Basalt, Colorado Short-Term Rental Investment Guide

Overview: Are Short-Term Rentals Allowed in Basalt, CO?

Yes, short-term rentals are explicitly allowed in Basalt, Colorado within town limits, subject to comprehensive licensing, permitting, and regulatory requirements. The Town of Basalt has established a structured regulatory framework for short-term rentals (STRs), defined as the rental of rooms and dwelling units for periods of less than thirty (30) consecutive days. As of 2025, Basalt operates under a mature STR regulatory environment that includes annual licensing, safety inspections, lodging tax collection, and a newly implemented per-bedroom regulatory fee designed to address workforce housing concerns.

The town currently issued 43 STR licenses in 2024, indicating an established but controlled market. While STRs are permitted, the regulatory landscape has become increasingly stringent, particularly with the recent adoption of Ordinance No. 3 Series 2025, which established a substantial annual regulatory fee structure effective June 1, 2025.

How to Start a Short-Term Rental Business in Basalt

Step-by-Step Process

1. Initial Contact and Account Setup

• New applicants must contact Jenny Aragon, Senior Accountant, at 970-279-4387 to obtain an Account Number and Activation Code for the STR online portal
• Renewing applicants should use the renewal letter mailed with their Account Number and Activation Code, or call 970-927-4701 for assistance if not received

2. Online License Application

• Access the STR License Online Portal at basalt.munirevs.com/
• Choose the appropriate application track:
  • New applicants: Select "I need to apply for a new short-term rental or business license"
  • Renewing applicants: Select "I already have an existing short-term rental or business license"

3. Required Safety Inspection

• The Town Building Official will schedule a mandatory safety inspection before license approval
• The inspection verifies occupancy safety and compliance with carbon monoxide and smoke detector requirements
• Inspection fee ($150) is included in the application fee

4. Complete Required Documentation

• Submit all required forms and supporting documentation
• Ensure compliance with posting requirements (license must be displayed conspicuously within the rental unit)

5. Final Approval and Payment

• Once all fees are paid and requirements met, the STR License will be issued
• License is address-specific and non-transferable

Required Documents, Permits, Licenses, and Guidelines

Core Licensing Requirements

Annual License Package (Total Cost: $460 + regulatory fees)

1. Sales Tax License - $10 annually
2. Short-Term Business License - $300 annually
3. Short-Term Rental Inspection - $150 annually (conducted prior to approval)

Short-Term Rental Regulatory Fee (Effective June 1, 2025)

• Annual Fee: $2,532 per bedroom
• This fee is invoiced prior to final approval of the STR License
• Funds are dedicated to workforce housing policies and programs addressing secondary impacts of the STR industry

Regulatory Fee Exemptions

Primary Residence Exemption Criteria:

• Rental of dwelling unit for not more than 60 total days annually
• Unit must be the owner's or occupant's primary residence in accordance with Colorado Revised Statutes Section 31-10-201(3)
• Request must be submitted prior to STR License approval
• Submit exemption requests via email to james.lindt@basalt.net using appropriate forms:
  • STR Regulatory Fee Exemption Affidavit
  • STR Regulatory Fee Exemption Affidavit - Multiple Owners

Compliance Requirements

Posting and Advertising Requirements:

• STR Business License must be posted conspicuously within the rental unit at all times
• License number must be included in all advertising related to short-term rentals
• License PDF available in the Business Center under "Manage Your Account(s)"

Specific Regulations for Short-Term Rentals

Municipal Code Requirements

Town Code Section 16-203 establishes the framework for short-term rentals:

• STRs are permitted within town limits subject to licensing requirements
• Property owners must comply with all applicable ordinances, resolutions, and regulations
• Non-compliance constitutes a zoning violation subject to prosecution

Lodging Tax Requirements

Tax Rate: 4% on gross sales of lodging services

• Calculated on total rental revenue including all associated fees (pet fees, cleaning fees, booking fees, manager fees, etc.)
• Due and payable to the Town of Basalt by the 20th of each month
• Returns must be filed monthly even with no rental activity (zero returns required)
• Submit via STR License Portal online
• If no sales occurred during the prior month, file a zero return by the 20th of the following month
• If renting long-term (more than 30 consecutive days), file a zero return by the 20th of the following month

Platform Considerations:

• If lodging tax is submitted by Airbnb or Vrbo, file a zero-lodging tax return by entering the platform's submission amount in the adjustment cell
• For return amendments, contact lanie.martin@basalt.net

Safety and Building Requirements

Mandatory Safety Inspection:

• Conducted by Town Building Official
• Verifies safety for occupancy
• Ensures carbon monoxide and smoke detectors are properly installed
• Must be passed prior to license approval
• Review Short-Term Rental Safety Inspection Checklist for specific requirements

