Lodgers and Automobile Rental Tax (LART)

Lodgers and Automobile Rental Tax (LART)

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What is the Lodgers and Automobile Rental Tax (LART) in Colorado Springs? The Lodgers and Automobile Rental Tax (LART) is a dedicated tourism tax collected from visitors in Colorado Springs. It is often described as a “visitor tax” because it is paid primarily by out-of-town guests rather than local residents.

Purpose and Core Principle The fund’s mission (per the 1968 city ordinance) is: “To attract visitors and to enhance the economy of the City and the Pikes Peak Region.” LART revenue (roughly $10–10.5 million annually in recent years, from a 2% lodging tax + 1% auto rental tax) is reinvested in promotion, city improvements, and events rather than general city operations.

coloradosprings.gov

How LART Works

  • Tax Rates: 2% on lodging (hotels, motels, short-term rentals like Airbnb) + 1% on automobile rentals. This totals a 3% LART rate on those services.
  • Origin: Established by city ordinance in 1968. Revenues go into a special fund (not the general city budget) specifically intended “to attract visitors and to enhance the economy of the City and the Pikes Peak Region.”
  • Revenue Scale: In recent years, the fund has generated around $10–10.5 million annually. For example, in 2025 it fell about $300,000 short of expectations.

Purpose and Use of Funds LART money is reinvested in tourism promotion, city improvements that benefit visitors, and the production or marketing of events that draw tourists. Eligible uses include:

  • Marketing and promotion
  • Event production and support
  • Projects that generate economic impact (hotel stays, restaurant spending, etc.)
  • Cultural, sports, outdoor recreation, and community events

It is not a general taxpayer fund — it is visitor-funded and visitor-focused.

Administration and Decision-Making

  • Oversight: Administered by the City of Colorado Springs with guidance from the LART Citizen Advisory Committee. City Council has final approval.
  • Recent Reforms (2025–2026):
    • Four “tourism impact pillars” were introduced: Tourist Attractions & Economic Development, Arts & Cultural Destinations, Sports & Community Events, and Outdoor Recreation.
    • Five Tourism Sector Entities (TSEs) review applications using rubrics and economic impact calculators (e.g., VisitCOS for visitor spending estimates).
    • A dedicated LART Administrator now handles coordination, reporting, and accountability.
  • Application Process: Annual competitive grants with strict deadlines, budgets, marketing plans, and post-event reporting (including attendance, hotel nights generated, and economic impact). Partial funding is common. No off-cycle funding in 2026.

Context in Local Events (Relevant to Parades)In the comparison between the Pikes Peak or Bust Rodeo Parade and Pikes Peak Pride Parade:

  • Many large events (including Pride Festival) apply for and receive LART grants to help cover marketing, production, police/barricade support, and other costs that attract visitors.
  • Pride received $60,000 in one recent cycle (an increase from prior years), though reports indicate a significant reduction for 2026.
  • Traditional events like the Pikes Peak or Bust Parade and others (e.g., Festival of Lights) received no LART funding in the latest cycles and relied more heavily on private sponsorships.

This contributed to funding pressures that led to the 2026 parade cancellation. Accountability and Reforms Audits in 2023 and 2024 highlighted issues such as incomplete reporting from grantees, inconsistent requirements, and challenges measuring impact. Reforms emphasize better metrics (e.g., verifiable hotel nights, economic ROI), standardized contracts, and alignment with tourism strategy. Colorado Springs is somewhat unique in spreading these funds across many events rather than concentrating them in capital projects or one tourism board.

Bottom Line LART is a self-sustaining tourism reinvestment tool: visitors pay it, and the city uses it to bring more visitors (and their spending) back. It has become a major funding source for parades, festivals, and cultural events in Colorado Springs — but it is limited, competitive, and increasingly scrutinized for measurable return on investment. Budget constraints, economic conditions, and policy shifts (toward pillars and accountability) directly affect which events thrive or struggle each year.

For official details, visit the City’s LART pages: coloradosprings.gov/LART and LART Grants.

