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Fees and Sales Tax

 
When you purchase a vehicle, you are responsible for payment of sales tax, ownership tax and license fees. Denver Motor Vehicle does not provide official estimates of the taxes and fees required to register a vehicle in the State of Colorado. 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.
 
Note: This site is used to calculate an estimate and may not result in the exact amount you may owe to register your vehicle. To find out the exact amount of your taxes and fees, visit any Denver Motor Vehicle branch office with all of your title documents.

Requirements and Statutes
 

Sales Tax is calculated on the net purchase price (which is the total purchase price less the amount allowed by a dealer for any trade-in).

The rate of tax for 

 

Denver County residents is as follows:   

 

 Tax  Rate
 Colorado State tax  2.90%
 RTD tax                  1.10%
 Denver City tax  3.62%
 TOTAL SALES TAX  7.62%

  

EXAMPLE #1: Sales tax to be paid in 2002 on the purchase of a 1998 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance.

 

$17,000 - $2,000 = $15,000 x 7.62% = $1,143.00

 

Of the $1,158.00 in sales tax, $435.00 is allocated to the State of Colorado, $543.00 is allocated to the City and County of Denver of and $180.00 is allocated to the Regional Transportation District (RTD)

 

Ownership Tax is a personal property tax based on the taxable value of your vehicle. The taxable value of a vehicle was calculated as a percentage of the Manufacturers Suggested Retail Price (MSRP) when the vehicle was brand new. This value remains constant throughout the life of the vehicle. (See Example #2 below)

 

The percentage applied to your MSRP depends on the vehicle type. The Manufacturers Suggested Retail Price (MSRP) of a vehicle is not the same as the purchase price.

  

 Vehicle Type  Taxable value
 Trucks and Trailers  MSRP x 75%
 Passenger vehicles   MSRP x 85%
 Motorcycles  MSRP x 85%

 

The ownership tax rate is based on the age of the vehicle from the date of manufacture. The ownership tax is calculated by multiplying the taxable value by the tax rate. (See Example #2 below)

  

                                                  

Vehicle Age Tax Rate
1st year 2.10% 
2nd year  1.50% 
3rd year       1.20% 
4th year 0.90% 
5th-9th year  0.45% 
10th year and older  Flat fee of $3.00 

 

 EXAMPLE #2: Ownership tax in 2002 for a 4 year old 1998 passenger vehicle with an MSRP of $20,000.  

 

 Ownership Tax = Taxable Value x Tax Rate

                               = (MSRP x 85%) x Vehicle Age (4th year) Tax Rate (0.90%)

                              = ($20,000 x 85%) x 0.90%

                              = $153.00

  

 License fees are those fees paid to license your vehicle within the State of Colorado. The combination of license fees and ownership tax is what you pay each year to register your vehicle. License fees are based upon the year, weight, taxable value and the date of purchase of the vehicle and, for most passenger vehicles, average between $60.00 and $85.00 per year.  

 

For more information please contact us or visit any Denver Motor Vehicle branch office.

 
Page revised January 24, 2012

 

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