director of the Yampa Valley Housing Authority and says $21 million of the ranch was gifted to the city. The goal with the picturesque 546-acre Brown Ranch is to build out 2,300 housing units over the next two decades.
“We have a seriously large problem, we need a seriously large solution,” Peasley said. “You’re going to see a mixture of apartment buildings, row homes, town homes, single family homes, small cottage homes.”
So far this year, short-term rental tax collections are well over $5 million in Steamboat — good news for the Brown Ranch and future affordable housing efforts.
“It’s top of mind for business owners. For business owners, when you ask them, ‘How’s business going?’ They say, ‘Good, but we have a housing problem and we need help,’” Bristol said.
Sales, use and accommodations taxes in Routt County range from seven to 10% depending on industry sector, like groceries, hospitality and construction.