LART (Lodgers and Automobile Rental Tax) funding criteria in Colorado Springs are designed to allocate visitor-generated tax revenue toward events and projects that primarily drive tourism, attract out-of-town visitors, and deliver measurable economic benefits to the Pikes Peak region.

Funding is competitive and limited (e.g., disbursements dropped to ~$1.6 million in one recent cycle amid many applicants). Partial funding is common, and decisions prioritize return on investment for the visitor tax. Eligibility Criteria Applicants must be:

  • Attractions, associations, organizations, or governmental/quasi-governmental agencies.
  • Nonprofits must provide IRS documentation.
  • Events or projects must be planned, produced, and promoted within a well-defined period (one-time or recurring/annual).

Key requirements include demonstrating visitor attraction potential, economic impact (especially hotel room nights and visitor spending), and alignment with tourism goals.

The Four Tourism Impact Pillars (Introduced/Emphasized for 2026 Cycle)Applications must align with one primary pillar. Hybrid events are reviewed under the best-fitting rubric. These pillars provide structure and strategic focus:

  1. Tourist Attraction & Economic Development
    Events/projects that promote/position the region externally, generate positive regional/national media coverage, and enhance the overall tourism industry. Strong emphasis on visitor draw and economic multipliers.
  2. Cultural Destination (Arts & Cultural Expression)
    Large-scale events focused on creative or cultural expression that advance Colorado Springs as a cultural destination. This pillar often suits festivals celebrating diversity, heritage, or arts.
  3. Sports & Community
    Large-scale sporting or community events/initiatives aimed at economic impact or sport development in the region.
  4. Outdoor Recreation
    Projects enhancing visitor experiences, universal/equitable access, and economic benefits through outdoor/parkland infrastructure, design, rehabilitation, or preservation.

These pillars replaced or refined prior approaches, aiming for more targeted, industry-informed allocation. Application Requirements Strong applications typically include:

  • Detailed event/project budget (expenditures, in-kind contributions, other funding sources).
  • Marketing/promotion plan (advertising, media exposure).
  • Impact estimates: Attendee numbers (with methodology, e.g., surveys/tickets), projected hotel room nights, car rentals, and visitor spending.
  • Organization overview and board list (if applicable).
  • Clear schedule, venues, and frequency.

Applications must be concise (word/character limits apply) and submitted separately for each event. Public info sessions are offered.

Evaluation Process

  • Pillar-Specific Rubrics: Each pillar has dedicated rubrics (e.g., Tourist Attraction and Quality of Life Rubric, Economic Development Rubric, Cultural Destination Rubric, etc.). Tourism Sector Entities (TSEs) review applications:
    • Tourist Attraction/Economic Development: Often involves Visit COS/Chamber/EDC expertise.
    • Cultural: Cultural Office of the Pikes Peak Region (COPPR).
    • Outdoor Recreation: Parks, Recreation & Cultural Services (PRCS).
    • Sports & Community: Colorado Springs Sports Corporation (CSSC).
  • Economic Impact Calculator: Administered by Visit COS. This standardized tool (used by hundreds of destinations) estimates net new money to the community based on attendee demographics, spending patterns, hotel nights, etc. It is a key data point but not the sole factor.
  • Overall Scoring: Rubric scores play a major role in TSE recommendations, combined with economic impact data, overall merit, alignment with pillar goals, and strategic fit. Final decisions rest with the LART Citizen Advisory Committee and City Council.
  • Rubric score alone does not guarantee funding.

KPIs, Reporting, and Accountability Funded recipients must meet established Key Performance Indicators (KPIs) and submit post-event reports. A dedicated LART Administrator oversees compliance, contract adherence, and stewardship of funds. Past audits (2023–2024) identified issues with reporting compliance and measurable KPIs, prompting reforms for better oversight.

