Littleton, CO Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- License required
- Annual short-term primary rental license, Title 3 Ch. 23
- Application fee
- Set by City Council; refundable for accessibility upgrades
- Sales/use tax license
- Required under Section 3-9-1 before operating
- Lodger's tax
- 5% on stays under 28 days, effective 1/1/2023
- Liability insurance
- Minimum $500,000 required
- License term
- One year, non-transferable
- Max penalty
- $2,650 fine or up to 364 days jail
Summary
Littleton requires every short-term rental host to hold a license under Title 3, Chapter 23, paying an application fee set by City Council and proving a valid sales and use tax license under Section 3-9-1. The city also collects a 5% lodger's tax on stays under 28 days at any short-term rental under Section 3-9-3-16, on top of standard sales tax.
5. At the time of an initial or renewal application for a license, each applicant shall pay a fee set by the City Council pursuant to its authority to establish administrative fees. The application fee may be refunded at the discretion of the Finance Director if the applicant demonstrates that the dwelling unit proposed to be licensed has certain modifications that make it more accessible and accommodating to persons with disabilities. ... ... 2. The applicant must have valid sales and use issued pursuant to Section 3-9-1 of the Littleton City Code for the dwelling unit to be utilized as a short-term primary rental.
Full Breakdown
Before renting a dwelling as a short-term primary rental, the owner must submit a license application to the Finance Director under Section 3-23-4. At the time of an initial or renewal application, the applicant pays a fee set by City Council under its administrative fee authority; the Finance Director may refund that fee at her discretion if the unit has accessibility modifications for people with disabilities. A of the Unified Land Use Code, pass a Finance Director inspection for sanitation, mechanical, electrical, structural and fire-safety compliance under Section 4-1-1, and carry at least $500,000 in liability insurance.
Beyond the license itself, Section 3-9-3-16 layers a separate 5% lodger's tax on the fee or price charged for any stay of fewer than 28 consecutive days at a hotel, motel, inn, bed and breakfast, or short-term rental within the city, effective January 1, 2023, dedicated to arts, culture, tourism and visitor promotion. Licenses run for one year from issuance under Section 3-23-8 and cannot be renewed without payment of the requisite fees; operating past expiration without a complete renewal application on file is unlawful. A license terminates automatically on transfer of ownership of the property.
Violations & Fines
Operating a short-term rental without a current license, after expiration, or advertising one without displaying its license number is unlawful under Sections 3-23-3 and 3-23-9. Section 3-23-11 subjects violators to license suspension, revocation or non-renewal plus a fine or imprisonment under the Code's general penalty, Section 1-4-1, which caps fines at $2,650 and jail at 364 days.
Frequently Asked Questions
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Is there a separate tax on short-term rental income in Littleton?
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Sources & Official References
Other rules in Littleton
How Littleton compares: Cities with the Highest Short-Term Rental Taxes·Compare Littleton to another location·View the Colorado short-term rentals overview
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