Ballot Question 6E was a measure approved by voters in the Estes Park Local Marketing District known as Visit Estes Park in November 2022. The ballot measure increased the local lodging tax from 2% to 5.5% on short-term accommodations such as hotels, motels, vacation rentals, and cabins.
The additional 3.5 percentage points are dedicated exclusively to funding workforce housing for people who work in the Estes Valley, for childcare services and facilities, and the administration of the revenue. By law, the funding cannot be used for other purposes.
Because the tax is paid almost entirely by overnight visitors rather than local residents, supporters promoted it as “the tax you don’t pay.”
The vote count was 3,082 votes for and 1,838 votes against. The measure passed with 63% approval.
How did 6E come about?
For decades, Estes Park struggled with two interconnected issues: a shortage of affordable housing for local workers, and a lack of childcare.
These shortages have affected nearly every sector of the local economy, from restaurants, to lodging businesses, retail stores, healthcare providers, schools, and public safety agencies.
It is difficult for employers in Estes Park to recruit and retain workers because many people cannot afford to live in the community or to find affordable childcare, especially babies, toddlers, and preschoolers.
Affordability, accessibility, availability
For context, the median sale price of homes in Estes Park ranges between $620,000 and $735,000. According to the 2023 Estes Valley Housing Needs Assessment and Strategic Plan prepared for the Town of Estes Park and the Estes Park Housing Authority by Root Policy Research, about 2,720 new housing units are needed by 2030 to address the existing shortage and account for forecasted employment trends.
Additionally, according to the 2024 Estes Valley Childcare Needs Assessment and Strategic Plan prepared for the Town of Estes Park by Groundswell for Good and Melton Strategic Solutions, there were six licensed childcare providers in the Estes Valley with the capacity to provide care for 140 children under the age of 6, down from 170 children in a 2018 needs assessment. The report also indicated that there was “an acute shortage” of care for infants and toddlers under the age of 2.5 years.
Legislative authority for the Ballot Initiative
During its 2022 legislative session, the Colorado General Assembly passed House Bill 22-1117, which expanded how local marketing districts could use lodging tax revenue beyond tourism promotion to include workforce housing and childcare for tourism-related workers, including seasonal workers, and for other workers in the community, and for projects that facilitate and enhance visitor experiences.
Gov. Jared Polis signed the bill on March 31, 2022 and it became law on August 10, 2022.
Lodging Tax Extension Task Force
In the Spring of 2022, the Town of Estes Park, Visit Estes Park, the Estes Park Housing Authority, Larimer County, business owners, and community leaders formed a 16-member citizen Lodging Tax Extension Task Force to explore a funding solution.
The task force met six times for two-hour meetings over a six-week period from May 18 through 22 to examining the pros and cons of asking the voters for an increase in the lodging tax to create a dedicated funding source for workforce housing and childcare.
On Aug. 1, 2022, the task force presented its recommendations to ask voters for a 3.5 percentage point increase in the lodging tax, with revenues dedicated to workforce housing and childcare, before a joint meeting of the Visit Estes Park Board of Directors, the Town of Estes Park Board of Trustees, and the Larimer County Board of County Commissioners.
The three organizations agreed to put the matter before the voters in the November 2022 General Election.
TABOR Requirements
Under Colorado’s Taxpayers’ Bill of Rights, known as TABOR, any tax increase requires voter approval. Ballot Question 6E satisfied that requirement.
Official tax rate change
After voters approved Ballot Question 6E, with 63% supporting the measure, the local lodging tax was increased from 2% to 3.5%. This tax applies only to lodging stays of less than 30 days.
What can the money be used for?
The new revenue is legally restricted to workforce housing and childcare. A portion of the funding is reserved for the administration of the funding.
Workforce housing uses of 6E revenue
6E funds may be used to acquire land, build new housing, preserve existing housing, provide down payment assistance, subsidize rents, and support housing programs administered by the housing authority
Childcare uses of 6E revenue
6E funds may be used to build or renovate childcare centers, purchase facilities, offer tuition assistance or scholarships, recruit and retain childcare staff, and expand infant and toddler capacity
Examples of projects funded by 6E revenue
- Acquisition of the Mountain Top Preschool property by the Town
- Funding to the Estes Park Housing Authority for housing development, such as the acquisition of Fall River Village.
- Financial assistance to help parents pay for childcare
- Financial assistance to childcare providers to help with training and other expenses.
Restrictions and limitations
The 6E tax revenues cannot be used for general Town operations or diverted to unrelated capital projects.
The money generated by the lodging tax must be spent according to the annual workforce and childcare funding plans and comply with state law and voter-approved purposes.
The revenues and allocations are subject to public oversight and auditing and go through a formal public planning process. Regular reports are made to the Town Board on the use of 6E funds.
Does the tax sunset?
No. Ballot Question 6E does not include an expiration date. The tax remains in place until changed or repealed by a future vote of the district’s electors.
Who pays the tax?
The lodging tax is paid by visitors staying in hotels, motels, cabins, bed and breakfasts, short-term rentals such as Airbnb and Vrbo properties.
Local residents pay the tax only if they rent accommodations in the Visit Estes Park local marketing district.
How much revenue has been generated?
The tax has generated roughly $19 millionsince January 1, 2023. In 2025, 6E generated $5,997,618, the highest annual total since voters approved Ballot Initiative 6E in 2022. The revenue exceeded projection by nearly $485,000.
Allocation of funds
- $4.68 million (80%) for workforce housing
- $1.20 million (20%) for childcare
- $119,066 retained by Visit Estes Park for administration and oversight
Key housing outcomes, to date
- More than 100 workforce housing units have been added through property acquisitions, including Fall River Village and Beaver Brook. Together, these properties added more than 100 deed-restricted workforce housing units, including Estes Park Housing Authority’s first seasonal housing for summer workers.
- The Estes Park Housing Authority has entered into a purchase agreement for approximately 10 acres for future workforce housing.
- Workforce rental assistance was distributed to 32 households in 2025 totaling $157,120.
- A shared equity down payment assistance program is helping workforce homebuyers
- The Housing Needs Assessment established 2030 targets. Progress to date:
| Income Level | Delivered or Planned | 2030 Target | Progress |
| ≤50% AMI | 30 | 150 | 20% |
| 50–80% AMI | 127 | 331 | 38% |
| 80–120% AMI | 94 | 509 | 18% |
| >120% AMI | 0 | 903 | 0% |
Key childcare outcomes, to date
- As of August 2025, childcare supplemental funding is now available to all working families earning up to 110% of area median income.
- The share of children receiving childcare supplemental funding increased from 21% in 2023 to 55% in 2025.
- The Town of Estes Park purchased the Mountaintop Childcare building, preserving 40 preschool slots.
- Annual childcare assistance awards rose from $110,000 to $257,000.
- 6E funding has helped childcare providers to stabilize the workforce by increasing wages, expanding benefits, improving retention, and reducing employee turnover
- 6E funding has provided grants to support the Estes Valley Recreation and Park District, YMCA of the Rockies, Estes Park Elementary School, and the Boys and Girls Club of Larimer County to expand after-school, summer, and non-school-day care.
This Good Question article will be updated periodically as revenues and allocations are updated.