Short-term rentals in Frisco, explained properly.

The code lets the Community Development Director set the application fee from time to time, at an amount that reasonably reimburses the Town's costs of reviewing applications and of inspection and enforcement, and says the fee is not prorated for part of a license year (Sec. 110-39.A.5). The Town's guide page lists the license application fee as $250 per year and the renewal fee as $250. We could not see an effective date or fee schedule for the $250 figure, so confirm the current fee with the Town. A separate waitlist application fee is also set by the Director. No part of the license fee is refunded on suspension, revocation or if the business stops (Sec. 110-43.F).

Each license is valid from the date of issuance until the next April 30, and the renewal application confirms the information in the original application and must be made not less than 30 days before the license expires (Sec. 110-39.C). The Town's guide page describes a renewal period of February 20 to April 30 and says licenses must be renewed by April 30; where the page and the code differ, this page follows the code. A licensee must give the Town updated information within ten days after any application information stops being accurate (Sec. 110-39.A and B).

No license is transferable and no license is valid for anyone other than the person or entity named on it, except spouses and partners in a civil union (Sec. 110-39.D). A license is not treated as transferred when legal title or beneficial interest passes through one of twelve listed events, for example a transfer to or from a government body, a gift for no consideration other than love and affection or charity, a change in co-ownership between the same parties, a transfer by reason of death, certain entity reorganizations among the same owners, a bankruptcy or court order, a foreclosure transfer to the lender, or a transfer from an exchange accommodation titleholder in a 1031 exchange. The Community Development Director may require an affidavit under penalty of perjury from anyone claiming a transfer falls under the list. Read the full list in Sec. 110-39.D.1-13 for your case.

The application must give the applicant's name, residential address and phone number, and the code says the applicant "must be the owner of the short-term rental property" (Sec. 110-39.A.1). The same list also requires proof of the applicant's lawful possession by deed or lease, and says that if the applicant is not the owner the application must include written authorization, signed and notarized, from the owner of the premises (Sec. 110-39.A.4). The two items point different ways, so check with the Town before applying as a tenant or manager. Because the license is not transferable, it is issued to the named person or entity.

The application must include: the applicant's name, residential address and phone; the responsible agent's details with a copy of the writing designating the agent; the premises address, a description of the areas used and a statement of maximum occupancy; proof of lawful possession by deed or lease (with notarized owner authorization if the applicant is not the owner); the application fee; a copy of the posted information notices and the parking plan; a copy of a valid Colorado sales tax license for the rental activity or the pending application, unless, because of the booking platform used, the State of Colorado has no separate sales tax license for that rental (the code's own exception); any other information the Director considers necessary; and an affidavit under penalty of perjury that the property meets the life-safety standards and that the information notices are posted (Sec. 110-39.A.1-10). The Town accepts no incomplete applications.

The application must give the responsible agent's name, business address and phone number, with a copy of the writing designating the agent to act for the applicant on issues related to the rental and agreeing to comply with the article (Sec. 110-39.A.2). The agent must be available 24 hours a day, seven days a week as the initial point of contact for the property (Sec. 110-37). The Town's guide page describes the contact as the person who responds to and resolves complaints. Contact details for the agent or owner must also be on the sign posted in the rental (see the notices rule).

Maximum overnight occupancy is no more than two people per bedroom, plus four people (Sec. 110-40.A.3). The Town Manager or a designee can adjust the maximum by written determination after a physical inspection, based on the actual number of sleeping places in rooms that meet the building code for a sleeping area. It is unlawful for the renter to allow overnight occupancy above the maximum. The application must state the maximum occupancy and every advertisement must state it.

The owner must give the Town a parking plan with the application and share it with guests, and it is unlawful for a renter to park or allow parking other than in the places the plan sets out (Sec. 110-40.A.1). The Town's guide page asks for a photograph or illustration showing each parking space.

The owner must post and maintain a conspicuous sign with contact information for police, fire and ambulance, the property address, contact information for the responsible agent or owner, the Town short-term rental license number, and the location of fire extinguishers (if any) and fire escape routes. The owner must also keep conspicuous written information on maximum overnight occupancy; where vehicles may park and how many; alternative parking for extra vehicles, trailers and campers; trash and recycling receptacles and rules; snow removal; noise policies; pet policies; and any HOA policies specific to the property (Sec. 110-40.A.4). Owners are strictly liable, and this duty cannot be delegated, for the notice, life-safety and advertising requirements (Sec. 110-40.B).

