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Short-term rental tax option draws fierce debate as committee reopens HB 25-59
Summary
Rep. Parsley’s HB 25-59 would let cities and counties add a 4% lodging tax on short-term rentals (effective 04/01/2027) with up to 15% for administration; supporters say proceeds would fund affordable housing while owners warn the tax unfairly targets small hosts and may harm local economies.
The House Finance Committee reopened the hearing on HB 25-59 on Jan. 20 and heard more than an hour of public testimony for and against a proposed local-option excise tax on lodging and short-term rentals.
Staff outlined the bill’s mechanics: the measure would allow a city or county to impose an additional 4% excise tax on lodging and short-term rentals beginning April 1, 2027. A county must allow a credit against its own tax for taxes imposed by cities within its boundaries; the short-term rental tax would be treated separately for statutory caps. Local governments could retain up to 15% of revenues for administrative costs and must publish annual reports on spending. In a prior fiscal estimate for a…
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