Appraiser’s Office puts hold on changing assessment classification for short-term rentals

On Feb. 14, 2024, the Douglas County Appraiser’s Office mailed letters to owners of properties identified as short-term rentals to notify them that their assessment classification was going to change from residential to commercial, which would likely result in an increase in property taxes. Information gathered for that determination was obtained during the last half of 2023.

During the past two weeks, the County Appraiser has received feedback from short-term rental property owners. These conversations revealed new information and nuances regarding short-term rental use that needs to be researched. “Concerns of uniformity and appropriate classification for a variety of home-based businesses have been raised,” County Appraiser Brad Eldridge said. “It is difficult to have a one-size-fits-all approach to all the variations of such uses.”

As a result, the County Appraiser’s Office is putting the change to commercial assessment classification for short-term rentals on hold, so the issue can be further studied. The Appraiser’s Office will continue to seek guidance and clarity from the state for equity between short-term rentals and hotel property assessments.

Short-term rental property owners will be mailed an amended change of value notice the week of March 3, 2024, that reflects an assessment classification that is like the previous year. “These property owners will still be able to appeal their value if there are concerns with the county’s value estimate,” Eldridge said.

They can appeal their value like all property owners by filling out the request form on the back of the notice and submitting it to the Appraiser’s Office by 5 p.m. Friday, March 29. It can be mailed or dropped off at the office, which is in the basement of the County Courthouse, 1100 Massachusetts St., or emailed to appeals@dgcoks.gov. Informal interviews will be scheduled between March 18 and May 3.

Property values and assessment classifications are not finalized until the tax roll is certified by the County Appraiser at the end of May 2024.