Colorado Springs: Lodgers and Automobile Rental Tax grant applications open Wednesday for 2026

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~ Colorado Springs, CO - The application process for the 2026 Lodgers and Automobile Rental Tax (LART) grants will officially open on Wednesday, April 30. This announcement comes as part of the city's efforts to create a more collaborative and cohesive strategy for tourism and visitation. In order to achieve this goal, a new process has been established to evaluate funding applications.

LART is a tax collected from visitors when they stay at local hotels or rent cars, which is then reinvested back into the community. The generated funding is used to drive additional revenue-generating tourism in Colorado Springs through promotion, city improvements, and the production of events.

According to City Council President and LART Committee liaison Lynette Crow-Iverson, "Tourism is a critical industry in the Pikes Peak Region, and LART offers benefits to city residents while being paid by tourists who use our parks and trails, drive our roads, and use City services." She also expressed her pleasure in launching a new process that prioritizes strategic efforts with measurable positive impacts on tourism, generates income for City services, and improves accountability and transparency.

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To ensure that the funding is allocated effectively, four tourism impact pillars have been established with specific eligibility criteria that must be met in order to receive LART Tax funding. These pillars include tourist attraction and economic development; arts and cultural destination; sports and community; and outdoor recreation.

In addition, five tourism sector entities have come together to create an industry-specific strategy for their respective pillar. These entities are the Colorado Springs Chamber & EDC, Visit Colorado Springs, the Cultural Office of the Pikes Peak Region, the Colorado Springs Sports Corporation, and the City of Colorado Springs Parks, Recreation, and Cultural Services Department. They will review applications against rubrics with oversight from the LART Citizens' Advisory Committee and City Council.

To further ensure accountability and transparency in the process, a LART Administrator has been hired as a single point of contact for applicants. This individual will also be responsible for ensuring that funded entities adhere to reporting requirements, meet established key performance indicators, and are good stewards of public funding.

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Sally Hybl, LART Citizens' Advisory Committee Chair, stated that "By expanding expertise and strategy in the review process, we hope these reforms will provide more transparency and ground the LART funding process in its mission to attract visitors and enhance the economy of the city and the Pikes Peak region."

The need for an improved and more accountable process was recognized by Mayor Yemi Mobolade in 2024. He called for the formation of a LART solutions team that included Councilmembers, City Legislative Services staff, City Administration staff, and 16 representatives from the wider community. The changes announced today were among the recommendations proposed by this team.

Mayor Yemi expressed his support for these changes, stating that "We have taken a positive step to ensure that LART funding aligns with the true intent of the tax, which is to drive tourism." He also emphasized the importance of welcoming tourists to Colorado Springs and supporting businesses that cater to them. These changes aim to invest in events and amenities that strengthen the tourism industry, which is the third biggest sector of the local economy.

Established by Colorado Springs voters in 1968, LART is a 2% sales tax on hotel lodging and a 1% sales tax on automobile rentals primarily paid by visitors. It is worth noting that Colorado Springs has one of the lowest lodging taxes in the nation, ranking 142 out of 150 cities. In 2024 alone, LART generated $10,157,177 which was reinvested in tourism and economic development.

For more information on LART grants and eligibility criteria, visit ColoradoSprings.gov/LART.

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