Proposed bill could reshape property tax liability for hotels

Co-Authors, CREJ, April 1, 2026

Colorado lawmakers are considering a significant overhaul of how the state taxes lodging properties, particularly hotels, resorts and condotels. Senate Bill 26 116 would significantly change how assessors value lodging properties for real estate tax purposes by requiring specific income streams to be included under the income approach. The inclusion of these income streams would increase taxable values across much of the state’s hospitality sector. The bill mandates inclusion of “net rental income” and “resort fee income” when determining taxable market value using the income approach. These modifications would likely apply starting late spring/early summer 2026, if enacted.

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