The Colorado Interim Legislative Oversight Committee Concerning Tax Policy is currently reviewing a proposed piece of legislation that would alter the tax classification for specific short-term vacation rental properties. Under this proposal, known as the Lodging Property Tax Treatment bill, short-term rentals (STRs) that are rented for 90 days or more would be subject to the lodging tax rate, placing them on the same taxation level as hotels and bed and breakfast properties.
This change could result in a significant increase in property taxes for STRs that exceed the 90-day rental threshold, potentially quadrupling their tax burden in comparison to the current residential tax rates. Properties rented for less than 90 days per year would continue to be taxed at the residential rate.
It's worth noting that the Colorado Legislature is not presently in regular session; however, legislative committees convene during the interim period to examine and refine policies for the upcoming legislative session, which begins in January. If this bill progresses as anticipated through the Interim Committee process, it will be up for consideration during the upcoming regular session.
HomieBees Team is actively engaging with policymakers on this proposed legislation in order to protect the interests of the property owners and advocate for equitable and balanced policies. At the same time, we encourage participation of all stake holders, the property owners in the first place, and ask you to please provide your testimony and oppose the proposed tax.
On October 31, at 10:00 AM MDT, the Legislative Oversight Committee Concerning Tax Policy in Colorado is scheduled to discuss this legislation and hear public testimony. You can access the meeting agenda here and find information on how to provide testimony here.