The Colorado Department of Revenue plays a crucial role not only in collecting state sales and use tax, but also in managing sales tax on behalf of various cities, counties, and special districts within the state. These entities are designated as “state-collected.” With the exception of Denver County and Broomfield County, all Colorado counties that impose a sales tax fall under this state-collected category. This guide provides an overview of revenue management for local governments, focusing on sales and use tax regulations in Colorado.
Cities operating under a “home-rule” charter have the option to administer their own local sales and use taxes. These are termed “self-collected” jurisdictions. As self-collecting entities, they possess the autonomy to establish their own regulations concerning the goods and services subject to their local sales and use taxes. For specific details, these self-collected cities must be contacted directly.
Alt: The Colorado Department of Revenue headquarters building with the American and Colorado flags waving.
State Administered County and City Taxes
The state administers county and city sales taxes that it collects in a manner consistent with state sales tax. If a sale is subject to state sales tax, it is also subject to any applicable state-collected local sales tax. This streamlined approach ensures consistency and simplifies tax compliance for businesses operating across different jurisdictions within Colorado.
However, exceptions to this general rule exist. For detailed information on these exceptions, including specific local sales tax rates, consult the Colorado Sales/Use Tax Rates Publication (DR 1002). Further guidance on local sales tax regulations can be found in Part 8 of the Colorado Sales Tax Guide. These resources are essential for local governments to accurately assess and manage their revenue streams.
Alt: Screenshot of the Colorado Sales and Use Tax Rates Publication document, showcasing tax rates for various localities.
Self-Collecting Home-Rule Cities
It’s important to remember that home-rule cities that collect their own local sales and use taxes may have different guidelines and requirements. Direct communication with these cities is crucial for accurate information. A comprehensive list of home-rule cities and their contact information is available in DR 1002. This resource is vital for understanding the nuances of revenue collection in these self-governing municipalities.
Verify Sales Tax Rates
To access up-to-date sales tax rates, utilize Revenue Online. This online platform provides a variety of tools and resources for local governments:
- View sales tax rates by specific city or county.
- View sales tax rates applicable to specific business locations.
- Calculate tax amounts for purchases ranging from $0.01 to $100 and search local sales tax rates by address.
Sales tax rates are also conveniently available in the Colorado Sales/Use Tax Rates Publication (DR 1002), which is updated bi-annually on January 1st and July 1st.
Alt: The Revenue Online platform displaying an interface to look up sales tax rates by location.
For a more detailed walkthrough, visit the How to Look Up Sales & Use Tax Rates web page.
Resources for Local Governments
The Colorado Department of Revenue provides a dedicated Local Government page designed to assist local governments and provide relevant information. This page serves as a central hub for resources, updates, and guidance pertaining to revenue management and tax administration for local entities.
By understanding these guidelines and utilizing the available resources, local governments in Colorado can effectively manage their revenue streams and ensure compliance with state and local tax regulations. This ultimately contributes to the financial stability and well-being of their communities.
