Thinking about listing your Larkspur cabin or acreage as a short-term rental? You are not alone. Many owners want a little income without risking a violation. In this guide, you will learn what is allowed near Larkspur, how licensing works, which taxes apply, and the key risks to plan for. Let’s dive in.

Short answer

Yes, you can operate an STR near Larkspur, but it depends on where your property sits, your zoning, and whether any HOA rules apply. If you are in unincorporated Douglas County, you generally need a county Short-Term Rental License and must follow the county ordinance and rules listed on the county’s STR page. See the county’s official program overview for eligibility, fees, and compliance steps on the Douglas County Short-Term Rentals page. For properties inside the Town of Larkspur, local reporting indicates the town focuses on collecting a 4% sales tax and a 6% lodging tax rather than running a separate STR license program.

• County STR program details: review Douglas County’s Short-Term Rentals program page for the latest rules and forms. Douglas County STR program
• Town taxes: local reporting cites a 4% town sales tax and a 6% lodging tax inside Larkspur. Local reporting on Larkspur taxes

Town vs county rules

Your first step is to confirm jurisdiction. Are you inside Larkspur town limits or in unincorporated Douglas County? The county regulates STR licensing in unincorporated areas, while the town has focused on tax collection.

• Inside Larkspur town limits: plan to collect and remit the town sales tax and lodging tax noted in recent local reporting. Always confirm current practice with the Town Clerk.
• In unincorporated Douglas County: you must secure a county STR license if your zoning allows the use. The county ordinance also recognizes that HOAs can prohibit STRs, and dwellings in Planned Development zones cannot be licensed unless the PD document expressly allows STRs. Douglas County STR ordinance PDF

Douglas County licensing essentials

If your property is in unincorporated Douglas County and eligible by zoning, a county license is required for stays under 30 days. Licenses renew annually, and the county has enforcement authority.

What you will typically need:

• Completed application and fees. The county lists a first-year review fee, a license issuance fee, and a renewal review fee. Verify current amounts on the Douglas County STR program page. County STR program
• A notarized Local Responsible Agent declaration. This must identify a 24/7 contact for complaints and emergencies.
• Life-safety compliance. Affidavits and, in many cases, inspections or confirmations from the Building Division and Health Department, especially if you have a septic system.
• Parking and guest rules. Interior signage with occupancy, parking, trash, and emergency info, plus written instructions for guests.

Taxes and reporting

Taxes vary by location and platform, so plan ahead.

• Town of Larkspur taxes: local reporting indicates a 4% municipal sales tax and a 6% lodging tax inside town limits. Confirm current rates with the Town before hosting. Local reporting on Larkspur taxes
• State and local sales tax registration: most hosts register with the Colorado Department of Revenue and collect state and applicable local taxes. The state’s DR 1002 listing shows Larkspur’s 4% municipal rate for reference. Colorado DR 1002 municipal list
• Platform collection: some platforms collect and remit certain taxes, but not always all of them. Confirm what your platform covers, then register for any missing taxes.

Property tax classification to watch

The Colorado legislature has considered and advanced bills that could change how many STRs are classified for property tax, especially non-owner-occupied properties used as commercial lodging. If enacted, some rules could shift STRs from residential to lodging classification, which may increase the assessed value and total taxes. Keep an eye on legislation such as HB24-1299, since changes could affect net income and future sale decisions. Colorado HB24-1299

Practical checklist

Use this quick list to structure your due diligence and setup.

1. Confirm jurisdiction and zoning. Check whether the parcel is inside Larkspur town limits or in unincorporated Douglas County, and verify zoning allows STR use. County STR program
2. Check for PD or HOA limits. If your property is in a Planned Development or an HOA that bars STRs, you cannot operate, even with a county license. County STR ordinance PDF
3. Prepare the county application. Gather the Local Responsible Agent declaration, parking plan, life-safety affidavits, and any required inspections. County STR program
4. Register for taxes. Inside town limits, plan for municipal sales and lodging taxes. Use the state’s DR 1002 to review sales tax rates and register as needed. Local reporting on Larkspur taxes | Colorado DR 1002 municipal list
5. Set up guest rules and insurance. Create clear house rules and interior signage, confirm occupancy and parking limits, and ensure your policy covers STR use.

Risks and enforcement

Colorado law now gives counties more tools to regulate and enforce STR rules, including the ability to require platforms to display local license numbers and remove unlicensed listings after proper notice. That means operating without a license risks takedowns, fines, and formal enforcement. Review HB23-1287 for the county authority framework. Colorado HB23-1287 You can also see how counties are putting this into practice in news coverage of platform removal authority. News example on platform removals

Buying or selling with STR goals

If you want to buy with STR potential or sell a home you have hosted, factor in licensing eligibility, PD or HOA restrictions, current and future tax obligations, and the ongoing compliance costs. A clean file of permits, inspections, and tax registrations can help buyers feel confident. The right plan can protect your income and your resale value.

Ready to evaluate a specific address or build a smart go-to-market plan? Reach out to Dolby Haas for practical, local guidance across Douglas County and the Front Range.

FAQs

Can I run an STR inside Larkspur town limits?

• Local reporting indicates the Town focuses on collecting a 4% sales tax and a 6% lodging tax; confirm current rules with the Town Clerk. Local reporting on Larkspur taxes

Do I need a license in unincorporated Douglas County?

• Yes, most STRs under 30 days require a county Short-Term Rental License and annual renewal. Douglas County STR program

Are STRs allowed in Planned Development zones?

• Not by default; dwellings in PD zones cannot be licensed unless the PD document expressly permits STR use. County STR ordinance PDF

Can my HOA block me from hosting?

• Yes, HOA covenants can prohibit STRs, and a county license does not override HOA restrictions. Douglas County STR program

Which taxes apply to STRs near Larkspur?

• Expect state sales tax plus local taxes based on location; inside town limits, local reporting cites a 4% municipal sales tax and a 6% lodging tax. Colorado DR 1002 municipal list | Local reporting on Larkspur taxes

What are the penalties for operating without a license?

• Counties can enforce through fines and can ask platforms to remove unlicensed listings under HB23-1287. Colorado HB23-1287