Dillon, Colorado Short Term Rental Regulations Guide for Airbnb hosts

Overview

Short-term rentals are explicitly allowed in Dillon, CO, subject to municipal licensing and regulatory requirements. The Town of Dillon has implemented a comprehensive regulatory framework for short-term rentals (STRs) through Ordinance 09-18, which became effective January 1, 2019, and was amended by Ordinance 01-22 in March 2022. These regulations apply specifically to properties located within Dillon town limits, while properties in unincorporated Summit County are subject to different county-level regulations.

What do Airbnb hosts actually earn in Dillon?

Dillon hosts earn a median $32,812/year with $245 ADR and 54% occupancy.

Top performers pull in $43,243+ per year.

See the full Dillon market breakdown

How to Start a Short-Term Rental Business in Dillon

1. Verify Property Location

Before proceeding, confirm your property is actually within Dillon town limits. Dillon town limits are not determined by zip code alone. Properties in subdivisions such as Dillon Valley, Keystone, Summerwood, or Summit Cove are NOT in the Town of Dillon and fall under unincorporated Summit County regulations. Use the Summit County Assessor's website to verify jurisdiction: gis.summitcountyco.gov/Map/

2. Apply for Required Licenses

Short-Term Rental License: Mandatory for all STR operations
Business License: Required for the entity remitting taxes (property owner or property manager)
Both licenses are obtained through separate application processes

3. Complete Application Process via MuniRevs

The Town of Dillon uses the MuniRevs platform (dillon.munirevs.com/) for:

STR license applications and renewals
Sales, lodging, and excise tax remittance
Critical Requirement: Property owner must be a user on the account for approval

4. Property Preparation Requirements

Install and verify life safety equipment (detailed requirements below)
Create detailed floor plans with safety information
Establish responsible agent contact procedures
Ensure compliance with occupancy limits

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental License Requirements

Core Application Elements:

Property address and owner information
STR license fee payment ($700 annually, non-refundable)
Sales tax filing information
Responsible agent contact information
Self-affidavit of operable life safety devices
Parking information (though parking permits were discontinued as of June 1, 2023)
Trash/recycling information
Detailed floor plan (see specific requirements below)

Floor Plan Requirements: The floor plan must include:

Property address
Fire extinguisher locations
Smoke detector locations
Carbon monoxide detector locations
Electrical circuit breaker box location
Windows (as potential escape routes)
Multiple floors require separate floor plans for each level
First aid kits and flashlights availability information

Business License Requirements

Separate from STR license requirement
Required for entity remitting sales and lodging taxes
If using a property manager, the manager must obtain the business license
If self-managing, property owner must apply for both licenses

Good Neighbor Guidelines

Must review and comply with Town of Dillon Good Neighbor Guidelines
Guidelines designed to minimize community impacts
Available through town website

Specific Regulations for Short-Term Rentals

City of Dillon Regulations

Operational Requirements:

Definition: Any rental for less than 30 consecutive days constitutes a short-term rental
Occupancy Limits: Maximum 2 guests per bedroom plus 2 additional guests per property
License Transfer: STR licenses are non-transferable
Expiration: All STR licenses expire May 31st annually
Advertising Requirements: All advertising must include:
- STR license number
- Maximum occupancy limits
- Must be displayed on all platforms (print, online, etc.)

Tax Obligations:

Sales Tax Rate: 8.875% total
- Town of Dillon: 2.5%
- State of Colorado: 2.9%
- Summit County: 2.0%
- Summit County Transit Tax: 0.75%
- Summit Combined Housing Authority: 0.725%
Lodging Tax Rate: 11.0% total
- Town of Dillon: 6.0%
- Town of Dillon Excise Tax: 5.0% (effective July 2023)
Filing Requirements:
- Lodging tax: Filed monthly or quarterly directly to Town of Dillon through MuniRevs
- Due by 20th of the month for preceding month
- Must file even with no tax to remit
- Sales tax: Remitted to Colorado Department of Revenue

Platform Compliance:

Airbnb has collected Dillon sales and lodging taxes since January 1, 2020
VRBO currently collects and remits Dillon sales and lodging taxes
Hosts responsible for taxes on rentals through other platforms
Unfiled returns prior to January 2020 remain host's responsibility

Summit County Regulations (For Unincorporated Areas)

Properties in unincorporated Summit County are subject to different regulations:

