Battle Over STRs Heats Up in Colorado
Lawmakers in Colorado are drafting dueling bills that will impact state short-term rentals (STRs). Currently, STRs are taxed at the residential rate of 6.8%. However, some lawmakers think they should be taxed at the commercial rate of 29%. An initial draft of a bill by Democratic State Sen. Chris Hansen would tax short-term rentals as commercial properties if they're rented for more than 90 days. He says if a home is used like a hotel, it should be taxed like a hotel: "What we're trying to do is look at the tax equity of the situation." Democratic State Rep. Shannon Bird says not all STRs are the same: "I think the biggest mistake we make is to lump everybody into the same bucket." She introduced a competing bill that would allow Coloradans to have one STR, in addition to their primary residence, at the residential rate: "This is how people build wealth and it's a tremendous goal, it's laudable and we need to protect people's ability to do that."
CBS News (01/29/24) Shaun Boyd