The Colorado Springs hotel tax rate is about 10.20%, made up of five separate taxes layered on your nightly room charge. On a $150 room, that’s $15.30 in tax before any other fees the property may add.
What Makes Up the 10.20%
Four of the five components are general sales taxes that apply to most retail purchases in the city. The fifth is a lodging-specific tax that only hits hotel stays and car rentals.
- State of Colorado sales tax: 2.90%
- El Paso County sales tax: 1.23%
- Pikes Peak Rural Transportation Authority (PPRTA): 1.00%
- City of Colorado Springs sales tax: 3.07% (a 2.00% general fund share, 0.10% Trails, Open Space, and Parks, 0.40% public safety, and 0.57% road improvements)
- Lodgers and Automobile Rental Tax (LART): 2.00%
The first four add up to 8.20%, which is the standard combined sales tax rate on any purchase in Colorado Springs.1City of Colorado Springs. Sales Tax The 2.00% LART is stacked on top for lodging, bringing hotel guests to 10.20%.2El Paso County Administration. Sales Tax Information LART revenue is reinvested into tourism promotion and visitor-related infrastructure.
What Counts as a Taxable Stay
The tax applies to any business offering sleeping accommodations for a fee when the stay lasts fewer than 30 consecutive days. That covers hotels, motels, bed and breakfasts, inns, guest ranches, campgrounds, and RV parks.3City of Colorado Springs. Hotels and Motels City of Colorado Springs Tax Guide Short-term rentals booked through Airbnb, VRBO, and similar platforms fall under the same rules.
The PIF Line Item Isn’t a Tax
Some Colorado Springs hotels add a line item labeled “PIF” or “Public Improvement Fee” that sits alongside the taxes on your bill. It is not a government tax. A PIF is a private contractual fee that a property developer or landlord requires tenants to collect from customers, and the money typically funds infrastructure within that specific development, such as parking facilities, sidewalks, and road improvements.4City of Colorado Springs. Sales Tax FAQ
Because PIFs are tied to individual development agreements rather than city ordinances, they don’t apply uniformly across Colorado Springs. Two hotels a block apart might charge different PIF amounts, or one might charge none at all. The city does not administer or collect these fees and has no authority over their rate. When a PIF applies, it must appear as a separate line item on your receipt, distinct from actual taxes.4City of Colorado Springs. Sales Tax FAQ If you want to know what a specific PIF funds, the front desk should be able to point you to the development agreement behind it.
When the Tax Doesn’t Apply
Stays of 30 Days or Longer
Guests who stay 30 consecutive days or longer count as permanent residents for tax purposes, which exempts their lodging charges from both the state sales tax on accommodations and the city’s LART. The exemption requires a written agreement for occupancy covering at least 30 consecutive days.5American Legal Publishing. Colorado Springs Code of Ordinances 2.9.109 – Exemptions A guest who checks in without that written agreement and later decides to extend past 30 days may not automatically qualify. The state-level exemption follows the same rule: no Colorado sales tax on accommodations when the guest is a permanent resident of the room under a written agreement of at least 30 consecutive days.6Colorado Department of Revenue – Taxation. Sales and Use Tax Topics – Rooms and Accommodations
Government Travel
The government travel exemption is narrower than most travelers assume. Whether a government employee avoids sales tax depends on how the room is paid for, not simply on who they work for. A purchase made with a centrally billed account (CBA), where the government agency receives and pays the bill directly, can qualify for exemption. A purchase made with an individually billed account (IBA), where the employee pays and seeks reimbursement, does not qualify.7Colorado Department of Revenue. Sales and Use Tax Topics – Governmental Entities
Federal employees using GSA SmartPay Tax Advantage travel cards get a useful mechanic: lodging and rental car charges on those cards route automatically to the CBA portion, potentially qualifying them for exemption. Other travel expenses like meals go to the IBA portion and remain taxable.7Colorado Department of Revenue. Sales and Use Tax Topics – Governmental Entities Colorado state employees face the same structure: state CBA travel cards display the state’s tax-exempt number, while IBA cards do not qualify. To get the exemption, present the proper card and documentation at check-in and ask the front desk to verify the card type before removing tax from the bill.