Crested Butte Short-Term Rental Regulations

Last verified: 2026-07-02
TL;DR
Crested Butte requires an STR permit — 2 types available (fees from $250) — see below for eligibility by type. Combined tax rate is 7.9%. Annual day limit: 90 days–unlimited (varies by permit type).
⚠ Before you rely on the summary
The number of STR permits is capped. The permit pool may be full and new permits limited, waitlisted, or currently unavailable — new operators may not be able to obtain one. Confirm current availability (and the rules for your specific zone/permit type) before relying on the figures below.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Primary Occupancy Vacation Rental License ($250) — See below for other permit types
Primary Residence Varies by permit type
Annual Day Limit 90 days–unlimited (varies by permit type)
Tax Rate 7.9%
Max Penalty $1,000 per day
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Which permit type applies to you?

Primary Occupancy Vacation Rental License

FeeAmount
Initial cost$250
Renewal$250 / 1 year

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Unlimited Vacation Rental License

FeeAmount
Initial cost$800
Renewal$800 / 1 year

This permit type does not require primary residence. Zoning restriction: R1, R1A, R1C, R1D, R1E, R2, R2C, R3C, B3, B4 districts only; limited to two per block face; capped at 198 licenses.

Application Process

Apply for the Vacation Rental License through the Town (online application); a property inspection per the Town's Inspection Checklist is required.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

TaxRateAuthority
Colorado State Sales Tax 2.9% Colorado Department of Revenue
Gunnison County Sales Tax 1.0% Gunnison County (administered by Colorado Department of Revenue)
Gunnison County Local Marketing District Tax 4.0% Gunnison County Local Marketing District (administered by Colorado Department of Revenue)

Combined rate: 7.9% of gross rental income.

Collection: Marketplace facilitators auto-collect and remit taxes on marketplace bookings; hosts must obtain a sales tax license and self-remit for direct bookings.

Filing: County lodging tax and local marketing district tax filed quarterly with the Colorado Department of Revenue (DR 1485 / DR 1490).

Rental Limits

Crested Butte annual day limit: 90 days–unlimited (varies by permit type). Each individual stay must be 29 consecutive nights or fewer per stay.

Occupancy & Density Limits

Two occupants per legitimate bedroom plus two additional occupants; maximum occupancy of any vacation rental is 10 people (increases above 10 require additional parking and approval).

Zoning & Restrictions

Owner-occupied: Allowed in all zone districts. Unlimited licenses permitted in R1, R1A, R1C, R1D, R1E, R2, R2C, R3C, B3, and B4 districts (two per block face, 198 license cap); Primary Occupancy licenses permitted in any zone district. Vacation rentals prohibited in bed and breakfasts, condo hotels, hotels, lodges, motels, or short-term residential accommodations uses.

Insurance & Safety

Insurance

Crested Butte does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

Operating without a license: two-year suspension of eligibility to apply, summons to Municipal Court and/or fine up to $1,000 per day, plus a lien for unpaid sales and excise taxes. Three noise or trash citations in a rolling 12-month period results in license revocation. Revocation bars reapplication for 2 full years.

Platform Requirements

Marketplace facilitators (e.g., Airbnb, VRBO) must collect and remit applicable state and state-administered sales tax, county lodging tax, and local marketing district tax on the entire amount charged.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Crested Butte:

  1. Determine your permit type. Crested Butte has 2 permit types. Identify which applies to your property (Primary Occupancy Vacation Rental License, Unlimited Vacation Rental License).
  2. Apply for your STR permit. Submit application. Fees vary by type: Primary Occupancy Vacation Rental License $250; Unlimited Vacation Rental License $800. See permit types above to determine which applies.
  3. Register for tax accounts. Set up lodging tax accounts with Colorado Department of Revenue.
  4. Collect and remit taxes. 7.9% on all bookings.
  5. Renew annually. Renewal fees vary by permit type ($250 / $800). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Crested Butte?
Yes. Crested Butte requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.
How much does a short-term rental permit cost in Crested Butte?
Permit costs in Crested Butte vary by type: Primary Occupancy Vacation Rental License $250; Unlimited Vacation Rental License $800.
Does Crested Butte require a short-term rental to be your primary residence?
It depends on the permit type. At least one Crested Butte permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.
How many days a year can you short-term rent in Crested Butte?
Crested Butte's annual rental limit depends on the situation: 90 days–unlimited (varies by permit type).
What taxes do you pay on a short-term rental in Crested Butte?
Short-term rental stays in Crested Butte are subject to a combined 7.9% in lodging taxes. This combines 2.9% Colorado State Sales Tax + 1.0% Gunnison County Sales Tax + 4.0% Gunnison County Local Marketing District Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Crested Butte?
Operating without a permit can cost up to $1,000 per day.

Official Sources

  1. Licensing & Permitting | Town of Crested Butte, Colorado
  2. Chapter 6, Article 6 - Vacation Rental Licenses | Crested Butte Municipal Code | Municode Library
  3. Sales & Use Tax Topics: Rooms & Accommodations | Colorado Department of Revenue
  4. Vacation/Short Term Rentals Frequently Asked Questions | Town of Crested Butte