This blog is intended to help simplify the steps you will need to take as a vacation rental homeowner to satisfy the local and state sales tax laws. As always, please consult your Accountant for professional advice.
- Breckenridge Sales Tax: Accommodation Tax information
- State Sales Tax: Colorado Department of Revenue
Licenses: If you are in incorporated Breckenridge, you will need both a local license (BOLT, the Breckenridge Occupational License and Tax), and a Colorado State Sales Tax License.
- Breckenridge ($75-$175/annually): The application for a BOLT license can be found here. This needs completed and paper mailed, with payment, to P.O. Box 8629 Breckenridge, CO 80424. You may also email them the form at firstname.lastname@example.org, and call to receive confirmation of receipt and/or discuss online payment of the license fee.
- Colorado: ($60/annually) You can e-file for a state retail-sales tax license here (select Start Your Filing). Note: when you are filing you are going to run into a few prompts on page 2. Just click Continue Filing at the bottom.
12.275% Sales Tax: The breakdown of the sales tax you owe on the gross rental, is as follows:
- The following is paid directly to Colorado:
- 2.9% sales tax to Colorado
- 2.75% summit county sales tax
- 0.125% summit housing authority tax
- The rest is paid directly to Breckenridge:
- 3.1% sales tax to Breckenridge
- 3.4% accommodation tax to Breckenridge
Remittance: We encouraging remitting sales tax monthly. Beginning Feb 1st, 2017 Airbnb will be collecting and remitting Colorado Sales Tax on homeowners behalf.
Federal Taxes: Depending on your tax situation, you may be able to deduct sales tax paid. 1099s will only be issued from Airbnb and VRBO if your listing has 200+ reservations and over $20,000 in rental revenue. You can share our owner statement with your accountant for a breakdown of rental revenue, management fees, and cleaning fees.
This blog post was reviewed and approved by George Dimov, CPA.
Still have questions? Let us know!