Voters Turn to Tourist Tax for Housing Solution

In response to a nationwide housing shortage, citizens in some western states and counties are turning to a ballot measure that would increase a tax on tourists in popular vacation areas with few housing options.

The tax increase would address a supply shortage caused by a lack of labor and building supplies, stalled labor, migration patterns during the pandemic, and the rise of short-term rentals like Airbnb. The initiative would charge visitors a 3% tax to stay at hotels, motels, and other rental properties, The New York Times reports.

The Leadville initiative is one of nearly a dozen measures that will be on the ballot in Colorado to address the state’s growing housing shortage, one that predates but now mirrors hundreds of communities around the nation. Numerous other counties and towns, especially in the West, are mulling similar initiatives on Tuesday’s ballot, as housing stock remains scarce and prices remain high.

Years of stalled building, labor and supply problems and the rise of short-term rentals like Airbnb have all contributed to the housing shortage, which has frustrated first-time buyers, squeezed renters and contributed to homelessness.

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