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, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
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
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.
Mesa 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 Palisade
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
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
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
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
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 |
|---|
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
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
- Short-Term Vacation Rental (STVR) Permit Application (fillable, undated) · Town of Palisade
- 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.