Colorado lawmakers convened the 2026 legislative session last week, and the issues before them feel especially pertinent in Eagle County. From housing affordability and workforce shortages to potential new taxes and fiscal constraints at the state level, this session will have real implications for our local businesses.

Housing policy will again dominate the conversation, including proposals that would authorize vacancy taxes and real estate transfer taxes. Lawmakers are considering whether to grant local governments new tools to discourage speculative housing practices and generate revenue for community needs. In high-amenity, resort-driven markets like Eagle County, these ideas understandably spark debate. Supporters see them as a way to address housing scarcity and fund workforce housing. Critics worry about impacts on property values, investment, and economic mobility. The challenge for legislators will be striking a balance, allowing flexibility for local communities without creating uncertainty that could chill investment or raise costs for working families.

These conversations build on recent local decisions. Eagle County voters narrowly approved a lodging tax increase in 2025, directing new revenue toward childcare, public safety, and tourism-related needs. That outcome reflects something important: voters are willing to support targeted, locally driven solutions when the impact is tangible and evident. The same principle should guide state lawmakers as they consider broader taxing authority.

Another major focus of the session will be Proposition 123, the voter-approved measure dedicating state income tax revenue to affordable housing. While the program has helped unlock new funding, questions remain about its flexibility and long-term sustainability, particularly as the state faces a projected budget shortfall of nearly one billion dollars. For Eagle County, where housing costs directly affect workforce availability, any reform or adjustment to Proposition 123 must ensure funds can be deployed efficiently and aligned with local realities. Housing programs that look good on paper but fail to produce units or accommodate community needs don’t solve the problem.

Housing and workforce issues are inseparable. Businesses across Eagle County continue to struggle to recruit and retain employees. Workforce development will also be a key issue during the 2026 session.

Recent legislation has aimed to expand training opportunities and incentivize employer investment in workforce facilities and equipment. Those tools matter, but they must be paired with stronger coordination between employers, education providers, and local governments. In mountain communities, workforce challenges are compounded by transportation barriers, seasonal demand, and cost-of-living pressures. Solutions must reflect those realities, not rely on one-size-fits-all approaches.

At the same time, legislators will be operating under tight fiscal constraints. The state is entering the session with a significant projected budget shortfall, limiting the number of bills with fiscal impacts. That reality reinforces the importance of prioritizing policies that support economic growth rather than unintentionally slowing it. For businesses, predictability matters. Sudden shifts in tax policy or regulatory frameworks can undermine confidence and delay investment decisions.

Eagle County’s business community is not asking for special treatment. We are asking for thoughtful, practical policymaking from the capital. Policies that expand housing supply, strengthen the workforce, and preserve a stable business climate are not competing goals. They are mutually reinforcing.

The 2026 legislative session will require tough choices and careful collaboration between state and local leaders. Colorado can make progress on housing and workforce challenges while maintaining the economic vitality that communities like Eagle County depend on. We need solutions that expand housing access, support workforce capacity, and cultivate a thriving business climate without causing economic harm.

That balance will help determine whether our businesses and our communities can thrive in the years ahead.

Chris Romer is president & CEO of Vail Valley Partnership, 3-time national chamber of the year. Learn more at VailValleyPartnership.com