City and
TAX GUIDE
Topic No. 70
SALES TAX
The Denver Revised Municipal Code (DRMC) imposes a 3.62%
sales tax on the purchase price paid or charged on retail sales, leases or
rentals of tangible personal property, and on certain services. Taxable
services include, but are not limited to, the sale or furnishing of telephone
and certain telecommunication services, electricity, steam and natural gas for
energy producing purposes, informational, and entertainment services.
Any person making taxable retail sales in
The purpose of the sales tax is to generate funds
for the payment of expenses of operating and improving the City and its
facilities and for the payment of principal and interest due on certain
municipal bonds.
Sales tax collected by the retailer is held in trust
for the City until remitted to the City. Taxes held by the retailer are public
funds and the property of the City
The retailer as collecting agent for the City, is
entitled to an allowance of one-half of one percent (0.5%) of tax collections
(the vendor's discount) when the remaining 99.5% of the tax collected is
remitted in a timely manner.
SPECIAL RATES
The DRMC imposes special tax rates for the following
sales at retail:
A. A four percent (4%) tax rate is imposed on the
sale of taxable food and beverages. Such taxable sales include food and
beverages served or furnished by or in any establishment which prepares or
serves the food and beverages for immediate consumption.
B. A four cent ($0.04) per gallon tax rate is
imposed on the sale of aviation fuel.
C. A seven and one quarter percent (7.25%) tax
rate is imposed on the rental of automotive vehicles for a period of thirty
(30) days or less.
RELATED TAX GUIDE TOPIC
Filing Periods
* DRMC Section 53-21 through 53-90. Sales Tax.
* Rules Implementing the Exemption for Certain Food and Drink under the
City Retail Sales and City Use Tax Article of the
* Rules Relating to Frequency of Periodic Sales and Use Tax Returns.