Colorado’s 700 Sales Tax Rates
- Tax Tips
- May 14, 2014 | Gail Cole
More than 700. That’s how many sales tax rate combinations exist in the state of Colorado Department of Revenue. That’s how many rates businesses selling throughout Colorado need to juggle.
Finding the right rate can be a daunting task. Rates arise from a combination of the state rate of 2.9% plus various county, city and special district rates. Is your Denver customer located in Denver’s Regional Transportation District? Football Stadium District? How about Denver’s Scientific and Cultural Facilities District? Each has a special district sales tax. Oh, and each allows numerous exemptions—though not all special districts exempt alike.
Confused? It’s the tip of the iceberg.
Businesses that fail to collect and remit the proper rate of sales tax risk negative audit findings. The Department of Revenue reminds taxpayers to always “find the correct sales tax rates your business should be collecting and reporting,” and directs taxpayers to Revenue Online.
But there’s an easier way.
Sales tax automation calculates rates down to the roof-top and seamlessly manages sales tax exemptions. Learn how it works.