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Colorado · Telluride

Telluride

city Allowed with registration Verified · last verified 2026-07-15

Short-term rentals (a rental of 29 nights or fewer at a time) are legal in the Town of Telluride but require a Town business license for each unit BEFORE it is advertised or rented, under the STR program comprehensively revised by Ordinance 2023-1578 (adopted Oct 2023; codified in Telluride Municipal Code Chapter 6-1). Owners select a license category by zone/use: (1) Classic License — non-residential zones, unlimited rental nights, subject to the $857-per-sleeping-room annual Regulatory Fee (a 40% mitigation rate of the full calculated fee, TMC 6-1-25); (2) Residential License — Residential Zone Districts, capped at 3 short-term rentals/year and 29 total rental nights/year; (3) Limited License — up to 29 nights/year total in any zone; (4) Lodging License — hotels/lodges/boardinghouses/roominghouses owned by one entity with an on-site lobby, or fractional/time-share; plus Mid-Term (more than 29 nights but less than 6 months) and Long-Term (longer than 6 months) licenses that carry no fee and no STR taxes. There is no town-wide numeric cap on the number of licenses (the prior moratorium was replaced by the regulatory fee), but TMC 6-1-35 (Ord. 2023-1578, amended Ord. 1609 (2025)) prohibits any person or entity from holding a financial interest in more than two (2) STR-licensed units; the packet states this took effect October 24, 2023, with grandfathering for units already licensed before that date. All STR taxes total 17.22% (10.72% combined sales tax + 2% Town lodgers' tax + 2% Town excise tax + 2.5% Town affordable-housing STR tax); units the County Assessor classifies as Commercial pay the Town's published rate of 14.97% (no 2.5% affordable-housing tax). Licenses expire December 31 and must be renewed by January 6 annually; they are non-transferable to a new owner and require annual Financial Ownership and Self-Inspection affidavits (submitted with one bulk notary form). Violations are misdemeanors (up to $1,000 fine and/or up to 90 days jail; each day is a separate offense), with graduated minimum fines and possible license suspension.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • city Short-Term Rental Business License (required for all STRs) Required
    Fee: — · Renewal: Annual; expires Dec 31, renew by Jan 6 with required affidavits + one bulk notary form · Applies to: Every unit rented for 29 nights or fewer at a time, in any zone district · official page ↗
  • city Classic License (non-residential zones, unlimited nights) Conditional
    Fee: $165 / annual · Renewal: Annual (renew by Jan 6) · Applies to: STRs in non-residential areas of town (not hotels or lodging businesses) · official page ↗
  • city Residential License (residential zone districts) Conditional
    Fee: $82.5 / annual · Renewal: Annual (renew by Jan 6); requires Residential Rental Affidavit · Applies to: STRs in Residential Zone Districts (Residential, Historic Residential, Hillside Transitional, Hillside Developing One and Two, West Hillside, Medium Density Residential) · official page ↗
  • city Limited License (up to 29 nights/year, any zone) Conditional
    Fee: $82.5 / annual · Renewal: Annual (renew by Jan 6); requires Limited License Affidavit · Applies to: Owners renting short-term for no more than 29 nights per calendar year, in any zone · official page ↗
  • city Lodging License (hotels/lodges/timeshare) Conditional
    Fee: $66 / annual · Renewal: Annual (renew by Jan 6) · Applies to: Traditional lodging businesses (hotels, motels, lodges, boardinghouses, roominghouses) owned by one entity with an on-site lobby, or buildings using fractional/time-share models · official page ↗
  • city Annual Short Term Rental Unit Regulatory Fee (Classic licenses only) Conditional
    Fee: $857 / annual · Renewal: Annual · Applies to: All Classic Licenses (per studio unit / per bedroom / per sleeping room). Limited, Residential, and Lodging licenses are exempt. · official page ↗
  • city Financial Ownership Affidavit Required
    Fee: $0 · Renewal: Each renewal (by Jan 6) · Applies to: Everyone applying for or renewing an STR license; must fully disclose ownership (full SSNs for individuals, full EINs/TINs for entities/trusts) and match San Miguel County Assessor records · official page ↗
  • city Self-Inspection Affidavit (safety/housing standards) Required
    Fee: $0 · Renewal: Each renewal (by Jan 6) · Applies to: Everyone applying for or renewing an STR license; Town may conduct random inspections with 21 days' notice when the property isn't occupied · official page ↗
  • city License number in all advertisements Required
    Fee: $0 · Renewal: — · Applies to: All STR listings/ads · official page ↗
  • city 24/7 on-call local contact (owner, manager, or rep) Required
    Fee: $0 · Renewal: — · Applies to: All STRs while occupied; contact info filed with the Town during application and clearly posted inside the property · official page ↗
  • city Bear-proof trash and recycling area Required
    Fee: $0 · Renewal: — · Applies to: All STRs; a designated area for trash and recycling with enough bear-proof containers, and renters told where they are and how to use them · official page ↗
  • city Inform renters about local rules Required
    Fee: $0 · Renewal: — · Applies to: All STRs; renters must be informed about rules on parking, pets, trash/recycling, bears, and noise · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
Combined sales tax — — — —
Town of Telluride Lodgers' Tax — — — —
Town of Telluride Excise Tax — — — —
Town of Telluride Affordable Housing Short-Term Rental Tax — — — —
Total STR tax rate — — — —

