I am not sure how I missed this but there is currently a bill that wants to tax all short term rentals at a commercial property tax rate. This will triple my property taxes. This will also include homes where rooms are rented. They state in this scenario, the percentage of rented space will be taxed at a commercial rate and the remainder of the home at a residence rate. They state this is similar to a bed and breakfast. From what I have read, Colorado is the first state that would tax a short term rental at a commercial rate. This will add about 2k a year to my tax bill. We offer rooms but also rent our home out if we are out of town.
Any other Coloradans out there? Proposed bill to tax all shared and entire home short term rentals property taxes at commercial tax rates
There are definitely Coloradans here, maybe they will chime in.
what is the bill number? or legislation name? I live in basalt
From the Denver Post:
As elected officials across Colorado struggle to avoid steep budget cuts to rural fire stations, libraries and other public services, one group is looking to short-term rentals such as Airbnbs for a possible solution.
Right now, those properties are valued and taxed as homes. But a draft bill awaiting approval from the Alternatives to the Gallagher Amendment Interim Study Committeewould make owners pay commercial property tax rates for every short-term rental, which is defined as a property that’s available for rent for periods shorter than 30 days.
Airbnb has this on my Facebook feed it is how I discovered it.
Charleston County SC does something very similar to that.
It does not charge as commercial, but the HomeOwner discount is forfeteid so it is the same thing, essentially.
I am thrilled to pay it, rather than to lose the right to rent.
Govt wants money.
Is it a whole house rental? We mostly just rent out rooms as this is our primary residence. When we travel, we will do a whole house rental. I can somewhat understand if is not a primary residence ( although we are already paying occupancy taxes). Also this will only apply to short term rentals, not long term rentals, which is discriminatory in my opinion. You lose your homestead exemption in Florida when it not your primary home, no matter what you are using it for. I can understand that, but trying to calculate a partial space for property tax increase in a home I live in while someone who is renting their whole home out long term pays nothing extra makes no sense.
Same crap (tax) was just implemented in Auckland NZ. It’s just matter of time before this will catch up all over the world. Very sad.
the HomeStead exemption in my country is a cut-off at 70 nights. So rent less than 70 nights whole house and you can claim the exemption still. Over 70 nights, pay 3x property tax.
As fare as rooms, the % of the house that is rental rooms is not eligble for the exemption no matter how many nights so yes - they calculate a partial space as a % for property tax increase in a home.
Ok very similar. I would love the 70 day exemption. Our state will be the first in the US to commercially tax an Airbnb. Some states will give you a discount if you live in the home primarily. But if you live in it part time or rent it out you lose the homestead discount. If this happens I may just rent my most popular room out and take the other one down.
This does not seem to make sense. Can anyone supply the bill number and any concreate details. Our daughter lives there and is planning on doing air in Glenwood. We do it in Michigan. I cannot image such a huge huge hit in property taxes that Colrado legislators would approve in a state of such appreciated property rights.
There is a post already with details above.
I sent an email voicing my concern/opposition.
Just saw this article today. I guess we dont have to worry as of yet.
It is called the Gallagher Amendment. Property taxes are extremely low due to the Gallagher law that severely limits property taxes. They are going after the low hanging fruit- Airbnb and other short term rental properties to tax at commercial rates. The Bill was looked at today and luckily was tabled. Airbnb had a link to send an email to propose, which is what I did.
Here’s a link to today’s news:
Great minds think alike! I didn’t realize you had posted. I went ahead of myself there