Breckenridge, Colorado, sets cap on short-term rental licenses

The Breckenridge Town Council has approved a cap on the number of nonexempt short-term rental licenses allowed in the town at 2,200. The ordinance goes into effect November 2.

Short-term rental properties are considered exempt if they have a 24-hour phone line, on-site front desk, and security service 24 hours a day. Under the new law, existing nonexempt short-term rental operators will be able to keep their licenses until they no longer own the property, they give up the license, or the town revokes their license.

Of the 3,945 existing accommodation unit licenses that were issued by Breckenridge by August 16, 2021, 2,476 units are classified as “nonexempt.” The city will continue to accept applications until the new law goes into effect, including applications that are over the cap. After that, the town will create a waitlist for licenses. New nonexempt licenses will not become available until the current number of licenses falls below the cap through attrition.

Generally, nonexempt short-term rental licenses cannot be transferred, although there are exceptions for property title transfer situations involving circumstances such as inheritance or divorce. Properties that have building permits as of September 14 will have an 18-month window to apply for a nonexempt short-term rental permit, and any property under contract to sell by September 28 will have a six-month window to apply for a license.

Breckenridge isn’t the only community in the area tightening rules for short-term rentals. In unincorporated Summit County, a 90-day moratorium on new short-term rental licenses began September 17. Steamboat Springs has begun working with an outside company to identify and monitor short-term rental properties and enforce local rules.

In addition to applying for a town license, Breckenridge short-term rental hosts are required to:

• Pay an annual accommodation unit administration fee
• Follow parking, garbage, and noise rules
• Designate a contact who can be available 24 hours a day, seven days a week, and respond to complaints within 60 minutes

Short-term rental operators are also required to charge their guests Breckenridge sales and accommodation taxes and remit the taxes to local authorities. Operators must include their short-term rental license numbers in advertisements. Breckenridge hosts are also required to apply for a tax license with the state and pay state lodging taxes.

Airbnb and Vrbo automatically collect state and town taxes for their Breckenridge hosts. However, even if a rental platform collects taxes for hosts, the host is still required to register for state tax licenses and file regular lodging tax returns. 

MyLodgeTax can automate and simplify short-term rental tax compliance, including registration and filing with state and local tax authorities. For more on short-term rental taxes in Colorado, see our state Vacation Rental Tax Guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.