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Dillon CO Short-Term Rental Rules: Everything You Need to Know Before You Rent
Dillon short-term rental rules stand out from the rest of Summit County for one clear reason. Unlike Frisco, which has a hard cap on STR licenses and an active waitlist, Dillon has no cap and no waitlist.
If you own a property inside the Town of Dillon and want to rent it on Airbnb or VRBO, you apply for a license and you get one. There is no waiting in line for months hoping a spot opens up.
That is a significant advantage for buyers who want immediate rental income. But before you put your Dillon property on a booking platform, there are rules, fees, taxes, and requirements you need to understand.
These rules are covered in this guide and based on Dillon STR regulations.
What Is Considered a Short-Term Rental in Dillon, CO?
A short-term rental in Dillon is any residential property rented for fewer than 30 consecutive days. This applies to condos, townhomes, single-family homes, luxury residences, and any other property.
If someone pays to stay in your property for less than 30 days, you are operating a short-term rental, and you need a license.
It is worth noting that the Town of Dillon introduced STR regulations through Ordinance 09-18, approved December 4, 2018, and effective January 1, 2019. The ordinance was later amended by Ordinance 01-22, approved March 1, 2022. These are the rules that govern every Dillon vacation rental today.
What Are the Operating Rules for Dillon Short-Term Rentals?
According to the Town of Dillon official page, here are 10 key short-term rental rules every property owner must know and comply with for successful legal STR operations:
- You need an STR license: A valid Town of Dillon short-term rental license is required before operating a STR. The annual license fee for short-term rentals in Dillon is $700, and licenses expire on May 31 each year. The license is non-transferable.
- Occupancy is limited: A property can accommodate two guests per bedroom plus two additional guests. For example, a two-bedroom property can have a maximum occupancy of six guests.
- Your advertising must include specific information: All rental advertisements must show the property's STR license number and maximum occupancy.
- You need a floor plan: The STR application requires a floor plan showing the property address, fire extinguishers, smoke and carbon monoxide detectors, electrical panel, windows, and emergency exit information. First-aid kits and flashlights must also be available to guests.
- You need a responsible agent: STR properties must provide contact information for a responsible agent who can respond to guests and the town if there is a complaint or emergency.
- You need a business license: A STR license does not replace the business license requirement. The person or company responsible for collecting and remitting sales and lodging taxes must have the appropriate business license.
- You must collect and remit taxes: Dillon STR income is subject to 8.875% sales tax, 6% lodging tax, and a 5% short-term rental excise tax, for a combined rate of 19.875%.
- Monthly lodging tax returns are required: Lodging tax returns must be filed with the Town of Dillon, even when there was no tax to remit. Returns are generally due by the 20th of the following month.
- Good Neighbor Guidelines: The Town of Dillon has a set of Good Neighbor Guidelines that govern noise, parking, trash, and general conduct. These must be communicated to guests.
- Complaint line: The Town of Dillon STR complaint line is 970-368-7482. This number is for Town of Dillon properties only. Complaints from neighbors or guests about your property will be directed to your responsible agent.
How Is Dillon Different From Other Summit County STR Markets?
In Dillon, there is no cap and no waitlist. You can buy a property today and have a license in hand within weeks. Dillon offers faster access to STR licensing without a waitlist.
- License cap: Dillon has none.
- Waitlist: Dillon has none.
- Annual license fee: Dillon charges $700.
- License expiry: Dillon licenses expire May 31.
- License transferability: Dillon licenses do not transfer when a property is sold.
- Total tax rate: Dillon's total tax is 19.875%.
Is Your Property Actually in Dillon, Colorado? How to Check
This is a mistake many buyers make. Dillon ZIP code 80435 does not mean your property is inside the Town of Dillon. The following subdivisions are not in the Town of Dillon, even though they use Dillon addresses.
- Dillon Valley: Unincorporated Summit County
- Keystone: Unincorporated Summit County
- Summerwood: Unincorporated Summit County
- Summit Cove: Unincorporated Summit County
If your property is in any of these areas, Dillon's STR rules do not apply to you. You need to contact Summit County for their STR information instead.
