Motor Vehicle
Fees and Sales Tax
HISTORY AND EXPLANATION
The fees paid by you, to license your motor vehicle in the State of Colorado are based upon the year, weight, taxable value and the date of purchase.
The total combined sales tax for Denver residents is 7.72% of the purchase price. Sales taxes are calculated on the net purchase price (total purchase price less the amount allowed by a dealer for a trade-in, if any; no trade-in deduction is allowed if the sale is not by a licensed dealer). The purchaser must pay the sales tax to the seller if the seller is licensed and authorized to collect and remit the tax to Denver and to the State. If the seller is not licensed and authorized, the purchaser shall pay the use tax directly to the Denver Motor Vehicle Division.
REQUIREMENTS AND STATUTES
Until the tax is paid, no certificate of title or registration certificate or license plates will be issued for the vehicle.
The rate of tax for residents of Denver County is as follows:
*State tax 2.9%, RTD tax 1.2% and Denver tax 3.62% for a total of 7.72%.
*Sales tax is not included in the fees to register your vehicle.
If you are leasing a vehicle, the sales tax can be written into the lease agreement. The leasing company is required to submit a monthly sales tax report to the appropriate tax authorities. If the vehicle was leased out-of-state, taxes may be due at the time of registration in Colorado.
Vehicles given as gifts may be required to complete an “Affidavit of Gift or Trade” (MV3). If the gift is from an immediate family member, it is tax exempt in most incidences. If there is no relationship between the two parties a total of 3.62% Denver sales tax is due. This is based on the wholesale value of the vehicle published in the Kelly Blue Book.
*The weight and year of the vehicle determines the license fees.
*The year of the vehicle and the taxable value determine the ownership fee.
*The taxable value is determined from the MSRP (Manufacturers Suggested Retail Price). This is calculated depending on the type of vehicle.
*If the vehicle is a truck or trailer, the calculation to determine the taxable value is 75% of the MSRP.
*All other vehicles are calculated at 85% of the MSRP.
Ownership fees are based on:
*the taxable value
*the date of purchase
*year of manufacture.
The taxable value of your vehicle remains with the vehicle for life. As the vehicle gets older the percentage used to calculate the ownership fees decrease. The license fee is based on the weight of the vehicle and the year of the vehicle.
CALCULATION TABLE FOR OWNERSHIP FEES
Year of Service Rate
1st Year 2.1%
2nd Year 1.5%
3rd Year 1.2%
4th Year .9%
5th - 9th Year .45%
10th Year and older $3.00
REGISTRATION OF YOUR VEHICLE
If you receive a Title Complete Notice in the mail, your paperwork has been received and you can register your vehicle. You must bring the notice to the Denver Motor Vehicle office nearest you.