If you own short-term lodging units, any rental of a unit for less than 30 consecutive days, the rental is taxable and you are required to collect and remit sales tax to the Colorado Department of Revenue (“Department”). [§39-26-104 (1) (f) and 39-26-102 (11), C.R.S.] There may be other tax liabilities, such as a county lodging tax or a local marketing district tax. For complete information on this topic and the applicable tax forms, see Department publication FYI Sales 11, “Sales Taxes Due on Unit Rentals of Hotels, Motels, Bed-and-Breakfasts, Condominiums, & Time-Shares.” To determine the most current county lodging tax and local marketing district tax rates and counties where the taxes apply, see Department publication Colorado Sales/Use Tax Rates (DR 1002). This publication is located at www.TaxColorado.com under “Forms,” or visit www.Colorado.gov/RevenueOnline and view “Local Sales Tax Rates.”
Property Management Companies
Property management companies, businesses that typically manage property owned by another party or entity, are required to obtain a sales tax license for each taxing jurisdiction combination in which they manage rental properties. A license is required for each combination of county, municipal and special district taxes. For example, a property management company is managing several properties in Eagle County. There is a metropolitan district in a portion of unincorporated EagleCounty. The property management company manages rentals within and outside the portion of unincorporated EagleCounty where the metropolitan district is located. Therefore, the property management company must obtain a license for property located within the metropolitan district in that portion of unincorporated EagleCounty and another license for any property located within unincorporated Eagle County but outside the metropolitan district.
In the above example, if the property management company has two properties in unincorporated Eagle County that are located within the metropolitan district, those two properties will be on one sales tax license. The other sales tax license is for any property located within unincorporated Eagle County but outside the metropolitan district.
A CR 0100 Sales Tax/Withholding Account Application must be completed for each taxing jurisdiction. In the example provided above where there are two properties in one taxing jurisdiction, one property address within the jurisdiction is entered as the location address and the property management company address is entered as the mailing address. The sales tax license fee must be included with each application.
Home-rule cities that collect their own taxes and make their own regulations concerning the taxability of items. A home-rule city must be contacted directly for its policies. Lists of local sales tax rates, along with tax office phone numbers for self-collected areas and home-rule jurisdictions, are contained in Colorado Sales/Use Tax Rates (DR 1002), a publication available on our Web site at www.TaxColorado.com under “Forms.”
Owners of short-term lodging units or their property management companies will be required to file a DR 0100 Retail Sales Tax Return and, if applicable, a DR 1485 County Lodging Tax Return and/or DR 1490 Local Marketing District Tax Return. The DR 0100 Retail Sales Tax Return may be filed online at www.Colorado.gov/RevenueOnline. The DR 1485 County Lodging Tax Return or DR 1490 Local Marketing District Tax Return will be sent to you by the Department at the appropriate intervals.