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Colorado legislation on vacation rental taxation

Colorado legislation on vacation rental taxation

Colorado legislation on vacation rental taxation

Chamber Vacation Rental Council,
Several of our VRC lead team members will be on this call prepared to offer commentary on commercial property tax rate on short-term rentals. If you cannot be on this call to offer testimony in person, email or call 303.866.3521. Here is the letter we received from the state:

Dear Property Owner or Manager, 
In recent months, cities and counties across Colorado have begun to reconsider their regulations for short-term vacation rentals. As these discussions take place, the Colorado Legislature is also considering new regulations, including the possibility of imposing a commercial property tax rate on short-term rentals. 
On Thursday, October 28 at 9:00 AM MT, the Colorado Legislature’s Tax Policy Task Force is holding a public hearing on short-term rentals. If you’d like to share your perspective with the Task Force, you can share testimony remotely via Zoom, or in writing. 
To sign up to share testimony with the Task Force, click here. Then follow the steps below. 

  • Select the method by which you want to testify. (In-Person not available.)
  • Select “By Committee and Hearing Item”.
  • For Committee Name, select “Interim Committee Legislative Oversight Committee Concerning Tax Policy & Task Force”.
  • For Meeting Date and Time, select “10/28/21 9:00 AM”.
  • For Hearing Item, select the only option.
  • Fill out the rest of the information and click “Sign Up”. 
  • If you have trouble signing up to testify or submit written testimony, please email or call 303.866.3521.

VRBO Government Affairs

Remember, as a member of the Chamber, our voice is more effective in numbers. I"ll post this thread to the blog here so you can add any commentary that will inform our collective response.

The Chamber Team


Here's the essential gist from an article October 15: "The new draft state legislation, which was developed this month from discussions in the General Assembly’s Legislative Oversight Committee Concerning Tax Policy and Task Force, would work like this:
If a home is rented as a short-term rental for more than 30 days a year, the owner must pay the lodging property tax rate for each rental day instead of the much lower single-family property tax rate. In other words, if a property is rented out as a short-term rental for 45 days, the owner must pay a commercial property tax rate on those 45 days in a year and the single-family property tax rate on the remaining 320 days.
A temporary reduction in the 29% commercial property tax assessment rate approved by lawmakers this year through Senate Bill 293 dropped the lodging property tax assessment rate to 26.4% for tax years 2022 and 2023 from 29%. Proposition 120, on the November ballot, would make that reduction permanent if it’s approved by voters."
The article goes into detail on how value is assessed. The Chamber is speaking with other Colorado chambers to assess how they are taking action.
You can read the whole bill here. 

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