Colorado sales tax changes

On January 1, 2019, numerous local sales and use tax rate changes took effect in Colorado.

The Colorado Department of Revenue collects sales and use tax for some jurisdictions in the state, while in others, sales and use taxes are locally administered.

For specific details on exemptions, please visit the official sales tax change announment from the Colorado DOR.

The table below highlights city sales and use tax changes in Colorado taking effect January 1, 2019.

The table below highlights county sales and use tax changes in Colorado taking effect January 1, 2019.

The table below highlights special district sales and use tax changes in Colorado taking effect January 1, 2019.

The table below highlights self-collected sales and use tax changes in Colorado taking effect January 1, 2019.

Numerous changes affecting local sales and/or use tax take effect in Colorado on January 1, 2018. These include new exemptions, new sales or use taxes, and new rate changes.

Sales and use tax compliance in Colorado is notoriously complex because the state allows home rule. Home rule localities administer and collect their own taxes and can amend exemptions, so long as they only impose exemptions allowed by the state. As evidenced below, this can lead to a mind-boggling assortment of tax rates and exemptions.

The table below highlights city sales and use tax changes in Colorado taking effect January 1, 2018.

The table below highlights county sales and use tax changes in Colorado taking effect January 1, 2018.

The table below highlights special district sales and use tax changes in Colorado taking effect January 1, 2018.

The table below highlights self-collected sales and use tax changes in Colorado taking effect January 1, 2018.

State and local sales and use tax rates in Colorado are subject to change annually on January 1, 2017. 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.

Updated, 7.7.2016

Numerous local sales tax rate changes are scheduled to take effect in Colorado on July 1, 2016.

Cities and counties that have adopted a home rule charter impose and administer their own taxes. Most of the upcoming rate changes are in state-administered jurisdictions. However, one change is in a home rule city that administers and collects taxes itself: Woodland Park.

The jurisdictions below are listed with the July 1, 2016 tax rates.

Sales tax rate increases

• Bachelor Gulch MDT (special district tax): 5% sales tax, no use tax, numerous exemptions

• Eagle: 4.5% sales tax, 4% use tax, no exemptions

• Empire: 5% sales tax, 3% use tax, no exemptions

• Saguache: 4% sales tax, no use tax or exemptions

• Woodland Park: 4.09% sales tax, contact the city for information about use tax and exemptions

New sales and use tax exemption as of July 1

• Lincoln County: 2% sales and use tax, exempts farm equipment
• Rio Grande County: 2.6% sales tax, no use tax, beetle wood products exempt
• The following jurisdictions have all added an exemption for machinery and machine tools used for processing recovered materials
  • RTD: 1% sales and use tax
  • CD: 0.1% sales and use tax
  • Pikes Peak RTA: 1% sales and use tax
  • Roaring Fork RTA (Basalt and New Castle): 0.8% sales and use tax
  • Roaring Fork RTA (Carbondale and Glenwood Spring): 1% sales and use tax
  • Roaring Fork RTA (Aspen, Snowmass, and unincorporated Pitkin County): 0.4% sales and use tax
  • Roaring Fork RTA (certain areas of unincorporated Eagle County): 0.6% sales and use tax
  • South Platte Valley RTA: 0.1% sales and use tax
  • MHA: 0.125% sales and use tax
  • Aspen Park: 0.5% sales tax, no use tax
  • Bachelor Gulch: 5% sales tax, no use tax
  • Southwest Plaza: 1.5% sales tax, no use tax
  • Two Rivers: 4% sales tax, no use tax
  • Montezuma Hospital District: 0.4% sales and use tax

Expired tax rate

• Baptist Road RTA (special district tax): 1% sales and use tax, numerous exemptions

Additional information, including complete lists of applicable exemptions, is available on the Colorado Department of Revenue website.