To confirm exactly which jurisdiction your property falls under, use the Summit County GIS parcel map. Type in your address and confirm the municipality before you assume any rules apply.
How Do You Apply for a Dillon STR License?
All Dillon STR license applications go through MuniRevs, the town's third-party licensing platform. You can access it at dillon.munirevs.com. The property owner must be a registered user on the account. If the account is not linked to the property owner, the town will not approve the application.
If you need help creating your MuniRevs account or connecting to an existing STR account, contact MuniRevs support at blt.str.support@govos.com or call 888-751-1911.
Remember that the STR license fee is $700 per year, regardless of when during the year you apply. There are no refunds if you discontinue operations during the year. This is a flat annual fee with no prorating.
In addition to the STR license, you also need a business license from the Town of Dillon. The STR license does not replace the business license.
If you manage your own property, you apply for both. If you use a property manager, the manager obtains the business license. The business license requires payment of a $60 occupational tax by January 1 each year.
What Does the Dillon STR Application Require?
When you apply for a Dillon short-term rental license, you need to provide the following:
- Property address and owner name.
- Sales tax filing information.
- Responsible agent contact information. You must designate someone available 24 hours a day, 7 days a week to respond to complaints or emergencies related to the property.
- Self-affidavit of operable life safety devices. You confirm that smoke detectors, carbon monoxide detectors, and fire extinguishers are properly installed and working.
- Parking information.
- Trash and recycling information.
- A floor plan: This is a required document that must show the property address, fire extinguisher locations, smoke detector locations, carbon monoxide detector locations, electrical circuit breaker box location, and an egress plan showing windows and exit routes. Multi-story properties need a floor plan for each level. The floor plan gets posted inside the rental property so guests can reference it, similar to how hotels post exit maps in rooms.
- First-aid kits and flashlights must also be available to guests inside the property.
How Do You Renew a Dillon STR License?
Earlier on, we mentioned that Dillon STR licenses are not auto-renewed. You must actively renew each year. Licenses expire on May 31. Renewals open on April 1, and all renewal applications must be submitted before June 1 to be eligible for review.
If you miss the June 1 deadline, late fees apply. If you do not complete the renewal by July 1, your license is no longer eligible for renewal. You must cease STR operations immediately until you obtain a new license through a fresh application.
Again, the annual renewal fee is $700. Renewals are processed through dillon.munirevs.com. The town has up to 30 days to approve applications and renewals.
Your application is in good standing as long as all required tasks are complete and payment has been submitted. You will be notified through MuniRevs when the approval is issued.
If your renewal application has not been approved after May 31 but you submitted it before June 1, you may continue operating your STR unless the town notifies you otherwise.
Thinking about buying a property in Dillon for short-term rental income? The lack of a license cap makes Dillon one of the most accessible STR markets in Summit County. Natalia Bassova of Resort Real Estate Inc. has over 21 years of experience in the Dillon and Summit County market.
She knows which Dillon communities are the strongest for STR income and what is coming to market before it goes public. Call 970-389-8899 or email summitrealty@luckymountainhome.com to talk through your options.
What Taxes Apply to Short-Term Rentals in Dillon, CO?
The total tax rate on short-term rental revenue in Dillon is 19.875%. This applies to gross rental revenue, which includes not just the nightly rate but also any fees charged through booking platforms such as cleaning fees and booking fees.
Here is the full breakdown.
Sales Tax: 8.875%
- Town of Dillon sales tax: 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: 11.0%
- Town of Dillon lodging tax: 6.0%
- Town of Dillon excise tax (effective July 1, 2023): 5.0%
Total combined rate: 19.875%
The good news for most owners is that Airbnb and VRBO both collect and remit Dillon sales and lodging taxes automatically. Airbnb has been doing this since January 1, 2020. VRBO also collects and remits on behalf of hosts. If all your bookings come through these two platforms, the tax collection burden is minimal.
However, if you use any other booking platform or take direct bookings outside of Airbnb and VRBO, you are responsible for collecting and remitting those taxes yourself. You cannot rely on the platform to cover you if the booking did not come through Airbnb or VRBO.
How Do You File and Pay STR Taxes in Dillon?
