Short-term rental rules · Craig, Colorado
Short-term rentals in Craig, explained properly.
The City of Craig, in Moffat County, requires a short-term rental license from its community development department before a home is offered or operated as a rental of fewer than 30 consecutive days. Licensed rentals are allowed in all zone districts. A new license needs an initial inspection, a designated local responsible party, 2 hard surface off-street parking spaces (the commercial downtown district is exempt), and certified smoke and carbon monoxide detectors, escape openings and a fire extinguisher. Occupancy is capped at 2 people per legal bedroom plus 2, licenses last 1 year and can't be transferred to a new owner, and recreational vehicles and travel trailers can't be used. The rules come from Ordinance 1179, adopted April 28, 2026. We haven't reviewed the fee schedule, the penalty chapter, the zoning use tables or the City's lodging tax provisions yet, so confirm an address with the City before you buy.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes: licensed short-term rentals are allowed in all zone districts in the city, with a City license [1] ClauseConfirming |
| City short-term rental license required? | Yes: a City short-term rental license is required before offering, providing or operating a short-term rental in the city limits; valid for 1 year [1] Clause |
| License fees | Set by City Council resolution in the City fee schedule; the amount hasn't been reviewed yet [1] ClauseConfirming |
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Detailed rules
The full picture, section by section
Licensing and limits
| Can a license be transferred to a new owner? | No: licenses are non-transferable and end automatically when ownership of the property transfers [1] Clause Section 16.03.135(C) says permits are non-transferable and automatically terminate upon transfer of property ownership. A buyer who wants to operate a short-term rental would need to apply for a license of their own under Section 16.03.140. |
|---|---|
| Must existing short-term rentals apply for a license? | Yes: all short-term rentals already operating when the chapter was adopted must apply within 60 days of being notified of the adoption of the ordinance [1] Clause Section 16.03.140(E) requires every existing short-term rental in operation at the time of adoption of the chapter to submit an application to the community development department within sixty (60) days of being notified of the adoption of the ordinance. The chapter was added by Ordinance 1179, adopted April 28, 2026. |
| Is an inspection required before a license is issued? | Yes: an initial inspection is required for every new application, and no license is issued until the community development department approves it; annual renewals don't need one unless the Code official has reasonable cause to believe there is a violation [1] Clause Section 16.03.160 says the inspection checks compliance with the standards in Section 16.03.155. Annual renewals of existing short-term rentals don't require an inspection, unless the Code official has reasonable cause to believe there is a violation or that the standards of the chapter are no longer being met. |
| How long is a license valid, and can it be suspended or revoked? | Valid for 1 year from issuance, then renewed annually; the community development department may, for good cause, temporarily suspend, permanently revoke or decline to renew a license [1] Clause Section 16.03.135(B) sets the one-year term. Section 16.03.140(D) lets the community development department, for good cause, temporarily suspend, permanently revoke or decline to renew any license. If the department decides issuance wouldn't be consistent with the chapter, it denies the license and notifies the applicant in writing with an explanation of the reason (Section 16.03.140(C)). |
| Can an accessory dwelling unit be used as a short-term rental? | Yes: a legal accessory dwelling unit (ADU) or live/work unit may act as a short-term rental if it meets all other rules and regulations of the chapter [1] Clause Section 16.03.155(D) says a legal ADU or live/work unit may act as a short-term rental if it meets all other rules and regulations of the chapter, including the license, inspection, occupancy, parking and safety standards. |
| Is a recreational vehicle or travel trailer allowed as a short-term rental? | No: use of a recreational vehicle or travel trailer as a short-term rental is prohibited [1] Clause Section 16.03.155(E) prohibits using a recreational vehicle or travel trailer as a short-term rental. |
Operating rules
| What is the maximum occupancy? | A maximum of 2 people per legal bedroom plus 2 additional occupants [1] Clause Section 16.03.155(B) limits occupancy to a maximum of two (2) people per legal bedroom plus two (2) additional occupants. |
|---|---|
| What parking is required? | A minimum of 2 hard surface off-street parking spaces in all zone districts except the commercial downtown (CD) district, which is exempt [1] Clause Section 16.03.155(C) requires short-term rentals to have a minimum of two hard surface off-street parking spaces in all zone districts with the exception of the commercial downtown (CD) district. The CD district is exempt from the requirement. |
