In many Colorado resort towns, the majority of homes in a neighborhood are second homes. Over the past 10+ years, as vacation rentals grew in popularity, so did the debate about taxes and community ambience. Should homes rented out as vacation rentals pay taxes? How do we protect the small community feel, while still encouraging the vacation rental business owners to thrive? Laws were enacted and city regulations documented. Many towns now actively enforce compliance, including Breckenridge, whose legislation is designed to keep it the quaint ski village it’s been known for.
To operate a vacation rental in Breckenridge, you must obtain the proper licenses, follow certain rules, pay annual and biennial fees and collect 11.675% in taxes from your guests. Here’s how it breaks down:
Town of Breckenridge Licensing & Taxes
Accommodation Unit License
Short-term rentals in Breckenridge are defined as rentals less than 30 consecutive days at a time. To comply with local laws, you must get an Accommodation Unit License and pay a yearly fee. The fee ranges from $75 to $175 depending on the number of bedrooms in your home. If you purchase a property that was previously used as a vacation rental, the accommodation license and fee are transferrable, and good until fees are due again the following year. Continue Reading…