In recent years, the short-term rental market has exploded in Colorado. KUNC鈥檚 Nikole Robinson Carroll spoke with The Colorado Sun Team Editor David Krause about why this week.
鈥淢ore than 80 people showed up to what some people might think of as a, kind of an obscure committee, the Legislative Oversight Committee Concerning Tax Policy,鈥� Krause told KUNC. 鈥淭hey鈥檙e concerned about possible legislation next year that would roughly quadruple property taxes for the tens of thousands of short-term rentals.鈥�
Specifically, the measure would classify homes that are rented for 90 days or fewer per year鈥攁nd for less than a month at a time鈥攁s commercial lodging properties. Property tax assessment rates for lodging properties is 27.9%, compared to the 6.765% rate that's used for residential properties.
鈥淎 lot of mountain town communities, especially, have seen short-term rental taxes and fees, with a lot of that money going to help affordable housing in those mountain towns,鈥� Krause said. 鈥淪upporters of this legislation, including the governor, say it's meant to put short-term rentals on level ground with hotels and motels.鈥�
Nonpartisan legislative council staffers estimate that if the current version of is approved, it would increase local property tax revenues by over $370 million starting in 2026.
鈥淏ut the big caveat,鈥� Krause told KUNC, 鈥渋s that this bill comes as Proposition HH is on the ballot for next week.鈥�
is a 10-year property tax relief plan that has language about taxing second and subsequent homes, many of which are used for short-term rentals.
