Anyone renting their Vail property, or seeking to rent a property in Vail, for less than a consecutive thirty-day period should be aware of the town’s requirements for short-term rentals.
These requirements apply regardless of how the properties are marketed – through a management company, on-line such as VRBO and AirBnB, newspaper, or word of mouth.
There are no land use regulations or additional/ increased building code requirements affecting short-term rentals of individual properties in Vail. The town does not monitor or rate properties for quality of amenities or guest service levels. A conditional use permit must be obtained from Community Development to operate a bed and breakfast. Individual homeowner associations, however, may have additional requirements related to short-term rentals.
There are requirements to obtain a sales tax license, collect and pay 9.8% sales and lodging taxes on all short-term rental revenue. The Town of Vail sales tax rate is 4%, state sales tax is 2.9%, county sales tax is 1.5% and the Vail Local Marketing District lodging tax is 1.4%. Sales tax licenses for the Town of Vail are free and can be obtained from the town’s Sales Tax and Business License Division. The Town of Vail application can be found on www.vailgov.com, Departments, Finance, Applications and Forms, Application for a Business License and/or Sales Tax License. A State of Colorado sales tax license application can be found on www.taxcolorado.com, Instructions and Forms, Sales Tax, Sales Tax License Registration Line lets you select eFile, FYI G14 or CR 0100 AP.
Owners renting two units or less for greater than 14 days will now be required to obtain a $150 annual business license, on par with the business license currently paid by home occupation businesses. This requirement is effective January 1, 2016. If an owner is (only) using a property management service or short term rental establishment to rent the unit, then no additional business license is required. The Town of Vail business license for that property management service covers the individual owner and is also responsible for remitting sales tax on the owner’s behalf. However, if the owner advertises and rents the unit in addition to rentals done through that rental or management service, then a business license will be required.
Short term rental establishments that rent units within the Town of Vail boundaries are required to obtain a business license regardless of the location of the management office beginning January 1, 2016. The license fee is consistent with the fee charged to other lodging services, a flat annual fee of $325 and per-unit charges ($17 per unit located in Zone 1 and $12.75 per unit located in Zone 2). See the fee schedule for lodging services under the “Application for Business License” menu.
All advertisements (print, online, etc) for rental by owner units must include a Town of Vail sales tax account number beginning July 1, 2015.
For more information contact Gary Hartley at 970-479-2324, firstname.lastname@example.org or Sally Lorton at 970-479-2125, email@example.com.
Jacque M. Lovato
Sales Tax Manager