The sponsors of a bill that would have changed the way short-term rentals are taxed in Colorado voluntarily postponed the bill indefinitely by legislation after lawmakers rejected another bill on the same topic last week.
Senate Bill 33 would have required that any short-term rentals used for more than 90 days per year to be responsible for the same property tax rates as lodging properties instead of residential properties.
What does this mean? It means that if you were to rent your home for more than 90 days out of the year in short-term rentals, you’d be subject to the same property taxes as a commercial lodging property.
Colorado’s property tax rate for lodging properties in 2023 was 27.9%. For residential properties, it was set at 6.765%.
Similarly, the bill rejected earlier in the week House Bill 1299 would have offered an alternative plan to the controversial Senate Bill 33.
House Bill 1299 would have allowed homeowners to use their primary and secondary homes as short-term rentals indefinitely while still being taxed under the residential rate. However, if your additional property used for rentals is a third, fourth or fifth home, then they would be subject to the higher lodging rate.
Through the bills’ dissolution, it marks the end of battle and a victory for short-term rentals in the state. This issue is likely to continue to play out at the local and state levels in the upcoming years.
This comes as a further measure than the current short-term rental taxes that exist at the local levels. Snowmass currently holds a 12.8% tax rate and Aspen holds a 21.8% tax rate.
Sources/Article Referenced: https://www.aspentimes.com/news/sponsors-of-remaining-short-term-rental-bill-voluntarily-kill-legislation/
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