After hours of hearings, committee declines to advance local vacancy‑tax framework; amendments adopted but bill postponed

Vice Chair Jennifer Titone and Representative Velasco presented House Bill 10 36 as a tool for statutory municipalities and counties to ask voters to adopt an excise vacancy tax or create multi‑jurisdiction housing tax authorities to fund affordable and workforce housing. Sponsors said the measure restores local options for communities that cannot exercise certain home‑rule powers and is entirely voter‑driven.

Supporters—mayors, county commissioners, the Colorado Municipal League and the Colorado Association of Ski Towns—argued resort and rural communities face acute mismatches between housing costs and local wages, and cited housing needs assessments showing high vacancy rates and large price gaps. "This bill provides municipalities and counties with an important tool to address the workforce and affordable housing crisis," one proponent said.

Opponents—builders, realtors, apartment groups, county treasurers and business groups—warned the measure is constitutionally and administratively risky, could encourage litigation, complicate real‑estate transactions, and depress development by taxing normal vacancy periods (construction, lease‑up, repairs). Several treasurers expressed concern that local offices lack the software and staffing to administer occupancy determinations and appeals.

The committee considered and adopted a set of sponsor amendments (L002) adding multiple exemptions (including for deed‑restricted affordable housing, agricultural seasonal worker housing, timeshares and death of the registered owner), clarifying the short‑term‑rental exemption and limiting revenue uses to documented housing needs. The committee also adopted L005, which requires a 25%+ vacancy threshold (census‑based) before a jurisdiction may even ask voters to approve a vacancy tax; the threshold pauses the tax when vacancy drops below the level.

Despite amendments, the committee did not reach consensus. A motion to advance the amended bill failed on a roll call (4 yes, 7 no). Representative Camacho moved to postpone the bill indefinitely by reverse roll call and the committee adopted that motion; HB 10 36 was postponed indefinitely.

Next steps: Sponsors said they will consider further amendments and continue stakeholder discussions, but no committee advancement occurred this session.