| Must a designated local responsible party be on file? | Yes: a designated local responsible party must be on file as the emergency contact for every short-term rental [1] Clause Section 16.03.155(F) requires a designated local responsible party to be on file as the emergency contact. Section 16.03.130(C) defines the designated local responsible party as an individual located within the city of Craig during the entire length of the short-term rental period who has access to the licensed premises, is authorized to make decisions regarding the premises, and can respond to complaints or violations. |
| What safety equipment is required? | Applicants must certify working smoke and carbon monoxide detectors, an operational emergency escape and rescue opening in all sleeping rooms, and at least 1 functioning fire extinguisher that occupants can access, on the premises at all times [1] Clause Section 16.03.155(G) requires applicants to demonstrate and certify these items. Smoke and carbon monoxide detectors must be located according to the International Building Code. The initial inspection under Section 16.03.160 checks compliance with these standards. |
Enforcement and appeals
| Can a license decision be appealed? | Yes: a person aggrieved by a community development department action may appeal in writing to the city manager within 10 days of written notice, then to the city council within 10 days of the city manager's notice; the council's decision is final [1] Clause Section 16.03.170 sets the two-step appeal. The city manager affirms the decision, affirms it with conditions, or reverses it. The aggrieved person gives written notice to the community development department to appeal to the city council, and the city clerk sets a hearing. Written notice counts as received on hand delivery, on email delivery once receipt is confirmed, or on confirmation of receipt by certified mail. |
|---|---|
| What are the penalties for violations? | Punishable under Chapter 16.06.010 of Title 16 of the City Code; the penalty amounts haven't been reviewed yet [1] ClauseConfirming Section 16.03.165 says a person who violates the chapter or its rules and regulations may be punished in accordance with Chapter 16.06.010 of Title 16 of the Code. We haven't reviewed Chapter 16.06, so the penalty amounts aren't shown here. The community development department may also suspend, revoke or decline to renew a license for good cause (Section 16.03.140(D)). |
State law that also applies
| State sales tax on short stays | 2.9%, plus any local sales taxes the state collects [2] [3] Clause 1 Clause 2 Colorado charges its 2.9% state sales tax on the entire amount charged for rooms and accommodations. A stay may also owe local sales taxes that the Colorado Department of Revenue collects for counties and special districts, and any sales tax of a home-rule city that collects its own tax (see below). |
|---|---|
| Which stays are taxed? | Stays of less than 30 days [3] Clause State sales tax does not apply to a room or accommodations rented to a person who is a permanent resident of it and has a written agreement to occupy it for at least 30 consecutive days. Shorter stays are taxed. |
| Colorado sales tax license required? | Yes, unless you rent only through a booking platform that collects the state-collected taxes for you [3] [2] Clause 1 Clause 2 The Colorado Department of Revenue says anyone who offers rooms or accommodations for rent must get a Colorado sales tax license and collect sales tax on taxable rentals. A seller who makes sales only through a marketplace may be exempt from licensing, collection and filing if the marketplace collects all state and state-administered local sales taxes for them. The license costs $16 (prorated) plus a $50 deposit, a separate license is needed for each business location, and licenses expire on December 31 of odd-numbered years. |
| Do booking platforms collect state taxes? | Yes, for state-collected taxes [3] Clause For rooms rented through a marketplace (including online platforms), the marketplace facilitator must collect and remit the state sales tax and the local sales taxes the state collects, plus any county lodging tax and local marketing district tax. City taxes in home-rule cities are separate (see below). |
| City lodging and home-rule city taxes | Paid to the city, not the state [3] Clause The Colorado Department of Revenue does not administer any lodging tax imposed by a city or town, and it does not collect sales tax for home-rule cities that collect their own. Those taxes are licensed, filed and paid with the city. |
Changes
Recent and pending changes
We read Sections 16.03.130 to 16.03.180 (short-term rental licensing, registration and standards) of the Craig Municipal Code on Municode and the code's title page, captured on October 19, 2026. The title page shows the code version dated September 16, 2026, codified through Ordinance 1184, enacted June 23, 2026. We haven't reviewed the City fee schedule, Chapter 16.06, the zoning use tables, the City's lodging tax provisions or any City Council or planning agendas yet, so a newer change could exist. Watch the code's supplement history and the City Council agendas.
The history notes of Sections 16.03.130 to 16.03.180 cite Ordinance No. 1179, dated April 28, 2026. Existing short-term rentals must apply for a license within 60 days of being notified of the ordinance's adoption.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.