Short-term rentals in Pagosa Springs, explained properly.

The Licensing Officer will not accept an application for a license requiring a conditional use permit until the applicant shows ownership of the dwelling unit for at least two years before the application date. For a vacant property, the applicant must have held a certificate of occupancy for at least two years. The applicant also submits an acknowledgment, signed by the owner and the local agent if different, that they have read and understand the Chapter's requirements (Sec. 6.7.12(2)). The exemption in Sec. 6.7.12(1) for owners with a current conditional use permit and a license in good standing applies. Which properties need a conditional use permit depends on the Land Use and Development Code, which was not read.

The Article defines a vacation rental as a lodging use of a furnished dwelling unit, or portion thereof, for less than thirty (30) consecutive days per rental. Meals are not provided, although guests may have full access to kitchen facilities. Hotel, motel, or lodge rooms and B&Bs and inns are not considered a vacation rental, and offering the use of one's property where no fee is charged or collected is not a vacation rental (Sec. 6.7.2).

Since January 1, 2022, applications go to the Licensing Officer online, and incomplete applications are not accepted (Sec. 6.7.5(1)). An application includes: the applicant's name, address, phone and email; an authorized agent within 60 minutes by vehicle, with a copy of the writing authorizing the agent; the address and a description and illustration of the rental area, including parking and access; proof of possession by deed; a conditional use permit if the Land Use and Development Code requires one; if applicable, a copy of the written notice, with certificate of mailing, to the governing body of the homeowners or property owners association; a homeowners or other insurance policy covering use as a vacation rental; proof of registration for a Colorado Department of Revenue sales tax account if applicable; a sworn affidavit that the applicant followed all license requirements, that no private rules or covenants prohibit the use, and that the application is complete and not false; a non-refundable application fee; and other information the Licensing Officer finds necessary. A licensee must give updated information within ten (10) business days after anything in the application becomes inaccurate (Sec. 6.7.5(2)).

The application must name an authorized agent located within sixty (60) minutes via vehicular travel of the Town, with a copy of the writing authorizing the agent to act, in the applicant's absence, as the applicant's representative on all matters related to operation of the vacation rental (Sec. 6.7.5(1)(b)). The agent's name and phone number must also be on the posted notice (Sec. 6.7.7(5)).

On applying, the applicant sends written notice, with a certificate of mailing, to the owners of all properties within 300 feet of the premises; the Town provides the mailing list. Those owners have 15 days to send comments to the Licensing Officer, who considers them before approving or denying (Secs. 6.7.4, 6.7.5(3)). The section does not apply to properties that do not require a conditional use permit under Section 4.1.4 of the Land Use Development Code.

An original vacation rental license is not issued until the premises are inspected by the Town Building Official, or a designee, for compliance with the health and safety standards and the applicant is issued a written notice of inspection approval. For renewals, the premises are subject to inspection after a renewal application is submitted (Secs. 6.7.6, 6.7.7(2)). The premises must comply with all applicable building, fire, health and zoning codes, including the exterior lighting requirements in Section 6.11 of the Land Use and Development Code (Sec. 6.7.7(1)).

The Article requires a non-refundable application fee (Sec. 6.7.5(1)(j)), a non-refundable renewal fee and surcharge due on or before December 31 (Sec. 6.7.6), and a late fee for renewals filed after December 31 and on or before January 31. The dollar amounts and the fee schedule's effective date were not read, so no amount is shown.

Besides the application fee, an annual vacation rental workforce housing fee is paid at application or renewal. The Town Council sets it by resolution up to $2,687.00 a year per license, and may amend it annually, but it may not exceed that amount adjusted for inflation by the CPI-U for the West Region (Sec. 6.7.13(1), added by Ord. No. 995, April 20, 2023). A licensee may pass a prorated share to guests as a surcharge on each bill, but total surcharges may not exceed the fee paid to the Town that year (Sec. 6.7.13(2)). The current fee set by resolution and its effective date were not read, so only the code's ceiling is shown.

The renewal application and fees are due on or before December 31 of the license year, with any updates to the application and an affidavit signed by the licensee on the prior year's rental history (duration and frequency) and payment of all applicable lodgers' taxes. After timely submission of a complete renewal application, the rental can continue operating while it is processed. Renewals are issued with a January 1 effective date. Renewals filed after December 31 and on or before January 31 are processed with a late fee; after January 31 the license is terminated and the owner must reapply (Sec. 6.7.6).

The maximum occupancy of a vacation rental at any time is two (2) people per bedroom, plus two (2) people (Sec. 6.7.8). The posted notice must state the maximum number of people permitted to sleep in the premises.

A vacation rental is to be used for lodging purposes only by the person(s) staying overnight, and may not be used to entertain or host guests who are not staying overnight (Sec. 6.7.9(1)).

The Article says private covenants may restrict the ability to use a property as a vacation rental, and the Town is not a party to and does not enforce private covenants (Sec. 6.7.9(2)). The applicant swears that no private rules or covenants prohibit the use, and must send written notice to the homeowners or property owners association governing body if applicable (Sec. 6.7.5(1)(f), (i)).

The licensee must post, maintain and display at all times a notice in a conspicuous place inside the rental within fifteen (15) feet of the main entrance, and give it to the renter upon confirmation of the booking. It must show: the licensee's name and phone; the authorized agent's name and phone; the statement "IN AN EMERGENCY (POLICE, FIRE, MEDICAL), CALL 911."; the street address; fire extinguisher locations; evacuation directions; the Town license number; the Town's noise restrictions; trash disposal instructions and pick-up schedule; snow route information; on-site parking location and the maximum number of parked vehicles; the maximum number of people permitted to sleep there; the pet policy and leash law information; and the smoking policy (Sec. 6.7.7(5)).

Each licensee posts an address number on the exterior that is visible and easy to read for emergency response, provides a clearly defined outdoor trash storage area and at least one outdoor trash container that is fly-tight, water-tight, rodent-proof and bear-resistant, and ensures refuse is collected and disposed of at least weekly (Sec. 6.7.7(3), (4)).

All advertising for a vacation rental must include the vacation rental license number assigned by the Town, and no property may be advertised as a vacation rental until a vacation rental license has been issued (Sec. 6.7.10).

Each license is subject to suspension and revocation, including an opportunity to appeal, as set out in Sections 6.1.17, 6.1.18 and 6.1.19 of the Municipal Code (Sec. 6.7.11). Those sections, and any fines for operating without a license, were not read.

The Article's stated purpose includes operating in compliance with the Town's lodgers' tax collection, reporting and remittance requirements in Chapter 16, Article 4 of the Municipal Code (Sec. 6.7.1), and the annual renewal affidavit confirms payment of all applicable lodgers' taxes (Sec. 6.7.6). Chapter 16, Article 4 was not read, so the rate and filing rules are not shown. This page does not total State, county and Town taxes.

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.