Rate & Definition

  1. What are the Denver sales/use tax rates? 
  2. What is a sales tax? 
  3. What services are taxable in Denver?
  4. My business makes sales in Denver but we are located in another state.  What is the requirement for collecting Denver sales tax? 
  5. How long do I have to keep my sales tax records?
  6. What sales tax should I charge when I deliver items to customers to their residence or business location outside Denver?
  7. How can I change the address on my sales/use tax account? 
  8. How do I verify a Denver sales tax license account?
  9. What can I do if I can't find the answer to my tax question?
  10. Why are some food sales taxed at 4% and others not taxed at all?
  11. Is a sale/leaseback transaction taxable in Denver?
  12. Why doesn't the State of Colorado collect Denver sales/use taxes?
  13. How do I get information relating to State sales taxes?
  14. Does the State of Colorado have a website?
  15. How do I contact the State of Colorado, Tax Division?

  

What are the Denver sales/use tax rates?

Please visit Denver Combined Tax Rates for 2013 tax rates

Please visit Denver Combined Tax Rates for 2014 tax rates

 

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.)

My business makes sales in Denver but we are located in another state.  What is the requirement for collecting Denver sales tax?
Businesses located outside the City and County of Denver are required to be licensed to collect and remit the Denver Retailer's Use Tax on taxable Denver retail sales if they are engaged in business within Denver, unless provided otherwise by the U.S. Constitution. "Engaged in business in the City" includes performing any activity in Denver in connection with the selling, leasing, or delivering in the City of tangible personal property by a retail sale for use, storage, distribution, or consumption within the City.

 

How long do I have to keep my sales tax records?
You need to keep the supporting invoices and records pertaining to the Denver sales tax return for 4 years following the due date of the return or the payment of the tax, whichever is later.

 

What sales tax should I charge when I deliver items to customers to their residence or business location outside Denver?
You need to charge the appropriate tax that applies to the location to which you are delivering the item, but to do so, you may need to have a tax license with other taxing jurisdictions in order to remit the collected tax.

 

How can I change the address on my sales/use tax account?
Call the Taxpayer Service Unit at 720-913-9400
Include a letter containing the change of address with your Denver sales/use tax return in your remittance envelope.
Fax the change to 720-913-9475
Email the change to 311@denvergov.org

NOTE:  Include your account number on all requests.

 

How do I verify a Denver sales tax license account?
You can call the Taxpayer Service Unit at 720-913-9400. 
If I paid a sales tax on business personal property, have I satisfied my requirements for sales/use taxes and personal property taxes?
You have met the requirements for the sales/use tax if Denver sales tax was paid or the difference between the legally imposed and the combined Colorado/Denver/District tax rate has been paid.  You have not met the personal property tax requirement, because that is a different tax payable to the County Treasurer every year on the valuation of the property.

What can I do if I can't find the answer to my tax question?
If the answer to your Denver tax question cannot be found on the Web site www.denvergov.org/treasury, call the Taxpayer Service Unit at 720-913-9400, or e-mail us at 311@denvergov.org

Why are some food sales taxed at 4% and others not taxed at all?
Food or beverage purchased in Denver that is prepared (i.e. in a restaurant), or ready-to-eat (i.e. deli food in a supermarket) are subject to Denver sales tax of 4%.  Only food or beverage purchased inDenver for domestic home consumption is exempt fromDenver sales tax. NOTE: Denver sales tax of 4% is due on all alcoholic beverages purchased in Denver whether by the container or by the drink.

Is a sale/leaseback transaction taxable in Denver?
Yes.  The amount charged on the subsequent leaseback would be taxable.

 

Why doesn't the State of Colorado collect Denver sales/use taxes?
Denver is a Home Rule city.  As such, it has elected to administer and collect its own local sales and use tax.

 

How do I get information relating to State sales taxes?
You can go to the Colorado Department of Revenue's Web site at www.revenue.state.co.us/main/home.asp, or call (303) 238-FAST (3278).

Does the State of Colorado have a website?
Yes it is www.colorado.gov.

 

How do I contact the State of Colorado, Tax Division?
By mail:
Colorado Department of Revenue Taxpayer Service Division
Denver , CO 80261-0013 
By phone:      (303) 238-FAST (3278)
Online:           www.taxcolorado.com

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