‘Airbnb tax’ increase postponed, but discussion continues

COLORADO SPRINGS, Colo. (KRDO) -- A bill introduced into the legislature that would increase taxes on short-term rentals in Colorado, including homes listed on Airbnb, has been postponed indefinitely by the Senate Committee on Finance.

But it is still sparking a discussion, with a similar idea previously discussed in Colorado Springs.

Several homes in Colorado Springs are used as Airbnb-style short-term rentals, which is why there are disagreements between neighbors and landlords.

The idea is that short-term rentals would be listed as non-residential properties, making them subject to the 29% commercial tax rate.

Audrey Szychulski says the income from her Airbnb property has been extremely helpful, giving her the ability to start her consulting work.

"For 2019, we were actually at over 95% occupancy rate. So throughout the entire year we were only about 12 days that were vacant," she said.

But with a potential increase in property tax, she would have to consider increasing her rates or shutting down.

"If it were to change, we would seriously have to consider selling the house," Szychulski said.

El Paso County Property Assessor Steve Schleiker says the reason behind the increase is the high demand for housing in El Paso County and low availability of homes.

"We need to educate that this is a state matter, not a local matter. We need to propose smart and appropriate legislation," Schleiker said.

Ultimately he says he hopes to come to an agreement with legislators and discuss ideas with the community within the next month and a half.