On April 5, 2022 registered voters in Frisco decided to raise the tax rate only on short-term rentals by 5 percentage points within town limits. The new excise tax is effective June 1st, 2022. 100% of the collections of the new excise tax on short-term rentals will be used toward workforce housing. The town expects to generate $1.5 million in additional tax revenue during the first fiscal year, which runs from January 1 to December 31, 2023. The additional funds are specifically earmarked as a supplement to Summit Combined Housing Authority’s 5A measure. The 5A measure is a 0.6% affordable housing tax that was recently extended for 20 years. The funds will also help to address the rising cost of developing new housing or creating deed-restricted housing for existing residential properties.
Licensees will now be responsible for remitting the Town of Frisco 5% excise tax with the 2% sales tax, and 2.35% lodging tax on gross short-term rental revenue for all STR stays that have a checkout date of June 1, 2022 or later. Please update your listings account settings accordingly to collect the new tax.
Owners of a Short-Term Rental (STR) in the Town of Frisco are required to remit all applicable taxes.
The total tax to be collected and remitted is 15.725%.
Short Term Rental occupancy charges for daily rentals are taxed at the rate in effect on the day of the occupancy. If a new sales, lodging and/or STR excise tax rate takes effect during a guest’s stay, the tax rate will vary based on the tax rate in effect on each day of the stay.
If the rental is on other than a daily basis, the overall charge can be prorated and taxed accordingly at the rate in effect before and after the date of the tax rate change. The portion of the stay prior to the effective date of a rate change will be taxed at the old rate, and the remaining time of the stay will be taxed at the new rate.
The Town of Frisco levies a 2% sales tax and a 2.35% lodging tax on your gross short-term rental revenue. There is also a short-term rental excise tax of 5% on any short-term rental stays with a check-out date of June 1st, 2022 or later. The sales, lodging, and short-term rental excise tax should be remitted directly to the Town of Frisco. Gross short-term rental revenues include all compensation received for occupancy including all non-optional fees (other than taxes) such as booking/reservation fees; cleaning fees; pet charges; fees for extra vehicles, people or beds; etc.; and any amounts received from lodging companies or managers.
All Short-Term Rental properties will file tax returns online using the Town of Frisco’s MUNIRevs/GovOS Business Center. Taxes need to be filed monthly, quarterly or annually depending on your assigned frequency schedule. Please email with questions or requests to have your filing frequency changed. The Town continues to allow a vendor’s fee deduction in the amount of 3.33% of your sales tax liability for returns filed on or before the due date.
Not all STR booking sites collect Town of Frisco sales, lodging and the short-term rental excise taxes automatically. To collect Town of Frisco tax from your guests, you will need to visit the support page for the booking site that you use to rent your unit and search for “additional payment request”. It is every Short-Term Rental Licensee’s responsibility to check your tax settings on all your listing platforms.
Rental Agents and Property Management Companies that manage properties that are owned by another party or entity, are required to have a Town of Frisco Business License and obtain an STR License for each property they manage in the Town of Frisco. Rental Agents are required to collect and remit the 2.0% Frisco Sales Tax, 2.35% Lodging Tax, and 5% short-term rental excise tax (the short-term rental excise tax is for STR stays with a check-out date of June 1st, 2022 or later) to the Town for each STR on a monthly basis (by the 20th) using the MUNIRevs/GovOS Business Center.
Colorado Statute requires anyone who owns a business or rents out their furnished residential property on a short or long term basis to declare their business equipment or residential rental furnishing/equipment.