Frequently Asked Questions

• Residential License – If your property is in the Residential Zone (outlined in red on the The Residential Zone Map), you can only apply for a Residential License.
  
  

• Classic or Limited License – If your property is outside the red zone (in the Non-Residential Zone), you may apply for either a Classic License or a Limited License, depending on how many nights per year you rent it out.

• Lodging License – This is only for hotels, motels, boardinghouses, or lodges that:

  • Are owned by one entity and have an on-site lobby, or

  • Use a time-share or fractional ownership model for their units.

Please let the STR Program Administrator know when your unit is sold.

Short-term rental (STR) licenses can’t be transferred to a new owner, so once your license is closed, the new owner must apply for their own license.
Only one license can be active for a unit at a time.

You can’t pay taxes until the month is over, and your account can't be closed until your taxes have been paid.

• The Town of Telluride collects its own taxes.
  You must file and pay Telluride taxes through Rentalscape, and you must do this separately for each property you own or manage.

• State and County taxes (for Colorado and San Miguel County) must be filed through the SUTS system (Sales and Use Tax System) with the State of Colorado.
  You can find more info or file online at: https://tax.colorado.gov/sales-use-tax
  Or call the Colorado Department of Revenue at: (303) 238-7378

• The total tax rate for short-term rentals is 17.22%:

  • 11% goes to the Town of Telluride

  • 6.22% goes to the State of Colorado and San Miguel County

To see a full breakdown of short-term rental taxes, visit the Sales, Use & Excise Tax Information section on our website.

If you have a Limited License and go over the 29-night limit, you’ll need to upgrade your license. Contact the STR Program Administrator as soon as possible to find out what steps you need to take to stay in compliance.

Short-term rental (STR) licenses can’t be transferred between properties, and there’s a limit on how many you can hold. A person or business can’t have a financial interest in more than two STR licenses total.

If you want to switch one of your licenses to a different property, you’ll need to contact the STR Program Administrator to close one of your existing licenses before applying for a new one.

Also, since licenses are non-transferable, the license fee doesn’t carry over—you’ll need to pay the full fee for the new license.

Starting July 1, 2025, all short-term rental (STR) forms must be completed and submitted online as part of your application.

If any of the forms require notarization, you’ll also need to complete a Bulk Notary Form and upload it along with the notarized documents during the online application process.

Refunds will not be given once your application is complete and you’ve paid for your short-term rental (STR) license.

Make sure you choose the correct license type and only pay if you plan to use the license. Double-check everything before submitting your application and payment.

The Town does not currently limit the total number of short-term rental (STR) licenses.

To stay updated on any changes to Town rules or policies, please sign up for notifications.

If you only plan to rent the property for fewer than 30 total nights per year, a Limited License might be a good option.

Be sure to review the details for each license type to choose the one that fits your situation.

No. The Limited License allows up to 29 rental nights per calendar year, and any unused nights do not roll over to the next year.

However, if you add anyone else to the ownership (even within an entity), you’ll need to close your current STR license and apply for a new one. The license fee does not transfer, so you’ll need to pay for the new license in full and submit a new Financial Ownership Disclosure form as part of your application.

Yes. You’ll need to apply for both:

• A Short-Term Rental (STR) License – this comes with a fee and requires you to collect and remit taxes.

• A Long-Term Rental License – this is a zero-fee license required by the Town for tracking purposes, but no taxes are due for long-term rentals (30 days or more).

Even though you’ll have two licenses, you only pay for and remit taxes under the STR license.

No. To keep three or more STR licenses, you must keep all of them current and active.

If any of your licenses lapse, are closed, or become inactive, you will lose the right to hold more than two, and you won’t be able to get the extra license(s) back later.