Colorado mountain towns are pushing for new laws to tax empty homes. This move aims to tackle the growing challenge of affordable housing in areas where real estate prices are soaring. Many homes in these towns sit empty for most of the year, owned by people who don’t live there full-time. The Colorado Association of Ski Towns is leading the charge, asking lawmakers to allow local governments to put these taxes to a vote.
The proposed laws would let towns ask voters to approve taxes on homes that are vacant for long periods. This could mean big changes for vacation homeowners in popular ski destinations. The plan also includes possible fees on real estate transactions and taxes on short-term rentals. These ideas are part of a larger effort to find new ways to fund affordable housing and manage the impacts of tourism on local communities.
The Push for New Taxes
Mountain towns in Colorado are seeking permission to tax empty homes. This effort is led by the Colorado Association of Ski Towns. The group wants state lawmakers to pass new laws allowing local governments to ask voters about taxing vacant homes. If approved, this could significantly impact vacation homeowners in popular ski destinations.
The Housing Crunch in Mountain Towns
Mountain towns in Colorado are struggling with a serious housing shortage. Prices for homes and rent keep going up, making it hard for local workers to afford to live there. Many people who work in shops, restaurants, and hotels have to commute from far away. This problem worsens as more wealthy people buy second homes in these beautiful areas.
What is an Empty Home Tax?
An empty home tax is a fee owners must pay if their house sits unused for a long time. It’s meant to discourage people from buying houses just to leave them empty. The money from this tax could be used to build more affordable housing. Some towns are thinking about charging thousands of dollars a year for homes that are empty most of the time.
How the Tax Might Help
The tax could make more homes available for people to live in year-round. Some owners might decide to rent out their houses instead of leaving them empty. The extra money from the tax could help build new homes for workers. This could make it easier for local businesses to find and keep employees who can afford to live nearby.
Real Estate Transfer Fees
The ski town group is also pushing for fees on real estate transactions. Some towns had already set up these fees years earlier. New fees could help fund affordable housing projects in mountain communities. The group is careful to call these “fees” instead of “taxes” to avoid legal issues related to tax laws.
Short-Term Rental Taxes
Another proposed law would make it easier to tax short-term rentals. Several mountain towns have already approved such taxes with strong voter support. At least 10 towns have implemented these measures to address housing issues. The money from these taxes could help offset the impact of vacation rentals on local housing markets.
Property Tax Concerns
Local governments are worried about possible limits on property taxes. Two initiatives might appear on ballots this November to slow down property tax collections. If these measures pass, they could significantly impact local government budgets, and towns are looking for other ways to raise money.
Challenges of Implementing the Tax
The proposed law would let towns decide what counts as a vacant home. It’s not clear if homes rented to vacationers would be considered vacant under these rules. The U.S. Census counts short-term rentals as unoccupied, which could affect how these homes are viewed. This definition could significantly affect vacation homeowners and the local rental market.
Examples from Other Places
Other cities have tried similar taxes on empty homes. Vancouver, Canada, started one in 2017 and saw good results. They raised a lot of money for affordable housing and more homes became available to rent. However, every place is different, so Colorado towns need to think carefully about what will work best for them.
Impact on Tourism and the Local Economy
Mountain towns rely heavily on tourism. Some worry that taxing second homes could scare away visitors and hurt local businesses. Others think it might actually help by making sure there are enough workers to keep businesses running smoothly. Finding the right balance is important for keeping these towns vibrant and successful.
Short-Term Rental Numbers
Colorado has about 24,100 homes available as short-term rentals across the state. Many of these properties are concentrated in resort communities. Summit County alone has more than 4,000 active short-term rental licenses. These properties play a big role in local tourism economies and tax revenues.
Balancing Tourism and Housing
Towns are trying to balance tourism needs with housing for local workers. Some areas offer cash incentives to owners who switch from short-term to long-term rentals. These programs aim to increase housing options for the local workforce. The challenge is maintaining a strong tourism economy while addressing the needs of year-round residents.
Alternative Solutions Being Considered
Besides the empty home tax, towns are looking at other ways to solve the housing problem. Some are offering cash to homeowners who rent to local workers instead of tourists. Others are changing rules to make it easier to build affordable housing. Many places are using a mix of different approaches to tackle this complex issue.
What Local Residents Think
People who live and work in these towns year-round often support the idea of an empty home tax. They see it as a way to make their communities more livable. But some worry it could change the character of their towns or lead to more development. Town meetings about this topic tend to be lively and full of different opinions.
The Role of State Government
Colorado’s state government plays a big part in whether towns can create these taxes. Current laws might need to change to allow it. Some state lawmakers are working on bills to make it possible. They’re talking to town leaders, homeowners, and housing experts to try to find the best way forward.
15 Surprising Things Your Handwriting Reveals About Your Personality
15 Surprising Things Your Handwriting Reveals About Your Personality
13 Overlooked Downsides of Early Retirement You Probably Didn’t Know
13 Overlooked Downsides of Early Retirement You Probably Didn’t Know
20 Date Ideas That Will Make Your Relationship Stronger
