Advertising Your Furnished Home for Rent? The County Assessor May Come Knocking. 9:28, August 9, 2017

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Advertising Your Furnished Home for Rent? The County Assessor May Come Knocking.

Advertising Your Furnished Home for Rent? The County Assessor May Come Knocking.

If you offer a residential property for rent in Colorado, you should be aware that you may be assessed personal property taxes on household furnishings.

Colorado’s county assessors are required by law to discover and assess taxable personal property in their respective locales. The discovery process entails issuance of a personal property schedule to any person known or believed to own taxable personal property. Upon receipt of such a schedule, the addressee must remit a list of any and all taxable personal property to the county assessor for review.

Personal property used to furnish residential real property is typically exempt from such taxation, “so long as it is not used for the production of income at any time.” See C.R.S. § 39-5-108.5(1)(c). However, personal property used to furnish residential real property “becomes subject to taxation if the residential real property is offered for rent on a furnished basis or otherwise used for business purposes.”

Given the routine use of real estate agents, property management companies, and lodging companies (and most recently the increasing popularity of owner advertising through websites like VRBO and Airbnb), it is often difficult for local officials to identify properties offered for rent by address and/or the owners. In 2009, Colorado enacted legislation aimed at remedying that challenge faced by county assessors, and, in turn, increasing tax revenues.

Now, those who advertise furnished residential property for rent are required to provide the address(es) to the county assessor upon request. This includes property owners and their agents. Such mandatory reporting has, as it was intended to, resulted in a spike of Personal Property Declaration Schedules being issued in lucrative rental markets around the state where taxable furnishings are more likely to exceed the threshold exemption ($7,300 in 2017).

If you have questions about whether you may be subject to personal property taxation, about the mandatory reporting process, and/or about protesting an assessment please contact Angela Vichick at moc.t1503563815hcehd1503563815leifr1503563815ag@kc1503563815ihciv1503563815a1503563815 (Pitkin County), Haley Carmer at moc.t1503563815hcehd1503563815leifr1503563815ag@re1503563815mrach1503563815 (Garfield County), or Jason Buckley at moc.t1503563815hcehd1503563815leifr1503563815ag@ye1503563815lkcub1503563815j1503563815 (Eagle County).

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