A New Way to Tackle Empty Homes in Colorado

Colorado lawmakers heard a proposal that would let local governments tax vacant houses. The idea, called a “ghost tax, ” was meant to force owners of empty homes to pay extra money and help fund affordable housing. The House Finance Committee voted it down, but the discussion is far from over. The bill would have been a first in America. It was designed to give counties and small towns the power to set their own rules about what counts as a vacant home, how much tax to charge, and where the money would go. Some places already have the authority; none have used it yet. Supporters said the tax could solve two problems at once. It would reduce the number of unused homes and bring in money that could help low‑income workers, teachers, nurses, and police officers find places to live. The state’s most popular vacation spots—places like Aspen and Vail—have very high vacancy rates, which hurts the local economy.Opponents warned that a tax could hurt people who own second homes for family or retirement reasons. They argued the tax would be hard to enforce and could make people feel their property rights were being taken away. Realtors and builders said the real solution is to lower building costs and speed up approvals, not to tax empty houses. Some experts pointed out that a similar tax in Vancouver lowered vacancy rates and raised almost two hundred million dollars for housing. In California, however, courts have split on the issue, with one city winning a legal fight over its tax. In Denver, where empty apartments are more common than empty houses, activists are looking at a different kind of tax that would target vacant rental units. They hope the city’s home‑rule status will let them pass a law without needing state approval. Although the bill was rejected, lawmakers and community leaders agree that finding a fair way to use taxes on empty homes could help many Colorado towns. The debate is still alive, and future proposals may take a different shape.