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Legal Alerts | February 4, 2024 Lodging Property Tax Treatment 

SB24-033

Summary

Bill 24-033 establishes that, for property tax years commencing on or after January 1, 2026, “short-term rental units” may be classified as either residential real property or lodging property. If, during the previous property tax year, a short-term rental unit was leased for “short-term stays” for more than 90 days, then it is classified as lodging property. The market approach shall be the sole method for determining the actual value of a short-term rental unit that is classified as lodging property. Notably, the property tax assessment rate in 2023 for residential properties was 6.765% and, in 2024, the assessment rate for lodging properties is 29%.

Legislative Updates

  • 2024-04-16 / Failed
    Senate Committee on Finance Postpone Indefinitely
  • 2024-01-10
    Introduced in Senate – Assigned to Finance

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

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