Yesterday, House Bill 14-1143 (“HB 1143”) was introduced to address how storage condominium units are taxed. According to the legislation, residential real property is taxed at 7.96% while commercial property is tax at 29%. As a result, the bill makes it possible to classify storage condominium units which are utilized for residential purposes as “residential improvements” clearing the way for those units to be taxed at the lower rate.
CAI’s Colorado Legislative Action Committee (“CLAC”) has reviewed the bill and does not currently see any unintended consequences for common interest communities. As a result, it is likely that CLAC will vote to monitor the bill and not take an active position to support or oppose.
Keep your eye out for updates on this bill as it proceeds through the legislative process.
Molly Foley-Healy is Chair of CAI’s Colorado Legislative Action Committee.