Executive Summary

Short-term rentals ARE ALLOWED in Carbondale, CO, but with significant restrictions and regulatory requirements. The town operates a limited licensing program that allows STRs primarily for owner-occupied primary residences and properties within the Historic Commercial Core (HCC) zone district. Non-owner occupied properties outside the HCC zone are not eligible for new licenses, making Carbondale a restricted STR market with limited expansion opportunities.

Overview: STR Permissibility in Carbondale

Carbondale permits short-term rentals through a structured licensing program established in 2022. STRs are explicitly allowed but heavily regulated, with licenses issued only to:

1. Property owners for their primary residence (minimum 183 days/year occupancy)
2. Properties located within the Historic Commercial Core (HCC) zone district

The program is intentionally restrictive, with no new licenses available for non-owner occupied properties outside the HCC zone. This regulatory approach aims to balance economic opportunities for residents with community housing concerns.

How to Start a Short-Term Rental Business in Carbondale

Step 1: Determine Eligibility

• Primary Residence Route: Confirm you can establish the property as your primary residence (183+ days/year)
• HCC Zone Route: Verify property location within Historic Commercial Core zone district
• Review HOA/covenant restrictions (town does not enforce private agreements)

Step 2: Complete Online Registration

1. Visit the MUNIRevs platform: **carbondale.munirevs.com**
2. Click "Go" button for New Users Registration
3. Enter email address and follow email instructions
4. Create user profile and continue to business profile
5. Platform Support: MUNIRevs provides unlimited phone and email support Monday-Friday, 8 AM-5 PM
   • Phone: 1-888-751-1911
   • Email: str.support@govos.com

Step 3: Submit Required Documentation and Schedule Inspection

• Upload all required documents (see documentation list below)
• Pay applicable fees
• Schedule in-person inspection with Building Department
• Property owner or manager must be present during inspection

Step 4: Ongoing Compliance

• Obtain license number for all advertisements
• Designate local contact person with 24/7 availability
• File monthly tax returns
• Maintain compliance with all operational requirements

Required Documents, Permits, Licenses, and Guidelines

Required Documentation

1. Proof of Ownership

   • Deed
   • County Assessor's page with applicable identification
   • Documents showing controlling ownership in trust or LLC

2. Proof of Primary Residence (if applicable)

   • Driver's license
   • Voter registration
   • Tax returns
   • Vehicle registration

3. Life Safety Photos

   • Egress windows in each bedroom
   • Smoke/CO2 alarms per current building code
   • Fire extinguisher near cooking appliances (interior and exterior)

Required Licenses and Permits

1. Short-Term Rental License (primary requirement)
2. Sales Tax/Lodging Tax License (through same MUNIRevs platform)

Fees Structure

Owner-Occupied Properties:

• $100 per bedroom
• Maximum $400 per license

Non-Owner Occupied Properties:

• $175 per bedroom
• Maximum $875 per license
• Note: New non-owner occupied licenses only available in HCC zone

Inspection Requirements

• In-person inspection required before license issuance
• Property owner or manager must be present
• All life safety requirements must be verified
• Inspection conducted by Building Department staff

Specific Regulations for Short-Term Rentals

Occupancy Limits

• Maximum occupancy: Two persons per bedroom plus two additional persons per property
• Children under age five: Do not count toward occupancy limits
• Example: 3-bedroom property = 8 maximum occupants (6 from bedrooms + 2 additional)

Operational Requirements

1. Local Management Required

   • 24/7 designated local contact person
   • Must respond within 60 minutes to emergencies/complaints
   • Must be able to respond in person as necessary
   • Contact information on file with Town

2. Advertisement Requirements

   • License number must be displayed in all advertisements
   • All platforms must include license information

3. Property Use Restrictions

   • No STRs allowed for units part of Community Housing Program
   • Community Housing units explicitly ineligible

4. License Transfer

   • Licenses are not transferable or assignable
   • Issued to specific property owner, not the property itself

