As you know, EagleVail Metro District implemented a 1% sales tax beginning on January 1, 2019. Short term rentals (periods of less than 30 days) are subject to the EagleVail sales tax (1%), as well as the Colorado (2.9%) and Eagle County (1.5%) sales taxes. This includes rentals of residential property.
As EagleVail is in unincorporated Eagle County, all three taxes are administered and collected by the State of Colorado. Anyone operating a short-term rental is obligated to collect and remit the appropriate sales tax. Those using rental websites such as AirBnB, VRBO, or HomeAway should contact the website to ensure that they understand what role the website is providing in the tax process as not all websites collect the appropriate taxes. The owner of the property is ultimately responsible to ensure compliance with sales tax collections. The state has enforcement ability including the ability to fine and collect back taxes for non-compliance.
In order to help ensure compliance, the EagleVail Metro District will be contracting with Host Compliance in order to audit rental websites for EagleVail properties. The Host Compliance system monitors short-term rental websites and matches listings with property addresses. These listings will be reviewed and compared to the submitters of sales tax. The District will work with the State of Colorado to collect taxes from properties that are not properly reporting.
An Important Coming Change
An important note on the EagleVail sales tax rate is that it will be temporarily reduced to .7% beginning January 1, 2020. This reduction for the year of 2020 will be reevaluated by the EagleVail Metro District Board as a part of the 2021 budget process.
If you have questions regarding the EagleVail sales tax, please contact Jon Erickson at 970-926-6060 ext. 101 or firstname.lastname@example.org. You can also visit the Colorado Department of Revenue website at https://www.colorado.gov/revenue.