If the voters approve this ballot measure, the Boulder Revised Code shall be amended to read as follows:

Chapter 23 — Vacant Property Excise Tax

3-23-1. - Legislative Intent and Purpose.

(a) Findings. The City Council finds that long-term vacancy of residential and commercial imposes measurable

costs and harms on the community, including:

(1) Reduced housing availability and increased housing costs for residents and workers;

(2) Blight, loss of neighborhood vitality, and deterioration of commercial corridors;

(3) Increased safety, nuisance, and wildfire risk from unmaintained properties;

(4) Reduced economic activity and diminished support for local businesses;

(5) Increased demands on city services without corresponding community benefit; and

(6) Speculative holding of properties, which removes such properties from productive use while the

property owners benefit from community-generated appreciation without offsetting the costs of the vacant property.

(B) Purpose. The purpose of this Chapter is to offset the costs to the community associated with long-term vacancy, improve accountability and transparency regarding ownership and occupancy status, and generate dedicated revenue to address the community costs associated with long-term vacancy, including, but not limited to, affordable housing production, commercial activation, and community vitality programs.

3-23-2. - Definitions.

Affiliate means any entity under common ownership or control with another person or entity, directly or indirectly.

Assessor means the Boulder County Assessor.

Beneficial owner means any natural person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise: (a) exercises substantial control over the entity that owns the property; or (b) owns or controls not less than 25% of the ownership interests of such entity.

City manager includes the city manager and any city manager’s designees, including the Finance Director or other city official assigned to administer this Chapter.

Commercial space means any portion of a structure designed, permitted, or marketed for nonresidential use, including office, retail, restaurant, industrial, or other commercial activity. Commercial space shall not include any portion of a structure designed, permitted, or marketed for warehouse or manufacturing activities.

Commercial space unit means a separately leasable or separately occupiable portion of commercial space, including a suite, storefront, or floor with a defined gross leasable area (GLA). For purposes of this definition, the configuration of commercial space units as of January 1, 2028, is presumed the baseline configuration; subsequent subdivision into smaller units shall not reduce tax liability (see subsection 3-22-3(f), B.R.C. 1981).

Dwelling unit shall have the meaning ascribed to it in Section 9-16-1, B.R.C. 1981, including a single-family dwelling, condominium unit, townhouse unit, duplex unit, or multifamily unit. Dwelling unit shall not include accessory dwelling units.

Good faith progress means, considering the totality of the circumstances, making sincere, honest, and reasonable documented efforts to move toward a goal, even if the goal has not yet been fully achieved.

Gross leasable area or GLA means the area in square feet of a commercial space unit, measured as rentable or leasable area as reflected in building plans, leasing documents, assessor records, or other reliable records as determined by the city manager.

Occupancy declaration means the annual filing required by Section 3-23-6, B.R.C. 1981.

Occupied (Residential) means a dwelling unit is used as a principal residence by an owner or owner invited guest or is rented to a tenant pursuant to a qualifying lease as provided in this Chapter.

Open and operating (Commercial) means a commercial space unit (or portion thereof) is actively used for lawful business operations in a manner consistent with its permitted use, including regular public or employee presence during normal business hours, or is occupied by a tenant under a qualifying lease who is conducting such operations.

Owner shall have the meaning ascribed to it in Section 1-2-1, B.R.C. 1981.

Owner’s group means the owner, any co-owner, and any related person or affiliate of any of the owner or co- owner.

Principal residence shall have the meaning ascribed to it in Section 9-16-1, B.R.C. 1981.

Qualifying lease means a bona fide written lease between unrelated parties, at arm’s length, for a term of at least thirty consecutive days, where the tenant actually occupies or operates the premises for the leased purpose. A lease between related parties, or where the tenant does not actually occupy or operate the premises, is not a qualifying lease.

Related person includes family members (spouse or domestic partner, parent, grandparent, child, grandchild, sibling, in-laws, and step-relatives), entities with common ownership or control, and any arrangement the city manager reasonably determines is designed to evade the requirements of this Chapter.

Vacant has the meaning set forth in Section 3-23-3, B.R.C. 1981.

Vacant gross leasable area or Vacant GLA or VGLA means the portion of a commercial space unit’s GLA that is not open and operating for 183 days or more in the calendar year, whether such days are consecutive or nonconsecutive, excluding days covered by an approved exemption in Section 3-23-5, B.R.C. 1981.

3-23-3. - What Counts as Vacant. 

