Treasury Division

Frequently Asked Questions

Sales Tax - Explanation and Rate

What are the Denver sales/use tax rates?

Sales/use tax rates (effective January 1, 2007)

Sales, rental or lease of tangible personal property:       3.62%

Exceptions:

Short term car rentals:                                                7.25%

Food, beverage and liquor sales:                                  4.0%

Aviation fuel:                                                              $.04 per gallon

What is a sales tax?

Sales tax is imposed on the purchase price of retail sales, leases, or rentals of tangible personal property, and certain taxable services that are purchased or performed in Denver or are delivered to, stored, or used in Denver.

What services are taxable in Denver?

Services that are taxable when performed in Denver include, but are not limited to:

• Informational and entertainment services

• Software charges

• Cover charges, entrance fees, mandatory tips and gratuities (related to food and drink)

• Telecommunications services

• "Energy producing" services (electric, gas, steam, etc.)