On November 3, 2026, City of Boulder voters approved Ballot Issue 2J, the Residential Vacancy Excise Tax. Unofficial Boulder County results show the measure passing with about 59% of the vote (25,993 to 17,783), making Boulder one of the first communities in Colorado to adopt a tax on homes that sit empty for most of the year.
Earlier this year, we looked at how vacancy taxes have been popping up in cities across the country and what supporters and critics say about them. Now that Boulder has its answer, here is what passed, what is still undecided, and what it could mean for homeowners and buyers.
What Boulder Voters Approved
Ballot Issue 2J creates an annual tax on residential properties in the city of Boulder that are occupied 183 days or fewer in a year. In plain terms, homes that sit empty for more than half the year.
The key details:
- The amount: $4,000 per year for each qualifying home
- Future increases: The amount rises each year with inflation (the Denver-Aurora-Lakewood Consumer Price Index), never dropping below $4,000 and capped at $7,000
- The type of tax: An excise tax, separate from your property tax bill
- Where the money goes: General city services, including police and fire protection, parks and recreation, and transportation and maintenance. The city estimates about $6 million in revenue in 2028
- When it starts: January 1, 2028
- What it does not cover: Commercial properties
How We Got Here
In the spring, a local group called Vacancy to Vitality began gathering signatures for a citizen-led measure that would have taxed both vacant homes and vacant commercial spaces, at $7,000 per home. At the same time, Boulder City Council was developing its own homes-only version.
In April, the group set its measure aside after council signaled it would move forward. On August 6, council voted 7-1 to send the vacancy tax to the November ballot, and Vacancy to Vitality then endorsed it. Council had first considered a vacancy tax for the 2025 ballot but chose to wait a year to refine the details.
What Is Still Undecided
This is the most important part for homeowners. The ballot language set the tax amount and the 183-day threshold, but it did not spell out exemptions or how the city will track occupancy. Those details will come in an ordinance City Council is expected to adopt in 2027, before the tax takes effect.
Open questions include:
- How occupancy will be verified, and what owners will need to report or document
- Which exemptions apply, such as homes under construction or renovation, homes actively marketed for sale or lease, properties damaged by disaster, owners in long-term care, or estates in probate
- How long-term and short-term rental days count toward the 183-day threshold
- How appeals and enforcement will work
It is also worth watching for legal challenges. City staff noted back in 2025 that they anticipated challenges if a vacancy tax passed.
What This Could Mean for Boulder Homeowners and Buyers
If you own a second home in Boulder, plan for an added cost of at least $4,000 a year starting in 2028 if the home is occupied 183 days or fewer. Some owners may choose to spend more time in the home, rent it long-term, sell, or absorb the cost. It is also a good time to start keeping a simple record of when the home is occupied.
If you are considering buying a part-time home in Boulder, factor the tax into your carrying costs alongside property taxes, HOA dues, and insurance, and keep an eye on the 2027 ordinance before you finalize plans.
If you live in your Boulder home full-time, the tax is not designed to apply to you. Homes leased long-term for more than half the year are also generally not the focus, though exact definitions will not be final until 2027.
For the broader market, supporters hope the tax will encourage some second-home owners to rent or sell, adding homes to Boulder's limited supply. Critics argue the number of affected homes is too small to meaningfully change affordability. We will be watching how inventory responds as 2028 approaches.
Boulder in the Bigger Picture
Boulder joins cities including Vancouver, Toronto, Oakland, and San Francisco that have adopted some form of vacancy or empty homes tax, with mixed and still-debated results. Enforcement, occupancy verification, and exemptions have been recurring challenges in those cities, which is why Boulder's 2027 ordinance will matter so much.
In Colorado, the picture is mixed. Earlier in 2026, state lawmakers rejected a bill that would have explicitly allowed local governments to tax vacant homes. And on the same night Boulder approved 2J, Crested Butte voters turned down a tax on second homes and vacant land.
What Comes Next
With the tax approved, the real impact will come down to the details the city writes in 2027. We will update this post as those details are finalized.
If you own a second home in Boulder or are weighing a purchase, we are happy to talk through how this could factor into your plans. Contact us anytime.
Resources
- City of Boulder voters support three ballot measures in Nov. 3, 2026 election (City of Boulder)
- 2026 City of Boulder Ballot Measures (City of Boulder)
- Boulder voters reject $400M bond but back higher debt limit (Axios Boulder)
- Boulder City Council sends vacancy tax and $400 million bond to November ballot (Boulder Reporting Lab)
- Vacancy to Vitality
