SB 24-033

Senate Bill 24-033, also known as the Lodging Property Tax Treatment bill, changes how short-term rental properties are taxed in Colorado. Starting from January 1, 2026, if a short-term rental property (like an Airbnb) is used for rentals of less than 30 days and was rented out for more than 90 days last year, it will be classified as lodging property rather than residential property, which could affect its tax rate. The bill also requires owners to confirm the number of days their properties were rented out and sets up a pilot program to track short-term rental units across the state. Since the status is "signed," this means that the governor has approved the bill, making it law.

Official Summary

Legislative Oversight Committee Concerning Tax Policy. The bill establishes that, for property tax years commencing on or after January 1, 2026, a short-term rental unit, which is an improvement that is designated and used as a place of residency by a person, family, or families, but that is also leased for overnight lodging for less than 30 consecutive days in exchange for a monetary payment (short-term stay) and is not a primary residence, and the land upon which the improvement is located, may be classified as either residential real property or lodging property. If, during the previous property tax year, a short-term rental unit was leased for short-term stays for more than 90 days, then it is classified as lodging property. Otherwise, it is classified as residential real property. Actual value for a short-term rental unit that is classified as lodging property is to be determined solely by application of the market approach to appraisal. The bill also specifies, with an exception for a property that qualifies as a bed and breakfast, that a building designed for use predominantly as a place of residency by a person, a family, or families but that is actually used, or available for use, to provide short-term stays only is a hotel and motel. For purposes of applying the classification of either residential or lodging to a short-term rental unit, annually, the assessor is required to send notice to owners of short-term rental units of the number of days during the prior property tax year that the assessor has determined the property was leased for short-term stays. An owner must sign and return the notice and, if the owner disputes the number of days the property was leased for short-term stays, the owner must provide evidence demonstrating a different number of days the property was leased for short-term stays. Additionally, the property tax administrator is required to establish and administer a pilot program to develop a statewide database and uniform reporting system to track short-term rental units. (Note: This summary applies to this bill as introduced.)

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