Pueblo voters reject lodging tax increase for childcare; nix state property tax relief

Pueblo voters rejected a 1.5% lodging tax increase that would have helped fund childcare programs in Pueblo, and also weighed in on two state ballot measures during Tuesday's election.

The final tally on Pueblo Issue 2A indicated 54% of voters cast no votes totaling 14,728 to 46% yes votes totaling 12,421. The proposed 1.5% increase in Pueblo's lodging tax would have created a special fund for child care programs, generating about $630,000 per year to expand childcare access to families who do not qualify for the Colorado Child Care Assistance Program.

The tax increase would have impacted visitors staying in the city of Pueblo's motels and hotels amounting to an estimated additional fee of about $1.77 per night. Because the measure failed, the lodging tax will remain at the current 4.3%.

State ballot measures: Prop HH defeated, Prop II passes

On Prop HH, both Pueblo County and state voters rejected the idea of property tax reductions at the expense of tax refunds governed by the Tax Payer's Bill of Rights (TABOR). Pueblo County voters cast 59% no votes to 41% yes votes.

Statewide, the tally was 60% no votes to 40% yes votes, signaling voters would rather pay higher property taxes than see a decrease or elimination of TABOR refunds during the next 10 years.

Pueblo County and state voters also were like-minded in sounding approval for Prop II which will allow the state to retain nearly $24 million in excess tobacco tax proceeds to help fund preschool programs. In Pueblo County, voters cast 59% yes votes to 41% no votes.

Statewide, the approval was resounding as voters cast 67% yes votes to 33% no votes, paving the way for the state to continue to charge an 11.5% tax on all tobacco products. Going forward, new tax revenues also will be spent on universal preschool programs in the state.

More on state ballot measures: Pueblo voter guide: What to know about state initiatives Proposition HH and Proposition II

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via X, formerly Twitter, at twitter.com/tracywumps. Support local news, subscribe to The Pueblo Chieftain at subscribe.chieftain.com.

This article originally appeared on The Pueblo Chieftain: Voters reject Pueblo lodging tax increase for childcare