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Colorado sales tax rate changes, January 2017


 Colorado announces sales tax changes for January 2017.

State and local sales and use tax rates in Colorado are subject to change annually on January 1 and July 1. According to the Colorado Department of Revenue (DOR), numerous rate changes are set to take effect at the start of 2017.

In many states, use tax rates are the same as sales tax rates. However, they are often different — sometimes extremely different — in Colorado. Since Colorado allows home rule, exemptions vary by locality and are therefore usually included in rate change information.

The DOR categories rate changes as follows: state-collected changes (city, county, and special districts), and self-collected changes (city, county, and special districts). Changes taking effect on January 1, 2017 are below.

State-collected taxes

City changes

  • Dillon is extending the 2.5% sales tax; no use tax or exemptions.
  • Johnstown is adding a 0.5% Public Improvement Fee (PIF) sales tax. The use tax rate is 3% and there are no exemptions.
  • Grand Lake is increasing the sales tax rate to 5%; no use tax or exemptions.
  • Palmer Lake is extending the 3% sales and use tax rate. There is an exemption for food for home consumption.

County changes

  • Boulder County is extending the 0.985% sales and use tax It allows an exemption for the following:
    • Food for home consumption
    • Machinery and machine tools
    • Gas, electricity, etc., for residential use
    • Renewable energy components
  • Grand County will increase sales tax to 1.3%, no use tax or exemptions.
  • Jackson County is extending the 4% sales tax; no use tax or exemptions.

Special district changes

  • Edwards Metropolitan District will have a new 1% sales tax; no use tax; all possible exemptions except motor vehicles and building materials.
  • San Miguel Authority for Regional Transportation will have a new 0.25% sales tax; no use tax; all possible exemptions except motor vehicles and building materials.
  • Scientific and Cultural Facilities District is extending the 0.10% sales and use tax; all possible exemptions except motor vehicles and building materials.
  • Summit Multi-Jurisdictional Housing Authority is increasing sales tax to 0.725%; the use tax rate is 0.125%; all possible exemptions except motor vehicles and building materials.

Self-Collected taxes

City changes

  • Black Hawk will increase sales tax to 6%; use tax rate 4%; contact the city directly for exemptions.
  • Canon City is increasing sales and use tax to 3%; contact the city directly for exemptions.
  • Steamboat Springs is decreasing sales and use tax to 4.5%; contact the city directly for exemptions.
  • Wheat Ridge will increase sales and use tax to 3.5%; contact the city directly for exemptions.

For additional information, including any applicable service fees, see the Colorado Department of Revenue’s Tax Memorandum, Local Tax Changes.

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photo credit: Dalai Lama Open your arms to change, but don't let go of your values via photopin (license)


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.