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A bill increasing taxes for many short-term rentals in Colorado has been rejected in its first committee hearing

GEORGETOWN, CO – JANUARY 24: A view of Georgetown from Guanella Pass on January 24, 2023 In Georgetown, Colorado. A battle is brewing in Georgetown over lodging taxes. Both the town and Clear Creek County are making a claim on the 2% tax and neither will budge. Meanwhile, bed and breakfasts and short term rental owners are caught in the middle, finding themselves paying a double tax on lodging. (Photo by Helen H. Richardson/The Denver Post)

A bill that would have considerably increased taxes for thousands of short-term rentals in the state was rejected in its first committee hearing on Tuesday night.

A bill that aimed to raise taxes for numerous short-term rentals in Colorado was not approved in its initial committee hearing on Tuesday. This decision came after the sponsor tried to modify the legislation.

Originally, Senate Bill 33 would have mandated that any property used as a short-term rental for over 90 days per year must pay the state’s lodging tax. The property tax assessment rate for lodging properties in Colorado in 2023 was 27.9%, while for residential properties, it was 6.765%.

Senator Chris Hansen, a Denver Democrat and the main sponsor of the bill, suggested turning the bill into a study of short-term rental impacts. His amendment also aimed to prevent hotels from redesignating their units as short-term rentals to evade higher taxes.

The committee turned down those amendments as well as the entire bill.

Hansen revealed the idea for the amendments to the Summit Daily last week, and some opponents of the bill, such as Chris Romer from the Vail Valley Partnership, stated that they would back these changes.

Read the full story from our partner at summitdaily.com.

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