As the legislative session moves forward, committee hearings at the State Capitol are gearing up and many bills are being considered for the first time. One bill that has its first hearing next week is HB 1036, which the Colorado Chamber recently took an “opposed” position on.
The proposed legislation would allow Colorado counties and municipalities, if approved by local voters under the state’s Taxpayer Bill of Rights, to impose new taxes on residential properties deemed “vacant.” Local governments could adopt an excise tax, an additional property tax, or both, and each jurisdiction would set its own definition of what qualifies as a vacant property. All revenue generated from these taxes could only be used to support locally defined affordable, attainable or workforce housing initiatives.
HB 1036 also allows multiple local governments to form a joint local housing tax authority to collectively levy, collect and enforce these vacant-property taxes across their combined boundaries. County assessors would not be required to administer the taxes but could voluntarily provide data or assistance through compensation agreements.
The Colorado Chamber’s Tax Council discussed the legislation during its January meeting and raised serval concerns, arguing that it creates a new category of taxation that penalizes lawful property ownership rather than directly addressing housing supply challenges. The council also expressed concern that the bill would further complicate Colorado’s already complex tax system and could have unintended negative impacts on resort communities and local economies.
The Colorado Chamber took an opposed position on HB 1036 last week. The bill is scheduled to be heard in the House Finance Committee on February 9.