Colorado county rules
La Plata County, CO vacation rental rules and taxes
La Plata County is home to Durango, one of western Colorado’s biggest rental markets, where residential vacation rentals are tightly limited. Outside town limits, the county had no short-term rental license as of late 2023 and was studying one.
Checked against official sources November 8, 2026In 2021 and again in 2023 the county had no short-term rental regulations and was studying them. Ask the county planning office what applies now. Bayfield’s rules aren’t covered yet.
What to do
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.
Towns
Durango
Durango requires a vacation rental permit, and in residential neighborhoods only a few areas allow them, capped at roughly one per block face with a long waitlist. Most permitted rentals are in mixed-use and downtown buildings. Every rental also needs a city business license and lodger’s tax license.
Full guideUnincorporated La Plata County
Outside Durango, Bayfield, and Ignacio, La Plata County had no short-term rental license as of October 2023, though it was studying permits, caps, and yearly fees. Rentals still owe sales and lodgers taxes, and the county uses a listing-tracking service to check that owners pay.
Sources
- Sales & Use Tax Topics: Rooms & Accommodations · Colorado Department of Revenue
- Colorado Airbnb market data (active listings) · AirROI
- The long-term future of short-term rentals in SW Colorado (October 9, 2023) · Durango Herald
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 Spot something out of date?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.