County-level STR license required
Different occupancy and operational requirements
Separate tax obligations
Contact Summit County directly for unincorporated property regulations

Summit County Contact Information:

General STR Help: [email protected], 970-668-4186
STR Sales Tax Questions: [email protected], 970-453-3439
Address: Planning Department, 0037 Peak One Drive, Frisco, CO 80443
Hours: Mon-Fri 8am-5pm

Parking Requirements

Effective June 1, 2023: The Town of Dillon discontinued STR-specific parking permits. STR guests are subject to:

Overnight parking rates in town lots
Standard residential and commercial parking permits available through Interstate
No special STR guest parking permits offered

Contact Information

Town of Dillon STR Department

Email: str@townofdillon.com
STR Complaint Hotline: 970-368-7482 (Town of Dillon ONLY)
Main Phone: (970) 468-2403
Address: 275 Lake Dillon Drive, Dillon, CO 80435

MuniRevs Platform Support

Email: blt.str.support@govos.com
Phone: (888) 751-1911
Website: https://dillon.munirevs.com/

Town Departments

Finance Department: For lodging tax questions
Planning & Zoning Department: For zoning compliance
Police Department: For parking and safety issues

Source Pages and Resources

Primary Dillon Town Resources:

Legal Documents:

County Resources:

Helpful Guides:

Compliance Timeline and Renewal Process

Annual Requirements

License Expiration: May 31st annually
Renewal Portal Opening: April 1st each year
Renewal Deadline: June 1st (late fees begin)
Final Deadline: July 1st (license revoked if not renewed)
Annual Fee: $700 flat rate (non-refundable)

Critical Deadlines

2025 Renewal Specific: Current license holders have until June 30, 2025 to complete renewal
Late Fees: Begin June 1st
Cease Operations: Required by July 1st if renewal not completed
Continuation: May continue operating after May 31st if application submitted and approved unless otherwise notified

This guide provides the essential framework for operating a compliant short-term rental business in Dillon, Colorado. Investors should regularly check the official Town of Dillon website for updates to regulations and requirements, as municipal STR rules can change rapidly in response to housing availability concerns and community impacts.

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Ask the AI Advisor about Dillon

Dillon is a small mountain town in Summit County, Colorado, situated at an elevation of roughly 9,000 feet along the shores of Dillon Reservoir. With a full-time population of just under 1,000 residents, it has the feel of a compact alpine community wrapped around one of the largest bodies of water in the Colorado Rockies. The town is best known as a base for outdoor recreation year-round, serving as a quieter, lakeside alternative to the busier resort villages that surround it. It sits about 75 miles west of Denver, reached via Interstate 70 through the high country of Summit County.

Dillon Reservoir, sometimes called Lake Dillon, is the centerpiece of the area and the reason many visitors choose this town over its neighbors. The reservoir spans several thousand acres and is popular for sailing, kayaking, stand-up paddleboarding, and trout fishing, with the surrounding shoreline offering paved trails for walking and biking. The Dillon Marina is reportedly one of the highest-elevation marinas in North America and rents boats during the warmer months. In winter, the frozen reservoir occasionally becomes a venue for ice fishing and other cold-weather activities.

The town sits within a short drive of several of Colorado's most recognizable ski resorts, which makes it a natural fit for short-term-rental demand throughout ski season. Keystone Resort is the closest, roughly 10 minutes to the east, followed by Copper Mountain and Arapahoe Basin, both also within about 15 minutes. Breckenridge Ski Resort lies a little farther, around 20 to 25 minutes south, and Vail and Beaver Creek are within a roughly 30-to-40-minute drive to the west.

In the warmer months, outdoor recreation shifts toward hiking and sightseeing. The Sapphire Point Overlook, a short pull-off along Swan Mountain Road between Dillon and Breckenridge, offers a relatively easy viewpoint above Dillon Reservoir with views toward the Gore Range. Closer to town, the Dillon Amphitheater hosts a free summer concert series on the waterfront, drawing visitors who combine a performance with a stroll along the adjacent park and beach area.

Dillon makes a compelling base for short-term rentals because of its central position within Summit County and its lakeside setting. Guests can ski multiple resorts in a single trip, enjoy summer concerts and water sports, and return each evening to a quieter, more residential-feeling town than the resort villages themselves, all within about an hour and a half of Denver.

Dillon, Colorado

Generally Investor Friendly

STR Regulations for Dillon, Colorado