A battle is brewing at the Colorado State Capital over a bill that could increase taxes on some short-term rental properties.
Many Coloradans who own short-term rentals say they worry the bill will negatively impact their livelihoods. And they say it could force them to reduce the number of nights their properties are available for consumers.
The bill would reclassify homes that are used for short-term rentals for more than 90 days of the year as commercial lodging property. That means instead of the 6.7% residential property tax they currently pay, the short-term rental owners would see their property tax bills quadruple. They would have to pay the 27.9% commercial rate, the same as hotels and motels. The bills sponsor said it is about protecting local services, such as schools and hospitals and ensuring properties are paying their fair share in taxes.
