Short-term rentals in Dillon, explained properly.

Sec. 6-11-40(d) issues the license in the name of the owner and says it is not transferable, and each change in ownership of a short-term rental unit requires a new license. The Town's page repeats that STR licenses are non-transferable.

Sec. 6-11-55(c) limits the Town to one short-term rental license per property schedule number assigned by the County Assessor's Office. Licenses are also required for each short-term rental unit (Sec. 6-11-30(a)). Partial rentals state the number of bedrooms to be rented on the application (Sec. 6-11-40(a)).

Sec. 6-11-55(a) says no short-term rental license will be issued for operating a short-term rental unit within an accessory dwelling unit, as defined in Chapter 16 of the Code, and a license issued in violation of that rule is null and void. Sec. 6-11-55(b) makes it a violation for any person to operate or rent a short-term rental unit within an ADU. The Chapter 16 definition of accessory dwelling unit was not read.

Sec. 6-11-40(e) says a license expires annually on May 31 and a renewal application, with all fees, must be submitted at least 30 days before the existing license expires. The Town's page says licenses are not auto-renewed, that 2026 renewals opened April 1, 2026 through MuniRevs, and that renewals must be submitted before June 1 to be reviewed, with late fees from June 1 and renewals not completed by July 1 not eligible. The Code's 30-day-before-expiry rule is the stated requirement; the page's June 1 wording differs and is logged. The Finance Department must issue a license within 30 days of a complete application if the application complies (Sec. 6-11-40(c)). The page says an owner whose renewal is not approved after May 31 may continue to operate unless the Town says otherwise.

Sec. 6-11-40(a) requires a written application to the Finance Department at least 30 days before any advertising. It must include owner information, the unit address, proof of ownership, designation of a responsible agent, a signed affidavit certifying habitability and compliance with applicable building and safety codes, the number of bedrooms for a partial rental, a parking plan, a trash and recycling plan with hauler information, and anything else the Town requires; the application is not complete until all information is provided and the fee is paid. Under Sec. 6-11-40(b) the Town may require, as a condition of issuing or renewing a license, an inspection by the Finance Director for extraordinary fire hazard and cleanliness and sanitation, and may require changes to correct the problems. An authorized inspector may enter a unit at reasonable times to enforce the Article (Sec. 6-11-55(f)). The Town's page says the application includes a floor plan showing fire extinguisher, smoke detector, carbon monoxide detector and breaker box locations and an egress plan, for posting in the unit.

The application must designate a responsible agent (Sec. 6-11-40(a)). The Code defines the responsible agent as the owner, the owner's agent or the owner's designee who is available to respond to any issue within 60 minutes and is authorized to receive written notice for the owner (Sec. 6-11-20); the denial section describes the duty as responding to complaints within one hour (Sec. 6-11-60(a)(2)a). The Town's page says contact information must be kept current in MuniRevs and gives a Town STR complaint line, 970-368-7482.

Sec. 6-11-55(d) sets the maximum occupancy at two persons per bedroom plus two additional persons unless the license states a lesser number, and the Town uses County Assessor's Office data as the sole factor in counting bedrooms. The Town's page gives the example that a 2-bedroom unit has a maximum of 6 guests and says the allowable number of guests must be shown in all advertising.

The application must include a parking plan showing overnight parking available to renters on-site or elsewhere in a place where overnight parking is not prohibited, and a trash and recycling plan with hauler information (Sec. 6-11-40(a)). No vehicles may be parked on the lawn or landscaped area, and the owner may not allow renters to park on private property other than the locations in the Town-approved parking plan (Sec. 6-11-55(e)). Failure to provide parking or trash and recycling removal in line with the plans is grounds for denial, suspension or revocation (Sec. 6-11-60(a)(2)c). The Town's page says STR guests have no parking permits and pay overnight rates in Town overnight lots, and that parking requirements were discontinued; the Code still states the plan and parking requirements, so the Code is followed here and the difference is logged.

Sec. 6-11-80 requires all advertising to include the license number in the form "Dillon License STR-[insert number]", and all ad information, including parking and occupancy limits, must match the application, affidavit, parking plan and license; a violation is grounds for suspension or revocation. Sec. 6-11-70 requires a prominent posting in the unit of the license number, owner or responsible agent contact information with a phone number for 24-hour emergency response, a floor plan showing fire extinguishers, smoke and carbon monoxide detectors and emergency egress, and general Town guidelines on noise, occupancy, parking, trash and recycling, wildlife and fire restrictions, plus anything else the Finance Director requires. The Town's page also says all ads must state the occupancy.

Sec. 6-11-60(a) lets the Finance Director deny, suspend or revoke a license for fraud or false statements, for failing to comply with license terms (responsible agent, health, safety, noise and nuisance rules, parking and trash plans, license number in ads, posting), for failing to pay or remit taxes or utility fees, or when owner, agent or guest activity violates the Article or any federal, state or local law. In place of suspension or revocation the owner may agree to an administrative fine calculated by the formula in Chapter 19 (not read), and the Director may add terms or conditions (Sec. 6-11-60(b), (c)). The owner may appeal in writing within 10 business days after notice, and a requested hearing is held before the Planning Commission, whose decision is final and reviewable under Rule 106(a)(4) (Sec. 6-11-60(d)). Fine amounts are set through Chapter 19, which was not read.

Sec. 4-10-30 levies, on and after July 1, 2023, an excise tax of 5% on the total compensation paid for leasing or renting any short-term rental unit located in the Town, in addition to the Town's lodging tax, sales tax and any other taxes applicable to the rental. The renter pays it and the lessor must collect it (Sec. 4-10-10, 4-10-40). Anyone with a duty to collect must hold the Town STR license and report on Town forms, remitting on the same date and the same monthly, quarterly or annual basis as Colorado sales tax (Sec. 4-10-60(a)). Tax not paid by the 20th day of the month becomes delinquent on the 21st, and interest accrues at 1% per month (Sec. 4-10-60(b), (c)). Collected tax is held in trust for the Town (Sec. 4-10-50). Records must be kept for 3 years (Sec. 4-10-70).

The Town's STR page lists the Town of Dillon sales tax at 2.5% and the Town lodging tax at 6.0%, and the 5.0% STR excise tax (July 2023) as a separate item; the Town's tax code articles for lodging and sales tax were not fetched and the page rates are undated, so these are marked for review. The page says the lodging tax is remitted to the Town, a lodging tax return must be filed every month even if no tax is due, and returns are due by the 20th of the month for the preceding month; sales tax is remitted to the Colorado Department of Revenue. The page says Airbnb and VRBO collect and remit Dillon sales and lodging tax for hosts, and hosts using other platforms must remit those taxes themselves. This page does not total the Town, county and state rates; state and county layers are listed separately.

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.