Repost From the RLI Colorado Chapter President ~ Bill Davis, ALC
Owner/Broker/ President RLI Colorado Chapter
Many among our membership and their clients have cross populations with resort markets and involvement with short term rentals (STR’s) or even own such properties themselves as investment opportunities.
The recent defeat of Senate Bill SB33 which would have required any short term rental used for more 90 days in a year’s time to be subject to the same property tax rate as lodging properties instead of residential units was a short term victory for private property owners and investors.The subsequent introduction of House Bill 1299 was a watered down version of a similar nature which allowed for property owners to use their primary and secondary residences as short term rentals, but applied similar taxation penalties to an owner’s 3 rd or more STR. This bill too was killed in committee and “indefinitely postponed”.
These measures which would have nearly quadrupled the property taxation on many properties were introduced as a money grab under the miss guided notion that promoting property owners to place their properties in to the long term rental pools is a government solution to affordable housing challenges.
For many individuals or investors, the prospect of achieving some ancillary or offsetting income against the expense of their ownership is the only way to make these investments affordable.In resort markets, the STR has long been the standard for how people find lodging for their vacations.
Many resort communities have banded together with management companies, real estate professionals, and individual property owners who participate in STRs to create coalitions to lobby for and seek to protect property ownership rights within the legislature and local governments. Some of the local Realtor boards have also encouraged their membership to stay involved and advocate for the protection of these uses.
The changing environment of STRs and expansion of their usage across many markets has created a complex set of considerations that is difficult to navigate and is best addressed on a local level to serve each community’s needs. I encourage all of our membership to stay abreast of what is happening around them and provide input on your thoughts for how these initiatives can affect our clients, industry and even our own investments. Although these recent proposals died, I anticipate they will keep coming and it is incumbent upon us all to stay engaged.
Bill Davis, ALC
Owner/Broker/ President RLI Colorado Chapter