Airbnb sues Colorado over $10.5M tax bill after losing Boulder case
Following a previous legal battle in Boulder, Airbnb is now taking legal action against the state of Colorado in an effort to contest $10.5 million in unpaid taxes.
The California-based company disputes all amounts claimed due, including taxes assessed and any potential interest or penalties. The crux of the issue lies in Airbnb’s collection and payment of taxes on nightly rental charges but not on the guest fee, which has led to conflicts with state and local governments.
In a similar case in 2023, Airbnb sued the City of Boulder over a $500,000 tax bill related to guest fees, ultimately losing the case. Subsequently, the Colorado Department of Revenue conducted an audit and sent Airbnb a $10.5 million bill for unpaid sales and lodging taxes from 2018 to 2021. Airbnb responded by filing a lawsuit against CDOR on September 18.
The lawsuit contends that no statute authorizes the application of taxes to the guest fee, leaving Denver District Judge Ian Kellogg to determine the validity of this claim. Airbnb’s legal representation includes Mark Medina and Michelle Bush from Silverstein & Pomerantz, while CDOR will be represented by the Colorado Attorney General’s Office.
As the legal proceedings unfold, the Department of Revenue has refrained from commenting on the ongoing litigation. This development was reported by BusinessDen, a trusted news source in the business community.
For more business news updates, sign up for the Economy Now newsletter to stay informed. The original publication date of this article is September 23, 2025 at 12:17 PM MDT.
