In the November 2025 municipal election, Town of Vail voters narrowly rejected Ballot Measure 2A, a proposal that would have created a new 6% excise tax on short-term rental accommodations. The measure failed by a vote of 895 to 863, making it one of the closest ballot questions in the town’s recent history.
Measure 2A was referred to voters by the Vail Town Council after months of discussion surrounding workforce housing and the community impacts of short-term rentals. If approved, the tax would have taken effect on January 1, 2026, and was projected to generate approximately $8.7 million annually to fund housing programs, housing developments, and related initiatives both within and outside the Town of Vail. The measure also sought voter approval to exempt the revenue from Colorado’s TABOR spending limits.
The proposal followed an earlier effort by the Town to explore a per-bedroom impact fee on short-term rentals. After public feedback and legal considerations, Town Council instead pursued a voter-approved excise tax as the preferred funding mechanism for housing initiatives.
While the measure was ultimately unsuccessful, the close vote underscored the ongoing conversation surrounding the role of short-term rentals in addressing housing challenges in Colorado’s mountain communities. The issue highlighted competing priorities between generating dedicated funding for workforce housing and concerns about placing additional taxes on short-term rental owners and guests.
COSTRA will continue to monitor developments in Vail and other Colorado communities as local governments explore policies affecting the short-term rental industry.