Short-term rentals in Ridgway, explained properly.

Sec. 8-5-1(D) says short-term rental licenses are issued for a period of two years and are subject to renewal every two years (the code calls this 'biannual'). Notwithstanding the two-year term, the Town may determine that a more frequent licensing schedule is needed for any particular unit. The health, safety and welfare inspection is completed with the initial licensing and renewal licensing processes (Sec. 8-5-1(B)). The application form and procedure were not read.

Sec. 8-5-1(A) makes Short-Term Rental Licenses nontransferable, except that on death the property is transferred to an immediate family member, in which case the short-term rental license may be transferred with the property.

Sec. 8-5-1(A) and Sec. 8-5-2(A) say the application and license fees and renewals are set by Town Council resolution, and the Council may revise the amounts by resolution (Sec. 8-5-2(C)). In addition, the applicant or licensee reimburses the Town for all out-of-pocket costs of reviewing the application or license, including legal fees, consultant fees, postage, notice and publishing costs; the Town bills on completion of the review and conditions, and no application or license is finally approved until the bill is paid. A bill is overdue 30 days after its date, and unpaid bills accrue interest at one and one-half percent per month or part thereof (Sec. 8-5-2(B)). The dollar amount of the fees and the date of the fee resolution were not read, so no fee amount is given here.

Sec. 8-5-1(B) requires all short-term rental units, other than the short-term rental of a single bedroom inside an owner-occupied dwelling unit, to have and pass a health, safety, and welfare inspection by the Town Building Inspector. The inspection is completed with the initial licensing and renewal licensing processes. The inspection checklist was not read.

Sec. 8-5-3(F) says the unit being rented shall be a dwelling unit, as defined in Section 9, and shall not have more than five bedrooms, nor be used by any group containing more than ten people over the age of 18. The Section 9 definition of dwelling unit was not read.

Sec. 8-5-3(E) requires an owner's agent who is available to be at the unit within 20 minutes and is on call full-time to manage the property during any period the unit is rented. The agent's name, address and phone number must be kept current on file with the Town and posted in the short-term rental.

Sec. 8-5-1(A) makes the property owner responsible for prominently displaying the Short-Term Rental License number in all advertising and listings of the unit.

Sec. 7-4-6(N)(4) sets these performance standards for short-term rentals: a minimum of two off-street parking spaces available and any additional spaces needed to accommodate the tenant's vehicles off-street; adequate animal resistant trash and recycling containers, with information on placement for collection provided in the rental as stated in Ridgway Municipal Code Section 9-2; and maintenance in compliance with applicable Town ordinances and regulations. The rental of residential units must not unreasonably annoy or interfere with the use or enjoyment of public or private property or constitute a health or safety hazard.

Sec. 7-4-6(N)(4)(d) sets this as a performance standard for short-term rentals. The Town lodging tax rate and filing deadline are in the Town lodging tax rule; the State sales tax license is covered on the inherited Colorado rules.

Sec. 7-4-6(A)(4)(b) says an ADU may be used as a Short-Term Rental provided it complies with all provisions of RMC Section 7-4-6(N) and Section 8-5. Sec. 7-4-6(A)(4)(c) in the same subsection says a minimum of a ninety (90) day rental period shall be required by written lease for an ADU, unless the ADU is owner-occupied. How the 90-day lease minimum fits with the short-term rental permission in (b) is unsettled, so this rule is marked for review.

Sec. 7-4-6(E)(8) says short-term rental of employee housing is not permitted. Under Sec. 7-4-6(E)(2), employee housing units are allowed only as accessory to a nonresidential use.

Sec. 8-5-4(A) lets the Town Manager revoke or suspend a Short-Term Rental License. It lists these as prima facie evidence for revocation or suspension: a violation of the Town Municipal Code; a violation of the rules and regulations for short-term rentals set by the Town Manager; two or more violations of Chapter 2, Section 1 (General Administrative Provisions) at the rental; and failure to remit sales and/or lodging taxes. A licensee who wishes to challenge a revocation or suspension may request, in writing, an administrative hearing before the Town Council within 30 days of the license being revoked or suspended (Sec. 8-5-4(B)). No license is issued to a property owner whose license has been revoked until at least one year has elapsed since the revocation, and a new application is required (Sec. 8-5-4(C)).

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).

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.