(a) Residential vacancy standard. A dwelling unit is vacant for a calendar year if it is not occupied for 183 days  or more in that calendar year, whether such days are consecutive or nonconsecutive, except as exempted in  Section 3-23-5, B.R.C. 1981. 

(b) Commercial vacancy standard. A commercial space unit has Vacant GLA for a calendar year if any portion of  its GLA is not open and operating for 183 days or more in that calendar year, whether such days are  consecutive or nonconsecutive, except as exempted in Section 3-23-5, B.R.C. 1981. The tax applies only to  vacant GLA as provided in subsection 3-23-4(c), B.R.C. 1981. 

(c) Bona fide rental. A dwelling unit shall be deemed occupied by rental only if it is rented pursuant to a  qualifying lease for periods totaling 183 days or more in the calendar year. Short-term lodging stays of fewer  than thirty consecutive days do not count toward occupancy for purposes of this Chapter, regardless of  whether licensed as a short-term rental.

(d) Mixed-use and partial vacancy. Vacancy is determined and taxed by unit (and, for commercial, by vacant  GLA), not by parcel: 

(1) Each dwelling unit is evaluated separately for residential vacancy. 

(2) Each commercial space unit is evaluated for commercial vacancy based on its vacant GLA. (3) A parcel is not deemed "non-vacant" solely because another unit on the same parcel is occupied. A  single occupied unit does not exempt other vacant units or vacant commercial space units on the same  parcel from the vacancy excise tax. 

(e) Ground-floor commercial space. For parcels where ground-floor commercial use is allowed or is a legal  nonconforming use, ground-floor commercial space units are subject to this Chapter on the same basis as any  other commercial space unit, regardless of occupancy of upper floors or residential portions. 

(f) Anti-subdivision rule. If a commercial space unit is subdivided after January 1, 2028, into two or more  smaller units, the aggregate baseline GLA of all resulting units shall be treated as a single commercial space  unit for purposes of calculating the tax and applying any small-space exemption, unless the owner  demonstrates to the city manager’s satisfaction that the subdivision was undertaken for a legitimate business  purpose unrelated to tax avoidance and that each resulting unit is independently leased to tenants unrelated  to each other conducting separate business operations. 

(g) Anti-minimal-occupancy and sham transaction rule. The city manager may disregard occupancy or  transactions that are clearly token, sham, or undertaken primarily to avoid the tax. Factors the city manager  may consider when applying this rule include, but are not limited to: (1) whether the occupant is present at the  property; (2) whether utilities and services consistent with actual occupancy are present; (3) whether the  occupancy is by the owner’s group; and (4) any pattern of minimal occupancy across multiple years. 

3-23-4. - Imposition of Vacant Property Excise Tax; Rates. 

(a) Imposition. Except as exempted under Section 3-23-5, B.R.C. 1981, an annual vacant property excise tax is  imposed on the owner of each vacant dwelling unit and on the owner of each commercial space unit to the  extent it has vacant GLA within the city. 

(b) Residential rate. The base annual tax for a vacant dwelling Unit is $7,000 per unit (year 1), as adjusted  annually under subsection 3-23-4(d), B.R.C.1981. 

(c) Commercial rate. The base annual tax for a commercial space unit is $4.00 per square foot of vacant GLA  (year 1), as adjusted annually under subsection 3-23-4(d), B.R.C. 1981. Commercial space units with total  vacant GLA of less than 400 square feet are exempt from the tax, but must still file an occupancy declaration. 

Table 1 - Progressive Commercial Vacancy Tax Rates

Vacant GLA Square  Footage

Excise tax rate per sf for each bracket 0 - 400  Exempt

401-3000 $4.00/sf for marginal VGLA over 400 sf with minimum tax of $1500

3001-7000 $3.50/sf for marginal VGLA over 3000 sf

7001-15000 $3.00/sf for marginal VGLA over 7000 sf

15001+  $2.50/sf for marginal VGLA over 15000 sf

(d) CPI adjustment. Beginning in 2028, the City Council shall adjust the dollar rates and thresholds in this  Chapter once per year by the percentage change in the Denver-Aurora-Lakewood Consumer Price Index for All  Urban Consumers (CPI-U), or a successor index, for the twelve months ending the prior September 30.  Adjustments take effect January 1. Any increase above the CPI requires voter approval. 

3-23-5. - Exemptions. 

(a) General. Exemptions are granted for the calendar year(s) claimed and do not permanently exempt a  property from vacancy excise tax. The owner bears the burden of proving eligibility. 

(b) Residential exemptions: 

(1) Active long-term rental: A dwelling unit rented or occupied under a qualifying lease for 183 days or  more in the calendar year. 

