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Short-term rental rules · Ouray County, Colorado

Short-term rentals in Ouray County, explained properly.

Short-term rentals in unincorporated Ouray County are regulated by Ouray County Ordinance 2024-001, effective January 1, 2025. Every rental needs a County Short-Term Rental Permit from the Land Use Department, issued for one calendar year and renewed by November 1. Permits are capped at 50 Type 1 (off-site manager), 50 Type 2 and 25 Type 3 (on-site owner or occupant) permits, one permit per person or entity, and permits are not transferable except in listed cases. Rentals are limited to zoning districts where a single-family home is a use by right, with a building inspection, HOA and neighbor notices, a one-hour response by the STR manager, two guests per bedroom plus two, one vehicle per bedroom and a single booking at a time. Violations carry fines of up to $1,000 per violation per day. The City of Ouray and the Town of Ridgway have their own rules, and we haven't reviewed the County Land Use Code or the Land Use Fee Schedule yet.

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At a glance

What you need to know before you buy or list

QuestionAnswer
Are short-term rentals allowed?Conditional: only in unincorporated Ouray County, with a County STR permit, and only in zoning districts where a single-family dwelling is a use by right (not the High Alpine Area, the Public Lands Zone or other areas the Land Use Code excludes); permits are capped [1] [2] Clause 1 Clause 2Confirming
County short-term rental permit required?Yes: a Short-Term Rental Permit from the Land Use Department must be issued before any short-term rental in unincorporated Ouray County; a permit lasts one calendar year [1] [2] Clause 1 Clause 2
Must the owner live on the property?No: an owner-occupied home is optional under every permit type; a Type 1 permit uses an off-site owner or manager within one hour and 50 miles, while Type 2 and Type 3 permits need an on-site owner or on-site occupant who lives there [1] Clause
Is there a cap on the number of STR permits?Yes: 50 Type 1 permits, 50 Type 2 permits and 25 Type 3 permits (up to 25 more Type 3 permits only if the Board authorizes them by Resolution); no new Type 1 permits while the Type 1 count is above 50 [1] [2] Clause 1 Clause 2

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Detailed rules

The full picture, section by section

Permits and caps

Are there separate STR permit types?Yes, three: Type 1: entire primary or accessory dwelling with an off-site owner or manager; Type 2: entire unit with an on-site owner or occupant in the other unit; Type 3: a portion of the primary dwelling with an on-site owner or occupant [1] Clause

Type 1 and Type 2 permittees may rent an entire primary dwelling unit or an entire accessory dwelling unit, but not both, and renting the primary and accessory units separately is prohibited. A Type 3 permit covers only a specified portion of a primary dwelling; renting an entire primary dwelling, an entire accessory dwelling, or any portion of an accessory dwelling under a Type 3 permit is prohibited. Each type must identify its STR Manager in the application. The County permit application is filed online through the County's permit portal.

Is an owner limited to one STR permit?Yes: one permit per person or entity as the sole permittee, including entities controlled by the same individual or family [1] Clause

Section 7.D limits issuance to one permit per person or entity as the sole Permittee. The limit applies to any Legal Entity controlled by a single individual, additional family members or agents acting for a permittee or applicant, and to entities holding majority or minority interests, subsidiaries and holding companies. Shell companies or alter-ego arrangements are not an exception. Section 8.C says Legal Nonconforming Use approval may have limited applicability to this limit for permits that were County-approved before the ordinance.

Can a permit be transferred to a new owner?Conditional: not transferable to another property or owner, except in listed cases (immediate family without consideration, a trust or controlled entity of the grantor, joint-tenancy changes, death, court orders, spouses, a change of the qualified unit, or an approved Legal Nonconforming Use); the new owner must contact Staff before or within 30 days after the transfer [1] Clause

Section 8.A says STR permits are not transferable to another property or owner, and that only the listed exceptions apply. For a transfer claimed to meet an exception, the new Owner must contact Staff before or within thirty (30) days after the transfer and give recorded deeds and other documents; failing to submit the application and fee within that period makes the permit lapse, which frees a permit under the cap. The dwelling must be inspected by the County Building Inspector before any transfer is approved. If majority interest in a controlling entity changes hands, the transfer is non-exempt and a new permit is needed.

