Airbnb Rules in Colorado | Airbnb Laws, Taxes, and Regulations

Known for its diverse landscapes with the perfect juxtaposition of spectacular mountain views and buzzing city life the state of Colorado definitely lives up to its nickname “Colorful Colorado”. The state is gaining popularity as a Mecca for nature lovers and adventurers of the outdoors. Whether it is a taste of the urban side or a break from technology there is something for every kind of traveler in Colorado.

A city this attractive for travelers looking for change is an ideal hub for short-term rentals. However, certain laws and regulations must be considered before jumping into the holiday rental scene in Colorado. Below we have answered some frequently asked questions about the laws and regulations governing short-term rentals in Colorado.

What Are The Types Of Short-Term Rentals Allowed?

The two types of short-term rentals permitted are owner-occupied and non-owner-occupied short-term rentals.

1. Owner-occupied short term rental units

These are applicable in zones where residential units are permitted. Here properties must be physically occupied by the owner for no less than 185 days per year. Furthermore, they must be lawful dwelling units, meaning they cannot include structures like sheds and tents.

2. Non-owner occupied short term rental units

These properties do not need the owner to be present. However, these properties are not permitted in single-family zoning districts and must fit the bill for lawful dwelling units. Additionally, these units must be further than 500 feet away from other non-owner-occupied short-term rental units in the area.

How do I find out if the intended non-owner STR is within 500 feet of another non-owner STR?

Potential Holiday rental owners are encouraged to use a zoning map. If there are further clarifications to be made, questions about the 500’ buffer between non-owner-occupied short-term rental units can be sent to shorttermrentals@coloradosprings.gov.

What building and housing standards fit the bill for lawful dwelling units?

The State of Colorado enforces different regulations specifying construction, design, maintenance, habitability, health, and safety standards for different cities within the state. Check out the complete building code compliance policy or find out about the Colorado building codes and editions adopted by clicking on the links.

How many short-term Rentals can be owned by a single person?

1. Single-family zoning districts only for only one listing.
2. For properties in R2 zones and condominium complexes, two listings are allowed.
3. Up to 4 listings are allowed in multi-family zoned properties such as apartments.

What documents are required to acquire a short-term rental license?

1. Short term rental business license as per the city requirements
2. Proof of valid motor vehicle registration
3. Proof of voter registration
4. Federal or state tax returns or other financial documentation
5. A utility bill
6. Copy of lease agreement and owner’s permission if the property is not your own.

The Short-Term Rental business license requires an initial fee of $50 for application and $100 for the license itself. There is also a $100 annual renewal fee to keep the license active. Check out Colorado’s short-term rental FAQs for more details.

What are the operational requirements for short-term rentals in Colorado?

1. Insurance: General liability insurance is required to receive a short-term rental business license.
2. Zoning Restrictions: only one rental contract can be provided for a property at a given time, meaning, a short-term rental cannot double up as a space for other commercial events.
3. Other: This includes leases, co-op rules, HOA rules, or other rules established by tenant organizations.
4. Taxes: different cities of the state may have different types and percentages of taxes levied on short-term rentals. The next section of this article discusses this topic at length,

How does Airbnb’s Occupancy Tax Collection and Remittance work in California?

Guests who check in to Airbnbs located in the state of Colorado will pay the following taxes as part of their reservation:

• Colorado sales tax: 2.9% of the listing price including cleaning fees for reservations shorter than 30 nights.
• County lodging Tax: this varies from county to county and is typically 9.2% of the listing price for bookings shorter than 30 nights.
• Local marketing district tax: The local marketing district tax rate varies for different districts and typically ranges from 1.4% - 4% for stays shorter than 30 nights.
• Local Sales Tax: The rate local sales tax is typically 1-5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Department of Revenue State-Collected Local Sales Tax Publication.

Below is a short snap of how Occupancy Tax Collection and Remittance by Airbnb work in some of the major cities and counties of California.

Denver:

Guests who book Airbnb listings that are located in the City and County of Denver will have to pay the Denver Lodger’s Tax of 10.75% of the listing price including any cleaning fee for the first 29 nights of any reservation.

For detailed information, visit the Denver Treasury Division website.

Colorado Springs:

Guests who book Airbnb listings that are located in Colorado Springs, CO will pay the following taxes as part of their reservation:

• Sales Tax: 3.07% of the listing price
• Lodging Tax: 2% of the listing price

Both taxes including cleaning fees and guest fees are only valid for reservations of 29 nights or shorter. For detailed information on the taxes collected, visit the City of Colorado Springs Sales Tax Information website.

Aurora:

Guests who book Airbnb listings that are located in the City of Aurora will pay a Lodger’s Tax of 8% of the listing price including any cleaning fees, for reservations 29 nights and shorter.

Fort Collins:

Guests who book Airbnb listings that are located in the City of Fort Collins will pay a sales tax of 3.85% of the listing price including any cleaning fees and guest fees, as part of their reservation for reservations 30 nights and shorter.

For detailed information, visit the City of Fort Collins Sales Tax website.

Lakewood:

Guests who book Airbnb listings that are located in the City of Lakewood will pay a sales tax of 3% of the listing price including any cleaning fees and guest fees, for reservations that are 29 nights and shorter.

For detailed information, visit the City of Lakewood Sales Tax Information website.

Arvada:

Guests who book Airbnb listings that are located in the City of Arvada will pay the following tax as part of their reservation:

• Sales Tax: 3.46% of the listing price
• Lodging Tax: 2% of the listing price

Both taxes including cleaning fees and guest fees are only valid for reservations of 29 nights or shorter.

Pueblo:

Guests who book Airbnb listings that are located in the City of Pueblo will have to pay a sales tax of 3.7% of the listing price including any cleaning fees and guest fees, for reservations 29 nights and shorter.

For detailed information, visit the City of Pueblo Finance Department website.

Centennial:

Guests who book Airbnb listings that are located in the City of Centennial will pay a sales tax of 2.5% of the listing price including any cleaning fees and guest fees, for reservations 29 nights and shorter.

For detailed information, visit the City of Centennial Sales Tax Information website.

Greeley:

Guests who book Airbnb listings that are located in the City of Greeley, CO will pay the following tax as part of their reservation:

• Sales Tax: 4.11% of the listing price
• Public Accommodations Tax: 3% of the listing price

Both taxes including cleaning fees and guest fees are only valid for reservations of 29 nights or shorter. For detailed information, visit the City of Greeley Finance Department website.

Boulder:

Guests who book Airbnb listings that are located in Boulder, CO will pay a Boulder Short-Term Rental Accommodations Tax of 7.5% of the listing price including any cleaning fee for reservations 29 nights and shorter.

Is your city of choice not listed here?

The State of Colorado has more than 400 cities and counties. For more information on other cities in Colorado refer to Occupancy tax collection and remittance by Airbnb in Colorado.

If you are looking for information on Airbnb rules in California read our blog article on Airbnb Rules in California | Airbnb Laws, Taxes, and Regulations.