(2) Deed-restricted affordable housing: A dwelling unit subject to recorded affordability covenants  requiring income qualification and resale or rent restrictions, provided it is actively managed by a housing  authority, the city, or a city manager approved partner. 

(3) Active building permits and construction: The unit is under active permitted construction or substantial  rehabilitation, with an active permit or inspection activity within the preceding ninety days sufficient to  demonstrate ongoing work, for up to two calendar years. Extensions require demonstration of good faith  progress toward completion. 

(4) Damage from disaster: The unit is uninhabitable due to documented fire, flood, or other disaster, for up  to two calendar years from the date of damage. Extensions require demonstration of good faith progress  toward refurbishment. 

(5) Death/probate: The owner is deceased and the property is in probate or estate administration, for up  to one calendar year from the date of death. 

(6) Long-term care: The owner of a dwelling unit is in a licensed long-term care facility. (7) Active military duty: The owner of a dwelling unit is on active duty military orders and stationed more  than fifty miles from the city of Boulder, for the duration of such orders. 

(8) Good faith marketing plus active long-term rental: A dwelling unit is vacant for more than 183 days in a  calendar year, but the owner has actively marketed the space for lease and has entered into a qualified  lease for a term of not less than one year.  

(c) Commercial exemptions: 

(1) Active building permits and construction: The vacant portion of the space is under active permitted  construction or tenant improvements, with an active permit and inspection activity within the preceding  ninety days, for up to two calendar years. 

(2) Damage from disaster: The vacant portion of the space is unusable due to documented fire, flood, or  other disaster, for up to two calendar years from the date of damage. Extensions require demonstration of  good faith progress toward refurbishment.

(3) Good faith marketing plus active long-term rental: Vacant GLA is vacant for more than 183 days in a  calendar year, but the owner has actively marketed the space for lease and has entered into a qualified  lease for a term of not less than one year.  

(4) Good faith marketing: For a commercial space unit that is vacant for the calendar year, the owner has  actively marketed the space for lease for the entire calendar year. This exemption is available for a  maximum of two consecutive calendar years; thereafter, the space is subject to the tax regardless of  marketing efforts. For the calculation of this exemption period, this exemption begins January 1, 2028. 

(d) Exemptions applicable to both: 

(1) Governmental ownership: Property owned by a federal, state, or local government entity and used for  governmental purposes. 

(2) Nonprofit ownership: Property owned by a 501(c)(3) organization and actively used primarily for its  exempt charitable purpose. Property held vacant pending development, for investment, or for purposes  unrelated to the organization’s charitable mission is not exempt. 

(3) Active entitlement processing: A property for which a complete land use application has been accepted  by the city and is under active review may receive an exemption for the specific portion under entitlement,  for up to two calendar years. "Complete" means the application has been formally determined complete  by city staff, not merely submitted. If the application is withdrawn, denied, or lapses, the exemption  terminates and the unit/space is subject to tax for that year. 

3-23-6. - Annual Occupancy Declaration; Beneficial Ownership Disclosure; Audits.

(a) Annual declaration process; when required. The city shall administer this Chapter through an annual  occupancy declaration, as required in this section. An owner of a dwelling unit and/or an owner of a  commercial space unit within the city shall file an occupancy declaration for the prior calendar year only when  required under this Section below or when notified by the city manager. Owners of commercial space units  less than 400 square feet are not required to file an occupancy declaration unless they are notified by the city  manager. Any required occupancy declaration shall be filed on a form prescribed by the city manager, no later  than February 28 of each year (or the next business day), or by a later deadline stated in a notice issued by the  city manager. Any occupancy declaration required under this Section shall be made under penalty of perjury.  The city manager may combine the occupancy declaration with other filings, notices, or billing systems used by  the city in order to ease the administrative burden of the tax. 

(1) Circumstances requiring an occupancy declaration. An occupancy declaration is required if any of the  following apply: 

(A) The owner claims an exemption under subsections 3-23-5(b)(1) or (b)(3)-(5), subsection 3-23- 5(c)(1)-(4), or (d)(3), B.R.C. 1981; 

(B) The dwelling unit is no longer the owner’s principal residence. 

(C) The owner of record is not a natural person (i.e. the owner is a corporation, LLC, partnership, trust  not titled to include the name of the owner, or other legal entity); 

(D) The owner’s mailing address of record does not match the address of the dwelling unit; 

(E) The dwelling unit, commercial space unit, or any portion thereof was determined vacant or had  vacant GLA in any prior calendar year; or

(F) The city manager issues a written notice requiring confirmation or an occupancy declaration based  on city records or other reliable information indicating the unit or space may be vacant or may have  vacant GLA. 

