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Short-Term Rentals

Short-Term Rentals in Castle Rock, CO: What Residents Actually Need to Know

By CityRuleLookup Editorial Team

If you live in Castle Rock or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Castle Rock has 2 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Taxes & Fees

Castle Rock imposes a 6% lodging tax on all sales of lodging, effective January 1, 2022, in addition to the Town's 4.2% sales tax. Short-term rental operators must collect and remit both.

Key details: Lodging tax: 6% of lodging sales. Lodging tax effective: Jan. 1, 2022. Town sales tax: 4.2% (since Jan. 1, 2025). Long-stay exemption: 30+ consecutive days, written lease. Remitted to: Town Revenue Division.

Failure to collect or remit the lodging or sales tax subjects the operator to penalties, interest and collection action by the Revenue Division under the Town's tax code.

Short-Term Rental Permits

Castle Rock has no dedicated short-term rental permit. The Town does not regulate Airbnb/VRBO as a land use, but every operator must hold a Town business license and remit lodging and sales tax.

Key details: STR-specific permit: None required. License needed: Town business/sales-tax license. Town regulates STRs?: No, only taxes them. Governing body: Revenue Division. Applies to: Incorporated Town only.

Operating without the required Town business/sales-tax license, or failing to remit lodging and sales tax, exposes the operator to Revenue Division collection, penalties and interest on unpaid tax.

The Bottom Line

Castle Rock's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Castle Rock is broadly strict or permissive.

Keep in mind that Castle Rock can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.