Vail to send new short-term rental tax to the ballot in November
6% tax would be used to support workforce housing initiatives
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Voters in Vail this November will decide whether to implement a new 6% tax on short-term rentals in an effort to support workforce housing creation in town.
The Vail Town Council on Tuesday approved ballot language that will formally present the proposed tax to registered voters in the upcoming regular election on Nov. 4.
If approved, the tax would take effect on Jan. 1, 2026, and is expected to generate roughly $7.2 million annually, with revenues that could be used for housing activities both inside and outside town limits.
Several representatives from condotels — condominiums that operate like hotels — spoke out against placing the question on the ballot.
Mike Lange, the general manager of the Lions Square Lodge condotel in Lionshead, said he didn’t feel condotels in commercial districts should be treated like short-term rental houses in residential districts.
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“The condotel properties are becoming the … fall guy here,” he said. “We’ve been here as long as hotels … to be taxed at the same rate as someone in West Vail just seems unfair.”
Todd Mossa, general manager at the Wren in Lionshead, said condotels were purpose-built to resemble hotels.
“We are run no differently than a hotel,” he said, adding that the tax felt “almost discriminatory for being a short-term rental.”
Kim Rediker from the Vail Racquet Club said the tax is going to affect “mom and pop” businesses in Vail.
“This tax is going to hit the Vail Racquet Club, the Wren, the Lodge at Lionshead,” she said. “It’s not going to hit the Marriott or the Four Seasons or the Marriott Residence Inn or the Hythe or the Grand Hyatt.”
Council member Reid Phillips said condotels have other advantages that weren’t being mentioned by the commenters.
“They’re the mom and pops, but they’re also the investment communities that pool money together and run it purely as a cash-revenue model,” Phillips said. “Look at the property tax you’re paying on an STR residence as opposed to the property tax that’s being paid for a commercial hotel. It’s about a third of what’s being paid on those kind of properties.”
Phillips said the excise tax is representative of an important initiative in town, referencing the goal set by the Town Council in 2024 to require the town’s approximately 2,600 short-term rentals to financially contribute to housing.
“We’re trying to get funding options for bringing more people and stabilizing our workforce housing,” Phillips said.
Rediker said she was disappointed in the council for not collaborating with the lodging community, a comment that was met with an equal-and-opposite response from Council member Samantha Bisantz.
“I’m disappointed too,” Bisantz said, saying the lodging community — after the council had initially considered a $1,200-per-bedroom impact fee — voiced opinions indicating a preference for an excise tax over the impact fee.
“And we listened, and you all applauded us, and now you’ve changed your tune,” Bisantz said.
The council’s shift to an excise tax followed a voter opinion survey, which found that 69% of 506 respondents supported the concept of a 6% short-term rental tax dedicated to housing programs, projects and initiatives.
“I hope the voters come out in November,” Bisantz said.
