Colorado Springs, CO Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Lodgers tax rate
- 2% of lodging purchase price
- General city sales/use tax
- 3.07%, applies on top
- Auto rental tax comparison
- 1% under same Article 9
- License required
- City Sales Tax license before renting
- Debt bar
- Owner must owe City nothing
- Governing law
- City Tax Code Art. 9, § 2.9.105
Summary
Colorado Springs taxes short-term rental income two ways: a 2% lodgers tax under City Code § 2.9.105 on any lodging purchased for under 30 consecutive days, plus the City's standard 3.07% sales and use tax. Before renting, § 7.3.301.C.3.c requires the owner to hold a City Sales Tax license and owe the City no debt.
There is hereby levied and there shall be collected and paid a tax by every person exercising the "Taxable Privilege" defined in section 2.9.104 of this article for the privilege of purchasing in the City: A. Any lodging, at the rate of two percent (2%) of the entire purchase price of lodging... The owner shall obtain a Sales Tax license from the City Sales Tax Office and shall not be indebted or obligated in any manner to the City.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-21: Code current through: Ord. 26-23, passed June 9, 2026).
Full Breakdown
The lodgers tax sits in Article 9 of the City Tax Code, titled the City Lodgers And Automobile Rental Tax Ordinance, first adopted in 1968 and last amended by Ordinance 20-48. 104. B. 106 regardless of whether the tenant actually paid it. 107. b. c also bars an owner from holding an STR permit while indebted or obligated to the City in any manner, tying tax compliance directly to permit eligibility. 103 defines 'lodging' broadly enough to reach any room furnished for consideration under a booking-platform agreement.
Violations & Fines
Failing to collect and remit the 2% lodgers tax or the City's 3.07% sales tax lets the Sales Tax Office assess the unpaid tax plus interest and penalties, with no time limit where a return was filed to evade the tax (§ 2.7.202). Operating without the required Sales Tax license, or while indebted to the City, blocks issuance or renewal of the Short Term Rental Permit under § 7.3.301.C.3.c, and outstanding tax liability can support permit denial.
Frequently Asked Questions
Do short-term rental hosts in Colorado Springs pay a special tax?
What license does an STR owner need before collecting rent?
Does the lodging tax apply to a homeowner renting a spare room on a booking app?
Sources & Official References
Other rules in Colorado Springs
How Colorado Springs compares: Cities with the Highest Short-Term Rental Taxes·Compare Colorado Springs to another location·View the Colorado short-term rentals overview
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