Could Colorado Short-term Rental Property Taxes Increase by 4x?

February 20, 2024 | Data Compiled by Heather Connor, Realtor®

Are you familiar with the Colorado Lodging Property Tax Treatment; also known as proposed bill SB24-33?

If passed this bill could impact taxation of accessory-dwelling units (ADU's), second-homes and current investments in Crested Butte. If you're a short-term rental owner, your property tax bill could be at risk by increasing by up to 4x the current rate.

Let's have a short recap on what you should know as a property owner.

Defining "Lodging Properties" in Crested Butte

Bill SB24-33,  known as the Lodging Property Tax Treatment, would establish that beginning in January of 2026, a short term unit would be taxed differently than a traditional residential property and classified as a “lodging property”. It defines a short-term unit as a non-primary residence rented for less than 30 days at a time and used as such for more than 90 days in the previous tax year. 

Tax Implications

Currently, residential rental properties are taxed the same rate regardless of rental activity. This bill would modify the tax for any property deemed a “lodging property” to be taxed at a higher rate and possibly similar to those of a commercial unit. 

A New Tracking System

It also proposes a pilot program to develop a statewide database and uniform reporting system to track the STR units. It would require that assessors track the number of days the property was leased as an STR and for owners to agree and sign the notice or provide evidence to dispute it.

What do you think?

SB24-33 will be considered in the Senate Finance Committee on February 20th. Now we all know that there are ramifications around any new legislation. So property owners, both for and against, I’d love to hear your thoughts.

If you have further questions about Mt. Crested Butte or want some real estate guidance, contact Heather Connor at 619.333.7412 (Call or text)

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