Recent Reforms (Notably for 2026+ Cycles)

  • Shift to the four-pillar system with TSE rubrics for more strategic, expert-driven review.
  • Dedicated LART Administrator role for coordination and accountability.
  • Emphasis on verifiable economic impact and standardized processes.
  • No off-cycle funding in recent cycles.
  • Increased focus on measurable outcomes following audits that highlighted gaps in prior reporting and compliance.

Analysis: Strengths, Challenges, and Implications Strengths:

  • Tourism ROI Focus: Criteria directly tie funding to visitor attraction and economic return, aligning with the tax’s purpose (visitors fund it; it should attract more visitors).
  • Expertise-Driven: TSE rubrics and sector-specific review leverage industry knowledge (e.g., cultural experts for arts events).
  • Data-Informed: The economic impact calculator provides objective, comparable metrics.
  • Reforms Improve Accountability: Post-audit changes address past weaknesses in oversight and measurability.
  • Strategic Prioritization: Pillars encourage events that build long-term destination appeal (media coverage, regional positioning, infrastructure).

Challenges and Potential Criticisms:

  • High Competitiveness and Selectivity: Limited funds mean many events (even long-standing ones) receive zero or reduced support. Traditional or niche events may struggle if they don’t score highly on visitor metrics or fit a pillar cleanly.
  • Economic Metrics Emphasis: Heavy weighting on hotel nights, spending, and media reach can disadvantage events with strong local/community value but lower out-of-town draw. Purely celebratory or heritage-focused events (without strong tourism branding) may be deprioritized.
  • Pillar Fit: Events blending categories (e.g., a cultural parade with strong community/Western heritage elements) must choose one lens, potentially affecting scoring.
  • Context of Application: In practice, events like the Pikes Peak Pride Festival (aligning well with Cultural Destination pillar and demonstrating visitor/economic impact) have received funding (e.g., $40k–$60k in recent cycles, sometimes with increases). Traditional events like aspects of the Pikes Peak or Bust Rodeo Parade have seen cuts or zero funding in competitive cycles, highlighting how criteria favor measurable destination-building impact.
  • Partial Funding Norm: Even strong applications often get scaled back.
  • Reporting Burden: Strict post-award compliance can be challenging for smaller or volunteer-run organizations.

Broader Implications:

LART criteria reflect a professionalized, destination-marketing approach to public funding—prioritizing leverage of visitor taxes for growth over general community support. This can strengthen Colorado Springs’ tourism economy but may shift resources away from longstanding local traditions toward events with clearer “visitor magnet” profiles. Reforms aim to make the process fairer and more effective, but outcomes still depend on how well applicants quantify impact and align with pillars. In summary, LART criteria are rigorous, tourism-centric, and evolving toward greater structure and accountability. Success hinges on demonstrating clear visitor attraction, economic ROI, and pillar alignment through detailed, evidence-based applications. For the most current details or to apply, check the official City of Colorado Springs LART Grants page and guidelines PDFs.

Current Colorado Springs City Council Members (as of June 2026)The Colorado Springs City Council consists of 9 members: 3 At-Large and 6 District representatives. Each serves a four-year term, with elections held in odd-numbered years.

Leadership

  • Lynette Crow-Iverson — Council President (At Large)
  • Brian Risley — Council President Pro Tem (At Large)

Full Council Roster

  • At Large: Lynette Crow-Iverson (President)
  • At Large: Brian Risley (President Pro Tem)
  • District 1: Dave Donelson

coloradosprings.gov

  • District 2: Ken Casey (appointed April 2026 to fill vacancy left by Tom Bailey’s resignation)
  • District 3: Brandy Williams
  • District 4: Kimberly Gold
  • District 5: Nancy Henjum
  • District 6: Roland Rainey Jr. (elected 2025)

(Note: David Leinweber is also referenced in recent meeting photos and materials as a continuing member, likely filling one of the At-Large or remaining seats.)Recent Context

  • New members were sworn in after the April 2025 municipal election.
  • In April 2026, Ken Casey was appointed in a 5-3 vote to District 2.

