Airbnb To Start Remitting Sales, Lodging Taxes in Colorado

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

By Tripp Baltz

Airbnb said it will start collecting and remitting sales and other taxes in Colorado Feb. 1.

The peer-to-peer network of short-term residential rentals will start paying Colorado’s sales and use tax of 2.9 percent, state-collected local taxes ranging from 1 percent to 5 percent, local marketing district taxes of 1.4 percent to 4 percent, and county lodging taxes range from 0.9 percent to 2 percent Feb. 1, the company said.

The announcement builds on Airbnb tax agreements already in place in five Colorado locales: Boulder, Snowmass Village, Steamboat Springs, Colorado Springs, and Golden, it said.

“Our community of hosts wants to pay their fair share and strengthen the communities in which they reside,” the company said in statement. “Agreements like this one allow states, cities and countries to rightfully benefit in the economic impact of home sharing while also making it easier for Airbnb hosts.”

Cooperation With State

Eric Myers, taxpayer services division director at the Colorado Department of Revenue, said the state appreciates the cooperation of Airbnb to collect short-term rental taxes on behalf of their member-hosts.

“This is a great example of the public-private sector working together in support of fair and equitable tax laws that benefit citizens and strengthen our local communities,” Myers said. “This partnership to facilitate voluntary tax compliance helps the State of Colorado to efficiently collect tax revenue that funds essential government functions for our local jurisdictions.”

Airbnb has collected and remitted $175 million in hotel, tourist and occupancy taxes to more than 220 cities around the world since it first began doing so in Portland, Ore., and San Francisco in 2014, the company said. It recently released a report showing that the 50 largest cities in the U.S. could have collected a total of $250 million in hotel, tourist and occupancy taxes from Airbnb in 2016.

At the June 2016 meeting of the U.S. Conference of Mayors, Chris Lehane, Airbnb’s head of global policy, said, “Read my lips: we want to pay taxes.”

To contact the reporter on this story: Tripp Baltz in Denver at

To contact the editor responsible for this story: Ryan C. Tuck at

For More Information

A 2017 report on local tax revenue generated by Airbnb is at

Copyright © 2017 Tax Management Inc. All Rights Reserved.

Request Weekly State Tax Report