Short-term rentals in Crested Butte, explained properly.

The licence article sets a total maximum of 199 Unlimited licences within the Town. New Unlimited applications are accepted each year from October 1 to October 31 for the following calendar year; if, on or before December 31, there are more available licences than applications, the Town issues licences to qualifying applicants, and if there are more applicants than licences it issues them by lottery. The Town's licensing page also says Unlimited licences are limited to two per block face, and that Primary licences are exempt from the block face limit and have no cap on the number issued. Only one Unlimited licence may be held by any owner.

Primary licences are limited to no more than 90 nights of vacation rental in any calendar year (Sec. 6-5-40(d)(1)d). At renewal, a Primary licence holder must show that the property was not rented for more than 90 nights in the current calendar year, including bookings for November and December. The Town's licensing page and Primary Occupancy form say the same.

Sec. 6-5-40(d)(2)c says Unlimited licences must rent a minimum of thirty (30) nights in any calendar year. The renewal rule in the same section (e)(3)c asks for evidence that the property has been rented for a minimum of twenty-nine (29) nights in the current calendar year (which may include bookings for November and December), and the Town's licensing page says Unlimited licences must rent a minimum of 29 nights per year. Because the Town's own sources differ (30 versus 29), this rule is marked for review. For good cause shown, a renewal applicant may ask the Town Manager to waive the minimum nights rented; good cause includes long-term rental of the property, temporary relocation for work or personal obligations, and permitted construction of the unit.

Sec. 6-5-40(e)(5) says no licence, regardless of type, is transferable from one owner or primary occupant to another, and that on sale of the property or termination of a long-term lease the licence automatically terminates. The Town's form also says licences are non-transferable.

Both licence classes carry this limit (Sec. 6-5-40(d)(1)e and (d)(2)d), and an applicant must provide evidence that the property is not subject to such a deed restriction or covenant. The Town's form repeats that no licence will be issued to any property subject to a deed restriction or private covenant prohibiting vacation rental or short-term rental use.

A Primary licence: no more than one may be held by any primary occupant (Sec. 6-5-40(d)(1)f). An Unlimited licence: no more than one may be held by any owner ((d)(2)e). The Town's form says one licence per person, and that a person may not have one of each type. Renewals of Pre-existing Non-Conforming licences are not required to comply with the ownership or block face limitations ((e)(4)); the Town's form says such licences are exempt from the one-licence-per-person regulation until they are not renewed, are terminated through sale of the property or are revoked.

The licence article defines a Pre-existing Non-Conforming licence as any licence issued and active as of December 1, 2022. The Town's Primary Occupancy form describes legal non-conforming licences as any unlimited licence active prior to November 21, 2022, so the two Town sources give different dates (this rule is marked for review). Renewals follow the October 1 to 31 window; the renewing applicant is not required to comply with the ownership or block face limitations, but beginning with the renewal cycle for 2024 must be a natural person and meet the other renewal requirements. The form adds that the exemption lasts until the licence is not renewed, is terminated through sale of the property, or is revoked.

New Unlimited applications and renewals are accepted annually between October 1 and October 31 for the following calendar year; Primary applications are accepted throughout the year; each licence expires December 31. Renewal applications must include the licence type, the same items as a new application, an unsworn declaration of compliance with applicable Town codes (the Town may confirm by inspection), and evidence of the nights rented (not more than 90 for a Primary licence; at least 29 for an Unlimited licence). To be eligible for renewal a licence must be in good standing; the Town reserves the right to deny renewal based on complaint history whether or not a citation was issued, failure to timely pay taxes, failure to meet any criteria in the Town Code, and the seriousness of any violation prosecuted under Section 6-6-120.

Per the Town's Primary Occupancy form (which applies to all vacation rental licences), the local contact must have physical access to the rental property, must be able to make decisions on the owner's behalf if not the owner, and must physically respond to and amend any complaint filed against the rental within one hour of the initial attempt to register the complaint. Failure to respond within one hour is a listed violation. We read this on the Town's form and did not read the code section that sets it.

The Town's form sets maximum occupancy for vacation rentals at two persons per bedroom plus two additional occupants, with a ceiling of ten people, and says failure to adhere to the limit results in revocation of the licence. We read this on the Town's form and did not read the code section that sets it.

The Town's form requires every vacation rental to provide and be approved for the minimum off-street parking required by the Town zoning code, cleared and maintained year-round; failure of tenants to follow the approved parking plan can lead to a fine or denial of renewal. The Good Neighbor Guidelines must be prominently displayed in a clear and visible location in the home, and the licence number must be prominently displayed in any advertisement for the rental. We read these on the Town's form and did not read the code sections that set them.

Sec. 6-5-40(b) says the owner of any property found to be operating a vacation rental without a licence after January 1, 2018 shall be ordered to cease the activity, and that any property operated in violation of these regulations is ineligible for a vacation rental licence for two years from the discovery of the violation. We did not read the Town's general penalty section (Sec. 1-4-20) that the Town's form refers to for fines.

Per the Town's Primary Occupancy form: if a licence holder or owner receives three ticketed violations issued by the marshals department in a single calendar year, the Town revokes the licence and the holder or any other owner of the property is banned from receiving a licence for two full years. Licence holders may be fined up to the maximum allowed under Section 1-4-20, with a separate fine for each day a violation persists. Listed violations include failure of the local contact to respond within one hour, failure to display the licence number in advertisements, exceeding maximum occupancy, not following the approved parking plan, not displaying the Good Neighbor Guide, and failure to remit sales tax. We read this on the Town's form and did not read Sec. 1-4-20 or the code's revocation section, so the fine amount is not stated here.

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).

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.

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.

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).

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.

Colorado counties may add a county lodging tax, regional transportation authorities a visitor benefit tax, and local marketing districts a marketing tax on rooms subject to state sales tax. County lodging and visitor benefit taxes are filed quarterly with the Department of Revenue on form DR 1485; the Department's DR 1003 publication lists the rates.