On November 10, we blogged about a ski resort town in Utah requiring rental owners to obtain a business license. Fueled by a variety of factors, leaders in Telluride Colorado have followed suit.
City leaders lamented the fact that owners who open their properties to tenants interested in securing a place to stay during peak ski periods were not collecting lodging taxes, nor obtaining business licenses. Local hotels and other lodging proprietors agreed.
According to the Telluride Daily Planet, the Telluride Town Council approved an ordinance on Tuesday.
- The ordinance requires anyone renting a property short-term (a dwelling rented up to three times in a year for 29 days or less) to acquire a business license and collect lodging taxes.
- An exemption that allowed owners to avoid licensing if they rented for 15 days is rescinded with the new ordinance.
- The new ordinance clarifies definitions. Long term rentals are now defined as 30 days or more for no more than three times per year.
- Owners are required to sign an annual affidavit regarding their rentals as a means of maintaining an inventory of rentals located in Telluride.
The new ordinance in Telluride is yet another example of the current trend of local governments and agencies utilizing business licensing as a mechanism for driving revenue, and leveling the playing field across industry players. Staying abreast of city council actions is a best practice for any business owner. This ensures you can be aware and plan accordingly for any new compliance requirements BEFORE they impact your business.
Steve Elias – Team Leader, Business License Research Team, Corporation Service Company.
Story Source:
November 19 Online Edition of the Telluride Daily Planet
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