Violation Penalties

Unlicensed Operation:

• Short-term rental without current business license is prohibited
• Considered a zoning violation under Town Code Section 16-268
• Subject to fines and penalties specified in municipal code
• Violators may face prosecution in municipal court
• Town may seek injunctions in addition to other remedies

Non-Transferable License:

• STR license is address-specific and non-transferable
• New owners must submit new application before advertising/renting
• License cannot be transferred between properties or owners

State-Level Context (Colorado)

While Basalt operates as a home rule municipality with autonomous licensing authority, it's important to note:

• Sales taxes are submitted to the State of Colorado for remittance back to the Town of Basalt
• The town is located within Eagle and Pitkin Counties
• Sales tax rates vary by county location
• Use Colorado Sales Tax Lookup (SUTS) tool for rate determination

Contact Information for Local STR Authorities

Primary Licensing Contacts

Jenny Aragon, Senior Accountant

• Primary contact for new STR license applications
• Phone: (970) 279-4387
• Email: Jenny.Aragon@basalt.net
• Responsibilities: Account setup, activation codes, new license applications

James Lindt, Assistant Planning Director

• Phone: 970-279-4468
• Email: james.lindt@basalt.net
• Responsibilities: Regulatory fee exemption requests, planning compliance

Carlos Peugnet, Plans Examiner & Inspector

• Email: carlos.peugnet@basalt.net
• Phone: 970-279-4385
• Responsibilities: Safety inspections, building compliance

Tax and Returns Contact

Lanie Martin

• Email: lanie.martin@basalt.net
• Responsibilities: Lodging tax returns, return amendments, license closures

General Town Contacts

Basalt Town Hall

• Address: 101 Midland Avenue, Basalt, CO 81621
• Phone: 970-927-4701
• Fax: 970-927-4703

Online Portal Support

• Portal: basalt.munirevs.com/
• Support: Available through the online platform

Emergency Contacts

• Emergency: 911
• Police: 970-927-4701
• Animal Services: 970-927-4701
• Parks & Recreation: 970-927-4701
• Court: 970-927-4701
• Water: 970-927-4701

Source Documentation and References

Primary Regulatory Sources

1. Town of Basalt STR Business License Information

   • URL: www.basalt.net/713/Short-Term-Rental-Business-License
   • Contains comprehensive licensing requirements, fees, and application procedures

2. STR Frequently Asked Questions

   • URL: basalt.munirevs.com/faq/
   • Detailed guidance on licensing process, compliance requirements, and tax obligations

3. Ordinance No. 23 Series 2022 - Short-Term Rental Ordinance

   • URL: basalt.net/DocumentCenter/View/5236/Ordinance-23-2022---Short-Term-Rental-Ordinance-and-Incorporate-Fees-into-Town-Code?bidId=
   • Establishes fundamental STR regulatory framework

4. Ordinance No. 3 Series 2025 - Regulatory Fee Amendments

   • Referenced in main licensing page
   • Implements per-bedroom regulatory fee structure

Supporting Documentation

5. STR Info Sheet (FAQ Document)

   • Downloadable PDF referenced in main licensing page
   • Provides basic STR information

6. STR Regulatory Fee Exemption Affidavit

   • URL: basalt.net/DocumentCenter/View/6467/STR-Regulatory-Fee-Exemption-Affidavit

7. STR Regulatory Fee Exemption Affidavit - Multiple Owners

   • URL: basalt.net/DocumentCenter/View/6468/STR-Regulatory-Fee-Exemption-Affidavit---Multi-Owner

Municipal Code References

8. Basalt Municipal Code
   • URL: www.municode.com/library/co/basalt/codes/municipal_code
   • Section 16-203: Short-term rental regulations
   • Section 16-268: Penalty provisions
   • Section 6-2: Business license requirements
   • Section 4-63: Sales tax limitations

News and Analysis Sources

9. Aspen Times Coverage - STR Fee Passage

   • URL: www.aspentimes.com/news/basalt-short-term-rental-fee-passes/
   • Date: May 15, 2025
   • Provides context on regulatory fee adoption and community debate

10. The Sopris Sun Coverage - STR Fee Debate

    • URL: soprissun.com/basalt-report-short-term-rental-fee-continues-to-stir-debate/
    • Date: April 9, 2025
    • Details council deliberations and fee structure rationale

External Resources

11. Colorado Sales Tax Lookup Tool (SUTS)

    • URL: colorado.ttr.services/
    • For determining applicable sales tax rates by location

12. STR License Online Portal

    • URL: basalt.munirevs.com/
    • Primary application and renewal platform

This guide reflects the regulatory environment as of June 2025. Short-term rental regulations are subject to change, and investors should verify current requirements with the Town of Basalt before making investment decisions.