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.
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 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.