Alternative to Colorado STR taxation bill is proposed

[James Carlson]

There's now a competing bill in Colorado about property taxation of short-term rentals. 

The original bill, talked about here, would quadruple the property taxes on any home operated as an STR for 90 days or more in a year. (The sponsor has since said he'll amend it to only apply to homes rented as a vacation rental 200 or more days a year.)

A new competing bill would apply the commercial tax rate of 29% to Airbnb properties -- like the first bill -- but only if the home is the third or more property of a single owner. Essentially, you could have your primary residence and a second property operated as an STR under the traditional 6.7% residential tax rate.

To me, this is a step in the right direction. Will it pass? It doesn't have the backing of as many legislators yet, but the original bill is also getting a lot of pushback. We'll see.

[John Underwood]

Pigeon Forge area just made all STR's commercial which doubled the property tax.

So even places that embrace these want to capitalize off them.