HB 24-1299

HB 24-1299, a Colorado bill that has been signed into law, changes how short-term rental properties are classified for property tax purposes. It defines these rentals and distinguishes between those used as primary or secondary residences (which remain residential properties) and those used commercially (classified as nonresidential). Owners of short-term rental units must annually declare whether their property will continue to be a short-term rental and if it is their main or secondary home, helping the county determine the correct tax classification. This affects owners of vacation rentals who need to report this information yearly to ensure accurate property taxes are paid.

Official Summary

The bill defines a short-term rental unit as a building that is designed for use predominantly as a place of residency by a person, a family, or families, is leased or available to be leased for short-term stays, and includes the land upon which the building is located. A commercial short-term rental unit is defined as a short-term rental unit that is not the owner's primary or secondary residence. A commercial short-term rental unit is classified as lodging property, which is a subclass of nonresidential property for purposes of valuation for assessment. A short-term rental unit that is the owner's primary or secondary residence will continue to be classified as residential property. On or before November 15, 2024, and on or before November 15 of each year thereafter, an owner of a short-term rental unit shall submit to the assessor of the county in which the property is located an affidavit signed by the owner, under the penalty of perjury in the second degree, identifying whether the property will continue to be used as a short-term rental unit in the following property tax year commencing on January 1, and if so, whether it will be the owner's primary or secondary residence. Absent contrary information, the assessor shall use the information in the affidavit to determine whether the property is a commercial short-term rental unit. If a commercial short-term rental unit is sold, the new owner shall submit an affidavit to the county assessor if the property will no longer be a commercial short-term rental unit for the classification of the property to change for the subsequent property tax year. (Note: This summary applies to this bill as introduced.)