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SHORT TERM RENTAL TAXATION INFORMATION


NOTE – Beginning April 1, 2018, Airbnb will begin collecting Denver Lodger’s Tax on sales of short term lodging. As of April 1, 2018, hosts will no longer need to collect the tax on sales made through Airbnb.

Beginning October 1, 2019, the HomeAway platform covering HomeAway, Vrbo, and VacationRentals.com will begin collecting Denver Lodger’s Tax on sales of short term lodging.  As of October 1, 2019 hosts will no longer need to collect tax on sales made through HomeAway platform.  Hosts using other sites besides AirBnB, HomeAway, Vrbo, and VacationRentals.com will still need collect Lodger’s Tax made directly for short-term lodging or through any other platforms not aforementioned.

Sales made through another platform that does not collect Denver Lodger’s Tax remain taxable, and the host is still responsible to collect and remit the tax on those sales. In all cases it is necessary for each host to register for a Lodger’s Tax license and tax account and to register for Occupational Privilege Tax.

Denver imposes a tax on the sale of lodging, which includes the sale of short-term lodging (less than 30 days) at a private residence. Individuals or businesses engaged in the sale of short term lodging have certain tax requirements which are outlined below.

Additionally, anyone offering short term rentals must obtain a license with Denver’s Excise and License Department. To register and obtain additional licensing information, visit the Business Licensing Center - Short-Term Rentals in Denver

For more information, download the Short Term Rental Taxation Information packet.

  • Lodger’s Tax - which includes a license fee
  • Occupational Privilege Tax
  • If applicable, Sales Tax (see below for more information)
  • Business Personal Property Tax

  • The Lodger’s Tax license is issued on a bi-annual basis. The fee is $50.00 for two years and is prorated based on when your business starts within that two-year period. The proration schedule is listed on the application or online if you file through Denver’s eBiz Tax portal.
  • The Denver Lodger’s Tax rate is 10.75% of the entire amount charged for the lodging.
  • The Denver Occupational Privilege Tax (OPT) is a tax imposed on businesses operating in the City and on employees who perform sufficient services to receive as compensation at least five hundred dollars for a calendar month. In addition, OPT is also imposed upon owners, partners or proprietors engaged in business in Denver.
    • Taxable employees are liable for the Employee OPT to be withheld by the employer at a rate of $5.75 per month. The employer is also required to pay the Business OPT at a rate of $4.00 per month for each taxable employee.
    • Owners (proprietors), partners or managers engaged in business in Denver are subject to the Business OPT at a rate of $4.00 per month for each owner, partner or manager. There is no minimum earnings requirement for owners, partners, or managers.
  • Business Personal Property Tax is assessed on assets used in conducting business in Denver. The tax rate is calculated on the established value of the personal property. Information on Business Personal Property Tax can be found on the Denver Assessor’s website.
  • Additional information on these and other Denver taxes can be found on the Treasury Division website.

  • Registration can be done by filling out an application and submitting it to the Treasury Division, or preferably by registering online at: https://www.denvergov.org/ebiztax/ClearSession
  • To register for Business Personal Property Tax, contact the Denver Assessor’s office at 720-913-4067.

If you are making sales of short-term lodging on a platform that collects the Lodger’s Tax, you do not need to collect and remit the tax. Please consult any platforms you are using to verify if they will be collecting the Lodger’s Tax. If the platform does collect the Denver Lodger’s Tax, please be aware that you still need to obtain a Lodger’s Tax license and remit Lodger’s tax returns, even if you have no tax to report.

For short term lodging sold through a platform that does not collect the Lodger’s Tax, please follow these directions:

  • The Lodger’s Tax rate of 10.75% is based on the total amount charged for the lodging, which includes any fees or charges that are required in order to obtain the lodging. Lodger’s Tax is to be collected at the time of sale, regardless of when the lodging occurs.
    • As an example, if a customer books a room in October for short term lodging that will occur the following February, the Lodger’s Tax is to be collected in October (the time of sale) and remitted on the Lodger’s tax return for the month of October.
    • If the customer cancels the transaction after the tax has been remitted, and it can be documented that the lodger’s tax was refunded to the customer, you may apply for a refund.

  • Lodger’s Tax returns may be filed on an annual, quarterly or monthly basis. Filing frequencies are based on the following:
    • Monthly filing is required if the average monthly tax liability for the previous six months' exceeds $300.00. The return is due on the 20th day of the month following the taxable month. (Ex – Return for November is due by December 20th)
    • Quarterly filing is allowed if the monthly tax liability for the preceding six months' averages $300.00 or less. Due dates are April 20, July 20, October 20 and January 20.
    • Annual filing is allowed if the monthly tax liability for the preceding six months averages $15.00 or less. The return is due on the 20th day of January following the taxable year.
  • If the due date for a return falls on a holiday or weekend, the return will be considered due on the next business day.
  • Business Personal Property Tax is paid annually. The due dates are the same as real property in Denver. If paying in full, the due date is April 30th. If paying in halves, the first half is due by February 28th and the second half is due by June 15th.

  • If you are engaged in selling items at retail, (such as food or other items) then Denver Sales tax may be applicable. Information on Denver Sales tax can be found at the Treasury Division's website.
  • The State of Colorado also imposes Sales tax on the purchase of lodging at the rate of 4% for businesses in Denver. You are also required to register and obtain a Sales Tax license with the State of Colorado. For more information, visit the Colorado Department of Revenue website.

Tourism Improvement District Tax FAQ

The Tourism Improvement District (TID) is a mechanism to help fund tourism-related facility improvements and services.

The TID tax is a 1% tax imposed by the District on lodging in hotels that are located in the City and County of Denver and have 50 or more rooms. 

Hotels in the district will begin collecting the TID tax on January 1, 2018.

Yes. The total Denver tax to be charged and collected on lodging at these hotels is 11.75%. (10.75% Lodger’s tax and 1% TID tax) The State of Colorado also imposes a 4% Sales tax on lodging in Denver.

Yes. Both the TID and Lodger’s tax are filed on the same tax return.

 
 

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Property Tax: 720-913-9300
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