ARTICLE
26 March 2024

Lodging Property Tax Treatment

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...
United States Tax
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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

[Hearing: February 20 at 2 PM in Room SCR 357]

  • 2024-01-10 / Introduced
    Introduced in Senate - Assigned to Finance

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
26 March 2024

Lodging Property Tax Treatment

United States Tax
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