COLORADO DOR ANNOUNCES 2017 LOCAL TAX CHANGES

The Colorado Department of Revenue Posted Local Tax Changes Effective January 1, 2017.

Several Colorado state-collected and home-rule jurisdictions tax changes will take effect January 1st, 2017. Businesses should update their billing systems accordingly. The Colorado Department of Revenue general publishes updates twice per year on form DR 1002.

New Taxes (CO State-collected jurisdictions):

• Johnstown Public Improvement Fee: (in Johnstown Plaza only) Rate: 0.5%;
• Edwards Metropolitan District Rate: 1.0%;
• San Miguel Authority for Regional Transportation (SMART) Rate: 0.25%

New Rates (CO State-collected jurisdictions):

• Grand Lake: Sales Tax rate increased to 5%. No Use Tax.;
• Grand County: Sales Tax Rate increased to 1.3%. No Use Tax.;
• Summit Multi-Jurisdictional Housing Authority: Sales Tax rate increased to 0.725%. Use Tax 0.125%

New Rates (Home Rule jurisdictions):

• Black Hawk Sales Tax Rate increased to 6.%. Use Tax 4%;
• Canon City Sales Tax and Use Tax rates increased to 3%;
• Steamboat Springs Sales Tax and Use Tax rates decreased to 4.5%;
• Wheat Ridge Sales and Use Tax rates increased to 3.5%;

Caution: Address Verifications should be done to determine applicable jurisdictions.

State-collected local jurisdictions include some cities and towns, special districts and all counties except Broomfield and Denver. DEnver and Broomfield are combined Home Rule city /counties. Home Rule jurisdictions self –administer their own sales, use and other taxes, audits, etc.

Some cities like Lakewood also have their own Public Improvement Fee (PIF). A Public Improvement Fee (PIF) is a fee that developers may require their tenants to collect on sales transactions to pay for on-site improvements. Cities or another entity often administer PIFs so they are not usually reported on the DR1002.

Can I automate sales tax?

Yes and we can help you understand the issues and find a reasonable provider.

The information in this tax tip addresses issues in general and is limited in scope. Any potential results discussed may vary and circumstances may warrant more or less favorable outcomes.

It’s best to be proactive and to identify and resolve issues before an auditor contacts you. Voluntary Disclosure Agreements are no longer available once you’ve been contacted.

Remedies are often available when you’ve discovered obligations before auditors contact you. Anonymous Voluntary Disclosure is one option. Even if you are already under audit, we can often help. See our Audit Case Studies.

To learn more about how we can help with these or the following issues, please Contact us today:

• Assistance with proactive minimization of prior period sales/use tax liabilities
• Help with nexus questions and issues
• Other sales and use tax related questions

What are your priority issues and when do you want them resolved?

Please click here for more Sales Tax Tips. For additional insight on common sales tax concerns, please see the Did You Know? section of our website.

* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.