The Colorado Court of Appeals recently dealt with yet another short-term rentals dispute. In O’Neil v. Conejos County Board of Commissioners, the O’Neils owned a vacation home that they would visit and rent out to short-term renters. The County Assessor, for property tax purposes, reclassified the home as a commercial property because of the short-term renting practice. The O’Neils appealed. The Board of Assessment Appeals overturned the Assessor’s action and returned the property’s status to residential. It held, in short, that the property was “residential” because its “perdominent and actual use was as a second home.” The County then appealed to the Court of Appeals. On appeal, the Court of Appeals affirmed the Board of Assessment Appeals’ ruling finding that the decision had a reasonable basis in the law.
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