Sales/Lodging Tax Collection and Remittance in the State of Colorado
Colorado charges the normal Sales Tax rates for short term rentals. The state, counties and local cities may all charge a sales tax. In addition to the Sales Tax, the counties charge a specific Lodging Tax. Local cities may also assess what it called a Local Marketing District Tax.
Individual cities may also charge additional separate taxes on their own. They may also require licensing. This is talked about in the following sections.
Colorado is one of the more complicated states to file and remit your taxes. The complexity is due to that many cities collect the sales tax on their own. This requires a separate sales tax license in addition to the one for the state.
For the purposes of the state of Colorado, a short term rental is one that is 30 days or less. All local counties and cities also use the same definition.
Do I Need To Pay?
If you rent your vacation property short term in the state of Colorado, then the taxes will be payable. However, some third party payers already will collect these taxes on your behalf.
If you use any online service that charges payments on your behalf you should be good. The online marketplace service that markets your vacation property typically collects guest payments on your behalf. If they do not collect guest payments and merely provide a guest referral, then you would likely be responsible for the taxes. Check with the company if you are not sure.
In Colorado, management companies and real estate agents book your property on your behalf. These third parties are required to obtain a sales tax license. They will pay all the taxes due.
Exempt Rental Activity – Do not submit taxes
AirbnbBooking.comManagement Rental CompaniesOther booking sites that charge guest on your behalf
What if you obtain rentals on your own and you charge the guest directly? Then you would need to charge the guest the taxes. Also, you would need to register and submit the payments to the state as well as any city/county that requires it. These are the situations where this might occur:
- The guest is a friend.
- A guest rented your property from an ad.
- Some guests rented your property from an online site that charges only subscription fees for your listing.
- Guest rented the property from your own website.
State Registration
Obtain a license for Sales Tax collection using form CR 0100AP . This form will be applicable for all counties and many cities as well.
Statewide Tax Rate
Sales Tax Rate: 2.9%
Counties That Require Registration
None.
Cities That Require Registration
There are cities that use the state sales tax licensing. This means that they will collect the sales tax for the city on your behalf. However, there are many cities that require their own sales tax license. They collect the taxes separately from the state.
This information is documented at the Colorado City And County Tax Rates page.
Some cities charge their own taxes related to short term rentals. These are typically lodging taxes. The lodging taxes are self administered which require the homeowner to register with the city. Finally, some cities require a separate permit to host short term rentals.
For the exceptions (lodging taxes or permitting), these are documented in the next sections.
Counties That Have Their Own Taxes
Most counties have their own Sales Tax, and if they do the state collects the tax. These taxes are paid on the state Sales Tax return. Also, the state will also collect the County Lodging Tax on your behalf for all counties.
This information is documented at the Colorado City And County Tax Rates page.
Cities That Have Their Own Taxes
Some cities also charge a separate lodging tax. Unfortunately, the lodging tax is not collect by the state. If this tax applies, you would need to register and submit the taxes to the local city.
Also, some cities require a permit/license for short term rentals. They have specific rules that you need to follow in order to qualify. When a license is required this means that you need to register with the city even if third parties collect all the taxes.
Colorado City Lodging Taxes
| City | Rate | Register | Pay | Notes |
|---|---|---|---|---|
| Basalt | 4% | Pay | ||
| Boulder | 7.5% | N/A | Pay | Obtain License |
| Broomfield | 1.6% | N/A | Pay | Obtain License |
| Carbondale | 2% | Register | Pay | Online register/pay available. |
| Colorado Springs | 2% | Register | Pay | |
| Cortez | 12% | Register | Pay | Online register/pay available. |
| Denver | 11% | Register | Pay | Obtain License |
| Durango | 2% | Register | Pay | Online register/pay available. |
| Frederick | 4% | Register | ||
| Loveland | 3% | Register | Pay | |
| Pagosa Springs | 4.9% | Register | Pay | Obtain License |
| Silverthorne | 2% | Register | Pay | Online Payment |
| Steamboat Springs | 1% | Register | Pay | Accommodations Tax, Online Payment |
| Snowmass Village | 2.4% | Register | Pay | Online Payment |
| Timnath | 3% | Register | Pay | Online Payment |
How Do I Pay?
Colorado has a state level website that administers the taxes. Most of taxes that are due at the various jurisdictions can be paid online at one site.
However, there are (3) separate tax returns that need to be filed on this site. These are listed below:
- Sales Tax: State, County, Local
- County Lodging Tax
- Local Marketing District Tax
Some cities administer their own sales taxes as well as lodging taxes. Contact the city administrators for more information. Use this document:
This information is documented at the Colorado City And County Tax Rates page.
Some cities require separate tax returns for lodging and sales taxes (that means potentially a total of 5 tax returns may be due). However, many cities have converted to online payment systems. This is documented in the table above.