For the most up-to-date details, photos, contact information, and district maps, visit the official City pages:

You can also watch meetings live on SpringsTV, Facebook, or attend in person at City Hall.

Tourism Sector Entities (TSEs) are five specialized organizations contracted by the City of Colorado Springs to support the administration of the Lodgers and Automobile Rental Tax (LART) grant program. They provide industry expertise for reviewing applications, scoring them against pillar-specific rubrics, and making funding recommendations.

Their role was expanded in recent reforms (especially for the 2026+ cycles) to create more strategic, expert-driven evaluations under the four tourism impact pillars. The Five TSEs and Their Primary Pillars

Tourism Impact PillarTourism Sector Entity (TSE)Key Contact / Notes
1. Tourist Attraction & Economic DevelopmentColorado Springs Chamber & EDC / Visit Colorado SpringsHandles attraction, economic development, and quality-of-life rubrics. Primary tourism marketing focus.
2. Arts & Cultural Destination (Cultural Expression)Cultural Office of the Pikes Peak Region (COPPR)Reviews cultural and arts-focused events.
3. Sports & CommunityColorado Springs Sports Corporation (CSSC)Focuses on sporting events and community initiatives that drive visitation.
4. Outdoor RecreationCity of Colorado Springs Parks, Recreation & Cultural Services (PRCS)Oversees outdoor, park, and recreation-related projects.

Note: The first pillar often involves collaboration between the Chamber/EDC and Visit Colorado Springs.

Role of TSEs in LART Funding

  • Application Review: TSEs score applications using detailed rubrics tailored to each pillar (e.g., economic impact, visitor attraction, media exposure, alignment with tourism goals).
  • Recommendations: They provide expert input to the LART Citizen Advisory Committee, which then forwards recommendations to City Council.
  • Accountability: TSEs help ensure grants deliver measurable ROI, such as hotel room nights, visitor spending, and regional economic benefits.
  • Administration: A dedicated LART Administrator works across all TSEs for contracting, tracking, and reporting.

This structure makes the process more professional and aligned with tourism strategy, moving away from earlier, less standardized approaches.

coloradospringssports.org

  • Events like the Pikes Peak Pride Festival typically align with the Cultural Destination pillar (reviewed by COPPR) and have benefited from strong scoring on visitor/economic impact metrics.
  • Traditional events like the Pikes Peak or Bust Rodeo Parade may fit under Tourist Attraction/Economic Development or Sports & Community but have received less or no funding in recent competitive cycles.

For the latest guidelines, rubrics, or contacts, visit the official page:
Colorado Springs LART Grants
or download the current application instructions PDF from the city site.

LART Citizen Advisory Committee Role in Colorado Springs The LART Citizen Advisory Committee (also called the Lodgers and Automobile Rental Tax Citizens’ Advisory Committee) is a volunteer citizen board appointed by the Colorado Springs City Council. It provides independent oversight and advisory recommendations on how to spend revenues from the visitor-funded LART tax.

Core Responsibilities

  • Advise City Council on all matters related to the expenditure of LART funds (the dedicated tourism tax from lodging and car rentals).
  • Review and evaluate grant applications for events, projects, and initiatives.
  • Provide oversight to the five Tourism Sector Entities (TSEs) that score applications under the four tourism impact pillars.
  • Make formal funding recommendations to City Council, which has final approval authority.
  • Ensure funds are used effectively to attract visitors, generate economic impact (e.g., hotel nights, visitor spending), and align with the original 1968 ordinance purpose: “to attract visitors and to enhance the economy of the City and the Pikes Peak Region.”
  • Monitor accountability, post-event reporting, and measurable outcomes from funded projects.

Position in the LART Funding Process

  1. Applications are submitted by event organizers.
  2. TSEs (specialized organizations) review applications using pillar-specific rubrics and economic impact tools.
  3. LART Citizen Advisory Committee reviews TSE recommendations, provides additional oversight, and finalizes its own recommendations.
  4. City Council votes on the overall LART budget package (typically in fall), approving or modifying the committee’s recommendations.