Operating rules

Primary residence
—
Min stay (nights)
0
Max nights / year
—
Max occupancy
—
Zoning-restricted
—
Cap on licenses
—

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Frequently asked questions

Is Airbnb legal in Telluride?
Short-term rentals (a rental of 29 nights or fewer at a time) are legal in the Town of Telluride but require a Town business license for each unit BEFORE it is advertised or rented, under the STR program comprehensively revised by Ordinance 2023-1578 (adopted Oct 2023; codified in Telluride Municipal Code Chapter 6-1). Owners select a license category by zone/use: (1) Classic License — non-residential zones, unlimited rental nights, subject to the $857-per-sleeping-room annual Regulatory Fee (a 40% mitigation rate of the full calculated fee, TMC 6-1-25); (2) Residential License — Residential Zone Districts, capped at 3 short-term rentals/year and 29 total rental nights/year; (3) Limited License — up to 29 nights/year total in any zone; (4) Lodging License — hotels/lodges/boardinghouses/roominghouses owned by one entity with an on-site lobby, or fractional/time-share; plus Mid-Term (more than 29 nights but less than 6 months) and Long-Term (longer than 6 months) licenses that carry no fee and no STR taxes. There is no town-wide numeric cap on the number of licenses (the prior moratorium was replaced by the regulatory fee), but TMC 6-1-35 (Ord. 2023-1578, amended Ord. 1609 (2025)) prohibits any person or entity from holding a financial interest in more than two (2) STR-licensed units; the packet states this took effect October 24, 2023, with grandfathering for units already licensed before that date. All STR taxes total 17.22% (10.72% combined sales tax + 2% Town lodgers' tax + 2% Town excise tax + 2.5% Town affordable-housing STR tax); units the County Assessor classifies as Commercial pay the Town's published rate of 14.97% (no 2.5% affordable-housing tax). Licenses expire December 31 and must be renewed by January 6 annually; they are non-transferable to a new owner and require annual Financial Ownership and Self-Inspection affidavits (submitted with one bulk notary form). Violations are misdemeanors (up to $1,000 fine and/or up to 90 days jail; each day is a separate offense), with graduated minimum fines and possible license suspension.
Do I need a license or registration for a short-term rental in Telluride?
Yes — Telluride requires: Short-Term Rental Business License (required for all STRs); Classic License (non-residential zones, unlimited nights); Residential License (residential zone districts). See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Telluride?
Combined sales tax, Town of Telluride Lodgers' Tax, Town of Telluride Excise Tax, Town of Telluride Affordable Housing Short-Term Rental Tax, Total STR tax rate. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

In Colorado · San Miguel County

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Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.