Colorado Association of REALTORS | Capitol Connection – April 10, 2024
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Capitol Connection – April 10, 2024

Apr 10 2024

Capitol Connection – April 10, 2024

The Colorado Association of REALTORS® is *opposed* to Senate Bill 33 “Lodging Property Tax Treatment” that will be heard in the Senate Finance Committee next Tuesday, April 16 at 2:00pm in room SCR 357. Please feel free to contact the following members of Senate Finance and respectfully urge them to oppose Senate Bill 33

While we expect SB 33 to be significantly amended on Tuesday, in its current form if a property, that is not a primary residence, is used as a Short-Term Rental (STR) for more than 90 days then it would be classified as lodging property and assessed at a much higher rate – 29% compared to 6.7% for residential property. 

Here are some suggested talking points if needed:

  • Devastating economic impact to communities if SB 33 passes as-is. An economic study shared it could threaten $1.3B in tourism dollars and 8,100 tourism jobs.https://www.claraforcolorado.com/s/Laffer-Final.pdf
  • Communities could go dark during non-peak seasons if property owners simply limit use to 90 nights or less. 
  • Harms “mom-and-pop” property owners who may only have one property being used as an STR to offset mortgage or allow usage by others when they are not using property. During testimony at an interim committee meeting on 10/31, it was shared the vast majority of STRs are provided by property owners with a single non-primary residence property being used as a STR.
  • Locks in property owners at possibly higher assessment rates even if a property is sold, which may threaten lending if the property is classified as commercial lodging.
  • It is highly unlikely that if properties being used as STRs are liquidated due to changes in state policy then they would be affordable as “workforce” housing. For example, it is hard to envision a $1,915,000 single-family home (median price year over year for Eagle County) being affordable for a teacher, first responder or seasonal worker in many mountain or resort communities. 

For additional talking points or more information, especially for Summit and Pitkin Counties, please review a Western Mountain Resort Alliance (WMRA) study here:https://wmra.online/news/

House Bill 1299 “Short-Term Rental Unit Property Tax Classification”

The Colorado Association of REALTORS® asked 2023 REALTOR Champion Rep. Shannon Bird to sponsor House Bill 1299 “Short-Term Rental Unit Property Tax Classification” to counter SB 33 and protect small “mom-and-pop” investors by exempting primary and secondary residences from any possible statewide changes related to STRs. 

While CAR supports HB 1299, we are awaiting possible changes to SB 33 on Tuesday 4/16 to determine next steps before HB 1299 is heard in committee on Monday 4/22. 

Please stay tuned and feel free to email govaffairs@coloradorealtors.com for any questions. 

RPMA

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