Lodging and Short Term Rental Taxes

Consistent with requirements for sales tax remittance, the deadline for submitting lodging tax filings is on or before the 20th day of the month following the month in which the rooms or accommodations are provided, NOT in the period when a lease, reservation, payment, or deposit is received.  Even if there are no taxable sales for a specified period, a tax filing should be completed and submitted for each assigned period.  

Additionally, all existing lodging tax and additional short-term rental excise tax (effective and applicable to all short-term rentals on or after 5/1/2023), regardless of when or how a reservation or payment/deposit is made, should be reported and remitted to the City in the period in which the renter has the right to occupy the property (the rental or lease period) not when a reservation, payment, or deposit is received.  

Lodging Taxes

City of Aspen voters have approved lodging taxes for nightly accommodation stays within City limits. These taxes were adopted at varying times and for varying uses. Original ordinances establishing the ballot questions for these taxes are denoted in the following chart.

* Short-Term Rental tax obligations were adopted for all nightly stays commencing on or after May 1, 2023, regardless of the time of booking.

City of Aspen lodging taxes are levied in tandem with sales taxes from City, State, other local jurisdiction and special district taxes. Thus, the aggregate tax obligation (including all jurisdiction's sales taxes plus lodging taxes noted above) for nightly stay within a:

• Traditional lodge property is 11.30%;
• Short-term rental owner-occupied or lodge-exempt property is 16.30%;
• Short-term rental investment / 2nd homeowner "classic" permitted property is 21.30%.

Application of Lodging Tax Receipts

Pursuant to the voter approvals given to the specific ballot questions enacting these specific taxes, there are limited applications authorized for these tax receipts.  For collections generated by the 2.00% tax on nightly stays under any lodge offering within the City, 1.50% is devoted specifically to tourism promotion and education and 0.50% is devoted to supporting the City's no-fare bus service.  For collections generated by either the 5.00% or 10.00% short-term rental taxes, ballot language included a minimum requirement for at least 70% of all receipts going towards Community affordable housing efforts and the remainder (up to 30%) towards environmental initiatives and capital repair and maintenance needs.

Short-Term Rental Permitting Details

A "short-term rental" (STR) is defined as the use or occupancy of a residential property or dwelling unit, in whole or in part, by the public for a fee, primarily for tourist accommodations, and for a period of less than 30 days. This definition and other details around short-term rental operation and permitting can be found in Ordinance #9, Series 2022 (PDF)..  Additionally, program guidelines (PDF) are published and available to be reviewed prior to submitting an application for a new permit.

In June 2022, after nearly six months of extensive analysis, policy development, and public engagement, Aspen City Council adopted amending regulations for the operation of short-term rentals (STRs) in Aspen, including the creation of three different permit types and the addition of a non-transferability clause, life safety and operational requirements, and a permit fee schedule. The specific permit types can be summarized by the information below.  Note that permits must be obtained annually and there are associated fees with holding a valid permit, and permit fees are in addition to annual business license obligations.

• Lodging Exempt (STR-LE) Permit
  • Available to managers of lodging and condo-hotel properties which meet the definition of “lodge” or “condo-hotel” 
  • Business licenses required for the qualified owner’s representative as well as the owner of each property covered under the single permit. 
  • Individual owners of units at lodge or condo-hotel properties are not eligible for the Lodging Exempt Permit and must apply for a Classic or Owner-Occupied Permit.

• Owner-Occupied (STR-OO) Permit
  • Available to title property owners who reside in their City of Aspen residential property as their primary residence.
  • Limited to 120 STR rental nights per year.
  • Not limited by number in any zone district where STRs are a permitted use.
  • Permittee must submit two pieces of documentation indicating that the STR address is the permittee’s primary residence.
  • Business licenses required for the permittee and qualified owner’s representative. 
• Classic (STR-C) Permit
  • Available to non-owner occupied OR owner-occupied residential properties.
  • No annual limit on the number of nights per year the STR may operate.
  • Limited by number in certain residential zone districts; new applicants will be subject to a waitlist in zones with capped numbers of available STR-C Permits.
  • Property owner name required on the application; LLCs without a verifiable name of a natural person will not be accepted.
  • Business licenses required for the permittee and qualified owner’s representative. 

Ready to Submit a Permit Application?

If you are ready to submit your application for obtaining a permit for the first time, or for renewing your existing permit, please visit the Apply for a Short-Term Rental Permit page for next steps.