Pitkin County Commissioners direct staff to reduce fees associated with short-term rentals
Ray K. Erku/The Aspen Times
During a work session on Jan. 21, Pitkin County Commissioners reviewed the effectiveness and financial outcomes of the county’s Short-Term Rental (STR) licensing program, implemented in Sept. 2022 under the STR Code.
The discussion reflected a comprehensive assessment of the program’s operational trends, revenue patterns, and areas for potential improvements. The County Commissioners opted to move forward with directing staff to update the change in fees.
The STR Code was originally adopted in June 2022 to regulate rental activity across unincorporated Pitkin County. Over time, amendments have refined its scope, such as prohibiting STR licenses in rural and remote zones and adjusting minimum rental periods in the Village Commercial district.
These adjustments, according to the county, reflect the county’s evolving priorities and challenges in balancing economic opportunities with community impacts.
Data presented during the session showed a gradual decline in STR license applications since the program’s inception, which Pitkin County Commissioner Greg Poschman acknowledged.
“It sounds like the trend of short-term rentals is declining. It does not seem like it’s a growing thing anymore,” Poschman said. “That is nationally. It surged, but now it is tapering off.”
Jeanette Muzio, short-term rental license administrator, said that the reports that have come out show that unless a person’s home is in a higher bracket, with all the fees and taxes, it is not equitable for lower-value homes to do short-term rentals.
In 2022, 133 applications were submitted, compared to 93 in 2023 and 87 in 2024. Issued licenses mirrored this trend, with 93 granted in 2022, 73 in 2023, and 74 in 2024. Despite this decline, the program generated steady revenue, though actual figures in 2023 and 2024 fell short of budgeted projections.
For instance, while the program was expected to generate $300,000 annually, it brought in $282,662 in 2023 and $268,271 in 2024. Expenses for the program also fluctuated, influenced by staffing adjustments and operational priorities.
One of the key issues discussed was the fee structure tied to property values.
The current model, based on 2022 total property values, has led to disparities. For example, fees for high-value properties on Red Mountain are significantly reduced when using 2024 improvement values instead of total property values. Conversely, this adjustment could result in modest increases for other properties, such as those in the Crystal River Valley.
Staff recommended updating the fee structure to reflect the 2024 values, with a reduced fee percentage of (.02%, .03%, .04%) rather than using the 2022 values and the existing fee structure of (.05%, .06%, .07%), updating the fee structure to reflect improvement values from the most recent assessment year, coupled with a slight reduction in percentage rates to balance affordability and program funding. This led the county commissioners to approve staff’s request to lower the fee structure.
Enforcement remains a central focus, with 26 code enforcement cases opened in 2024 and 20 resolved. Common violations include unlicensed activity, exceeding maximum rental days, and misrepresenting minimum night stays.
The commissioners discussed aligning enforcement practices more closely with the county’s Land Use Code, suggesting penalties such as double fees for repeat offenders and clearer guidelines for license suspensions or revocations.
Other topics included public noticing standards, which currently allow a two-week comment period for license applications. Staff proposed extending this to 30 days and introducing measures like on-site signage to align with broader land use practices.
Additionally, discussions touched on offering two-year licenses for compliant property owners, reduced fees for owner-occupied rentals, and updated naming conventions for seasonal licenses to better reflect rental allowances.
Commissioners emphasized the need for ongoing adjustments to address emerging challenges, such as balancing program costs with community impact. However, any changes will await further input from studies like the STR impact fee analysis currently underway.
County Commissioner Jeffrey Woodruff asked if there was a fiscal impact that needed to go back to the budget or if changes had a net-neutral impact.
Staff said that with the current revenue trends, expenditures will be covered by the budget, leaving money left in the case that certain individuals decide to no longer offer short-term rentals. Operational costs for the county’s short-term rental program have also been reduced by dropping the number of full-time employees from two down to one.
The county hopes that by reducing the fees associated with short-term rentals, more people will sign up for permits and reduce the number of violations that are associated with unlicensed rentals.
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