(G) This Section may be amended to ease the administrative burden of this declaration to the public  and/or the city by resolution of the City Council.  

(b) Content. The occupancy declaration shall include, but is not limited to: 

(1) Whether each unit/space was occupied or open and operating, and the basis for that claim; (2) The identity of any tenant(s), including lease term and contact information; 

(3) Any exemption claimed; 

(4) The beneficial owner(s) of the property, if the owner of record is not a natural person; and 

(5) Such other information reasonably necessary to administer this Chapter, as specified by the city manager  in published procedures. 

(c) Beneficial ownership disclosure. Failure to disclose beneficial owners, or false disclosure, is a violation of  this Chapter subject to penalties under Section 3-23-7, B.R.C. 1981, including any other penalties at law or  equity. 

(d) Presumption for failure to file after notice; cure period. If an owner fails to file a required occupancy  declaration by the applicable deadline, the city manager shall provide written notice and an opportunity to  cure for not less than thirty days. If the owner fails to cure within the notice period, the unit/space shall be  presumed vacant for that year and assessed the maximum applicable rate (including any escalation for prior year vacancy), plus applicable penalties and interest, unless the owner proves otherwise on appeal. 

(e) Audit authority. The city manager may audit any declaration, request documentation, and use reliable  information including but not limited to utility usage, rental licensing records, building permit records, business  licensing, water and sewer records, mailing address records and returned mail indicators, sworn statements,  and other evidence to determine vacancy status and vacant GLA. 

(f) False statements. Knowingly filing a false occupancy declaration constitutes a violation of this Chapter and is  subject to additional penalties under Section 3-23-7, B.R.C. 1981, including criminal penalties. 

(g) Community member reporting. The city manager shall establish an online means for which community  members can report vacant properties.  

3-23-7. - Billing, Collection, Penalties, Appeals. 

(a) Billing. The city shall bill the Owner(s) annually based on declarations and city determinations. The city may  issue corrected bills after audit. 

(b) Due date. Taxes are due within sixty days after billing unless otherwise specified by the city manager in  published procedures.

(c) Penalties, interest, and appeals shall be governed by Chapter 3-17, B.R.C. 1981. 

(d) Cure periods and good cause waivers. The city manager may allow for at least thirty days to cure errors  with filings and non-filing and may, on a case-by-case basis, allow for waiver of penalties for good cause.  

(e) The city manager is authorized to arrange for other entities to collect the tax that is required by this  Section.  

3-23-8. - Lien; Certification to County Treasurer. 

(a) Lien. Unpaid taxes, penalties, interest, and costs of collection are a lien on the property to which they  relate, as provided by law. 

(b) Certification. The city manager may certify due and unpaid amounts to the Boulder County Treasurer for  collection in the same manner as delinquent general property taxes, pursuant to Section 2-2-12, B.R.C. 1981,  (as amended) or other applicable law. 

3-23-9. - Dedicated Revenues; Administration; Reporting. 

(a) Use of revenues. Revenues from this tax shall, as apportioned in their discretion by the city manager, be  used as follows: 

(1) preserve existing and produce new affordable housing; 

(2) support downtown and neighborhood commercial activation, including financial incentives for eligible  locally-owned businesses to occupy previously vacant commercial space; 

(3) support structural and wildfire mitigation for properties citywide;  

(4) support parks and recreation activities, especially activating public spaces citywide; (5) support transportation and mobility infrastructure for cyclists and pedestrians;  

(6) support assistance programs such as universal basic income;  

(7) provide code enforcement, cleanup of blighted properties, and remedy illegal dumping; and (8) administration and enforcement of this Chapter. 

(b) Annual reporting. At least once a year, the city shall publish an annual report summarizing: 

(1) Total revenues collected; 

(2) Number of occupancy declarations filed and compliance rates; 

(3) Number of units/spaces determined vacant and exemptions granted by category; (4) Enforcement actions and appeals; 

The report shall be made available to the public on the city’s website. 

3-23-10. - Severability; Effective Date. 

(a) Severability. If any section, subsection, sentence, clause, or phrase of this Chapter is for any reason held  invalid by a court of competent jurisdiction, the remainder shall not be affected and shall remain in full force  and effect. 

(b) Effective date. This Chapter shall take effect January 1, 2028, and shall apply to vacancy determinations for  the 2028 calendar year. The city manager shall adopt implementing regulations and forms by October 1, 2028.