Overview

Short-term rentals are explicitly allowed in Dillon, CO, subject to municipal licensing and regulatory requirements. The Town of Dillon has implemented a comprehensive regulatory framework for short-term rentals (STRs) through Ordinance 09-18, which became effective January 1, 2019, and was amended by Ordinance 01-22 in March 2022. These regulations apply specifically to properties located within Dillon town limits, while properties in unincorporated Summit County are subject to different county-level regulations.

How to Start a Short-Term Rental Business in Dillon

1. Verify Property Location

Before proceeding, confirm your property is actually within Dillon town limits. Dillon town limits are not determined by zip code alone. Properties in subdivisions such as Dillon Valley, Keystone, Summerwood, or Summit Cove are NOT in the Town of Dillon and fall under unincorporated Summit County regulations. Use the Summit County Assessor's website to verify jurisdiction: gis.summitcountyco.gov/Map/

2. Apply for Required Licenses

• Short-Term Rental License: Mandatory for all STR operations
• Business License: Required for the entity remitting taxes (property owner or property manager)
• Both licenses are obtained through separate application processes

3. Complete Application Process via MuniRevs

The Town of Dillon uses the MuniRevs platform (dillon.munirevs.com/) for:

• STR license applications and renewals
• Sales, lodging, and excise tax remittance
• Critical Requirement: Property owner must be a user on the account for approval

4. Property Preparation Requirements

• Install and verify life safety equipment (detailed requirements below)
• Create detailed floor plans with safety information
• Establish responsible agent contact procedures
• Ensure compliance with occupancy limits

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental License Requirements

Core Application Elements:

• Property address and owner information
• STR license fee payment ($700 annually, non-refundable)
• Sales tax filing information
• Responsible agent contact information
• Self-affidavit of operable life safety devices
• Parking information (though parking permits were discontinued as of June 1, 2023)
• Trash/recycling information
• Detailed floor plan (see specific requirements below)

Floor Plan Requirements: The floor plan must include:

• Property address
• Fire extinguisher locations
• Smoke detector locations
• Carbon monoxide detector locations
• Electrical circuit breaker box location
• Windows (as potential escape routes)
• Multiple floors require separate floor plans for each level
• First aid kits and flashlights availability information

Business License Requirements

• Separate from STR license requirement
• Required for entity remitting sales and lodging taxes
• If using a property manager, the manager must obtain the business license
• If self-managing, property owner must apply for both licenses

Good Neighbor Guidelines

• Must review and comply with Town of Dillon Good Neighbor Guidelines
• Guidelines designed to minimize community impacts
• Available through town website

Specific Regulations for Short-Term Rentals

City of Dillon Regulations

Operational Requirements:

• Definition: Any rental for less than 30 consecutive days constitutes a short-term rental
• Occupancy Limits: Maximum 2 guests per bedroom plus 2 additional guests per property
• License Transfer: STR licenses are non-transferable
• Expiration: All STR licenses expire May 31st annually
• Advertising Requirements: All advertising must include:
  • STR license number
  • Maximum occupancy limits
  • Must be displayed on all platforms (print, online, etc.)

Tax Obligations:

• Sales Tax Rate: 8.875% total

  • Town of Dillon: 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 Rate: 11.0% total

  • Town of Dillon: 6.0%
  • Town of Dillon Excise Tax: 5.0% (effective July 2023)

• Filing Requirements:

  • Lodging tax: Filed monthly or quarterly directly to Town of Dillon through MuniRevs
  • Due by 20th of the month for preceding month
  • Must file even with no tax to remit
  • Sales tax: Remitted to Colorado Department of Revenue

Platform Compliance:

• Airbnb has collected Dillon sales and lodging taxes since January 1, 2020
• VRBO currently collects and remits Dillon sales and lodging taxes
• Hosts responsible for taxes on rentals through other platforms
• Unfiled returns prior to January 2020 remain host's responsibility

Summit County Regulations (For Unincorporated Areas)

Properties in unincorporated Summit County are subject to different regulations:

• County-level STR license required
• Different occupancy and operational requirements
• Separate tax obligations
• Contact Summit County directly for unincorporated property regulations

Summit County Contact Information:

• General STR Help: [email protected], 970-668-4186
• STR Sales Tax Questions: [email protected], 970-453-3439
• Address: Planning Department, 0037 Peak One Drive, Frisco, CO 80443
• Hours: Mon-Fri 8am-5pm

Parking Requirements

Effective June 1, 2023: The Town of Dillon discontinued STR-specific parking permits. STR guests are subject to:

• Overnight parking rates in town lots
• Standard residential and commercial parking permits available through Interstate
• No special STR guest parking permits offered

Contact Information

Town of Dillon STR Department

• Email: str@townofdillon.com
• STR Complaint Hotline: 970-368-7482 (Town of Dillon ONLY)
• Main Phone: (970) 468-2403
• Address: 275 Lake Dillon Drive, Dillon, CO 80435

MuniRevs Platform Support

• Email: blt.str.support@govos.com
• Phone: (888) 751-1911
• Website: https://dillon.munirevs.com/

Town Departments

• Finance Department: For lodging tax questions
• Planning & Zoning Department: For zoning compliance
• Police Department: For parking and safety issues

Source Pages and Resources

Primary Dillon Town Resources:

• Dillon STR Regulations
• STR FAQ
• MuniRevs Platform
• Lodging Tax Information
• Business License Information
• Parking Information

Legal Documents:

• Ordinance No. 09-18
• Ordinance No. 01-22
• Ordinance 02-23

County Resources:

• Summit County STR Information
• Property Location Verification

Helpful Guides:

• Good Neighbor Guidelines
• Sample Floor Plan Template
• MuniRevs Registration Instructions
• Tax Filing Step-by-Step Guide

Compliance Timeline and Renewal Process

Annual Requirements

• License Expiration: May 31st annually
• Renewal Portal Opening: April 1st each year
• Renewal Deadline: June 1st (late fees begin)
• Final Deadline: July 1st (license revoked if not renewed)
• Annual Fee: $700 flat rate (non-refundable)

Critical Deadlines

• 2025 Renewal Specific: Current license holders have until June 30, 2025 to complete renewal
• Late Fees: Begin June 1st
• Cease Operations: Required by July 1st if renewal not completed
• Continuation: May continue operating after May 31st if application submitted and approved unless otherwise notified

This guide provides the essential framework for operating a compliant short-term rental business in Dillon, Colorado. Investors should regularly check the official Town of Dillon website for updates to regulations and requirements, as municipal STR rules can change rapidly in response to housing availability concerns and community impacts.