FRISCO — A proposed bill that sought to classify short-term rental properties as commercial rather than residential for tax purposes was shot down Tuesday, Feb. 11, in a Colorado Senate finance session.
Sen. Bob Gardner, R-Colorado Springs presented Senate Bill 20-109, which would have raised property taxes on short-term rental units from a 7.96% residential assessment rate to a 29% nonresidential assessment rate.
Gardner said last week that he did not expect the bill to pass and that it was intended to be used as a way to start a conversation about issues surrounding the short-term rental market.
Summit County Assessor Frank Celico reported Tuesday evening that Gardner asked the Senate finance committee to postpone the bill indefinitely, which essentially killed it.
“It was a conversation, and it was a good one that ended abruptly,” Celico said. “It was Sen. Gardner’s motion to postpone it.”
Celico was at the Capitol to present on the issue of short-term rentals in Summit County as well as implementation concerns with the bill as written. Celico said legislators called on him, a Grand County commissioner and a Gunnison County commissioner to speak on the issue.
“In the conversation, the legislators asked some good questions and left some hope for some sort of study,” Celico said.
While Celico said he wasn’t sure what exactly a study would look like, he said it could be a good start. He also reported that the session was more of a conversation about the issue rather than an effort to pass the bill.
“It sounded like a brainstorming,” Celico said. “I don’t think anyone has a great idea on how to solve (the issue).”
Gardner said Feb. 6 that his plan to continue the short-term rental conversation is to hold informal, legislative stakeholder meetings.