SB20-109 Summary: Short-Term Rentals Property Tax Classification

• Classifies buildings or portions of buildings designed as residences but leased for short-term stays (less than 30 consecutive days) as residential improvements if owner occupies fewer than 30 days per year, making them eligible for residential property tax treatment.

• Defines "short-term rental unit" as residential property leased for overnight lodging under 30 consecutive days where owner occupancy is less than 30 days annually, excluding it from residential improvement classification.

• Defines "short-term stay" as overnight lodging provided for less than 30 consecutive days in exchange for monetary payment.

• Excludes properties meeting the definition of bed and breakfast establishments from the short-term rental unit classification.

• Effective for property tax years beginning January 1, 2021, properties that meet the short-term rental unit definition during one tax year are classified as nonresidential property in the following tax year.