The Crested Butte News Serving the Gunnison Valley since 1999
Pays for everything from a new inspector to stamps
By Mark Reaman
The new fee structure for Crested Butte’s Short-Term Rental (STR) program has been set. The board voted on September 5 to charge $750 for the unlimited licenses and $200 for the license that would go to primary residents.
Since it is a fee rather than a tax, the money collected must have a nexus to the purpose for the fee. In this case, the money raised will go toward running the STR licensing and inspection program that includes staff, software and postage for notifications. It is estimated the program will cost the town about $160,000 per year.
The council set up a short-term rental program where homeowners in town can obtain one of two licenses.
The first allows rentals for an unlimited number of nights throughout the year. But the council put a cap on that type of license so that no more than 30 percent of the homes in town can get such a permit.
The second type of vacation rental license is geared toward people who want to rent their primary residence in Crested Butte. That license has a 60-day limit on the number of nights the home can be rented.
People applying for the unlimited licenses must do so between November 1 and December 31. Licenses for permanent residents can be applied for anytime during the year.
“We want to ensure good customer service with the vacation rentals in town,” said Crested Butte community development director Michael Yerman. “We will be inspecting people’s homes with the goal to make sure the user experience is a safe experience.”
Those obtaining the unlimited license will have to pay for two years, so they will see a $1,500 charge. That is meant to protect bookings that extend beyond one year.
The staff had originally recommended a $250 fee for the permanent residence licenses. They expect the majority of the licenses to go to the unlimited.
“I think a lot of people will stop doing short-term rentals at the unlimited level when they have to pay $1,500,” predicted councilman Paul Merck. “I think it will cause an issue and this will shake out some people. The cost was basically $100 before this with a business license. When the economy slows down it could be a problem. I don’t care for the $1,500 fee.”
“The fees are there to pay for the administration,” said councilman Chris Ladoulis. “If that is what it costs to administer the program and keep it safe, so be it.”
“It is a significant jump from a business license and $10 per pillow,” added councilwoman Laura Mitchell. Yerman said just the postage for the required notification of neighbors would be significant.
“The $250 seems steep for someone just hoping to rent five or six nights a year,” said councilman Roland Mason. “The $750 for unlimited makes sense but I’d like to drop the other one a bit.”
Yerman said that should not be a problem because the majority of licenses are expected to go toward the unlimited category.
“We will know a lot more a year from now,” said town manger Dara MacDonald.
The council voted 6-1 to set the fees at $750 and $200, with Merck voting against it.
The fees become part of the town fee schedule and are reviewed annually by the council during the budget process.
