Erie Weighs a New Lodging Tax Timed to Sundance 2027 Overflow
QUICK ANSWER
Reported: Erie, Colorado, a town northeast of Boulder with no hotels of its own, has been moving toward a November 2026 ballot measure that would create a new 3.5 percent lodging tax along with a half cent sales and use tax increase. Local reporting ties the timing directly to Sundance 2027, since Erie officials expect short-term rentals in town to see overflow demand once Boulder fills up. Nothing here is an official Sundance or City of Boulder announcement, this is a separate town’s tax process, but it matters to anyone weighing a stay outside Boulder proper.
Last verified: September 9, 2026
What has been reported so far
| Detail | Status |
|---|---|
| Erie town board advanced a 3.5% lodging tax and a half cent sales and use tax increase toward the ballot | Reported, not yet confirmed |
| Target is a November 2026 ballot measure, with collection potentially starting January 1, 2027 | Reported, not yet confirmed |
| Erie currently has no hotels and no short-term rental regulations in its town code | Reported, not yet confirmed |
| Sundance Film Festival 2027 runs January 21-31 in Boulder | Confirmed |
BizWest reported in mid July 2026 that the Erie town board was moving a lodging tax and a sales and use tax increase toward the ballot, with a proposed lodging rate of 3.5 percent. A separate Denver7 report from earlier in the summer quoted Erie Communications Director Gabi Rae explaining the town’s thinking directly in the context of Sundance: “The town of Erie currently does not have regulations in our code for short-term rentals at all,” and Rae said staff were still working out “what ballot language could look like.” Erie has no hotels of its own, though one has been planned, and it will not be ready before the festival, according to that reporting. A local real estate agent quoted in the same story, Bri Ugalde, said a short-term rental tax structure could help homeowners “generate income and hold on to their properties” during the festival window.
None of this is a Sundance Institute or City of Boulder announcement. Erie sits partly in Boulder County and partly in Weld County, roughly 15 miles from downtown Boulder, and its town board, not Boulder’s, controls this measure. We have not found a certified ballot question number or final tax rate published directly by the Town of Erie as of this update, so treat the specific numbers above as reported rather than final until the town publishes its own confirmation or the measure appears on a certified ballot.
Why it matters
If you are struggling to find lodging inside Boulder for Sundance 2027, or if prices look high, nearby towns are part of the honest answer, and Erie’s move shows other municipalities are actively positioning for festival overflow rather than leaving it unaddressed. For a look at pricing pressure inside Boulder itself, see our post on what lodging is actually expected to cost for Sundance 2027. If you are considering renting out a short-term property near the festival, our guide to Boulder County’s short-term rental rules outside city limits covers a related but separate set of regulations. And if Boulder lodging is unavailable at any price, our page on whether you can stay in Denver for Sundance 2027 looks at the other major overflow option.
What we’re watching
We are watching for Erie to certify actual ballot language and a final tax rate, and for results once Boulder County and Weld County voters weigh in this November. We will update this post once the town confirms the measure passed, failed, or changed shape.