State-collected city changes

• Bayfield is increasing sales tax to 3% (no use tax)
• Bennett is increasing sales tax to 4% (use tax 2%)
• Burlington is adding a sales tax exemption (use tax 2%)
• Fraser is increasing sales tax to 5% (use tax 4%)
• Lyons is increasing sales tax to 3.5% (use tax 3%)
• Ouray is increasing sales tax to 4% (no use tax)

State-collected county changes

• Alamosa County is increasing sales tax to 3%
• Chaffee County is increasing sales tax to 2.5%

State-collected special district tax changes (no use tax)

• Gunnison Valley RTA is increasing sales tax to 1% (no use tax)
• Moffat Local Marketing District is a new district with a sales tax rate of 4% (no use tax)
• Montezuma County Hospital District is a new district with a sales and use tax rate of 0.4%
• Southwest Plaza Metropolitan District is a new district with a sales tax rate of 1.5% (no use tax)

Self-collected city changes

• Colorado Springs is increasing sales tax to 3.12% (no use tax)
• Crested Butte is increasing sales tax to 4.5% (use tax 1.5%)
• Greeley is increasing sales tax to 4.11% (no use tax)
• Winter Park is increasing sales tax to 7% (no use tax)

For additional information, including service fees and a list of exemptions in effect in each area, see the Colorado Department of Revenue Sales Tax Rates.

There are several local sales tax rate changes in Colorado, effective July 1, 2015.

The Colorado Department of Revenue administers the following taxes:

• Georgetown is increasing sales tax. Effective July 1:
  • The sales tax rate is 4%.
  • The use tax rate for motor vehicles is 3%.
  • There are no exemptions.
• In Sedgwick County, the sales tax rate is 2% and the 2% use tax applies to motor vehicles and building materials. There is a 3 1/3% service fee, and effective July 1, the county exempts the following:
  • Food for home consumption
  • Machinery and machine tools
  • Occasional sales for charitable organizations
  • Farm equipment
  • Food sold through vending machines
  • Low-emitting vehicles
• Bachelor Gulch Metropolitan District is increasing sales tax. Effective July 1:
  • The sales tax rate is 4%
  • There is no use tax
  • The service fee is 3.33%
  • The following are exempt:
    • Food for home consumption
    • Machinery and machine tools
    • Gas, electricity, etc. for residential use
    • Occasional sales for charitable organizations
    • Farm equipment
    • Food sold through vending machines
    • Low-emitting vehicles
    • Renewable energy components
    • Beetle wood products
    • School-related sales
    • Biogas production system components
    • Property used in space flight

Finally, beginning July 1, Dacono is changing tax administration and will self-collect taxes. The sales tax rate in Dacono is 3%; use tax on motor vehicles and building materials is 3%; there is a 3 1/3% service fee and there are no exemptions. Additional information.

Numerous sales tax rate changes will take effect in Colorado on January 1, 2015.

Colorado is a home rule state. Citizens in municipalities that have adopted home rule have the full right of self-government in local and municipal matters and greater flexibility when seeking solutions to local problems--which can complicate sales tax compliance. There are currently 100 home rule municipalities in Colorado.

Below are a few of the jurisdictions that will see sales and use tax rate increases next year.

State-collected tax

• Brush: sales tax increases from 3.6% to 4%; use tax for motor vehicles and building materials increases to 4%.
• Idaho Springs: sales tax increases from 3% to 4%; use tax for motor vehicles and building materials is 3%.
• La Veta: sales tax increases from 3% to 3.5%. There is no use tax.
• Trinidad: the 4% sales tax is extended, as is the 4% use tax for motor vehicles and building materials.
• Boulder County: the general sales tax rate and the use tax for motor vehicles and building materials increases from 0.8% to 0.985%. There are numerous exemptions.
• Larimer County: the general sales tax rate and the use tax for motor vehicles and building materials increases from 0.6% to 6.5%. There are numerous exemptions (even more than in Boulder County).

Special district tax

• Aspen Park Metropolitan District, with a sales tax rate of 0.5%, is adding a vendor service fee of 3.33%.
• Bachelor Gulch Metropolitan District, with a sales tax rate of 3%, is adding a vendor service fee of 3.33%.
• Two Rivers Metropolitan District is a new taxing district, with a sales tax rate of 4% and a vendor service fee of 3.33%.

Each of the above special district taxes has numerous exemptions.

Self-collected tax

• Boulder: sales tax increases to 3.86%.
• Denver: sales tax increases to 3.65%.
• Longmont: the sales tax rate of 3.275% is extended.
• Windsor: sales tax increases to 3.95%.

Colorado Department of Revenue. Home rule cities that administer their own taxes may treat items differently than the state of Colorado; therefore it is always advisable to contact the cities directly for information regarding sales and use tax and exemptions.