Colorado Association of REALTORS | Capitol Connection – January 22, 2024
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Capitol Connection – January 22, 2024

Jan 29 2024

Capitol Connection – January 22, 2024

Legislative Advocacy This Week at the State Capitol

The 2024 Legislative Session kicked off on January 10th and will run 120 days until May 8th. Housing will be a hot topic this session with Governor Polis highlighting the lack of affordable housing in his State of the State address on January 11th.

Don’t Miss Out on the Action – Sign up for REALTOR® Party Mobile Alerts

Text REALTORS to 30644

REALTOR® Party Mobile Alerts offers REALTOR® Associations and REALTORS® a way to stay connected directly from their cell phone or tablet. When a national or state legislative call for action is launched, subscribers get a short text message containing information to take action. Stay in the “know” as housing legislation heats up at the state capitol and nationally this year.

*If you sign up for RPMA and receive a Call For Action, taking action does NOT subscribe your information to a listserv.* RPMA and CFA are strictly to inform members of legislation that the National Association of REALTORS® or Colorado Association of REALTORS® needs grassroots engagement.

RPAC

“Early Bird Raffle”
We want to start 2024 strong, especially since it’s an election year and we need to support as many REALTOR® Party Champions as possible. Join us in fighting for homeownership and protecting private property rights by investing in RPAC. Enter our raffle for a chance to win one of the prizes below. This is a great opportunity to start your 2024 major investment. Raffle will end on February 7th and the drawing will take place on February 8th. 

Prizes:
– $600 Broadmoor Gift Card
– $300 Amazon Gift Card
– $100 Visa Gift Card

How to Play:
– $99 = 1 Ticket
– $300 + Pledging to be a 2024 Sterling R Major Investor = 5 Tickets

CLICK HERE TO PURCHASE TICKETS

Don’t miss this opportunity to invest early in RPAC.

Bill Updates

(Oppose) SB24-033 Lodging Property Tax Treatment 

Sponsors: Sen. Hansen and Rep. Weissman

Senate Bill 33 came out of the Legislative Oversight Committee Concerning Tax Policy this past fall, previously known as “Bill C.” This legislation is sponsored by Sen. Chris Hansen (SD 31) and Rep. Mike Weissman (HD 36). This measure, if passed, would reclassify how short-term rentals are taxed for property tax years starting on January 1, 2026. Short-term rentals (STRs) are defined as stays that are less than 30 consecutive days; any stays that are longer than 30 consecutive days are considered long-term rentals and will remain classified as residential property. SB 33 specifies that if a STR is leased for short-term stays for more than 90 nights and is not a primary residence, it will be assessed at a higher rate and classified as lodging property. Currently, short-term rentals are taxed at the residential rate of 6.7%, and this proposed legislation would change the tax rate from 6.7% to 27.9%. This bill will require assessors to notify STR owners of the number of days during the prior property tax year that determined the property was used as a short-term stay. The owner can dispute the number of days specified by the assessor but will be required to prove that the STR was leased for a different number of days for short-term stays. SB 33 will also create a pilot program established by the property tax administrator to develop a statewide database and reporting system to track STR units. SB 33 is currently scheduled for the Senate Finance Committee on February 13, starting at 2 pm. CAR is opposed to Senate Bill 33 as introduced as it would quadruple the property tax rate for a number of property owners who use their properties as short-term rentals. It would also redefine a residential property as a commercial property, creating a dangerous precedent and lending challenges. Setting an arbitrary line of 90 nights could have a detrimental impact on tourism and local communities. 

The Colorado Association of REALTORS® (CAR) have also been engaged on a strategic counterproposal that would exempt primary and secondary residences from being classified as lodging regardless if used as an STR and therefore, both residences would not be taxed at the higher 27.9% rate. 

(Support) SB24-002 Local Government Property Tax Credits Rebates 

Sponsors: Sen. Roberts, Speaker McCluskie, and Rep. Frizell

Senate Bill 2 would allow local governments to create a property tax or rebate incentive program for property and landowners that own land or property designated as an “area of specific concern.” An “area of specific concern” is defined as the use of real property in the county that is determined to be diminishing or unavailable based on data, and the county declares it necessary to preserve the health and welfare of the residents in that area. In other words, areas and buildings that need improvement can utilize this incentive program to increase the options of available land and buildings for the benefit of the community. This program can help communities convert areas of specific concern to workforce housing.

