What is a Short-Term Rental?
A Short-Term Rental, also known as a vacation rental, is a rental of legally-permitted dwelling unit for periods of less than 30 consecutive days. The rental can be for the entire home, accessory dwellings such as casitas, or limited to one or more rooms. A Business License and a Short-Term Rental License are both required prior to advertising and renting your property.
Who needs to apply for a Short-Term Rental Permit?
Any owner, or agent on behalf of the owner, renting a residential property for a period of thirty (30) days or less is required to apply for a Short-Term Rental License. Failure to register will be the sole responsibility of the property owner.
What if I do not obtain a Short-Term Rental License?
Failure to meet the requirements of the Short-Term Rental Program, per section 3.25 of the La Quinta municipal code, may result in enforcement actions. These actions may include a notice of violation, citations or any legal remedy necessary.
What is the Lodging Occupation Tax (LOT)?
This is a tax in the amount of $4.50 per room night administered by the Town. It is seperate from the State collected Sales Tax you are also responsible for. Your online advertising platform (Airbnb & Vrbo) may collect the state sales tax, but they definitely do not collect the Town's Lodging Tax.
When is the Lodging Occupation Tax due?
Payments are due no later than 15 days after the end of a reporting quarter. Each quarter is three months long. Therefore, taxes are due on April 15th, July 15th, October 15th and January 15th each year. If there was no rental activity during a quarter, you are still required to submit the completed form. If no forms are submitted, the Town has the right to assess you an estimated tax amount due.
How is penalty and interest calculated on late payments?
There is no interest at this time. The penalty for late payments is 15% of the tax due in the applicable reporting period.
Do I also need to obtain a business license?
Yes. You will need a town business license under the same account related to the rental property. You may not use a business license related to other activity independent of your Short-term Rental business. Accounts related to business other than short-term renting will have a seperate license. You will also need a State of Colorado Department of
Revenue issued sales tax license for your business before you apply for an STR license.
What is the cost of a business license?
There is an initial of $50 regardless of when you apply. The annual renewal fee is also $50 due by the end of each year, at the time of expiration.
How much does a Short-Term Rental License cost?
The initial cost is $350 per property. Thereafter, the renewal fee is $200 per property due by the end of the year, when the license will expire. If your license expires, you may be required to start over with the initial license fee.
Does my short-term rental license apply to multiple properties?
No. You must obtain a separate license for each property.
Do I have to display my license; and if so, when?
Yes. The license must be posted in a conspicuous place within the short-term rental unit at all times.
The STR application requires me to provide letters for neighbor notice. How do I do that?
The El Paso County Assessor’s website is a helpful tool for identifying neighboring properties and
getting owner mailing addresses. You can start by inserting the address of the property you
want to license. Find it here:
http://land.elpasoco.com/. This site includes a measuring tool
that will help you identify properties within 150 feet of the STR to be licensed as required by the
new ordinance. Once you have compiled a complete list of applicable properties and have
addressed stamped envelopes containing the required notice to each surrounding property
owner, you should deliver the envelopes to Town staff for mailing.
If the neighbor property that is adjacent has no dwellings on it, does the STR owner still have
to provide notice? If the adjacent property does have a dwelling on it, but is more than 150’
away, does the STR owner still have to provide notice? Is the 150’ for the dwelling or the
property, itself?
The notice is for the neighboring property regardless of whether there are dwellings or not. The
placement of dwellings also is irrelevant.
Can the letter be hand-delivered to the neighbor?
No, per the town ordinance, the letters must be sent out by Town Hall staff so that staff
can verify that all required neighboring property owners were properly noticed. This
approach is also necessary to establish the formal date of the mailing, and in turn,
determine the proper response time.
Is the Town working with Airbnb or Vrbo?
No. We do not have a contract with Airbnb or Vrbo. They do not collect or remit tax to the Town of Green Mountain Falls on behalf of property owners.
What happens if I am found in violation and what are the penalties for rentals not in compliance with the municipal code?
You may receive fines, and/or the potential for modifications, suspension or revocation of Business License, and/or Short-Term Rental License. Violations, failure to license or remit taxes may be
punished in Municipal Court.
Can I pay by credit card?
Yes. We accept all major credit cards. There is a credit card convenience fee added to your total upon checkout.
