LicensedRental

La Plata County, Colorado

Durango, CO vacation rental requirements

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.

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 1,085 Airbnb listings
Many are outside city limits in La Plata County.Source
City permit
Required
Waitlist in residential areas.Source
Residential areas
Downtown grid and West 2nd/3rd avenues only
About 2-3% of homes, roughly one per block face (2021).Source
Tax licenses
Business license and lodger’s tax license

Our zoning details come from a 2021 news report; we couldn’t read the city’s current vacation rental page. Confirm the permit fee, inspection, and current caps with the city.

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.

La Plata 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.

City of Durango

  1. Check zoning and the waitlist

    In residential neighborhoods, vacation rentals are allowed only in the downtown grid and around West Second and Third avenues, capped at a small share of homes, and permits rarely open up. Mixed-use and commercial buildings downtown have more room. Ask city planning whether your address can get a permit.Source

  2. Get city tax licenses

    Get a City of Durango business license (which includes a sales tax license) and a lodger’s tax license, and file returns on your assigned schedule, even with no stays.Source

    Durango licensing FAQ →

  3. Taxes on each stay

    Stays under 30 days owe 2.9% state sales tax plus La Plata County and City of Durango sales taxes and the city’s lodger’s tax. Airbnb and other platforms collect the state and state-administered taxes on their bookings; for direct bookings, file with the Colorado Department of Revenue. Durango collects its own sales and lodger’s taxes; ask the Finance office for current rates and whether Airbnb collects them.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.