Short-Term Rentals Account For Nearly One-Third Of Breckenridge Taxes

In 2016, the Town of Breckenridge collected a total of $29.8 million in excise tax. Of that total, $8.7 million came from short-term rentals. The Breckenridge Tourism Office also reported that in 2016, vacation visitors contributed $313 million — almost a 1/3 of a billion dollars — to the Breckenridge economy between lodging and other purchases. The total tax collected on this amount was $14 million.

This means that in 2016: 

• 29.4 percent, or nearly one-third of all city taxes, came directly from short-term rentals.
• 46 percent of tax collected by the Town of Breckenridge can be attributed to the lodging industry and the businesses that rely on visitor spending.

As Summit County debates how to regulate short-term rentals, lodging industry experts remind officials to bear in mind that lodging brings in more tax revenue than any other business segment and contributes greatly to the economic stability of the area.

“We fully support healthy guidelines that promote harmonious relationships between locals and visitors,” said Mary Waldman, owner of Summit Mountain Rentals, a property management company based in Breckenridge. “In fact, we’d love to be part of the conversation. We believe our input could assist in crafting constructive, fair regulations for vacation rentals.”

This information comes amid reports that the short-term rental market continues to grow in Colorado and Breckenridge in particular. Airbnb recently released data showing Breckenridge as its second-highest home-sharing market in Colorado behind Denver. The report shows that in 2017, 89,000 Airbnb guests visited Breckenridge and paid $16.5 million in rent.

Breckenridge is the only municipality in Summit County with existing regulations for short-term rentals. A recent audit of the Town’s short-term rentals found that 98% of vacation-rental properties are in compliance with all regulations.

“Professional property managers such as Summit Mountain Rentals have been welcoming visitors to the area for decades,” said David Burden, Regional Manager with Airbnb. “They are partners in promoting responsible tourism to the communities they serve and are committed to playing a vital role in the local economy."