The Crested Butte News Serving the Gunnison Valley since 1999
Flat fee on homes that sit dark and empty most of the year?
By Mark Reaman
It appears the new Crested Butte Town Council will explore the relatively novel idea of some sort of vacancy tax on houses in town that are not being used as primary residences. That would likely include second homes and short-term-rental properties located in Crested Butte.
The general idea of a “luxury tax” came from citizen Jeremy Rubingh during the recent Candidates Forum. Current council members asked town attorney Barbara Green to explore the concept.
Green reported to the council at the November 4 meeting that after talking to a bond attorney she felt there was a legal way to implement such a fee or tax. “The best approach is probably some sort of tax implemented through an election of the voters that is a flat fee as opposed to a tax based on the value of the property,” she said.
Green said similar fees are in place in some communities, but not in Colorado. “A lot of communities, here in Colorado and in other states, are grappling with this,” she said. “Based on my discussions, the safest approach is probably a flat amount charged on homes that are vacant X-amount per year. It should go to a vote.”
Town manager Dara MacDonald told the council that the city of Oakland, Calif. recently approved such a tax structure with the revenues earmarked for several causes, including affordable housing and homelessness.
“There are a lot of wrinkles in this idea at the moment,” admitted Green. “It would need a lot more discussion and research. But people in other places are watching us to see how we proceed. There are pros and cons of earmarking the uses for the revenue but that is a political decision.”
“There would be a lot of ramifications if you want to continue the conversation,” said MacDonald.
Council members Mallika Magner and Will Dujardin both said they wanted to continue the conversation. The rest of the council agreed that further discussion was appropriate and the issue will be placed on a future agenda.
