Overview and Explicit Bottom Line

• Short‑term rentals are allowed in Telluride, Colorado. All STR activity must be licensed by the Town of Telluride before advertising or renting, and the license number must be included in all ads. Violations can be prosecuted as misdemeanors with fines up to $1,000 per offense and up to 90 days imprisonment; each day of violation is treated as a separate offense.
• Residential Zone Districts (e.g., Residential, Historic Residential, Hillside Transitional, Hillside Developing One, Hillside Developing Two, West Hillside, Medium Density Residential) have strict usage caps:
  • Short‑term rentals (1–29 nights): up to 3 stays per year; cumulative maximum of 29 nights.
  • Long‑term rentals (≥30 nights): up to 3 stays per year; long‑term rentals are not subject to short‑term rental taxes but still count toward the cap in Residential Zone Districts.
• New license renewals for 2026 are accepted starting November 1, 2025 and are due by January 1, 2026; late fees begin January 7, 2026. All application/renewal paperwork is online and requires current online affidavits (paper submissions are no longer accepted).

Sources: telluride-co.gov (STR Licenses overview; STR Info Packet), telluride.municipal.codes (Land Use Code §3‑601), Document Center PDF “Understanding Short‑Term Rental Regulations.”

How to Start a Short‑Term Rental Business in Telluride

1. Determine your zone and the correct license category.

• Use the Town’s Residential Zone Map to check whether your property is inside the red Residential Zone boundary.
• If in the Residential Zone: you must apply for a Residential License and comply with the caps in §3‑601 (short‑ and long‑term limits).
• If outside the Residential Zone (Non‑Residential Zone): you may choose either a Classic License (no annual night cap) or a Limited License (≤29 nights per year).
• Lodging License applies only to hotels/motels/boardinghouses/rooming houses/lodges that are owned by a single entity and have an on‑site lobby, and to fractional/timeshare models within those establishments.

2. Apply for the correct license.

• All applications and renewals are submitted online via the Town’s STR portal (Rentalscape). No progress is saved once you start; prepare all materials before you apply.
• New 2026 licenses: apply from January 1, 2026 (applications before December 31, 2025 are for the remainder of 2025 and are non‑refundable).
• 2026 renewals open November 1, 2025 and are due January 1, 2026; late fees begin January 7, 2026.

3. Prepare required affidavits.

• A new unified Bulk Notary Affidavit is required for all notarized affidavits; have it notarized before you begin the online form. The form is accepted for up to 3 months from the notary date.
• Upload the same Bulk Notary Form to each property account if you manage or own multiple properties.
• Required affidavits vary by license (see matrix below); all submissions must be made online through the STR software.

4. Post your license number and keep records.

• Include your license number in all advertising.
• Maintain records of rental dates, guests, and taxes collected/remitted. Random inspections and an annual self‑inspection are required.

5. File and remit taxes monthly.

• Town of Telluride taxes are paid online through Rentalscape.
• State and county sales taxes (6.22% combined) are paid through Colorado’s Sales and Use Tax System (SUTS).
• Monthly filings are due by the 20th of the following month.

Sources: telluride-co.gov (Apply For A Rental License; License Types; Affidavits; “How To” videos; Taxes), telluride.municipal.codes (LUC §3‑601).

Required Documents, Permits, Licenses, and Affidavits

Licenses (all obtained online):

• Business license (Town of Telluride) issued prior to advertising.
• Classic, Residential, Limited, or Lodging License, depending on location and use.
• Mid‑Term (30–179 nights) and Long‑Term (≥180 nights) licenses are available and carry no license fees or short‑term rental taxes.

Affidavits (all submitted online through the STR software; Bulk Notary Form covers all notarized items):

• Financial Interest Disclosure: Required annually for all licenses; notarized (via Bulk Notary Form).
• Self‑Inspection Affidavit: Required annually for all STR units; not notarized.
• Residential Rental Affidavit: Required annually at renewal for Residential Licenses; notarized (via Bulk Notary Form).
• Limited License Affidavit: Required for Limited License holders; notarized (via Bulk Notary Form).

