Colorado voters approve new lodging taxes impacting short-term rentals

Lodging taxes on short-term rentals (STRs) will be increased or levied for the first time in several Colorado communities where voters approved new tax measures.

November 4, 2025, was the first general Election Day following the passage of a state law allowing counties in Colorado to raise lodging taxes to a maximum of 6% with voter approval. Previously, state law allowed county governments to ask voters to approve lodging tax increases of up to 2%, while cities have no maximum allowable rate. 

The measure also expanded the types of projects counties can use lodging tax revenue for. Previously, counties were legally allowed to spend revenues from accommodations taxes on affordable housing, child care for local workers, and enhancing visitor experiences, along with tourism marketing and promotion. The new law added infrastructure and public safety to the list of legal expenditure areas.

In Colorado, both cities and counties asked citizens to weigh in on lodging taxes, which are levied on accommodation reservations of less than 30 days. The following measures passed:

• Basalt voters passed Issue 3A, which increases the lodging tax from 2% to 4%.
• Eagle County voters approved Issue 1A, which raises the lodging tax from 2% to 4% in the unincorporated county and in the town of Gypsum. Of the revenues generated, 10% will be used for tourism promotion and 90% to help lower child care costs for families and enhance local law enforcement, emergency medical, and fire protection services.
• Gilpin County’s Issue 1A passed. The measure increases the lodging tax from 2% to 6%, excluding the cities of Central and Black Hawk. Of the funds raised from the tax, at least 10% will go toward marketing promotion.
• Kiowa citizens approved Issue 2A, which creates a new 1% lodging tax, with funds going to town infrastructure.
• In Mountain View, voters said yes to Issue 2A to create an 8% lodging excise tax.
• Ouray County voters approved Issue 1A, which establishes a 6% lodging tax. The city of Ouray and the town of Ridgeway, which already have their own lodging taxes, are exempt from the new tax.
• In Routt County, Issue 1B, which raises lodging taxes to 6%, was approved by voters. The tax won’t apply in Steamboat Springs and Hayden. Of the funds generated, 90% will be used for infrastructure projects and 10% for tourism promotion.
• Summit County voters approved Referred Measure 1A, which allows the county to use funds from its 2% lodging tax for expenses related to road reconstruction and repair.

Voters rejected lodging tax ballot measures in Chaffee County, Custer County, Eagle County, Rifle, Severance, and Vail.

In Colorado, STR operators in unincorporated counties are required to collect local lodging taxes and state sales tax, which are administered by the Colorado Department of Revenue. Short-term rental operators are legally required to register with the department for tax purposes.

Some STR marketplaces collect Colorado lodging taxes on behalf of operators when the listing is booked. However, marketplaces don’t collect all lodging taxes in all jurisdictions, and operators are responsible for making sure they comply with lodging tax requirements. Even if a marketplace collects lodging taxes for them, Colorado hosts are still required to register for a state tax license and file lodging tax returns.

Avalara MyLodgeTax can help vacation rental hosts automate and simplify lodging tax compliance on the local and state level, including tax registration and filing. For more on lodging 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.