Presently as we all know short-term rentals are rated at a residential property tax rate even though they operate as businesses. Lodging properties serve the same purpose at a rate four times greater, 27.9%, doing the same business and on many occasions serving communities on long-term rentals, not short ones. We all agree it is not fair.
There are two options to resolve this situation. The government is one. Then my option is the just one. The government is proposing to increase the rate of taxation for all legalized short-term rentals. They already calculated how much more money they will squeeze out of short-term rental businesses.
Well this government proposal is very unfair, discriminatory, noncapitalist and simply wrong.
My proposal is much simpler, fair and just. In the property assessment formula in Colorado there is a room for “lodging industry” separate from commercial industry. The problem is, if you manufacture screws or cars, lodging is rated the same.
Short-term rental should be rated the same as lodging properties but not on the current lodging rate but a new rate drafted by citizens and accepted by the whole Colorado society.
The new bill should state for example that both lodging categories, short-term rentals and hotels, to be rated at a rate of 10% without any limitations and penalties.
This is the only way our government will not create a new war between us and them, and we all will have a clear understanding of what is right and what is wrong.