Boulder passes on vacancy tax — for now
Add Axios as your preferred source to
see more of our stories on Google.

Illustration: Brendan Lynch/Axios
The city of Boulder will not put a vacancy tax on this year's ballot, as the City Council punts to 2026 to address the issue.
Why it matters: The City Council hoped a vacancy tax would encourage those who own unoccupied second homes to rent or sell, in an attempt to ease the city's housing shortage.
- Councilmember Ryan Schuchard said the point of the tax was not to generate revenue or cover an operating cost but to "change behavior that would lead to more housing stock," he said.
By the numbers: For research purposes, Boulder staff at a May 8 virtual meeting defined an unoccupied home as one left vacant for six months or more.
- City staff estimated there could be as many as 4,000 unoccupied housing units.
The latest: The City Council agreed with staff recommendations at the May 8 meeting to hold off until 2026 to put a vacancy tax before voters.
State of play: Boulder will instead focus on two other tax measures, including an extension to its Community, Culture, Resilience and Safety (CCRS) sales tax that some members felt was a more immediate priority due to the city's financial concerns.
- Council members noted the CCRS tax would generate $13 to $15 million annually, and the city could start spending against it immediately.
- The city has $380 million in deferred maintenance for city infrastructure, and the Trump administration's lumber tariff threats may drive up construction costs.
What they're saying: The council's nine members were largely unified in their view that the 2025 ballot was already crowded and more time was needed to design and vet the vacancy tax.
- "Anything we do to put forward this tax this year could interfere with what I think is the most important objective, which is the CCRS tax," Councilmember Mark Wallach said.
Caveat: The city could bypass voters and impose a fee on unoccupied homes, but most members opposed that.
Between the lines: Councilmember Nicole Speer said 2026 would be a better year to propose the vacancy tax.
- Next year is a midterm election and will be the first time City Council elections are held in an even year. That could mean more turnout and more interest in local issues.
The bottom line: Though it won't happen this year, City Council members said a vacancy tax remains a priority and something voters were likely to embrace.
- "I think voters are going to love this," Speer said.
- Wallach added the measure would "pass easily" because most voters don't have a second home: "It's a tax on someone else."
Reality check: Despite their confidence, vacancy taxes have failed in other communities, including Crested Butte.
- Those with second homes are almost guaranteed to oppose, but how many residents qualify won't be known until the city defines an unoccupied home.
- A lot of questions remain before the tax can land on Boulder's ballot, including how much owners will be charged and how the city will verify a property qualifies.
- Even if a vacancy tax passes, city staff said they anticipate legal challenges.
What's next: The City Council is expected to get the results of polling on the CCRS tax and a proposed "public realm" tax at a meeting on June 26.
