In the spirit of cooperation, Salidans for Reasonable Taxation is working with the Salida City Council to modify the current short-term-rental (STR) tax ordinance (2022-24) if we can come to an agreement that can be voted on in Council by September 19.
During public comment at the August 15 Council meeting, STR owners discussed the impact of the annual tax rate that equates to nearly 4x the annual rate and over 12x the nightly rate for a 3-bedroom house. We heard several City Council members voice their willingness to lower the taxes, which brings them back into balance with other Colorado municipalities. We are pleased that Councilors listened to the STR owners and we listened to the Councilors’ concerns as well.
While I had legal advice that the differentiated tax rate (Chaffee County vs. non-Chaffee County residents) was legal given the differentiation the city undertook when banning new STR licenses for non-Chaffee County residents on December 16, 2021. The city believes differently and the only way to know is through the court system.
With respect for the concerns of the City, the STR owners, and Salidans for Reasonable Taxation are putting together a proposal to find a middle ground. We have provided analysis to City Council for several proposals that will provide incremental tax revenue to the 2022 taxes but be lower than those currently in effect which are significantly impeding rentals. The way the current taxes are structured, they are very regressive in that they levy the highest nightly taxes on the STR owners that rent the least number of nights. This disproportionately impacts STR owners that have houses in the residential zones as they are limited to renting 50 percent of the year by statute.
It is our sincere hope as STR owners that we can come to a reasonable resolution for taxation on STR’s with the Salida City Council.
Kalen Steeves
Salida
Recent Comments