Taxes are an integral part of running a business, and it is essential to be aware of the applicable rates in your area. In Denver, Colorado, businesses must pay a combination of state, county, and city taxes. The current state sales tax rate is 2.9%, and the combined state, local, and special district sales tax rates in the Denver metropolitan area and northern Colorado range from 2.9% to 9.25%.The Denver Revised Municipal Code (DRMC) imposes a sales tax of 4.81% on the purchase price paid or charged for retail sales, including online retail sales to Denver customers, leases or rentals of taxable personal property, products and certain services. Additionally, Denver levies an admission tax of 10% on the purchase price of each ticket to any entertainment, entertainment or sports event or other production or assembly that is organized, produced, convened or held on or on any property in the city. Denver and Greenwood Village are among the five cities in the Denver metropolitan area that impose an employment tax on all people who work in that city and who earn a certain amount of monthly salary.
Denver also imposes a tax on telecommunications companies authorized by the Colorado Public Utilities Commission (PUC) to provide a local exchange service to customers of the general public in Denver. Colorado businesses (as well as individuals) must pay consumption tax for purchases that do not include Colorado sales tax or when the business uses inventory purchased in bulk instead of selling it to customers. If you are participating in a special event in Denver and are going to retail sales of taxable products or services, you need to collect and remit Denver sales tax. The city and county of Denver are also now participating in the Sales Use Tax System (SUTS) with the Colorado Department of Revenue. Colorado reimburses state sales and use taxes paid for the sale, storage, use, or consumption of tangible personal property that will be used in Colorado directly and predominantly in biotechnology research and development. Many areas in the Southern Denver region have sales and use tax rates lower than the average of 7.56 percent of the Denver metropolitan area. The maximum municipal sales tax rate currently charged by any of Colorado's towns and cities is 5%.
As an alternative to eBiz Tax Services, businesses can also take part in the Colorado Sales Use Tax System (SUTS), which allows businesses to file and pay for sales and use tax returns, and includes a GIS search tool to help easily identify the tax rates and jurisdictional boundaries of locations in the state of Colorado. Eligible business owners are encouraged to voluntarily file and remit all taxes due in exchange for a partial or full exemption from penalties for late payments due for late payments due for late remittances. With proof of payment, sales tax paid in another state can be deducted from the consumption tax due in Colorado for a particular item. Use taxes that replace sales taxes in cases where an item is purchased for consumption in Colorado from a source outside Colorado, or other circumstances where sales tax has not been paid.