Follow these steps to file and pay STR taxes in the Town of Dillon, CO:
- Lodging tax
Filed and paid directly to the Town of Dillon through dillon.munirevs.com. Returns are due by the 20th of the month for the preceding month.
A return must be filed every single month even if no revenue was earned and no tax is owed. Properties that rent only through Airbnb and VRBO must file a zero-dollar return monthly.
- Sales tax
The 8.875% sales tax is remitted to the State of Colorado, not to the town. You need a state sales tax account number from the Colorado Department of Revenue. You can apply at tax.colorado.gov.
- Property managers
If you use a property management company, the manager is required to obtain a business license and a sales tax license. They must collect and remit taxes on your behalf. Confirm with your manager exactly what they cover and what you are still responsible for.
For questions about taxes, contact the Dillon Finance Department at str@townofdillon.com.
What Should Buyers Know Before Purchasing a Dillon Property for STR?
- No cap means immediate access: Unlike Frisco, you do not need to wait for a license. You apply through dillon.munirevs.com and the town processes your application within 30 days. That means you can potentially start generating rental income within weeks of closing.
- The license is not transferable: If you buy a property that currently has an active Dillon STR license, that license closes when the property is sold. The new owner must apply for a new license. You cannot buy a property specifically because it has a license and expect to inherit it.
- Budget for the full annual cost: The STR license is $700 per year. The business license requires a $60 occupational tax annually. Add those to your carrying costs alongside the 19.875% tax on all rental revenue when you run your income projections.
- Verify your property is inside Dillon town limits: As noted above, a Dillon ZIP code is not enough. Check the Summit County GIS parcel map before you assume Dillon's STR rules apply to your property.
- Check your HOA: A Dillon STR license gives you government permission to rent. It does not override your HOA. Some condo and townhome communities in Dillon restrict or prohibit short-term rentals in their governing documents. Read the HOA documents for any property you are considering before you make an offer.
- Prepare the floor plan before you apply: The floor plan requirement catches many first-time applicants off guard. You need to submit a detailed floor plan showing life safety device locations, egress routes, and windows for each floor. Have this ready before you start the application.
Dillon short-term rental rules give buyers a faster path to rental income than most other Summit County towns. This is true because there is no cap or waitlist.
Natalia Bassova of Resort Real Estate Inc. helps buyers across Dillon, Frisco, Keystone, Silverthorne, Breckenridge, and Copper Mountain. Call 970-389-8899 or email summitrealty@luckymountainhome.com. Or explore all Dillon real estate listings to start looking at what is available.
Frequently Asked Questions About Dillon CO Short-Term Rentals
Does Dillon CO have a cap on STR licenses?
No. The Town of Dillon does not cap the number of STR licenses it issues. Any property owner inside Dillon town limits can apply for a license and receive one without joining a waitlist. If you want to start generating STR income quickly after purchasing a property, Dillon is one of the most accessible STR markets in Summit County.
What is the total tax rate on short-term rentals in Dillon, CO?
The total tax rate on short-term rental revenue in Dillon is 19.875%. This includes 8.875% in combined sales taxes covering the Town of Dillon (2.5%), the State of Colorado (2.9%), Summit County (2.0%), the Summit County Transit Tax (0.75%), and the Summit Combined Housing Authority (0.725%). The remaining 11.0% is lodging and excise tax, made up of a 6.0% Town of Dillon lodging tax and a 5.0% Town of Dillon excise tax that became effective July 1, 2023. Airbnb and VRBO collect and remit these taxes automatically for bookings made through their platforms.
Are Dillon STR licenses transferable when a property is sold?
No. Dillon STR licenses are not transferable. When a property is sold, the existing license closes. The new owner must apply for a new license through MuniRevs. You cannot purchase a property and inherit the seller's STR license. Every new owner starts the application process from scratch.
Is a business license required for a Dillon STR?
Yes. The STR license and the business license are two separate requirements. You need both. If you manage your own property, you apply for it yourself. If you use a property manager, the property manager obtains the business license. The business license requires payment of a $60 occupational tax by January 1 each year. You can apply for a business license through the Dillon Citizen Portal.
