Colorado's Mountain Towns Under Siege: The Sinister Plot to Strangle Short-Term Rentals and Crush Property Owner Rights!

Colorado's mountain ski towns have long been a haven for outdoor enthusiasts and vacationers seeking a slice of natural beauty. However, recent years have witnessed a disturbing trend of overregulation by state and local governments, particularly when it comes to short-term rentals.

In a bid to address the shortage of worker housing, local leaders have imposed a barrage of arbitrary caps, regulations, and taxes on short-term rentals. But where is the evidence to support these measures? Skeptical property owners are demanding answers, challenging leaders to prove that these regulations are actually achieving their intended goals. Are more long-term rentals being made available to locals as a result? It is a reasonable question that remains unanswered.

The short-term rental industry has deep roots in Summit County, where it originally took shape over a quarter-century ago. Entrepreneur David Clouse pioneered this concept, building a website to market nights in his Breckenridge condo. Since then, the industry has flourished, driving economic growth and attracting visitors from far and wide. However, instead of nurturing this success story, local leaders have chosen a heavy-handed approach in the name of workforce housing.

Homeowners in Summit County took a stand and sued the county commissioners, foregrounding their discontent with regulations that limit property owners to a mere 35 bookings a year and impose a burdensome 2% tax. These draconian measures are widely viewed as misguided and unlawful, dampening the entrepreneurial spirit that has buoyed the local economy for years. It is an unnecessary assault on property owner rights and a blight on the principles of individual freedom.

Breckenridge, another mountain town in Colorado, has also fallen victim to the overreach of local authorities. The town council, prompted by a housing assessment survey, approved a hefty $400 per-bedroom annual fee on short-term rentals. This punitive measure has escalated further, reaching $756 per bedroom this year. Imagine the crippling effect on property owners who rely on short-term rentals to make ends meet. Such fees hamper innovation, discourage investment, and ultimately hurt both property owners and vacationers alike.

The Colorado Property Owners for Property Rights group in Breckenridge is challenging the town's new caps on short-term licenses and zoning restrictions that curtail rentals in residential neighborhoods. These are individuals who understand that property rights are the cornerstone of a flourishing economy and an enduring free society.

Yet, the battle persists, raging beyond Summit County. In Pagosa Springs, a judge struck down a voter-imposed fee on short-term rentals that aimed to establish a workforce housing fund. The fee was deemed unfair and lacking any rational basis, a violation of the equal protection clause of the 14th Amendment. This ruling highlights the flawed nature of these overreaching measures. They do little to address the housing issue, instead burdening property owners unjustly.

State lawmakers have also weighed the possibility of taxing short-term rental homes as commercial properties, a move that would effectively quadruple property tax rates and render countless rentals financially unviable. Property owners would be forced to bear an excessive burden, decimating the short-term rental market and stifling the economic growth that Colorado's mountain towns so desperately need.

A new Colorado law, HB23-1287, gives local governments greater leeway in licensing and regulating short-term rentals that are not part of hotels. The new regulation — which was signed into law by Gov. Jared Polis in June at a Summit County hotel that had been converted into workforce housing — gives county commissioners the ability to force vacation rental services like Airbnb and Vrbo to remove listings for properties that are not permitted or in violation of local rules.

The push for increased regulation and taxation of short-term rentals is gaining traction, fueled by misguided notions and a lack of understanding about the value these rentals bring to our communities.

Colorado's mountain ski towns thrive on the dynamic ecosystem created by property owners and vacation rentals. They generate income, create jobs, and support local businesses. Punitive regulations and excessive taxes will only serve to strangle this vital industry, undermine property owner rights, and diminish the allure of our beloved mountain towns.