LicensedRental

Mesa County, Colorado

Palisade, CO vacation rental requirements

Palisade allows only 24 short-term vacation rentals in town: 12 for residents renting their own home and 12 for investors. The permit is $350 a year, applications are taken only in January and February, and you need a fire department inspection, a site plan showing parking, and certified-mail notice to neighbors within 150 feet.

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 120 Airbnb listings
Town permit
$350 a year
Apply January 1 to February 28; expires March 31.Source
Cap
12 resident + 12 investment permits
Guests
2 per legal bedroom
Drawings
Site plan with parking
Plus a parking management plan.Source
Inspection
Fire department safety inspection

The application form is undated; confirm the fee and how many permits are open with the town.

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.

Mesa 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 Palisade

  1. Check the cap and permit type

    A Resident permit needs ID or voter registration at the address; an Investment permit doesn’t. Each type is capped at 12 in town limits.Source

  2. Draw the site plan and write the management plan

    Show the parking spaces (at least one on-site space per two bedrooms) and outdoor amenities on a site plan. The management plan covers 24/7 contact (a manager must be within 25 miles), parking, trash, check-in and check-out, pets, emergencies, outdoor fires, amplified sound, and noise.Source

  3. Get the fire inspection and notify neighbors

    Attach a fire department safety inspection report, proof of insurance that covers rental use, and certified-mail receipts showing you notified every property within 150 feet.Source

  4. Apply in January or February

    Submit the application, a business license application if you don’t have one, and the $350 fee between January 1 and February 28. Permits expire March 31.Source

    Palisade STVR application →

  5. Taxes on each stay

    Stays under 30 days owe 2.9% state sales tax plus Mesa County and Town of Palisade 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. Ask the town for its lodging tax rate and whether Airbnb collects it.Source

Fees

$350 a year

STVR permit, Resident or Investment (yearly)$350

Source

Inspection checklist

What the inspector looks for, from Town of Palisade’s published checklist.

  • Fire department safety inspectionReport attached to the application.Source

House rules for guests

Guests
2 per legal bedroom
Parking
One on-site space per two bedrooms
Manager
24/7, within 25 miles

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.