LicensedRental

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, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

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Market
About 127 Airbnb listings
Town permit
$375 a year in residential zones
Plus $100 once; free in non-residential zones.Source
Caps
43 residential permits, 3 per owner
Waitlist; non-residential zones uncapped.Source
Inspection
Fire department, before renting
Drawings
Floor plan and site parking plan
Guests
2 per bedroom + 2, or 1 per 200 sq ft
Whichever is greater; set at inspection.Source

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

  1. 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

    MyBiz Colorado →

  2. 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

  3. 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

  1. Get a state sales tax license

    Needed for any rental unless a platform covers all your taxes.Source

  2. 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

  1. 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

  2. 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

  3. 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

  4. 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

Source

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

Responder
Reachable 24/7, responds within two hours
Parking
On the property first
No overnight street parking in residential areas without approval.Source
Posted inside
Permit, contacts, occupancy, parking, rules, trash
Include the transfer station location and hours.Source

Sources

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.