The application process for 2026 Lodgers and Automobile Rental Tax (LART) grants opens on Wednesday, April 30. As part of the City’s efforts to build a more collaborative and cohesive citywide strategy for tourism and visitation, 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 that is reinvested back into our community. The generated funding is used to drive additional revenue-generating tourism in Colorado Springs through promotion, city improvements, and the production of events.
“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,” said City Council President and LART Committee liaison Lynette Crow-Iverson. “That is why we are pleased to launch a new process that prioritizes strategic efforts that have a measurable positive impact on tourism, generate income for City services, and improve accountability and transparency.”
Four tourism impact pillars with specific eligibility criteria that must be met to receive LART Tax funding have been established. The pillars are (1) tourist attraction and economic development; (2) arts and cultural destination; (3) sports and community; and (4) outdoor recreation.
Five tourism sector entities have leveraged their expertise to create an industry-specific strategy for their pillar and will review applications against rubrics with oversight from the LART Citizens’ Advisory Committee and City Council. 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.
Further, a LART Administrator has been hired as a single point of contact for applicants and will help ensure funded entities are adhering to reporting requirements, meeting established key performance indicators, and being good stewards of public funding.
“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,” said Sally Hybl, LART Citizens’ Advisory Committee Chair.
Seeing a need for an improved and more accountable process, Mayor Yemi Mobolade called for the formation of a LART solutions team in 2024 that included Councilmembers, City Legislative Services staff, City Administration staff, and 16 representatives of the wider community. The changes announced today were among the recommendations proposed by the solutions team.
“We have taken a positive step to ensure that LART funding aligns with the true intent of the tax, which is to drive tourism,” said Mayor Yemi. “We welcome tourists to Colorado Springs, and we support the businesses who welcome them. These changes add measures that ensure we are investing in events and amenities that strengthen our tourism industry, which is the third biggest sector of our local economy.”
Established by Colorado Springs voters in 1968, this tourism tax, officially named LART, is a 2% sales tax on hotel lodging and a 1% sales tax on automobile rentals that is paid primarily by visitors. Of note, Colorado Springs has one of the lowest lodging taxes in the nation, ranking 142 of the largest 150 cities. In 2024, LART generated $10,157,177, which was reinvested in tourism and economic development.
For more information, visit ColoradoSprings.gov/LART.