Gunnison, Colorado Short-Term Rental (STR) Investor Guide

Overview: Are STRs allowed in Gunnison, CO?

• Yes. Short-term rentals are allowed in both Gunnison County (unincorporated areas) and the City of Gunnison. Neither jurisdiction currently has a dedicated STR licensing program. Operations are governed by general business and tax obligations, and by any applicable homeowners’ association (HOA) rules.
• For STR purposes, Colorado defines a short-term rental as the rental of a residential unit for fewer than 30 consecutive days. If you rent a unit for less than 30 days, you must collect and remit sales tax and local lodging taxes. [§39-26-104(1)(f) and §39-26-102(11), C.R.S.; Colorado Department of Revenue guidance]
• No local STR permit is required in Gunnison County or the City of Gunnison at this time; however, you must register for and comply with state and local sales tax obligations. Both jurisdictions have signaled that they may develop local STR rules in the future.

How to start a short-term rental business in this market

• Step 1: Confirm zoning and HOA/Covenants, Conditions, and Restrictions (CC&Rs)

  • Verify that STR use is permitted on the property and check any recorded covenants or HOA rules. In the Gunnison area, HOAs such as Crested Butte South POA maintain their own STR policies that may include permit requirements, designated responsible parties, parking, posted guest rules, trash/recycling standards (including bear-proof containers), insurance, and annual renewal.
  • If the property is within an HOA, obtain and follow the association’s STR policy; violations can trigger fines levied against the owner, not the guest.

• Step 2: Register for Colorado sales tax and the Gunnison County Local Marketing District (LMD) tax

  • Establish a sales tax account with the Colorado Department of Revenue (DOR) to file and remit:
    • Colorado retail sales tax (state and state-collected local taxes), and
    • Gunnison County Local Marketing District tax (4.00%).
  • Collection is required for rentals of fewer than 30 consecutive days.
  • LMD tax is remitted quarterly via DR 1490; other sales taxes are typically filed monthly or quarterly depending on your volume.

• Step 3: Set up tax collection and remittance workflows

  • Implement tax calculation and collection in your booking and accounting processes.
  • File DR 0100 (Colorado Retail Sales Tax Return) and DR 1490 (Local Marketing District Tax Return) on the required schedule; retain documentation for audits.

• Step 4: Obtain insurance and define operations

  • Maintain homeowners’ insurance and consider a short-term rental endorsement or separate policy to cover guest-related risks.
  • Designate a local, responsible party who can respond immediately to issues.
  • Prepare and post guest rules (parking, noise, trash/recycling/bear safety, pets, off-highway vehicles).
  • Establish compliant parking (no lawn/sidewalk parking; follow HOA rules and posted signage).

• Step 5: Market and operate

  • Before listing, confirm that any HOA permit requirements are satisfied.
  • Display the property address, nightly rates, and number of guests in listings, and post any HOA-required guest information inside the unit.
  • Track nights rented and rental income to support tax filings and renewals.

Required documents, permits, licenses, and guidelines

• State and local tax registrations/returns (Colorado DOR)
  • Sales Tax Withholding Account Application (CR 0100AP) to open a tax account.
  • DR 0100 – Colorado Retail Sales Tax Return.
  • DR 1002 – Colorado Sales/Use Tax Rates (for rate verification).
  • DR 1490 – Local Marketing District Tax Return (Gunnison County LMD tax).
• Gunnison County and City of Gunnison
  • No city- or county-specific STR license is required at this time.
  • Compliance with sales tax and LMD tax is mandatory for rentals under 30 days.
• HOA permits (as applicable)
  • Example: Crested Butte South POA requires:
    • STR Permit (annual, due by January 31).
    • Short-Term Rental Affidavit (owner certifies compliance with zoning, building codes, and association rules).
    • Evidence of insurance and designation of a local responsible party.
    • Compliance with posted guest rules, parking, trash/bear-proof containers, and annual renewal.
• Operational guidance
  • Colorado DOR guidance on sales taxes for short-term lodging (hotels, motels, B&Bs, condominiums, timeshares).
  • Gunnison County personal property tax notice (any property rented for profit is subject to personal property tax; contact the Assessor with questions).

Specific regulations: city, county, and state

• City of Gunnison

  • STRs are allowed; no city STR license is required.
  • Rentals under 30 days are subject to state sales tax and applicable local taxes; the City’s total lodging tax rate is approximately 12.9% (reflecting state, county, and local components).
  • Future local STR regulations are under consideration.

