Staring at a jumble of taxes and forms for your Steamboat Springs rental? You’re not alone. When you run a short-term rental here, you take on city licensing, multiple tax rates, and filing deadlines that can impact your cash flow. This guide explains what gets taxed, who collects what, when to file, and how to avoid common mistakes so you can operate with confidence. Let’s dive in.
Steamboat STR taxes at a glance
- Colorado state sales tax: 2.9%.
- Routt County lodging tax: 1.0%.
- City sales tax and school portion: 4.5% total.
- City accommodations tax: 1.0% on stays under 30 days.
- City short-term rental tax: 9.0% on vacation rentals.
- Local Marketing District tax: 2.0% inside LMD boundaries.
Typical totals: Many STRs in the city see about 18.4% in combined taxes. If your property is inside the Local Marketing District, the total is often about 20.4%. The city outlines these components and how they stack in its sales tax materials. You can review the rate breakdowns and filing info in the city’s Tax Information PDF and Municipal Tax page for parcel-level details and contacts.
- Review rate breakdowns and filing details in the city’s Tax Information PDF: Steamboat Springs General Sales Tax Information
- Explore the Municipal Tax page for contacts, portals, and jurisdiction info: City of Steamboat Springs Municipal Tax
What counts as taxable
Most charges for lodging under 30 days are taxable. That usually includes your nightly rate, cleaning fees, and other mandatory host fees when they are part of the listing price. The city’s tax guidance spells this out for room and accommodation rentals under thirty days. Airbnb’s tax help page for Colorado follows the same approach for Steamboat listings.
- See the city’s guidance on taxable charges: General Sales Tax Information
- Check platform guidance: Airbnb occupancy tax collection in Colorado
STR license and city sales tax license
Operating a short-term rental inside city limits requires a city STR license. The program includes license types, operational rules, and zone caps. Some areas have caps and lotteries for new non-hosted licenses.
- Apply here: STR Licensing – City of Steamboat Springs
- Review rules, overlay zones, and caps: STR Rules and Regulations
You also need a City of Steamboat Springs sales tax license. The city assigns a filing frequency after you register. Returns can be filed online, and the city provides contact info and instructions.
- Sales tax licensing and filing overview: Municipal Tax page
Who collects and remits the taxes
Some platforms collect and remit certain taxes for you, but not always all of them. Airbnb reports that it collects Steamboat’s city sales tax, accommodations tax, and the 9% STR tax on reservations booked through Airbnb. VRBO lists Steamboat Springs among jurisdictions where it collects and remits, but you must confirm settings for your property.
- Airbnb collection details: Airbnb occupancy tax article
- VRBO collection overview: VRBO lodging tax guidance
If a platform does not collect a tax, you must collect it from guests and remit it yourself to the correct taxing authority. Keep records showing what the platform collected and what you filed directly.
- Owner responsibilities and recordkeeping: City tax information PDF
Filing methods and deadlines
You file city sales and accommodations taxes with the City of Steamboat Springs. Online filing is available through the city’s listed portals. The regular due date is the 20th of the month after the reporting period ends. The city assesses a penalty of 10% of taxes due or 15 dollars, whichever is greater, plus 1% interest per month for late payment.
- Filing portals, due dates, and penalties: Municipal Tax page and General Sales Tax Information
Avoid common mistakes
- Assuming a platform collects every tax for you. Coverage can vary by tax type and change over time.
- Leaving cleaning or mandatory fees out of your taxable total.
- Skipping the city sales tax license or STR license.
- Forgetting to file returns for zero months. Many owners must file even when they had no bookings.
Learn more in the city’s guidance: General Sales Tax Information
Quick compliance checklist
- Confirm your address is inside city limits so you know which rules apply: Municipal Tax page
- Apply for your STR license and prepare required documents: STR Licensing
- Register for a city sales tax license and note your filing frequency: General Sales Tax Information
- Verify which taxes apply to your parcel, including LMD boundaries: General Sales Tax Information
- Confirm platform tax collection settings and download remittance reports: Airbnb occupancy tax article and VRBO lodging tax guidance
- File returns by the 20th and keep records for at least three years: Municipal Tax page
Income tax basics for STR owners
You generally must report rental income on your federal return. Many operating costs and depreciation may be deductible under IRS rules. If you get paid through a marketplace, you may receive a Form 1099-K. Report your gross rental income even if you do not receive a form.
- IRS rental property guide: Publication 527
- 1099-K overview: IRS 1099-K guidance
Local context on the 9% STR tax
Steamboat voters approved the 9% STR tax in November 2022 to fund attainable housing programs, with implementation beginning in 2023. Understanding this policy helps you forecast long-term costs.
- Read local coverage: Steamboat voters approve the STR tax
If you’re weighing a purchase, analyzing a current rental, or deciding between buildings and zones, local guidance matters. For a property plan that fits Steamboat’s licensing rules and tax flow, connect with Ashley Walcher for trusted, on-the-ground insight.
FAQs
What is the total tax rate for most Steamboat STRs?
- Many rentals see about 18.4% combined, and about 20.4% if the property is inside the Local Marketing District, per the city’s tax materials.
Are cleaning fees taxable on Steamboat rentals?
- Yes, cleaning fees and other mandatory charges are generally taxable as part of lodging under 30 days according to the city’s guidance.
Do I need a city sales tax license if Airbnb collects taxes?
- Yes, you still need a City of Steamboat Springs sales tax license and must file as required, even when a platform collects some taxes.
When are city returns due for STR taxes?
- Returns are typically due on the 20th of the month following the reporting period, with penalties and interest for late filing or payment.
What is the 9% STR tax in Steamboat?
- It is a voter-approved city tax on short-term vacation rentals used to fund housing programs, implemented in 2023.
Does the 2% Local Marketing District tax apply to my address?
- Check your parcel against city resources or contact the City Sales Tax Department to confirm LMD boundaries and applicable rates on the Municipal Tax page.
