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 DR1002 form, but be sure to check for the most recent version.
The changes effective January 1st, 2021 are listed in the DOR’s memo below:
MEMORANDUM
TO: To Whom It May Concern
FROM: Milo Hay, Local Government Analyst III
Local Government Support Unit
Date: December 7, 2020
SUBJECT: LOCAL TAX CHANGES – EFFECTIVE January 1, 2021
STATE COLLECTED
| City Tax | Tax Rate | Exempt* | Use Tax | Service Fee |
| Canon City
(From Self-Collected to State-Collected) |
3% | D-G-M-R | 3%
(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) |
2.80%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 | 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% |
| Southeast Jefferson LID in the City of Littleton
(Reduced rate of collection) |
0.43% | I-J | None | 3.33% |
| 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 | Tax Rate | Exempt* | Use Tax | Service Fee |
| Aspen
(Sales Tax Extension) |
2.40%
2.10%2 |
W | Contact City | 3.30%2,3 |
| Colorado Springs
(Sales Tax Decrease) |
3.07% | W | Contact City | None |
| Denver
(Tax Rate Increase) |
4.81%
4%4 7.25%5 |
W | Contact City | None |
Exemptions and Other Notations
| *A = Food for home consumption | *M = School-related sales |
| *B = Machinery and machine tools (as defined on form DR 1191) | *N = Biogas production system components |
| *C = Gas, electricity, etc., for residential use | *O = Property used in space flight |
| *D = Occasional sales for charitable organizations | *P = Machinery or machine tools equipment used for processing recovered materials per business list on Public Health & Environment |
| *E = Farm equipment | *Q = Sales on retail and retail marijuana products |
| *G = Food sold through vending machines | *R = Manufactured homes (HB18-1315) |
| * H = Low-emitting vehicles (over 10,000 lbs.) | *Y = Motor vehicles |
| *K = Renewable energy components | *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 tax
3 Cap at a certain amount
4 Sales tax on food & liquor for immediate consumption
5 Automobile rentals for less than 30 days