Short-term rentals in Fort Collins, explained properly.

Short term primary rental: the applicant must show ownership and primary residence and must specify which portions of the unit renters may use (Sec. 15-644(a)). Short term non-primary rental: the applicant shows ownership only (Sec. 15-644(b)). For both, the applicant must hold valid sales and use and lodging tax licenses, comply with all applicable federal, state and local law including the Land Use Code parking requirements at Sec. 5.9.1(K)(1)(k), certify compliance with the sanitation, mechanical, electrical, structural and fire safety requirements in Chapter 5 listed in administrative regulations, keep liability insurance within the limits in those regulations, and name a contact who can respond within four hours. The Director may inspect the unit, and refusing an inspection is grounds for denial. No license is issued if marijuana is cultivated or processed, or marijuana products are produced, in the unit. The unit must be in a zone that allows the use or qualify under Sec. 15-646. The insurance limits and safety checklist are in administrative regulations that we haven't reviewed.

A short term primary or non-primary rental shall operate in a multi-unit dwelling unit only if the entire multi-unit structure meets all those requirements for an R-1 Occupancy Building (Sec. 15-647(d)). A rental licensed before September 13, 2019 in a multi-unit dwelling unit may keep operating on its current license terms if it meets the alternate fire-resistance standards in Sec. 15-648(4) (sprinklered with egress windows, or on the first or second story with direct exits and fire separation, or above the second story with fire-rated corridor exiting, alarms and doors, as the Building Official determines) and the license has not lapsed more than 30 days. If the owner of such a rental sells or transfers the unit, the license expires at the sale or transfer unless the entire structure meets the R-1 Occupancy Building requirements (Sec. 15-647(e)).

Each license applies to a single dwelling unit, no license is transferable, and a license terminates on transfer of ownership of the licensed premises (Sec. 15-645). For a unit licensed under the legacy provision in Sec. 15-646, a new owner is eligible for an identical license if the old license was continuously valid until the transfer of ownership, the new owner applies within 30 calendar days of the transfer, the unit meets the Land Use Code parking requirements, and the new license is continuously maintained. A legacy license also ends if it is revoked, not renewed or lapses for any period. For multi-unit rentals licensed before September 13, 2019, the license expires at sale unless the whole structure meets R-1 Occupancy Building requirements (Sec. 15-647(e)).

The licensee must give each renter and the City a current telephone number for the person or people available. Each must have access to the licensed premises and authority to make decisions about it (Secs. 15-644(a)(7), (b)(7), 15-648(6)). Failing to meet this condition may lead to revocation, suspension or non-renewal.

The coverage limits are set in administrative regulations adopted under Sec. 15-651. We haven't reviewed those regulations, so the dollar limits are not stated here.

Both license types require compliance with Land Use Code Section 5.9.1(K)(1)(k) on parking (Sec. 15-644), and continued compliance is a license condition (Sec. 15-648(3)). Applications under the legacy provision filed on or before October 31, 2017 did not need to meet it, but a new owner taking over a legacy license must (Sec. 15-646(e)). We haven't reviewed the Land Use Code, so the parking standard itself is not stated here.

The license number must be prominently displayed in all listing or advertising of the licensed premises, and a copy of the license must be prominently displayed in the licensed premises (Sec. 15-648(1), (2)).

Licenses for short term primary rentals specify the areas of the dwelling unit that may be rented, and the licensee must make sure renters only have access to those portions (Secs. 15-645, 15-648(5)).

The bar applies to both license types at issuance (Sec. 15-644(a)(6), (b)(6)) and as a continuing condition (Sec. 15-648(8)).

Renewal applications are reviewed by the Financial Officer with the Director and must meet the Sec. 15-644 standards (Sec. 15-647(b)). The application fee, at both initial and renewal, is set by the City Manager under Chapter 7.5, and may be refunded at the Financial Officer's discretion if the unit has accessibility modifications set in administrative regulations (Sec. 15-643(d)). The fee amount and its effective date haven't been reviewed yet.

The fine and jail amounts are in Code Section 1-15, which we haven't reviewed, so they are not stated here (Sec. 15-650).

Grounds include fraud or false statements in an application, failure to obtain tax licenses or remit taxes, and failure to comply with the license terms, the Article or other applicable law (Sec. 15-649(a)). The Financial Officer may set conditions on a suspended license and reinstate it when they are met. After revocation the unit cannot get another license under the Article for one year (Sec. 15-649(c)). All licensed premises are subject to inspection by the Director, including locked areas on request (Sec. 15-649(d)). An applicant or licensee may appeal a grant, renewal, suspension or revocation decision to the City Manager under Chapter 2, Article VI, and the City Manager's decision is final (Sec. 15-652).

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.