This legislation is currently scheduled to be heard in the Senate Local Government & Housing Committee on January 30, starting at 1:30 pm.

(Support) HB24-1056 Issuance of Treasurer’s Deeds

Sponsors: Rep. Frizell and Rep. Marshall, Sen. Hansen and Sen. Kolker

The Colorado Association of REALTORS® (CAR) was working on legislation to address “home equity theft” before the interim Legislative Oversight Committee Concerning Tax Policy brought forward HB 1056. Under current law, counties are required to issue a treasurer’s deed for a property that is delinquent on taxes. These deeds are typically sold to investors. If a lien is not paid off, the new lienholder can auction the property and keep any profits after all debts have been paid off.  

CAR is proud to champion legislation protecting homeowners by ensuring any excess amount after all debts are paid off (home equity) goes back to the homeowner. 

(Oppose) HB24-1014 Deceptive Trade Practice Significant Impact Standard

Sponsors: Rep. Weissman, Rep. Mabrey, and Sen. Gonzales

The bill aims to reduce the level of evidence necessary to establish a sufficient impact to the public to any amount and would leave businesses vulnerable to deceptive trade claims under the Colorado Consumer Protection Act. Unintentional, mistaken, or errors of omission could be elevated as deceptive trade practices if this bill moves forward. Additionally, E&O insurance does not cover deceptive trade practices, which is why the Colorado Association of REALTORS® is opposing the bill. CAR advocated to amend a similar bill last year, HB23-1192, successfully removing section 1 that attempted to do the same.
 

Wildfire Legislation – CAR supports three bills from the Wildfire Matters Review Committee: HB24-1006HB24-1024, and SB24-009. Together, these bills will increase wildfire mitigation awareness outreach to residents, assist rural communities in accessing wildfire grants, and ignition-source removal programs.

Events

CAR 2024 Virtual Economic Summit

This is a reminder for all Colorado REALTORS® that there are only a few days left toregister for the CAR 2024 Virtual Economic Summit.

Don’t miss your chance to attend this focused event, tailor-made for your profession. Registration ends on January 24th at 4 pm. 

The summit features key speakers Peter Ricchiuti and Cooper Thayer, who will provide essential insights into the economic and housing market trends specific to Colorado. Their expertise is crucial for REALTORS® aiming to stay informed and competitive in 2024.

Master the Art of Legislative Testimony

Elevate Your Advocacy Skills: Master the Art of Legislative Testimony

In the dynamic real estate industry, your voice and expertise can shape critical policies. Join our Legislative Testimony Training to make a significant impact on legislative decisions. Gain an in-depth understanding of the legislative process, learn effective testimony crafting on your own behalf and delivery techniques, develop persuasive communication strategies, and get tips for handling Q&A sessions with legislators.

Training Overview:

  • When: January 29th at 1 PM
  • Format: Online via Zoom
  • Focus: Learn to testify on important real estate policy issues on your behalf by using your voice and expertise. 
  • Register by January 26th

Ensure your participation in this crucial training by registering no later than Friday, January 26th. Zoom details will be sent to registered attendees.

NAR

Mortgage Rates Have Dipped Well Below Historical Norms

“Home buyers should be pleased with the continuing drop in mortgage interest rates,” says Jessica Lautz, deputy chief economist of the National Association of REALTORS®. She notes this week’s average for mortgage rates is the lowest in eight months.

Existing-Home Sales Slid 1.0% in December 

Existing-home sales retreated in December, according to the National Association of REALTORS®. Among the four major U.S. regions, sales slipped in the Midwest and South, rose in the West and were unchanged in the Northeast. All four regions experienced year-over-year sales decreases.

REALTORS® Relief Foundation Welcomes New Vice President and Directors to Strengthen Its Mission

The REALTORS® Relief Foundation, renowned for its commitment to providing housing assistance following natural disasters and crises, proudly announces the election of Gregory Hrabcak as the new vice president, and David Legaz and JoAnne Poole as new directors. This strategic enhancement to the RRF board of directors aims to fortify the foundation’s vision for impactful nationwide assistance.

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