CO SB116

Municipalities may levy a lodging tax up to 6% with voter approval, collected by the state Department of Revenue, for purposes including tourism marketing, workforce housing and childcare, visitor experiences, public infrastructure, and public safety services

Starting January 1, 2027, municipalities cannot impose new lodging taxes except through the authorized framework; existing municipal lodging taxes adopted before December 31, 2026 may continue but cannot increase rates or expand without voter-approved compliance

Lodging property valuations using the income approach must include "net rental income" and "resort fee income" capitalized at market-typical rates when determining actual value for assessment

The portable qualified-senior primary residence property tax benefit, originally limited to 2025-2026, is extended indefinitely to all future property tax years with continued state reimbursement to local governments

Business personal property tax exemption threshold increases to $60,000 starting January 1, 2027, eliminating the inflation adjustment and state reimbursement to local governments for revenue losses from the exemption