Lodging Tax Information

The Town of Keystone is a self-collecting sales tax jurisdiction for all Town-implemented taxes. Currently, the only Town of Keystone implemented tax is a 2% lodging tax, effective on all stays beginning on January 1, 2025. All State, County, and Special District sales taxes should still be remitted to the State of Colorado using the state sales tax return form. Only the 2% lodging tax should be remitted to the Town of Keystone. The first payments will be due to the Town on February 20th. 

For all lodging stays (less than 30 days), the Town of Keystone levies a 2% lodging tax. This makes the total rate of taxes for lodging stays within the Town of Keystone 8.375%. The breakdown is as follows: 

• 2.9% State sales tax
• 2.0% County sales tax
• .75% County mass transit tax (Summit Stage)
• .725% Special district sales tax (Summit Combined Housing Authority)
• 2.0% Town of Keystone Lodging tax 

A total of 6.375% should be remitted to the State of Colorado.

A total of 2.0% should be remitted to the Town of Keystone using the Town's lodging tax remittance online form. 

What are the required forms?

Annually, each owner will be required to fill out and submit this Short-Term Rental Tax Collection Acknowledgment form. Additionally, the Lodging Tax remittance online form and payment information should be completed for each monthly remittance. 

What is the new lodging tax in Keystone? 

Keystone voters approved a 2% lodging tax on short-term rentals (stays under 30 consecutive days), effective January 1, 2025. This tax replaces the 2% Summit County lodging tax that ended June 30, 2024.

Who is required to collect and remit the lodging tax? 

Property owners, marketplace facilitator, property management companies, and businesses that provide short-term rentals (less than 30 consecutive days) are responsible per your agreement with them for collecting the lodging tax from their guests and remitting it to the Town of Keystone.

If I rent on my own, do I need to submit a tax form each month?

Yes, if you manage your property independently, you are required to collect the 2% lodging tax from your guests and submit it to the Town of Keystone. You are also responsible to collect and remit 6.375% to the State of Colorado. Per Town of Keystone Ordinance 2024-O-14, the return and taxes must be remitted monthly.

What if I have no rentals this month? 

Even if you have no rentals in a given month, you are still required to file a lodging tax return indicating zero rental activity. This ensures your account remains in good standing with the Town of Keystone.

When is the lodging tax due?

Lodging tax payments are due monthly. Returns must be submitted by the 20th of the month following the reporting period. Late payments may incur penalties of 10% or $10 whichever is greater, and 1.5% interest for each month on the unpaid balance.

How does Keystone's tax rate compare to nearby areas?

Keystone's total tax rate for all lodging stays is 8.35%, which remains lower than most other Summit County towns, where rates range from 12.28% to 19.875%.

What if I use my property for personal use or long-term rentals

The lodging tax applies only to short-term rentals (less than 30 consecutive days). Longterm rentals and personal use are exempt from this tax.

Where can I find the ordinance regarding implementation of the 2% tax?

Ordinance 2024-O-14, Implementing Voter Approved 2% Lodging Tax. 

Who can I contact for more information? 

For additional information or assistance, contact the Town of Keystone at str@keystoneco.gov or by phone at 970-450-3500, STR Licensing extension 1 and Tax questions extension 3.

Will I be audited for the lodging tax?

The Town of Keystone has the authority to audit property owners and managers to ensure proper collection and remittance of the lodging tax. Routine audits are possible. Maintaining accurate records of your rental income, tax collection, and payments will help ensure compliance and simplify the process if an audit occurs.

What will the funds be used for?

The funds are only to be used for capital infrastructure projects, Highway 6 safety, maintenance (such as improvements to streets and trails), and public safety.

Why do we now need to remit the 2% to the Town of Keystone rather than to the Colorado Department of Revenue (DOR) like we did when it was going to Summit County?

Summit County is a statutory county, meaning the Colorado Department of Revenue (DOR) administers and collects its taxes. In contrast, the Town of Keystone is a home rule municipality, which requires us to administer our own taxes independently. As a result, the 2% tax for Keystone must now be remitted directly to the Town of Keystone rather than to the DOR.

What is happening with the Summit County lodging tax collected by Airbnb & VRBO from July 1, 2025 through December 31, 2025?

The Colorado Department of Revenue (CDOR) will check out any lodging tax collections that have been collected in error with the proper proof.  You can email hfawkes@keystoneco.gov to submit to the CDOR. 

My Marketplace Facilitator does not have my property located in Keystone’s jurisdiction and is collecting and remitting taxes to another municipality.

We have been in contact with both VRBO and Airbnb and have sent them both our jurisdiction map file. They both acknowledged they have received this data and are updating their databases with the correct jurisdiction information information. If by the middle of February, you still see your property in the incorrect jurisdiction please contact str@keystoneco.gov.

If a booking was made before January 1, 2025, but the stay occurs after January 1, 2025, does the tax apply?

Yes. The ordinance specifies that the lodging tax applies to all stays occurring on or after January 1, 2025, regardless of when the booking was made.

Can lodging tax filings align with the Colorado Department of Revenue so I don’t have to file monthly?

Remittance Schedule Adjusted for Lodging Tax

On March 11, 2025, the Town Council approved an update to the ordinance regarding lodging tax remittance. This amendment aligns lodging tax submissions with each vendor’s Colorado Department of Revenue (CDOR) filing requirements, creating a more streamlined and consistent process with the State of Colorado. This change will make it easier for vendors to manage their filings in coordination with CDOR.

 

The ordinance will take effect on April 14, 2025. Short-Term Rental owners/vendors who file quarterly with CDOR will be contacted by the Town Finance Director with further details before implementation. However, those who are required to remit monthly with CDOR must continue to submit Keystone lodging tax on a monthly basis.

 

If you have any questions, please reach out to Heike Fawkes hfawkes@keystoneco.gov or 970-450-3500 x 3. 

 

What if I use my property for personal use or long-term rentals? 

The lodging tax applies only to short-term rentals (less than 30 consecutive days). Long-term rentals and personal use are exempt from this tax.  Additionally, if you hold an active STR license and do not have an exclusive agreement with a property manager, Airbnb, or VRBO, you are required to submit tax remittance forms and obtain a Colorado Department of Revenue sales tax license.

Helpful links

https://tax.colorado.gov/sales-use-tax-topics-rooms-accommodations

https://tax.colorado.gov/how-to-apply-for-a-colorado-sales-tax-license