The Colorado legislature has stirred controversy by postponing a critical hearing on proposed SB24-033 which would impose commercial property taxes on short-term rentals.

The move has drawn sharp criticism from Colorado property owners and industry stakeholders who view the measure as a misguided attempt to penalize successful businesses and stifle the state's vibrant tourism industry.

Scheduled to convene next week at the Capitol, the anticipated hearing was set to provide a platform for property owners from various regions of the state to voice their opposition to the legislation, spearheaded by Democratic Sen. Chris Hansen.

PRIME SPONSORS

• Sen. Chris Hansen

• Rep. Mike Weissman

The bill, Democrats believe would address housing shortages in mountain communities where vacation rentals outnumber residential properties, has been met with vehement resistance from opponents who argue that it will have detrimental effects on tourism and exacerbate rental availability challenges.

Sen. Hansen, the bill's sponsor, cited delays in finalizing crucial amendments as the primary reason behind the hearing's postponement, signaling a lack of preparedness and foresight in the legislative process.

The initial public hearing, originally slated for February 20th, has now been put on hold as nonpartisan legislative staff explore alternative options for rescheduling the session with the Senate Finance Committee chair and committee members.

At the heart of the contentious measure is the proposal to categorize homes rented short-term for over 90 nights annually as commercial lodging properties, subjecting them to significantly higher tax rates akin to those imposed on traditional commercial establishments.

READ MORE:

• TAX INCREASE FOR SHORT-TERM RENTALS SPARKS CONTROVERSY IN UPCOMING LEGISLATIVE SESSION

• COLORADO LAWMAKERS FACE BACKLASH TO ATTACKS ON SHORT-TERM RENTALS

• SHORT-TERM RENTAL OWNERS SHOW UP IN FORCE TO OPPOSE COLORADO LAWMAKERS’ PLAN TO TAX THEIR HOMES AT A MUCH HIGHER RATE

• COLORADO'S MOUNTAIN TOWNS UNDER SIEGE: THE SINISTER PLOT TO STRANGLE SHORT-TERM RENTALS AND CRUSH PROPERTY OWNER RIGHTS!

In 2023, commercial properties like hotels and office buildings faced a tax rate of 27.9%, a stark contrast to the 6.7% rate applied to residential properties.

While Democratic Gov. Jared Polis has voiced his support for taxing short-term rentals as commercial properties, the bill's detractors continue to voice concerns over its potential repercussions on Colorado's tourism sector and rental market dynamics.