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Colorado sales tax changes, July 2017

  • Jun 19, 2017 | Gail Cole

 Upcoming Colorado sales tax changes affect recreational marijuana.

Two sales and use tax changes are set to take effect in Colorado on July 1, 2017. One will only affect Boulder County. The other is a statewide change affecting recreational marijuana.

In the Boulder County Local Improvement District (LID), food for home consumption, telephone and telegraph services, and gas and electricity for residential and commercial use will no longer be exempt. They’ll be subject to a 1 percent local sales tax beginning July 1. Boulder County LID does not levy a local use tax.

Retail sales of marijuana throughout Colorado will no longer be subject to the 2.9 percent general state sales tax as of July 1. However, the overall rate of tax on recreational marijuana will actually increase by 2.1 percent, as an additional state sales tax on cannabis jumps from 10 to 15 percent.

Keeping up with sales and use tax rate changes is a bear in all states, but even more so in Colorado, where home rule jurisdictions can adopt their own product taxability rules. Sales tax software helps businesses simplify the complex world of sales tax compliance. Learn more.

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.