Optional/when applicable:

• Account Closure Request Form (when selling, exiting STR, or changing ownership).
• Property Management Transfer Form (submitted by legal owner) to update the manager on the account.
• Tax forms and payments through SUTS for state/county taxes.

License‑specific requirements summary:

• Classic License (Non‑Residential; not lodging): Financial Interest Disclosure; Self‑Inspection.
• Residential License (Residential Zone; not lodging): Financial Interest Disclosure; Self‑Inspection; Residential Rental Affidavit.
• Limited License (≤29 nights; Non‑Residential): Financial Interest Disclosure; Self‑Inspection; Limited License Affidavit.
• Lodging License (hotels/lodges with on‑site lobby): Financial Interest Disclosure; Self‑Inspection.
• Mid‑Term/Long‑Term Licenses: No affidavits.

Sources: telluride-co.gov (License Categories; Required Affidavits; Account Closure; Property Management Transfer; Taxes).

Specific Regulations — City (Telluride), County (San Miguel), and State (Colorado)

City of Telluride (local rules)

• Rental caps in Residential Zone Districts:
  • Short‑term: ≤29 nights total per year; up to 3 separate rentals (e.g., one 15‑night stay, one 10‑night stay, one 4‑night stay).
  • Long‑term: ≥30 nights; up to 3 rentals per year; exempt from STR sales/excise/Affordable Housing taxes but still subject to the 3‑stay cap.
• Exchanges: You may exchange your Telluride STR for an out‑of‑town property for any length. Exchanges involving payment or other value are not allowed (except when sold via a non‑profit fundraiser).
• Licensing prerequisites:
  • STR business license prior to advertising.
  • Local sales tax number and excise tax number before collecting/remitting taxes.
  • Owner representative on call 24/7 during occupancy; contact info filed with the Town Clerk and posted inside the property.
• Operations and compliance:
  • Provide and maintain wildlife‑proof trash/recycling containers; clearly define storage area; educate guests on parking, pets, trash/recycling, bears, and noise.
  • License number in all ads; complete all required online affidavits annually.
  • Random inspections may occur.
• Violations: Violations of the Municipal Code/Land Use Code are misdemeanors; fines up to $1,000 and/or up to 90 days imprisonment per offense; each day of violation is a separate offense.

San Miguel County and State of Colorado

• County and state taxes for STRs are filed through the Colorado Department of Revenue’s Sales and Use Tax System (SUTS).
• Property tax classification (e.g., whether assessed as Commercial by the County Assessor) affects the applicability of the Town’s Affordable Housing STR tax; contact the County Assessor for classification questions.

Sources: telluride.municipal.codes (LUC §3‑601), telluride-co.gov (STR Taxes; Finance), Document Center PDF “Understanding Short‑Term Rental Regulations” (Business License Requirements; Tax breakdown; Violations), Colorado Department of Revenue (SUTS), San Miguel County Assessor (classification info).

Fees and Taxes

License fees

• Classic License fee structure (total includes regulatory and admin fees; 2025/2026 structure):
  • 1 sleeping room: $1,332
  • 2 sleeping rooms: $2,211
  • 3 sleeping rooms: $3,090
  • 4 sleeping rooms: $3,969
  • 5 sleeping rooms: $4,848
  • 6 sleeping rooms: $5,727
• Limited & Residential License fees (per sleeping room; 2025/2026 structure):
  • 1 sleeping room: $381.50
  • 2 sleeping rooms: $392.50
  • 3 sleeping rooms: $403.50
  • 4 sleeping rooms: $414.50
  • 5 sleeping rooms: $425.50
• Lodging License: Check current fee schedule; lodging establishments also pay a per‑sleeping‑room fee (refer to current Town licensing tables).
• Mid‑Term and Long‑Term Licenses: No license fees.

