CAR-Led Advocacy Helps Defeat Vacancy Tax Bill
A bill that would have authorized local governments to impose new taxes on so-called “vacant” residential properties was defeated this week after strong opposition from the Colorado Association of REALTORS® and REALTOR® members from across the state.
House Bill 26-1036, which proposed allowing municipalities, counties, and newly created housing authorities to levy taxes on vacant property based on locally defined criteria, failed on a 7–4 vote in the House Finance Committee. More than a dozen REALTORS® from across Colorado testified against the bill, with CAR leading the coordinated advocacy effort.
During committee testimony, REALTORS® raised concerns about the bill’s impact on property rights, constitutional tax uniformity, housing development, and real estate transactions. Several speakers emphasized that homes are often vacant for legitimate reasons, including repairs, lease transitions, seasonal use, or family needs.
“These second homeowners pay a disproportionate portion of taxes,” said Vail REALTOR® Michelle Rampelt during testimony. “They don’t use the services the way that full-timers use the services. They’re our biggest philanthropists, they’re our biggest investors, employers.”
CAR argued that HB26-1036 would have shifted Colorado away from its value-based property tax system by taxing homes based on occupancy rather than value, potentially exposing property owners—and local governments—to legal risk. REALTORS® also warned the bill could disrupt home sales and financing, particularly if buyers inherited higher tax classifications tied to a property’s prior vacancy status.
Lawmakers ultimately sided with those concerns, voting down the measure in committee.
“This was a critical win for REALTORS® and property owners across Colorado,” said 2026 CAR President Molly Eldridge. “HB 1036 would have undermined long-standing principles of fair and uniform taxation. It also would have created new uncertainty in the housing market with the potential for many unintended consequences and a patchwork of hard to regulate taxes. Because REALTORS® showed up and shared real-world expertise, lawmakers heard firsthand how harmful this proposal could be. This outcome is a powerful reminder of why REALTOR® advocacy matters—and how our collective voice, through CAR, protects our industry, our clients, and private property rights statewide.”
The defeat of HB26-1036 marks a significant advocacy win for CAR and its members, reinforcing the role REALTORS® play in shaping policy that protects property rights, supports housing stability, and ensures fairness in Colorado’s tax system.
CAR Chief Executive Officer Tyrone Adams testified at the Colorado State Capitol in strong opposition to House Bill 1036, a proposal that would have authorized new “vacancy taxes” on residential property. He was joined by many Colorado REALTORS® from PPAR, Vail, SMDRA, FCBOR, and many others who also testified, showing up to speak out on behalf of homeowners, property rights, and a fair tax system.