Tax Requirements

1. STR Tax Rate: 6% of gross rental price

   • Inclusive of all service charges and fees
   • Additional to 2% lodging tax
   • Additional to 3.5% sales tax
   • Total tax burden: 11.5%

2. Filing Requirements

   • Monthly filing required
   • Due on 20th of month following reporting period
   • If 20th falls on weekend/holiday, due next business day
   • First filing period: April 2023 (due May 20)

3. Filing Frequency Based on Tax Liability

   • Monthly filing: If collecting $300+ in monthly taxes
   • Quarterly filing: If collecting $10.01-$299.99 monthly
   • Annual filing: If collecting $10 or less monthly

4. Late Filing Penalties

   • $25 non-filer charge per missing return
   • $10 late filer fee
   • 10% penalty on delinquent taxes
   • 1.5% monthly interest on unpaid amounts
   • No vendor fee allowed

Geographic Restrictions

• Primary residences: Property owner must reside 183+ days annually
• HCC Zone: Only non-owner occupied properties allowed in Historic Commercial Core
• No expansion: No new non-owner occupied licenses outside HCC zone
• HOA/Covenant compliance: Property owner responsible for private restrictions

State and County Regulations

Colorado State Level

The provided content focuses on Carbondale municipal regulations. State-level STR regulations may apply but are not detailed in the source materials.

Garfield County

Garfield County regulations are not detailed in the provided content. Properties within Carbondale town limits follow municipal regulations, not county requirements.

Pitkin County (For Reference Only)

Note: Pitkin County regulations apply only to unincorporated areas, not Carbondale town limits

Unincorporated Pitkin County STR Regulations (for context only):

• License required for STRs in unincorporated areas
• 4-night minimum / 120-night maximum stay requirements
• Historical activity requirement: Property must have STR history between May 11, 2017 - May 11, 2022
• Tiered fee structure based on assessor market value and rental nights
• Platform: SagesGov licensing system
• Contact: STR Line 970-429-1858, STR@pitkincounty.com

Contact Information

Primary STR Licensing Authority

Town of Carbondale

• Address: 511 Colorado Ave, Carbondale, CO 81623
• Phone: 970-963-2733
• Fax: 970-963-9140
• Town Hall Hours: Monday-Friday, 8 AM - 5 PM

Specific Contacts

Town Clerk (STR Tax License)

• Phone: 970-510-1206
• Email: jmarkham@carbondaleco.net

MUNIRevs Platform Support

• Phone: 1-888-751-1911
• Email: str.support@govos.com
• Hours: Monday-Friday, 8 AM - 5 PM
• Platform: carbondale.munirevs.com

Building Department

• Handles STR inspections and life safety compliance
• Contact through main town number: 970-963-2733

Online Resources

• STR License Application: carbondale.munirevs.com
• Town Website: www.carbondalegov.org
• Municipal Code: library.municode.com/co/carbondale/codes/municipal_code

Source Links

1. Carbondale STR License Information: www.carbondalegov.org/i_want_to/apply_for/short_term_rental_license.php

2. Carbondale STR Tax FAQ: carbondalegov.org/departments/finance/short-term_rental_tax-faq.php

3. Carbondale STR Tax Online Filing: carbondale.munirevs.com

4. Carbondale Board of Trustees STR Ordinance Update: carbondalegov.diligent.community/document/3c97026b-451f-4d01-888a-d5f98acf04b6/

5. Pitkin County STR Information (for unincorporated areas reference): pitkincounty.com/1431/Short-Term-Rentals

6. Carbondale Municipal Code: library.municode.com/co/carbondale/codes/municipal_code

Important Note: This guide is based on regulations effective as of the provided source materials. STR regulations are subject to change. Investors should verify current requirements with the Town of Carbondale before making investment decisions. The limited availability of new licenses and restrictive geographic requirements make Carbondale a challenging market for new STR investments.