Short‑term rental taxes

• Total combined rate for most STRs: 17.22% per month.
  • 11% Town of Telluride sales/excise/Affordable Housing STR (remitted via Rentalscape).
  • 6.22% Colorado state and San Miguel County sales taxes (remitted via SUTS).
• Long‑term rentals (≥30 nights) are not subject to the Town’s sales/excise/Affordable Housing STR taxes.
• Property tax classification matters: properties assessed as Commercial by San Miguel County are not subject to the 2.5% Affordable Housing STR tax and thus have a lower total rate (historically cited as 12.65% rather than 15.15%).
• Filing cadence:
  • Town of Telluride taxes: monthly via Rentalscape; due by the 20th of the following month.
  • State and county taxes: monthly via SUTS; due by the 20th of the following month.
• Cancellations: Income from cancelled bookings is taxable; for Residential or Limited Licenses, cancellations don’t count toward rental night/stay caps but must be reported to the Town for compliance transparency.

Additional notes

• SMART taxes (Visitor Benefit 1.25%; increased SMART sales tax to 1.07% effective Jan 1, 2025) are paid through SUTS (San Miguel County), while you continue to pay 11% to the Town via Rentalscape.

Sources: telluride-co.gov (License fee tables; STR Taxes; Tax remittance portal; Finance Department), Telluride Daily Planet article (new STR categories/fees; 2024 implementation), The Colorado Sun (context on $857/bedroom effective regulatory fee), Document Center PDF “Understanding Short‑Term Rental Regulations” (tax components and exceptions).

Contact Information (Local Authority in Charge of STRs)

• Short‑Term Rental Program Administrator — Ashley Berard

  • Email: aberard@telluride-co.gov
  • Phone: (970) 728‑2159

• Town Clerk — STR Licensing Support

  • Phone: (970) 728‑2159

• Finance Department (Town taxes and guidance)

  • Phone: (970) 728‑8436
  • Taxes portal: Town of Telluride Finance (Sales/Use/Excise)

• Colorado Department of Revenue — Sales and Use Tax System (SUTS)

  • Website: Colorado Sales/Use Tax
  • Phone: (303) 238‑7378

• San Miguel County Assessor — Property classification

  • Phone: (970) 728‑3174

• Town of Telluride — General

  • Address: P.O. Box 397, Telluride, CO 81435
  • Phone: (970) 728‑5700

Sources: telluride-co.gov (Contact Us; Directory; STR Taxes; Business Licenses), Colorado Department of Revenue (SUTS), San Miguel County Assessor (property classification).

Links to Source Pages (Available via the Provided Content)

• Town of Telluride — Short‑Term Rental Licenses and application portal
  • www.telluride-co.gov/740/Short-Term-Rental-Licenses
• STR Info Packet (simplified rules overview)
  • www.telluride-co.gov/DocumentCenter/View/14564/STR-Info-Packet
• Residential Zone Map
  • www.telluride-co.gov/ImageRepository/Document?documentID=14553
• Residential Zone Map (Address‑based)
  • www.telluride-co.gov/ImageRepository/Document?documentID=14554
• Telluride Land Use Code §3‑601 — Residential Zone rental caps/requirements
  • telluride.municipal.codes/LUC/3-601
• STR Tax Guide (Finance Department)
  • www.telluride-co.gov/401/Taxes
• Rentalscape — Town STR portal (applications/taxes)
  • portal.deckard.com/co-san_miguel-town_of_telluride-str-portal
• STR complaints portal (non‑emergency compliance)
  • complaints-str.deckard.com/towntelluride-co-str-complaints/
• Colorado Department of Revenue — Sales/Use Tax (SUTS)
  • tax.colorado.gov/sales-use-tax
• San Miguel County Assessor
  • www.sanmiguelcountyco.gov/148/Assessor

(Additional policy and media context)

• New STR regulations (fees) — Telluride Daily Planet article (Oct 2023)
  • www.telluridenews.com/news/article_531a92f0-7455-11ee-8eb8-73f328843e50.html
• Regulatory fee background — The Colorado Sun (Oct 2023)
  • coloradosun.com/2023/10/10/telluride-regulatory-fee-short-term-rentals/

Note: The Town also provided various “how‑to” step‑by‑step videos and specific document links within the STR portal (e.g., new online STR forms, renewal walkthroughs, Bulk Notary Form). These are hosted inside the Town’s document and video repositories referenced above.

Key reminders:

• Confirm your zoning and license category before applying.
• Prepare and notar