In early 2024, Colorado made headlines with Senate Bill 33 (SB33), which proposed a 400% increase in property taxes for short-term rentals (STRs) used more than 90 days annually, reclassifying them as commercial lodging with a 27.9% tax rate compared to the 6.76% residential rate. This bill posed a major threat to Colorado’s tourism industry and STR owners, with broader implications nationwide.
Recognizing the danger, the Colorado Lodging and Resort Alliance (CLARA) launched an advocacy campaign, highlighting the potential economic damage. A survey of STR owners showed that 54% would limit rentals to avoid the tax, and an economic study projected a $1.36 billion reduction in visitor spending and 8,148 lost jobs if the bill passed.
CLARA’s efforts culminated in an STR Advocacy Day at the Capitol on February 6, 2024, where 150 advocates successfully voiced their opposition, contributing to the bill’s defeat.