Short term rentals being assessed as commercial property

[Robin Searle]

I'm curious if any other counties are looking at changing the assessment of residential short term rentals to commercial for the purposes of property tax like El Paso County (Colorado Springs) is? This idea was recently tabled at the state legislature but our city council brought it up so I called and spoke directly to our county assessor. In Colorado, the difference is significant - 7% residential tax rate and 29% for commercial. The assessor said he is looking into it but has many concerns he needs to address first - and added that nothing would happen before 2021. I'd love to hear if other counties across the country are looking at this and if so, has anyone had any luck in challenging the assessment? Some of his concerns included lenders calling the loan if he changed the property to commercial since the loan was made for residential, trying to find people outside of the city who are doing STR's (the city recently passed licensing requirements), and trying to figure out an assessment if the owner was living in the property and only using a portion for STR. He was very open and straightforward about his concerns and the fact he is, indeed, looking at the possibility. He added there would be multiple community meetings before any change like that was ever instituted.