We welcome your business to Telluride. To assist you in business planning, we offer the following information.
Telluride has a business license law that mandates the licensing of persons doing business within Telluride town limits (Telluride Municipal Code Section 6-1-10 through 6-1-100) and Lawson Hill. Non-profits are exempt from this requirement.
Business license proceeds are distributed to the visitors bureau
- Marketing Telluride, Inc., for regional marketing (74%)
- Open Space Fund (20%)
- Town administration (6%)
Short-Term Rental business license fees have increased as a result of the Town electorate approving Question 2D at the November 2, 2021 Regular Municipal Election. Revenue resulting from the increase in Short-Term Rental Unit business license fees is dedicated to the Town’s Affordable Housing Fund and will be used exclusively to fund and finance the development and preservation of affordable housing, including the acquisition of land.
Fees for licenses vary according to the type of business and number of employees, as outlined in the application. A separate license is required for each business location.
A short-term rental is a rental for less than thirty days (1-29 days). A business license and tax remittance is required on all short-term rentals. Fees are three hundred thirty dollars ($330.00) plus forty-four dollars ($44.00) per sleeping room. Sleeping Room means any area with a bed surrounded by a minimum of one wall. Please note that the Town of Telluride has restrictions regarding short term rentals in residential zone districts in its Land Use Code.
Short-Term Rental Restrictions - Licenses Capped
The number of Short Term Rental Unit business licenses for a Lodging Establishment, Room Rental, Accommodations Unit, and Rental House is capped at the number of Town business licenses that were existing and fully issued as of November 2, 2021. This restriction will automatically expire November 2, 2023 unless extended by the Town Council.
Short-Term Rental Exceptions
- One-time Exception - The Town Clerk may issue a business license for a Short Term Rental Unit to the subsequent purchaser of the particular dwelling unit with the existing and fully issued business license on August 24, 2021. Please contact the Business License Administrator for more information on this process.
- Primary Residence - Required documentation shall be submitted to the Town Clerk at a scheduled in-person appointment. Please contact the Town Clerk for a document checklist and to schedule an appointment. Please do not submit any documentation via email.
- Zoning - Units restricted by land use or zoning that prohibit long-term rentals or owner occupancy as a primary residence. Please provide a covenant agreement or deed recorded for your address and highlight the section that proves eligibility for the exception to the Business License Administrator.
Short-Term Rental Lottery & Waitlist
The STR Lottery took place on October 7, 2022 at 2:00pm in Council Chambers at Rebekah Hall. The application process for the lottery has closed, but applications for the waitlist can still be submitted: STR Waitlist Application. Any applications received after September 30th will be added to the bottom of the waitlist in the order they are received. The following waitlist will be maintained by the Clerk's Department and any surrendered short-term rental licenses will become available to the next waitlist applicant:
- You must be the current owner of the property to be eligible to apply for the waitlist.
- You must maintain ownership of the property until issued a license for the 2023 year.
- Applicant's selected in the lottery for available licenses will be issued their license starting January 3, 2023. Applicant's chosen to be awarded a license must apply and pay for a license through the Town's online portal on or after January 1, 2023 and prior to rental or the advertising of rental availability of the property.
- If you are under contract to purchase a property, you must wait until closing to apply for the waitlist.
- Waitlist slots are non-transferrable (ex. seller to purchaser).
- Licenses issued via the waitlist are not eligible for the one-time exception. A surrendered license due to the sale of a property issued via the waitlist will be offered to the next applicant on the waitlist.
- Waitlist applicant has 30 days from the day they are notified to apply for and complete the STR license process. This includes paying for the license. If the license application process is not completed within this timeframe, the applicant will be removed from the waitlist and the license will be offered to the next applicant on the waitlist.
The Town of Telluride uses a 3rd party program, MUNIRevs to:
- Process business license applications
- Renewal of business licenses
- Sales and excise tax licenses and remittance
Visit the Telluride MUNIRevs website to start an application or renewal of a business license.
For assistance creating your MUNIRevs account or connecting to your existing business account, please contact the MUNIRevs Support Department at (888) 751-1911.
Note: For information regarding Telluride sales taxes, please contact the Finance Director at (970) 728-2163, or visit the Finance Department.