Short-term rentals in Keystone, explained properly.

Section D.7 sets expiry on September 30 of the calendar year following the year of initial issuance, or on transfer of title to a new owner if sooner. A license not renewed in the renewal period the Town Clerk sets is expired and needs a new application. The Clerk administratively approves a timely renewal only if, for the preceding year: the applicant is the original applicant; the applicant still meets the application requirements; the applicant or property is not presently in violation; the applicant was not cited, charged or found in violation more than three times in the prior calendar year; the license was current and not suspended; and the property has no outstanding local or state tax obligations. The Clerk may issue a conditional renewal that requires a prompt fix, and failing the condition revokes the renewal. An owner whose renewal is denied cannot apply for a new license for one year.

Section D.8 says ownership of a license may not be transferred unless an exception applies. The exceptions are: a transfer of title with no payment to an immediate family member; a transfer to a trust established by the owner; a transfer to a limited liability company or other entity in which the owner keeps a controlling interest (once the majority interest leaves the original holders, a new license is needed); a transfer creating or ending a joint tenancy between the same parties; a transfer by reason of death; corrective, boundary and easement transfers with no payment; and transfers by court order or in a separation or divorce. Before or within 30 days after a transfer, the new owners must contact the Town Clerk with the materials needed to decide whether the exception applies.

The application must include proof of all required state and local sales tax licenses. All property taxes assessed on the unit must be paid before the license is approved and kept paid afterwards, and unpaid taxes can lead to suspension, revocation, non-renewal or denial. A renewal also requires that the property has no outstanding local or state tax obligations. The Town's own lodging and sales tax rates and filing rules haven't been reviewed yet; see the Colorado state tax fields for the state rules.

Each licensee designates a person or company as Responsible Agent, who must have access and authority to take over management of the unit and take remedial measures. The Agent or a designee must affirmatively respond to a complaint and try to resolve it within an hour of notification; failing to do so is a violation. During a Summit County fire ban the Agent must tell renters the current fire restrictions and how to reach the Summit County Alert System. The licensee must keep property manager and Agent details current with the Town and in the unit. Ordinance 2025-O-14 added that the Agent must maintain and give the Town a direct phone number that reaches a specific person or extension without a switchboard, operator or auto-attendant, and applies the same direct-number test to every phone number on the application. Complaints go first to the Town's STR Hotline, which passes them to the Responsible Agent.

Section G.2.a requires a minimum of one parking space per unit, up to a maximum of five vehicles parked outdoors on any property. Spaces must meet Section 3700 of the Land Use Code (which we haven't reviewed). Vehicles must be parked on site in designated areas; parking on Town roads, in landscaped areas, or in a way that blocks neighbors' driveways, sidewalks, alleys or mailboxes is prohibited. The allowed number of spaces or vehicles must appear in all advertising, and the approved parking plan must go to renters in the rental agreement and be posted in the unit. An owner may ask for more than the maximum through a Conditional Use Permit if the parking is consistent with neighborhood character. Ordinance 2025-O-14 added two items: a parking diagram with the application for single family, duplex and townhome units, and one parking pass per allowed space, showing the address or unit number, given to renters at check-in for display on the dashboard. Snow must be cleared from parking areas as needed to fit the approved plan.

Section I requires all advertising to include the Town of Keystone short-term rental license number immediately after an accurate description of the property as reflected in Town records, along with the permitted occupancy, permitted bedroom count and parking limitations. Unless approved as a Bed and Breakfast under the Land Use Code, a property may not be rented to more than one booking party at a time. Section H requires a conspicuous sign or notice inside the unit with the Responsible Agent's or owner's current contact information, the street address and the license number, and a prominent posting of the Good Neighbor Guidelines, permitted occupancy, parking plan and waste disposal requirements. Exterior signs advertising the rental must be approved under the Land Use Code sign regulations (Chapter 9). Partial-home rentals (rooms within a dwelling where access and cooking facilities are shared) may not be advertised as separate units and the ad must mention shared access and cooking facilities.

Section G.1 requires every improvement to be permitted by the applicable building, environmental health and engineering departments, and rooms not approved as sleeping rooms may not contain beds. Smoke detectors, carbon monoxide detectors and fire extinguishers must be installed and operable under C.R.S. 38-45-104, and wood-burning fireplaces and stoves must be cleaned every year. Outdoor fire pits must be permanently installed and permitted and inspected where required, and the use of portable outdoor fireplaces is prohibited. Occupancy of a recreational vehicle is prohibited on any property with a short-term rental license. Hot tubs and spas need both a building permit and an electrical permit, and must be maintained under the State pool and mineral bath rules. Electrical panels must be clearly labeled, and each unit needs reliable cellular or VoIP service or a landline so renters can call 911. A property on a septic system needs a tank pumping by a Summit County licensed cleaner every 3 years, and a property on a well needs an adequate permitted water supply. While a building or septic permit for an upgrade, remodel or demolition is open, no rentals may occur until it has final approval, though the license stays in effect subject to annual renewal.

Section G.2 requires every property to have a waste disposal and collection plan, reviewed at initial licensing and any renewal, so containers are not left outdoors where they affect wildlife or snow removal (examples include indoor storage with valet pickup, garage storage with containers out no earlier than 6:00 a.m. and back by 7:00 p.m. on pickup day, HOA-managed disposal, or bear-proof containers outside the right-of-way and snow storage areas). Renters must be told the noise ordinance, enforced by law enforcement. Outdoor lighting must meet Section 3505.07 of the Land Use Code. If pets are allowed, renters must be told the animal control rules, the property must follow Section 3802 of the Land Use Code, and pet food must be stored indoors. Before arrival and through the Good Neighbor Guidelines, renters must be told about winter driving conditions and the Colorado Traction Law, and snow must be cleared from parking areas as needed. The Town Clerk issues the Good Neighbor Guidelines, which may include quiet hours, multi-night minimums and vehicle limits as practices to address repeat concerns.

Section J.4 makes a violation of the STR regulations a civil infraction that may be punished as an administrative violation, and J.5 adopts a graduated administrative fine schedule: first violation $250, second $750, third or more $1,000. If the Town has to take enforcement, revocation or appeal action, its reasonable costs and attorney fees are added to any fees due. Failure of the Responsible Agent to respond to a complaint within an hour counts as a violation. The Town Clerk and law enforcement enforce the regulations.

Under Section J.6, the Town Clerk may revoke a license after a hearing for any violation, and may begin proceedings if a licensee has 2 or more citations within 3 months, 3 or more documented violations within 3 months, submitted a fraudulent or false application document, violated the regulations in a way that significantly endangers public health, safety or welfare, or fails to pay sales or property taxes. The hearing notice goes by certified mail at least 14 calendar days ahead. The hearing officer is the Town Manager or designee, who may impose a suspension of up to six months, revocation, or conditions the licensee agrees to in lieu, and must issue a written decision within 15 days of the hearing. A revoked licensee may reapply after one year, or up to 3 years if the hearing officer sets a longer period. The licensee may appeal a revocation or suspension to the Town Council by letter to the Town Manager within 10 days after the decision letter is emailed, and the Council holds a new hearing within 30 days.

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.