Colorado Hears Arguments on Tax Hikes For Short-Term Rentals
Photo Credit: An exterior view of a vacation rental in the Colorado mountains recently available via property manager and marketer Evolve. Source: Evolve. Evolve
Skift Take
The outcome of the Colorado bill will have a big impact on taxes owners ultimately pay.
Colorado’s legislative committee on finance and oversight is holding a public hearing on Tuesday to discuss a proposed bill that will impact short-term rentals in the state.
If passed, starting January 1, 2026, short-term rental units will be classified as either a residential real property or a lodging property based on its use the previous year. How a unit is classified would have a big impact on taxes owners ultimately pay.
Here’s how it would work:
Residential real property: If during the previous property tax year, the total number of days that a short-term rental unit was leased for short-term stays was less than or equal to 90 days, then the short-term rental unit is classified as residential real prope