Must the STR permit be renewed each year?Yes: permits are issued for one calendar year; renewal applications are due to Staff by November 1, and renewal is discretionary [1] Clause

Section 7.C issues the initial permit and renewals for one (1) calendar year, with a shorter first term at Staff's discretion and a prorated fee. Under Section 7.J all annual renewal applications are due on or before November 1 and, if approved, are issued for the following calendar year. Renewal is discretionary and may be denied or conditioned based on failure to meet the ordinance, the Land Use Code, building codes or other law; Staff may deny where there are outstanding violations, unpaid fines, fees, taxes or penalties, or public health or safety concerns. A denial can be appealed (see enforcement).

Must a permitted rental be booked a minimum number of days each year?Yes: each rental must be advertised at least 60 days and booked at least 30 days per calendar year; Staff may allow one exception in the life of a permit [1] Clause

Section 9.I.V requires every STR to be "Active", meaning advertised at least sixty (60) days per calendar year and booked at least thirty (30) days per calendar year. Staff may grant one single calendar-year exception during the whole life of a permit for exceptional circumstances such as severe illness or death, and has discretion to allow a pro-rata period for calendar year 2025. Each renewal (due November 1) must include a booking-history report for the previous October 1 through September 30, the websites used and taxes paid.

Application and fees

Is a building inspection required before an STR permit is issued?Yes: a County Building Inspector sign-off, with a sales tax or business license, a site plan with parking plan, proof of legal construction, HOA notice (or a notarized no-HOA letter), certified-mail notice to neighbors, and a compliance affidavit signed under penalty of perjury [1] Clause

Sections 7.B to 7.I list the submittals. The owner is the permittee; an agent may submit. Applicants must provide a Colorado sales tax license or other business license and approvals (a copy accompanies the application), a site plan and photographs, proof that structures are completed under a valid building permit and septic permit (including any Certificate of Occupancy), a physical inspection and sign-off by the County Building Inspector (egress, bedroom escape windows, outdoor lighting, smoke and carbon monoxide detectors and a fire extinguisher), and a community compatibility showing (light, noise, trash, traffic, off-street parking, buffering, bear-proof trash storage, water and sewage, legal access). Where an HOA exists, the applicant must send a certified-mail letter to the HOA within 60 days before the application date and give Staff the receipt; where none exists, a signed and notarized no-HOA letter is required. The STR Manager's contact details go to Staff, the County Assessor, the HOA and immediately adjoining neighbors and neighbors within a quarter-mile radius, with certified-mail receipts given to Staff, and Staff posts the manager's contact, the address and the permit number in a public online database. The application is verified through a Compliance Affidavit signed under penalty of perjury with a waiver and indemnification of the County.

How much does an STR permit cost?The fee is set by the County's Land Use Fee Schedule, which hasn't been reviewed yet, so no amount is shown here; applications made after January 31 pay a prorated fee for the first permit year [1] ClauseConfirming

The ordinance says application, renewal and other fees are non-refundable amounts set by the Land Use Fee Schedule adopted by County Resolution, and that fees are assessed annually. Permit applications made after January 31 are assessed a prorated and reduced fee based on the months remaining in the first permit year. The fee schedule's amounts and effective date haven't been reviewed, so confirm the current fee with the Land Use Department (970-626-9775).

