Licenses & Taxes for Breckenridge

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.  

General Resources: 

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 websitefinance@townofbreckenridge.com, 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!