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Colorado’s 700 Sales Tax Rates

  • May 14, 2014 | Gail Cole

 Denver alone has three city sales tax rates.

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.

Home rule

Colorado is a home rule state, and home rule localities typically administer their own taxes. Businesses remitting sales tax must therefore file multiple forms in multiple locations.

Audit risk

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.

photo credit: casey.reynolds via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.