Operating rules

How fast must the STR manager respond to a complaint?Within one hour; the manager must also report each complaint and its resolution to Staff within 48 hours [1] Clause

Section 10.B says complaints go first to the STR Manager, who must respond and visit the site if necessary; failing to respond and try to resolve within one (1) hour of notification is a violation. The manager must give Staff a detailed report of all complaints and their resolution within 48 hours or the failure is a violation. An off-site manager or owner must be able to respond within one hour or less and be within fifty (50) geographical miles of the premises. Changes of manager must be reported to the County Assessor and the Land Use Department within five (5) business days.

What is the occupancy limit?Two guests per bedroom plus two additional guests per premises, and never more than the septic system allows [1] Clause

Section 9.F.I limits guests to two (2) persons per bedroom plus two (2) additional guests per premises (the Approved Occupancy Load) unless the County or another agency sets a stricter limit, and the number of persons present may not exceed the limits of the permitted on-site wastewater treatment (septic) system. A gathering of more than 200% of the Approved Occupancy Load for four hours or more is a special event that needs a separate Special Event or Special Use permit. The posted in-unit sign must state the maximum occupancy.

What are the parking limits?One vehicle per bedroom, all on the premises and off County roads and rights-of-way; at most one guest RV or trailer [1] Clause

Section 9.H says parking is not allowed on County Roads or public rights-of-way and that only one (1) vehicle per bedroom approved for short-term rental is allowed. A maximum of one guest trailer or RV may be parked on the property, and connecting or dumping an RV or trailer into the permittee's septic system is prohibited. Overnight stays in vehicles, tents, yurts, campers or other movable structures for consideration are not allowed under the ordinance.

Can a unit be rented to more than one party at a time?No: only a single booking per premises for any rental period, to one primary registered guest over 18 [1] Clause

Section 9.B says the premises and qualified dwelling unit may not be rented on a short-term basis to multiple parties at once; all short-term rentals are limited to a single booking for each premises per rental period, the primary registered guest must be over eighteen (18), and separate bookings to multiple guests during the same time period are strictly prohibited. The ordinance refers people wanting multiple bookings to Staff about Special Use Permits.

Must the permit number appear in advertisements?Yes: the County permit number must appear in both the header and the title of every advertisement, plus the Colorado sales tax license number unless Staff waives it; bookings must go through vacation rental platforms covered by state law unless Staff approves otherwise [1] Clause

Section 9.I.II requires all advertisements in all media to include the County permit number, prominently posted in legible font within both the header and the title, and the Colorado sales tax license number unless waived or not required by Staff. Section 9.I.III says all short-term rentals must be booked only through Vacation Rental Services subject to C.R.S. 30-15-401(1)(s)(III) unless Staff approves local website hosting or other booking methods; regular advertising without booking services is not restricted. Under Section 10.G, advertising a short-term rental without a permit is a violation, and a platform must remove a listing within seven (7) days of County notice that the permit number is invalid, expired, suspended or revoked.

What must be posted in the unit?A sign inside the unit with the STR manager's contact, an emergency-services disclaimer, maximum occupancy, parking limits, emergency-alert instructions and the physical address; guests must receive the Good Neighbor Guidelines at booking [1] Clause

Section 9.D.I requires a prominent, easily visible sign inside each permitted dwelling listing the STR Manager's name, email and phone, a disclaimer that emergency services may not be readily available, the maximum number of persons, the one RV or trailer limit and one vehicle per bedroom with on-site, off-street parking only, instructions to access the Ouray County emergency alerts system, and the physical address. The STR Manager must give every registered guest a copy of the Good Neighbor Guidelines on booking confirmation (electronic copy is enough), tell guests about fire restrictions during any fire ban, and have renters sign or initial that they will comply with the County noise and rubbish ordinances and outdoor lighting rules.

Penalties and enforcement

What is the penalty for violating the ordinance?A civil infraction fine of up to $1,000 per violation, per day while the violation continues, plus possible suspension, revocation or non-renewal [1] Clause

Section 10.F.I says that under C.R.S. 30-15-402 a person convicted of violating the ordinance commits a civil infraction subject to a fine of up to $1,000 per violation, per day as long as the violation continues. The County Attorney may also seek an injunction or other civil remedies, and the remedies are cumulative. Advertising a short-term rental without a permit is a violation.

