Vail's Short-Term Rental Tax Gap Came Down to 35 Votes
If you buy a Vail condo that is already licensed as a short-term rental, the license stays with the seller. Under the Town of Vail's rules, every short-term rental needs its own current license, and that license can't be transferred. The town's current licenses all expire February 28, 2027. A buyer who closes this winter applies for their own license and then renews within a few months.
The license is the simple part. The bigger number on a Vail rental is the tax added to each guest's bill, and for 2026 that number comes from a very close local election. Vail now has a lighter guest tax on short-term stays than Avon or Beaver Creek. A few dozen ballots produced that gap, and the town has said it will look at the question again.
On November 4, 2025, Vail voters considered Ballot Issue 2A. It would have added a new 6% excise tax on short-term rentals to fund housing, starting January 1, 2026. The Colorado Sun reported the final count after ballots were cured: 916 no, 881 yes. The measure failed by 35 votes.
The same night, Eagle County's Ballot Issue 1A went the other way. It raised the county lodging tax from 2% to 4% on stays under 30 days. Vail Daily reported that it applies in Gypsum and unincorporated Eagle County, including Beaver Creek, Bachelor Gulch, Edwards and EagleVail. The certified count was 4,139 yes and 4,057 no, an 82-vote margin. The increase took effect January 1, 2026.
Neither vote was close to a landslide. Together they moved the tax gap between Vail and the communities around it. Before 2026, Vail's guest tax was higher than the unincorporated baseline by 3.9 points. Now it is higher by 1.9 points. Had 2A passed, Vail would have the highest rate in the group.
The table adds up the published rates for each location as of October 2026. Dollar amounts are simple math on a $1,000 lodging charge. They are not quotes for any actual property.
| Location | Rates that apply | Total | On $1,000 |
|---|---|---|---|
| Town of Vail | State 2.9%, Eagle County 1.5%, RTA 0.5%, Vail 4.5%, Vail Local Marketing District 1.4% | 10.8% | $108 |
| Unincorporated baseline | State 2.9%, county 1.5%, RTA 0.5%, county lodging 4% | 8.9% | $89 |
| EagleVail or Edwards | Baseline plus 1% district tax listed for each | 9.9% | $99 |
| Avon, residential STR | State, county and RTA 4.9%, Avon sales 4%, accommodations 4%, STR housing tax 2% | 14.9% | $149 |
| Beaver Creek | Baseline plus Beaver Creek Resort Company assessments of 5.35% and 0.96% | about 15.2% | about $152 |
| Vail if 2A had passed | Current 10.8% plus 6% | 16.8% | $168 |
Vail's sales-tax schedule has been effective since January 1, 2023. Its 1.4% marketing district tax dates to a 1999 election. Avon's 2% applies only to residential property rented for fewer than 30 days. Avon voters approved it in November 2021, 792 to 326. Avon's finance FAQ confirms the 4% sales tax and 4% accommodations tax, but the pages we reviewed don't show an effective date. A current confirmation from the Town of Avon is worth getting before you build a pro forma.
The Beaver Creek total is a starting point, not a final number. The state says the baseline should be checked against each address's special-district boundaries. Bachelor Gulch is the clearest example. The state's DR 1002 table lists a 5% district rate there, but the Bachelor Gulch Village Association's own guidance uses 3.2% in its example. The association also charges a separate 5% civic assessment on stays under 30 days. Look up the specific address before you trust any total for a Bachelor Gulch property.
A tax rate on paper and a tax that actually gets paid are separate questions. The difference lands on the owner.
Under Colorado's rules, a marketplace facilitator handling a booking collects and remits state and state-administered sales taxes, county lodging taxes and local marketing district taxes. Vail has adopted marketplace-facilitator rules for its own home-rule tax. For platform bookings, the platform handles the Vail tax. For direct bookings, the owner is responsible. Eagle County's lodging tax is administered by the Colorado Department of Revenue, and the return is filed quarterly.
Beaver Creek works differently because the Resort Company's charges are assessments, not government taxes. The Beaver Creek Resort Company says a property manager usually collects and remits them, but "it is the property owner's responsibility to make sure the assessments are being paid." When assessments go unpaid, the BCRC may send a letter of intent to lien the property. An owner who rents a home or condo more than four days in a month also needs a Lodging Beaver Creek Business License. Bachelor Gulch's association adds a receipt rule: its civic assessment is not a tax and can't be lumped in with taxes on the guest's receipt.
