Colorado Sales and Use Tax Rate Changes Effective January 1, 2021
Published: December 7th, 2020
Colorado State, state-collected and self-collecting home-rule jurisdictions’ sales and use tax rates are generally updated twice a year. The Colorado Department of Revenue (DOR) lists all the rates on the DR 1002 form—be sure to check for the most recent version.
The changes effective January 1, 2021 are listed in the DOR’s memo below:
MEMORANDUM
TO:
FROM: Local Government Support Unit
Date: December 7, 2020
SUBJECT: STATE COLLECTED
State-Collected City Tax Rates
| City Tax | Tax Rate | Exempt* | Use Tax | Service Fee |
|---|---|---|---|---|
| Canon City (From Self-Collected to State-Collected) | 3% | D-G-M-R | (Cap of $200.00) | 3.33% |
| Eckley (New Tax Jurisdiction) | 2.10% | A-B-C-D-E-G-H-K-M-P-O | None | None |
| Fort Lupton (Sales Tax Extension) | 4% | None | 4% | 3.33% |
| Hayden (Sales Tax Increase) | 5% | None | 2% | 3.33% |
| Lakeside (Sales Tax Decrease) | ¹ | None | None | None |
| Limon (Sales Tax Increase) | 2.75% | D-E-M | 2.75% | 3.33% |
| Marble (Sales Tax Increase) | 4% | None | None | 3.33% |
| Silver Cliff (Sales Tax Increase) | 3% | None | 3% | 3.33% |
Special District Tax Rates
| Special District Tax | Tax Rate | Exempt* | Use Tax | Service Fee |
|---|---|---|---|---|
| Delta County PSI (New Tax Jurisdiction) | 0.80% | E | None | 3.33% |
| Eagle Vail (Sales Tax Increase) | 1% | A-B-C-D-E-G-H-K-M-O-P-R | None | 3.33% |
| LID in the City of Littleton (Reduced rate of collection) | 0.43% | I-J | None | 3.33% |
County Tax Rates
| County Tax | Tax Rate | Exempt* | Use Tax | Service Fee |
|---|---|---|---|---|
| Adams (Sales Tax Extension) | 0.75% | A-B-C-D-E-G-H-K | None | None |
| Fremont (Sales Tax Extension) | 2.50% | A-B-C-D-E-G-H-K-M | 2.50% | 3.33% |
Self-Collected City Tax Rates
| City Tax | Tax Rate | Exempt* | Use Tax | Service Fee |
|---|---|---|---|---|
| Aspen (Sales Tax Extension) | ² ³ | W | Contact City | ² ³ |
| Colorado Springs (Sales Tax Decrease) | 3.07% | W | Contact City | None |
| Denver (Tax Rate Increase) | ⁴ ⁵ | W | Contact City | None |
Exemptions and Other Notations
| Notation | Meaning |
|---|---|
| *A | Food for home consumption |
| *B | Machinery and machine tools (as defined on form DR 1191) |
| *C | Gas, electricity, etc., for residential use |
| *D | Occasional sales for charitable organizations |
| *E | Farm equipment |
| *G | Food sold through vending machines |
| *H | Low-emitting vehicles (over 10,000 lbs.) |
| *K | Renewable energy components |
| *M | School-related sales |
| *N | Biogas production system components |
| *O | Property used in space flight |
| *P | Machinery or machine tools equipment used for processing recovered materials |
| *Q | Sales on retail and retail marijuana products |
| *R | Manufactured homes (HB18-1315) |
| *Y | Motor vehicles |
| *Z | Building materials |
Footnotes for City and Special District Tax
1 Reduced collection of sales tax from certain businesses in the area subject to a Public Improvement Fee.
2 Use Tax3 Cap at a certain amount
4 Sales tax on food & liquor for immediate consumption
5 Automobile rentals for less than 30 days