Thinking about renting your Dillon home to offset carrying costs or boost returns? Before you forecast nightly rates, you need a clear picture of how Dillon regulates short-term rentals. Rules shift, and small details like parking or occupancy can make or break your plan. In this guide, you’ll learn who regulates STRs in Dillon, what permits typically require, what taxes to expect, and where to verify the most current information. Let’s dive in.

Who regulates Dillon STRs

Inside Dillon town limits, the Town of Dillon is the primary regulator for short-term rentals. The town council sets the rules and the municipal code defines permits, safety standards, occupancy, parking, and enforcement. You’ll find official resources on the Town of Dillon website and the full text of ordinances in the Dillon municipal code on Municode.

There are overlapping jurisdictions to keep in mind:

• Summit County administers countywide taxes and certain county rules; start at the Summit County official site.
• The State of Colorado handles sales and lodging tax registration and guidance through the Colorado Department of Revenue.
• Your HOA or condo association may have covenants that prohibit or limit STRs, even if the town issues a permit.

Dillon STR permits: what to expect

Dillon administers a permit and business licensing program for rentals under a defined short stay threshold. The municipal code and permit materials outline eligibility, application steps, and how occupancy is set. Always confirm current details in the code and with town staff before you buy or advertise a property as an STR.

Typical application elements include:

• Property owner and operator information, plus a 24/7 local emergency contact.
• Proof of ownership or owner authorization if a manager is applying on your behalf.
• Permit or business license application and fee payment.
• Floor plan or bedroom/sleeping area count, used to determine occupancy.
• Parking plan showing off-street spaces that meet local standards.
• Proof of required insurance if the town mandates coverage.
• Guest information plan: house rules, trash and recycling instructions, quiet hours, and emergency info.
• Agreement to collect and remit applicable state, county, and town taxes.

Occupancy, parking, and safety basics

Dillon’s ordinance will prescribe how maximum occupancy is calculated. Many towns use a per-bedroom standard, a fixed cap, or fire/life-safety factors. Your permit typically lists the maximum guest count.

Expect core safety and operations requirements such as:

• Functional smoke and carbon monoxide detectors and a fire extinguisher.
• Clearly marked egress routes and posted emergency contact information.
• House rules posted inside the unit, including quiet hours and evacuation info.
• Trash and bear-aware storage/collection instructions suitable for mountain conditions.
• Compliance with building code and any fire marshal directives.

Renewals, transfers, and enforcement

Permits usually have a defined term and require renewal with a fee. Many programs limit permit transfers; ownership changes often require notice and approval. Towns typically enforce through warnings, fines, and suspension or revocation for repeated violations such as noise, occupancy overages, parking issues, tax delinquency, or false statements.

Taxes and fees you’ll face

Budget for these categories:

• State sales and lodging tax: Register and file with the Colorado Department of Revenue. Some booking platforms collect certain taxes, but you remain responsible for compliance and any required filings.
• Municipal and county lodging/accommodations taxes: Dillon and Summit County may levy taxes that apply to your rental; verify current rates and remittance steps with the town and the Summit County site.
• Permit and business license fees: Dillon sets application, renewal, and potential violation fees in its fee schedule; check the Town of Dillon website for the latest.

Who collects and remits taxes can vary. Confirm whether major platforms collect in Dillon, and whether you still need to register, file, or reconcile reports with the Colorado DOR and local authorities.

Evaluation checklist for a Dillon STR

Use this quick path to validate feasibility before you buy or list:

1. Read the code definitions and rules. Search the Dillon municipal code for “short-term rental,” “lodging,” and “business license.”
2. Download current permit materials. Get the application, fee schedule, and any FAQs from the Town of Dillon website.
3. Call town staff. Speak with Planning/Community Development or the Town Clerk to confirm processing times, eligibility, and any recent council actions.
4. Verify taxes. Register with the Colorado Department of Revenue and review county tax obligations via the Summit County site.
5. Check your HOA. Confirm whether your building or subdivision allows STRs and any additional restrictions.
6. Align operations. Line up a 24/7 local contact, housekeeping, snow removal, trash/bear storage, and guest communications.
7. Model occupancy and parking. Confirm the permitted guest count and parking spaces match your unit’s layout and your revenue assumptions.

Stay current on changes

STR policy can evolve. To avoid surprises:

• Monitor town council agendas and packet materials on the Town of Dillon website for proposed rule changes.
• Re-check the Dillon municipal code before each renewal cycle.
• Follow updates from the Colorado Department of Revenue for tax policy shifts affecting lodging and platforms.
• Review county tax pages on the Summit County site for local bulletins.

Bottom line for investors and second-home owners

Dillon offers a defined path to operate a short-term rental, but success starts with compliance. Confirm what the town permits, how occupancy and parking will be set for your property, and how taxes flow between state, county, and town. Build your plan around real constraints, not assumptions, and keep a close eye on updates.

If you want a clearer view of revenue potential, design upgrades that improve guest experience, or help sourcing the right asset in Summit County, connect with Lou Cirillo for a tailored consultation.

FAQs

What is considered a short-term rental in Dillon, Colorado?

• Dillon administers permits for rentals under a short stay threshold; confirm the current definition and eligibility in the Dillon municipal code and with town staff.

How are guest occupancy limits set for Dillon STRs?

• Many towns use per-bedroom or fire/life-safety standards; check your permit documents and the municipal code for the formula that applies to your property.

Do Airbnb or VRBO collect all required taxes in Dillon, CO?

• Platform collection varies; verify what is collected and your filing duties with the Colorado Department of Revenue and the Town of Dillon before listing.

Can my HOA override a Dillon short-term rental permit?

• Yes, private covenants can prohibit or restrict STRs even if the town issues a permit; always confirm HOA rules before you buy or market a unit.

What are the penalties for violating Dillon STR rules?

• Towns typically use warnings, fines, and permit suspension or revocation for repeated issues like noise, occupancy, parking, or tax noncompliance; review the Town of Dillon website and code for enforcement procedures.