Inside Vail, the full guest-side stack is on one town rate sheet. The town's sheet also lists where each piece is remitted. Vail sales tax goes through MUNIRevs. State, county and RTA taxes go through Revenue Online. The marketing district tax is filed on Form DR-1490.
Licensing follows a similar pattern. Vail charges $260 for an individual-owner or professional-manager license. Properties with an on-site front desk around the clock pay $50. The town also requires:
Avon's fee sheet prices a Full license by unit size: $350 for a studio or one-bedroom, $400 for a two-bedroom and $450 for a three-bedroom. A Resident Occupied license is $150. Eagle County went the other direction. At its May 13, 2025 meeting, the Board of County Commissioners decided not to adopt a county short-term rental ordinance, which leaves regulation to metro districts and HOAs. In Edwards or EagleVail, the HOA documents often decide whether you can rent at all, more than any county rule does.
Vail's lower total is not locked in. On February 17, 2026, Housing Director Jason Dietz and Senior Housing Coordinator Robyn Smith presented a 2026 housing strategy memo at a joint Town Council and Vail Local Housing Authority session. One listed item is to "evaluate lodging and STR-based revenue options, informed by legal constraints, ballot history, and stakeholder engagement." The same memo explains why the town is looking for steadier funding. In 2025, Vail InDEED acquired two deed restrictions, bringing its total to 178. Staff wrote that the program "continues to be impacted by the rise in interest rates and the decline in inventory."
The agenda asked Council for discussion and policy direction. It did not ask for a vote on a tax. Our research did not turn up a Vail STR or housing tax question for the November 3, 2026 ballot, and the town's published ballot contents were not available to confirm it either way. The Vail town clerk can confirm what is on the ballot. The Council that would take up any future proposal is Mayor Barry Davis, Mayor Pro Tem Reid Phillips, and Councilmembers Sam Biszantz, Dave Chapin, Kevin Foley, Kim Langmaid and Jonathan Staufer.
The town's newer housing tools all point toward local occupancy. Good Deeds Vail, announced in April 2026 with the Eagle County Housing and Development Authority, offers up to a combined $375,000 for a price-capped deed restriction on Vail homes priced up to $1.25 million. The buyer must live in the home as a primary residence. Vail InDEED pays 20% of market value for a deed restriction that limits occupancy to people who work in Eagle County. These programs can't be used for a short-term rental. They show where the town's housing money is going, and the February memo connects that funding question to STR revenue.
A few points of tax matter more when bookings are tight. The latest local and regional pacing data point in different directions. Vail Daily reported on July 29, 2026 that Vail and Beaver Creek occupancy for May through October was pacing about 1% to 2% ahead of 2025 as of June 30. Chris Romer of the Vail Valley Partnership said it was too early to read the 2026–27 winter. Inntopia's September 15 DestiMetrics briefing reports aggregated figures across the destinations it tracks, not Vail alone. As of August 31, it showed November through February occupancy on the books down 5.6% and early-winter revenue down 4.7%, and it said the booking season was still early. Romer pointed to October and November data as more meaningful. Those are the months when a new buyer would be setting first-season rates.
No. Vail licenses can't be transferred, so the new owner applies for their own. Current licenses expire February 28, 2027.
According to the county's October 2025 update, no. The commissioners chose not to create a county ordinance, so metro districts and HOAs set the rules.
No. The 4% county lodging tax covers unincorporated Eagle County and Gypsum. Vail and Avon have their own lodging taxes.
No. These are published guest-side rates as of October 2026. Before buying, check the specific address with the Colorado Department of Revenue's rate lookup and talk with a qualified tax advisor.
If you're comparing a Vail condo with one in Beaver Creek, Avon or EagleVail as a short-term rental, Brooke Gagnon and Bloom Group Vail can put the license timing, association assessments and the full guest tax stack for each address side by side before you write an offer. Request a market consultation and bring the addresses you're considering.
Her vast knowledge of the area coupled with her international experience allows her to assist all local, second homeowner and international clientele alike. Contact her today!
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