• Gunnison County (unincorporated)

  • STRs are allowed; no county STR license or inspection is required.
  • Rentals under 30 days are subject to state sales tax and the 4.00% Gunnison County Local Marketing District tax.
  • County total lodging tax rate is approximately 8.9% (state + county + LMD).
  • Properties used for short-term rentals remain at the residential assessment rate unless the property is exclusively rented short-term (e.g., a bed-and-breakfast with no owner’s quarters), in which case the commercial assessment rate could apply.
  • Any property rented for profit is subject to personal property taxes; consult the Assessor for valuation and assessment questions.

• State of Colorado

  • STRs are defined as rentals of fewer than 30 consecutive days.
  • Owners must collect and remit:
    • Colorado sales tax (state and state-collected local taxes).
    • Local Marketing District (LMD) taxes where applicable (e.g., Gunnison County’s 4.00% LMD).
  • Marketplace facilitators (platforms like Airbnb/VRBO) must collect and remit Colorado sales tax on transactions they facilitate.
  • Legislative proposals such as SB24-33 (Lodging Property Tax Treatment) could reclassify certain non-primary STRs as “lodging property” for property tax purposes beginning January 2026, potentially increasing property taxes on dedicated STR properties. Monitor the bill’s progress to understand implementation specifics.

• HOA/CC&Rs (common in the Gunnison area)

  • HOAs may impose stricter rules than local government, including:
    • Permit requirements, designated responsible party, parking standards, posted guest rules, trash/bear-proof containers, and annual renewals.
    • Owners are responsible for guest compliance and may be fined for violations; fines cannot be transferred to renters.

• Jurisdictional contrast (for context)

  • Nearby towns (e.g., Crested Butte and Mt. Crested Butte) have more stringent STR regimes:
    • License caps, application windows (e.g., October 1–31), block-face concentration limits for unlimited licenses, primary residency requirements, inspection requirements, and parking/enforcement.
    • CB South POA uses affidavits in lieu of inspections but enforces detailed operational standards.
  • These are not applicable within Gunnison County or the City of Gunnison, but they can influence community sentiment and future policy direction.

Contact information (phone, email, website)

• Gunnison County Assessor’s Office

  • Phone: 970-641-1085
  • Address: 200 E. Virginia, Gunnison, CO 81230
  • Website: Gunnison County Assessor (Property Taxes) — see Source 1 below

• Colorado Department of Revenue (Taxation Division)

  • Phone: 303-238-7378 (Tax Help Line)
  • Sales & Use Tax Forms (including DR 0100, DR 1002, DR 1490, CR 0100AP): see Source 4 below

• Gunnison County – Sales, Use & Marketing Taxes (general info)

  • See Source 2 below

• Crested Butte South POA (HOA STR policy)

  • Phone: 970-349-1162
  • Website: see Source 6 below

Source links

• Source 1: Gunnison County – Short-term Rentals (Sales & Local Marketing District Taxes): www.gunnisoncounty.org/838/Short-term-Rentals
• Source 2: Gunnison County – Sales, Use & Marketing Taxes: www.gunnisoncounty.org/397/Sales-Use-Marketing-Taxes
• Source 3: Boomtown STR Regulations Table (12/2023) – Gunnison County/City and nearby jurisdictions: boomtown-production-consumer-backup.s3.amazonaws.com/3660/files/2024/01/STR-Regulations-Table-12.2023-fc4fe3f491dac5f3d4e8227dbe63008c23524856.pdf
• Source 4: Colorado Department of Revenue – Sales & Use Tax Forms: www.colorado.gov/pacific/tax/sales-use-forms
• Source 5: Colorado DOR – Sales Taxes Due on Unit Rentals (PDF): tax.colorado.gov/sites/tax/files/Sales%2011.pdf
• Source 6: Crested Butte South POA – Short-Term Rental Policy (2021 revision): crestedbuttesouth.net/wp-content/uploads/2020/12/Short-term-Rental-Policy-2021-revision.pdf
• Source 7: Crested Butte News (Feb 2024) – Gunnison County commissioners support regulations on STRs: crestedbuttenews.com/2024/02/gunnison-county-commissioners-support-regulations-on-strs/
• Source 8: Colorado Bar Association – The State of Short-Term Rentals in Colorado (April 2022): cl.cobar.org/features/the-state-of-short-term-rentals-in-colorado/

Notes and practical considerations

• Gunnison County and the City of Gunnison currently take a relatively hands-off approach to STRs beyond taxation. This may change; maintain vigilance for future local ordinances.
• HOAs can be more restrictive than local government and are a frequent source of enforcement; review covenants carefully and secure any required permits before listing.
• Ensure you distinguish between state/local sales taxes (due on rentals under 30 days) and property tax classification issues (which may be affected by future legislation like SB24-33).
• For consistency and compliance, establish a single accountable person or manager to handle filings, respond to guest issues, and ensure adherence to HOA and tax rules.