Hinsdale County, Colorado
Lake City, CO vacation rental requirements
Lake City requires a short-term rental permit ($375 a year in residential zones plus a $100 application fee) with a fire department inspection, a floor plan, and a parking plan. Residential permits are capped at 43, three per owner, with a waitlist.
Checked against official sources November 8, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
Fines run from a warning to $500 and then up to $2,650 or revocation within 12 months; renting without a permit costs $500 a day.
Your licensing checklist
In order: the state, the county, then the town.
State of Colorado
Get a state sales tax license
If you rent rooms or a home for stays under 30 days, Colorado requires a sales tax license from the Department of Revenue. Platforms like Airbnb collect the state and state-administered taxes on their bookings; you file for anything booked directly.Source
Check for home-rule city taxes
Many cities and mountain towns collect their own sales and lodging taxes. Platforms aren’t required by the state to collect these, so you may need a separate city tax license and returns.Source
Get your county or city rental license
Most Colorado mountain counties and towns, and Denver, require a short-term rental license or permit, often with an inspection, an occupancy limit, posted information, and a local responder. Pick your area for the rules.
Hinsdale County, Colorado
Get a state sales tax license
Needed for any rental unless a platform covers all your taxes.Source
Then your town or area
Towns set their own rental licenses and collect their own taxes, and the county’s rules cover only areas outside town limits. Pick your area.
Town of Lake City
Schedule the fire inspection
Book the fire department inspection at least 30 days before you apply. The report sets your maximum occupancy and goes in with the application.Source
Draw the floor plan and parking plan
Include a floor plan showing the number and location of bedrooms and a site parking plan showing guest parking on the property.Source
Apply to the town
Submit the application with the $100 fee and the $375 yearly permit (residential zones). If the 43 residential permits are taken, you go on the waitlist. Renew every January.Source
Taxes on each stay
Stays under 30 days owe 2.9% state sales tax plus Hinsdale County and Lake City sales and lodging taxes. Airbnb and other platforms collect the state and state-administered taxes on their bookings; for direct bookings, file with the Colorado Department of Revenue. Keep a current state sales tax license and remit sales and lodging taxes.Source
Fees
$475 the first year and $375 after (residential zones)
| Application (one time) | $100 |
|---|---|
| Annual permit, residential zones | $375 per unit |
| Annual permit, non-residential zones | $0 |
Inspection checklist
What the inspector looks for, from Town of Lake City’s published checklist.
- Smoke detectorsInside and outside all sleeping areas.Source
- Carbon monoxide detectorsEvery floor near sleeping areas, gas appliances, fireplaces, and attached garages.Source
- Fire extinguisherOne 2A/10BC.Source
- EgressDoors and windows working and clear of snow.Source
- Address3-inch reflective or high-contrast numbers visible from the road.Source
House rules for guests
Sources
- Sales & Use Tax Topics: Rooms & Accommodations · Colorado Department of Revenue
- Sales Tax Guide and Colorado Sales/Use Tax Rates (DR 1002) · Colorado Department of Revenue
- Sec. 23-5, Short-Term Rentals (Ord. 2023-13, amended by Ord. 2026-03) · Town of Lake City
- Colorado Airbnb market data (active listings) · AirROI
A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.