DENVER — A bill that would have increased property taxes for short-term rental properties died in committee Tuesday following hours-long testimony from property owners.
Senate Bill 24-033 would have required short-term rentals that are leased for 90 days or more to be classified as lodging properties.
The lodging tax rate is approximately twice as much as a normal residential rate, according to bill sponsor, State Sen. Chris Hansen, D-Denver. Hansen also intended to increase the threshold for a lodging property from 90 to 200 days.
Hansen told Denver7 he planned to incorporate an amendment that would require a study to examine the economic and service impact of short-term rentals across the state.
Politics
Senate bill increasing short-term rental property taxes likely to be rolled back
Danielle Anderson, a mortgage lender and short-term rental host, testified against the bill Tuesday evening. She told Denver7 that the bill — in its unamended form — could have widespread implications.
"I know that I've had clients that have considered selling their whole house depending on how this bill plays out," said Anderson.
Multiple retirees also testified against the bill, saying they wouldn't be able to afford their needs if they didn't rent out a room.
"Short-term rental hosts are just average everyday people," said Anderson. "You know, it's somebody that wants to rent out a basement to offset their mortgage. It's somebody that wants a dream house in the mountains, and they can only afford it if they have short-term rental income."
Some short-term rental owners said they fear a study on the properties could lead to extra fees.
"I think sometimes that we're put into this category of hotels, or we're put in this category of large corporation, but yet we're just trying to achieve the American dream," said Anderson.
Following hours of testimony, the bill died in committee.