In order to rent, sell or lease any tangible property, having a sales tax license is must in Colorado. The amount of tax to be given depends on the taxing district of the state where the purchase being done. While selling any tangible personal property in Colorado, every businessman needs to collect 2.9% state sale tax.
The most common district taxes that are collected in Colorado are Regional Transportation District (RTD), Cultural Facilities District (CD), Football Stadium District (FTBL or FD), Local Improvement District (LID) and Regional Transportation District (RTA). Depending on the district taxes there may be some additions in the Colorado sales tax amount. For example on any purchase in the Denver Metro area, the supplementary tax rate is 0.6% for the RTD, 0.1% for the FD and 0.1% for the CD thus the total being 0.8% additional to the base sale tax.
There are some special taxes implemented in Colorado sales tax system and they are Mass Transit District Tax and Local Improvement District Tax. There are 64 counties in Colorado among which 49 counties have implemented their own sales tax and 214 cities in Colorado have established city sales taxes. The sales taxes of the small cities of Colorado are collected by the state while the larger cities collect their part of sales tax directly from the vendors. There exists a lodging tax in the various countries and 24 counties in Colorado under which the hotels, motels, condominiums are liable to pay sales tax to the government.
The Department of Revenue sends the sales tax license holders in Colorado a preprinted "Combined Retail Sales Tax Return" forms DR 0100. If the license holder is a wholesaler, then the tax filing should be done annually while for retailers who earn less than $300, quarterly tax returns need to be filed. The retailers earning $300 or more in Colorado have to file sales tax on every month basis.
