A bill introduced in the Colorado Senate to change short-term rental properties from a residential tax rate of 7% to a commercial rate of 29% has ignited a firestorm of debate throughout the state. The impetus behind the bill is to raise revenue for overextended state funding, which is strained by tax laws passed in the 80s and 90s.

The City of Steamboat currently has around 200 active vacation home rental permits, but they estimate there are over 3,500 short-term rentals within city limits. The Routt County Planning Department defines short-term rentals as ‘the rental of a dwelling unit for a term or time period of less than one month.’

Robin Craigen, CEO of Moving Mountains, a Steamboat-based vacation rental group, believes the proposed bill could have catastrophic consequences for homeowners who use their vacation rental for personal usage during part of the year. “There are very few investment-only properties in Steamboat,” Craigen said. “It’s not an apples to apple comparison.”

Airbnb spokeswoman Molly Weedn reported that the majority of Colorado-based hosts are sharing the homes in which they live in, in order to make ends meet. The growing trend in vacation home rentals speaks volumes, especially in mountain communities where real estate prices continue to rise.

Sen. Bob Gardner, R-Colorado Springs admits his bill, SB20-109, may not be the best solution and is unlikely to pass. “Maybe what we need to do is lower the assessment rate on bed and breakfasts. Maybe we need to lower the assessment rate on hotels and motels of a particular size, that would be as good of a solution or better, to me, than taking all short-term rentals and calling them commercial,” Gardner said.

Anyone wishing to challenge bill SB20-109 should reach out to Senator Gardner at 303-866-4880 or e-mail, bob.gardner@state.co.us