House Finance Committee

200 E Colfax Avenue

Denver, CO 80203

Dear Chair and Members of the Committee,

On behalf of Vail Valley Partnership, the regional chamber of commerce serving businesses, employers, and communities across Eagle County, we write in strong opposition to House Bill 26-1036.

While we share the goal of increasing housing availability and affordability, HB26-1036 takes an approach that creates significant constitutional, economic, and practical concerns while failing to address the root causes of Colorado’s housing challenges.

First, the bill penalizes lawful use of private property. Homes may be vacant for many legitimate reasons, including seasonal family use, repairs, lease transitions, construction timelines, or market conditions. Taxing owners based on occupancy status rather than property value shifts Colorado’s tax system away from neutrality and toward punishment for lawful ownership decisions. This approach undermines property rights and creates uncertainty for homeowners and investors alike.

Second, HB26-1036 raises serious concerns related to uniform taxation. Colorado’s Constitution requires property taxes to be applied uniformly within a taxing jurisdiction. By allowing locally defined vacancy classifications that result in different tax burdens for otherwise identical properties, the bill invites unequal treatment and exposes local governments to costly legal challenges.

Third, the bill discourages housing development at a time when Colorado desperately needs more supply. Vacancy taxes during construction, renovation, or lease-up periods create additional risk and cost for developers converting commercial properties, building new housing, or investing in workforce housing. These disincentives will slow production, not accelerate it, ultimately working against the bill’s stated intent.

Additionally, HB26-1036 creates overlapping and unclear tax exposure by allowing multiple jurisdictions and newly created housing authorities to impose vacancy taxes without clear limits.

This lack of predictability complicates real estate transactions, disrupts financing and mortgage underwriting, and increases costs for buyers and renters, costs that will inevitably be passed on to the workforce and small businesses our communities rely on.

Colorado’s housing challenges are real, but they will not be solved by destabilizing the property tax system, undermining investment, or penalizing lawful property use. Sustainable solutions require increasing housing supply, reducing regulatory barriers, and encouraging private investment—not creating new taxes that introduce uncertainty and risk.

For these reasons, Vail Valley Partnership respectfully urges the legislature to vote NO on HB26-1036.

Thank you for your consideration and for your service to Colorado.

Sincerely,

Chris Romer

President/CEO

Vail Valley Partnership