Can the County suspend or revoke an STR permit?Yes: Staff may suspend a permit for up to six months and/or revoke it; after revocation the owner cannot reapply for the rest of that year and three further calendar years [1] Clause

Section 10.C lets the Land Use Director start suspension or revocation if an owner has or ever had three (3) or more substantiated complaints or violates the ordinance; the owner gets a Notice of Violation and fifteen (15) days to respond. The Director may impose a suspension not to exceed six (6) months and/or revocation on clear and convincing evidence. Revocation and suspension take effect immediately and are not stayed by an appeal. Material misrepresentation, failure to remit required taxes or fees, and violations that significantly endanger public health or safety can lead to immediate emergency suspension or revocation. After revocation, re-application is barred for the remainder of the current permitted year and three subsequent calendar years, and a new application goes to the bottom of any wait list. Decisions can be reconsidered by the County Manager (request within 15 days) and appealed to the Board.

County taxes

What county taxes apply to short stays?The County's page lists a 2.9% state sales tax, a 2.55% county sales tax and a 6% Lodging District Tax (effective January 1, 2026); this page does not total them [2] [1] Clause 1 Clause 2

The Ouray County short-term rental page lists state sales tax of 2.9%, county sales tax of 2.55% and a Lodging District Tax of 6%, effective January 1, 2026, and says the lodging district tax is remitted quarterly (first quarter due April 25, second July 25, third October 25, fourth January 25) on the state's DR 1485 form. The ordinance separately requires every permittee to hold a sales tax license or business license to collect and submit sales and lodging taxes, to use NAICS code 721199 when filing, and to show tax remittance records at annual renewal. No official source states how the three taxes stack, so no combined rate is given here. The rates are as listed on the County page retrieved October 18, 2026.

State law that also applies

State sales tax on short stays2.9%, plus any local sales taxes the state collects [3] [4] Clause 1 Clause 2

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).

Which stays are taxed?Stays of less than 30 days [4] Clause

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.

Colorado sales tax license required?Yes, unless you rent only through a booking platform that collects the state-collected taxes for you [4] [3] Clause 1 Clause 2

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.

Do booking platforms collect state taxes?Yes, for state-collected taxes [4] Clause

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).

County lodging and local marketing district taxesSet by some counties and districts; filed with the state [4] Clause

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.

Changes

Recent and pending changes

We read Ouray County Ordinance 2024-001 in full (recorded October 2, 2024) and the County's Short Term Rental Permitting page, as retrieved on October 18, 2026. We haven't reviewed the Ouray County Land Use Code, the Land Use Fee Schedule or any Board of County Commissioners resolutions yet, so we will watch the ordinance, the County permitting page and the County's agenda page for changes.

Jan 1, 2025
Ordinance 2024-001 — short-term rental regulations, effective January 1, 2025Enacted [1] Clause

Ordinance 2024-001 replaces the earlier Ordinance 2018-003 and Resolution 2022-036 and is effective January 1, 2025. The recorded copy carries a Clerk and Recorder stamp of October 2, 2024. It sets the three permit types and caps, the booking, occupancy, parking and advertising rules, and the penalties.

Jan 1, 2026
Lodging District Tax of 6% effective January 1, 2026Enacted [2] Clause

The County's permitting page lists a 6% Lodging District Tax effective January 1, 2026. The adopting document hasn't been reviewed.

Sources

Every rule above links to one of these

  1. Short Term Rental Permitting
    Ouray County Land Use and Planning Department
  2. Colorado Sales Tax Guide
    Colorado Department of Revenue · page updated May 1, 2026
  3. Sales & Use Tax Topics: Rooms & Accommodations
    Colorado Department of Revenue · page updated April 1, 2026

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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.