Owners of property that is rented on a short-term basis, for a period of less than thirty (30) consecutive days, are required to have a Town of Dillon business license, a Colorado Sales Tax License, collect 8.875% sales tax, and remit the 2% Town lodging tax.
Who Must File A Return:
If you lease or rent rooms or accommodations for less than thirty (30) consecutive days, a lodging tax is required to be paid. This includes hotels, apartment hotels, motels, lodging houses, motor hotels, guest houses, guest ranches, trailer coaches, mobile homes, auto camps, time share units, condominium units, town homes, trailer courts, private residences, or any such similar place.
When You Must File:
The lodging tax is remitted directly to the Town of Dillon. A lodging tax return must be filed every month or quarter even if there is no tax to remit. Forms are due by the 20th of the month for the preceding month. Your filing requirements are based on your filing requirements from the Department of Revenue. If you are required to file your sales tax monthly, then your lodging tax return is due monthly. If you are required to file your sales tax quarterly, then your lodging tax return is due quarterly.
General Lodging Tax Requirements:
- Obtain a State sales tax account number
- Purchase a Town of Dillon business license
- Collect 8.875% sales tax and remit to the State of Colorado
- Collect 2% lodging tax and remit to the Town of Dillon
Property Management Companies
Property Management Companies, those companies that typically manage property that is owned by another party or entity, are required to have a Town of Dillon business license and obtain a sales tax license for each taxing jurisdiction combination in which they manage rental properties. You are required to collect and remit sales tax. There may be other tax liabilities such as a county lodging tax or a local marketing district tax. To locate the most current county lodging tax and local marketing district tax rates and counties where taxes apply, see publication Colorado Sales/Use Tax Rates (DR 1002). This publication is located at www.TaxColorado.com.
Please contact the Finance Department at 970-262-3404 or 275 Lake Dillon Drive for additional guidance and support.