If you’ve found yourself wondering, “How do I handle the filings for the Home Rule Cities shown in my Colorado TaxJar report,” you’re not alone.
Colorado is one of 30 states known as a Home Rule state, which can make filing sales taxes complicated. The Colorado Department of Revenue does not currently administer local taxes for Home Rule municipalities and counties, which means business owners must file separate sales tax returns in each of the Home Rule jurisdictions where they conduct business.
What is a Home Rule State?
Because Colorado is a Home Rule state, the individual Home Rule Cities administer their own sales taxes as well as define their own tax bases. To date there are 70+ Home Rule cities within the state that can basically define their own tax rules. Even more, these rules often differ from other jurisdictions administered by the state.
To give you some background, Home Rule states are ones that give flexibility to the municipal governments through Home Rule charters, which are drafted and customized for each unique municipality like a city or town’s government. While some state laws still prevail over a local dispute, there is typically more ability for the city or county to govern itself than non-Home Rule states. Various state constitutions allow for this self-governance, which can have benefits, but also complicate matters around filing sales tax.
How Do Home Rule City Sales Taxes Work?
To explain how Home Rule city sales taxes work, here’s an example. If you’re conducting business in Denver, you’ll need to collect and file Colorado state sales tax. But, you’ll also need to understand the sales tax rates and rules in Denver. In that instance, you have two entities to track and potentially collect for: Colorado state sales tax and Denver sales tax.
If you also have a retail store in Crested Butte, but ship goods to Denver, and live in Colorado, you now have three separate entities with different sales tax rules and rates. As of yet, there is no single resource for you to file all three of those as one collective return.
While TaxJar can AutoFile sales tax in Colorado, it is up to the retailer to collect sales tax in the individual Home Rule towns and cities of Colorado. To simplify this for you, we compiled the contact information for the 73 individual Home Rule cities in Colorado, along with who to contact to file your sales tax or ask questions. TaxJar can help you determine where you owe, and this chart will tell you who and how to remit those sales taxes.
|Home Rule City||Phone Number|
|Cherry Hills Village||303-789-2541|
|Mt Crested Butte||970-349-6632|
If you’re still seeking detailed professional sales tax assistance, TaxJar frequently works alongside several CPAs and sales tax consultants who we highly recommend to our customers. Should you need assistance on which Home Rule jurisdictions you are required to file in, or help with filing those returns, please contact one of our vetted SALT professionals listed here.
TaxJar is here to help you understand where you have economic nexus in Colorado and keep you apprised of the ongoing changes to Colorado’s sales tax responsibilities. To stay in-the-know about this and other breaking sales tax news, subscribe to the TaxJar blog here.
Don’t want to keep up with. changing legislation? TaxJar can recognize Home Rule cities and automate your sales tax so you don’t have to! Get started today!