All Short Term Rental (STR) license holders are required to file taxes, regardless of which booking platforms are used to managed their rentals. It is the of responsibility of every Short Term Rental owner to understand which taxes are collected on their behalf by platforms such as VRBO, Evolve, Airbnb and/or a local property manager, and which they need to file and pay directly to the Town. Even if all Town taxes are collected on behalf of an STR owner, every STR licensee must still file and include those taxes on their returns.
On April 5, 2022 Frisco voters approved to raise the tax rate on short-term rentals by 5 percentage points within town limits. The new excise tax became effective June 1st, 2022. 100% of the collections of this tax will be used towards workforce housing programs and development. 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. These 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%.
All State, County and Special District (Summit Combined Housing Authority) sales taxes should be remitted to the State of Colorado on a state sales tax return form. The Town of Frisco sales, lodging and STR excise tax should be remitted directly to the Town using Govos/MuniRevs portal.
Short Term Rental occupancy charges for daily rentals are taxed at the rate in effect on the day of the occupancy.
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.
Evolve automatically collects and remits all required STR taxes to the Town of Frisco on the license holder’s behalf.
VRBO started collecting and remitting directly STR taxes to the Town of Frisco on behalf of owners for bookings as of 5/1/2021. Owners must still file and remit directly to the Town all STR taxes for bookings prior to 5/1/2021.
As of February 1, 2023, Airbnb will begin collecting and remitting taxes directly to the Town of Frisco for all bookings made on or after 2/1/2023. STR license holders are still responsible for collecting and remitting all STR taxes to the Town of Frisco for all Airbnb reservations booked prior to February 1, 2023, even with a stay occurring after February 1, 2023. For more information, please review the communication letter from Airbnb and Town’s communication sent to all Airbnb owners 1/25/2023.
Regardless of the booking platform, it is the STR licensee’s responsibility to check their tax settings on all listing platforms and to correctly submit all required Schedule A Tax Forms in GovOS. Failure to do so may result in suspension or revocation of the STR license.
To amend your STR taxes, owners need to submit a complete Claim for Refund request with backup documentation. In the case of Airbnb, Evolve or VRBO duplicate filings, please attached excel report to include nightly fee, cleaning fee, guest service fee, hosting fee, check in/out date, date of booking, taxes collected and all fees paid by the renter. Please email this to STRsupport@townoffrisco.com. Our STR team will follow up with instructions by email within a week.
Rental agents and property management companies who manage properties 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 within 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.