Each licensed premises must meet the Town's building, technical and safety codes adopted in Chapter 65, have smoke detectors, carbon monoxide detectors and fire extinguishers installed and kept in operable condition, and have wood-burning fireplaces and stoves cleaned on an annual basis (Sec. 110-40.A.5). The owner signs an affidavit to this effect with the application. An authorized public inspector may enter at reasonable times when reasonably necessary to enforce these rules, after presenting credentials and requesting entry if the property is occupied, or after a reasonable effort to find the owner or agent if it is empty; a municipal court judge may issue an inspection warrant, and no warrant or permission is needed in an emergency involving potential loss of property or life (Sec. 110-40.C and D).

Trash and garbage storage and disposal must follow Sec. 127-17 of the Town Code, including putting the receptacle at the curb only on the day of pickup (Sec. 110-40.A.2). While occupying a short-term rental, no person may amplify music outdoors, make noise that violates Sec. 127-53, or create a nuisance under Chapter 124 (Sec. 110-40.A.6), and no person may camp outdoors, use tents, or build or use a temporary structure, recreational vehicle or trailer for overnight purposes (Sec. 110-40.A.7).

All advertising for a short-term rental property must include the Town of Frisco short-term rental license number immediately following the first description of the property, along with a statement of the maximum occupancy permitted (Sec. 110-40.A.8). The owner is strictly liable for this duty and cannot delegate it (Sec. 110-40.B).

It is unlawful for any owner, responsible agent or occupant of a short-term rental property to violate the article. Violations are subject to the penalties in Sec. 1-14 of the Town Code, and each day or part of a day a violation is committed, continued or permitted is a separate offense (Sec. 110-44). The penalty amounts in Sec. 1-14 are on a page we did not read. A license can also be suspended or revoked (see the next rule).

The Community Development Director must deny an application if the Town Code has not been met, fees are unpaid, the application is incomplete or false, or there is a ground for suspension or revocation, and must send a written order within ten days (Sec. 110-41). The Director may suspend a license for up to 150 days if the licensee has been found guilty more than once within the last year of violating the article, operated in violation of a building, fire, health or safety code (with a 20-day correction period, except noise), failed to file or pay Town taxes, or failed to pay the annual license fee. The Director must revoke a license that has been suspended more than once in 12 months, was obtained with false or misleading information, was operated during a suspension, or where a fact exists that would have warranted denial (Sec. 110-42). A revoked licensee cannot be issued a license for one year. An applicant or licensee may appeal to the Town Manager in writing within five working days of the decision; during a suspension or revocation hearing the business may keep operating; the Manager's final order may be appealed to municipal court under Colorado Rule of Civil Procedure 106(a)(4) (Sec. 110-43).

Effective June 1, 2022, the Town levies a tax of five percent of the purchase price paid or charged for use of a short-term rental property within the Town (Sec. 160-63). Every vendor who sells the use of a short-term rental to a purchaser in the Town must collect it on the total purchase price. "Vendor" includes marketplace facilitators, marketplace sellers, multi-channel sellers and online travel companies (Sec. 160-62). The tax is in addition to the Town lodging tax under Article IV of Chapter 160. A short-term rental property here means the same thing as in Sec. 110-37: a unit available to lease for fewer than 30 consecutive days. Collection and enforcement follow the Town's lodging tax procedures, and the General Government Director may adopt administrative rules (Secs. 160-64 and 160-65).

The Town's tax page says the total Town of Frisco tax on gross short-term rental revenue is 9.35%: a 2.0% Frisco sales tax, a 2.35% lodging tax and the 5.0% STR excise tax. Gross revenue includes all compensation for occupancy, including non-optional fees other than taxes such as booking or reservation fees, cleaning fees, pet charges and fees for extra vehicles, people or beds, and any amounts received from lodging companies or managers. The Town allows a vendor's fee deduction of 3.33% of the sales tax liability for returns filed on or before the due date. We read only the excise tax article of the Town Code (Chapter 160, Article VII), so the sales and lodging rates rest on the Town's page, which shows no effective date.

The Town says every license holder is responsible for knowing which taxes a marketplace facilitator or local property manager collects for them and which must be reported and paid directly to the Town. Marketplace facilitators (Airbnb, VRBO, Expedia, Booking.com and similar) and property managers who manage bookings must hold a Town business license, collect and remit the Town's 9.35% STR taxes, and file monthly through the Town's Xpress Bill Pay portal by the 20th of the following month; property managers also email a monthly property detail report after filing. Beginning August 1, 2026 those filers must file electronically through that portal. The Town says VRBO has collected and remitted Town STR taxes on bookings made on or after May 1, 2021, and Airbnb on bookings made on or after February 1, 2023. Independent owners with direct bookings collect, report and remit the 9.35% themselves and file an annual STR tax return due January 20 of the following year (the 2026 return is due January 20, 2027), reporting only their direct bookings.

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.