The committee does not have final decision power — it is advisory — but its recommendations carry significant weight and are usually followed.

Structure and Operations

  • Meetings: Typically held monthly on the 2nd Thursday at 2:00 p.m. (open to the public).
  • Membership: Appointed citizens representing community perspectives. Terms are generally 3 years. City Council is currently seeking volunteers (including one ex officio from tourism-related business).
  • Liaisons: City Council members serve as liaisons to the committee (e.g., Nancy Henjum has been mentioned in this role).

Importance in Context This committee plays a key role in decisions like the funding for events such as the Pikes Peak Pride Festival versus traditional events like the Pikes Peak or Bust Rodeo Parade. It helps balance tourism ROI, cultural impact, and limited resources amid competitive applications (e.g., 87+ applications for ~$2.2 million available in recent cycles).

For the current roster, meeting agendas/minutes, or to apply for a vacancy:
Visit the official page → coloradosprings.gov/LART

Current LART Citizen Advisory Committee Members
(as of June 2026)The committee has 9 members (plus possible ex officio representatives) appointed by City Council for 3-year terms, with a maximum of 2 terms. It includes citizen-at-large members and representatives from key tourism-related sectors.

Board Leadership & Roster

  • Sarah (Sally) W. Hybl — Chair (2nd Term, Nov 15, 2023 – Aug 25, 2026)
    Citizen-at-Large / Voting Member #1
  • Jack Damioli — 1st Term (Nov 14, 2023 – Aug 25, 2026)
    Hotel/Motel Industry Representative (Central/Downtown) / Voting Member #4
  • Curtis Bova — 1st Term (Jun 10, 2025 – Aug 24, 2027)
    Hotel/Motel Industry Representative / Voting Member #7
  • Angela L. Seals — 1st Term (Apr 22, 2025 – Apr 25, 2028)
    Arts Community / Ex Officio #6
  • James A. Dibiase — 2nd Term (Jun 08, 2021 – Apr 25, 2028)
    Hotel/Motel Representative (Other) / Voting Member #2
  • Davis Tutt — 1st Term (Sep 09, 2025 – Apr 25, 2028)
    Sports Industry / Ex Officio #3
  • Fred Veitch — 1st Term (Apr 22, 2025 – Apr 25, 2028)
    Citizen-at-Large / Voting Member #5
  • Christen Rumsey — 1st Term (Apr 22, 2025 – Apr 25, 2028)
    Automobile Rental Industry Representative / Voting Member #6
  • Doug Price — 1st Term (Jan 27, 2026 – Apr 25, 2028)
    Destination Marketing Organization for the City of Colorado Springs / Ex Officio #5
  • Julia J. Sands De Melendez — 1st Term (Apr 22, 2025 – Apr 25, 2028)
    Parks, Recreation and Cultural Services Board Member / Ex Officio #2
  • Dani M. Bolling — 1st Term (Apr 22, 2025 – Apr 25, 2028)
    Business Tourism / Ex Officio #4
  • Gus Krimm — 1st Term (Jun 10, 2025 – Jun 13, 2028)
    Citizen-at-Large / Voting Member #9
  • Jenna Hilb — 1st Term (Jun 10, 2025 – Jun 13, 2028)
    Citizen-at-Large / Voting Member #8
  • Wendy Mchenry — 1st Term (Nov 12, 2024 – Jul 11, 2028)
    Hotel/Motel Industry Representative (North) / Voting Member #3

Additional Details

  • Council Liaisons: Lynette Crow-Iverson and Nancy Henjum
  • Staff Liaison: Michael Montgomery
  • Current Vacancies: At least 1 (ex officio from tourism-related business industry)
  • Meetings: 2nd Thursday of each month at 2:00 p.m. in the Pikes Peak Room at City Hall (open to the public)

For the most current roster, terms, or to view agendas/minutes, visit the official pages:

Membership can change with new appointments, so checking the city website directly is recommended for real-time updates.

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