Senator Bob Gardner (R) has introduced Senate Bill 17-078 ("SB 78") to address the taxation of "residential storage condominium units." If my memory serves me well, this is the third time this bill has been introduced in the Colorado General Assembly. Will the third time be a charm?
This bill is pretty simple and isn’t something that condominium associations need to concern themselves with. For folks who own storage condominium units and submit an affidavit to their tax assessor’s office that the unit is being used "to store items from or related to the owner’s residence," then under SB 78 the storage unit will be taxed as residential real property with a rate of around 7.96%, as opposed to being taxed as nonresidential property at a rate of about 29%. SB 78 does not impose upon storage condominium associations any obligation to participate in the process to determine whether any particular storage unit should be taxed as residential or nonresidential real property.
Stay tuned to this blog for updates on SB 78 as it proceeds through the legislative process.