Would you consider contributing to our work? Effective January 1, 2021, the City of Colorado Springs sales and use tax rate will decrease from 3.12% to 3.07% for all transactions occurring on or after that date. The minimum combined 2021 sales tax rate for Denver, Colorado is . It is worth noting that population numbers are only published at the ZIP code level every 10 years by the U.S. Census Bureau, and that editions of this calculation published before July 1, 2011, do not utilize ZIP code data and are thus not strictly comparable. 2021 State Sales Tax Rates. Total General State, Local, and Transit Rates Tax Rates Effective 10/1/2020 By 5-Digit Zip By Alphabetical City Historical Total General State, Local, and Transit Rate Tax Rates & Tax … )[4], While it did not increase the overall state rate, voters in Arkansas made the temporary 0.5 percent transportation sales tax permanent via a ballot measure in November.[5]. Other items including gasoline, alcohol, and cigarettes are subject to various Colorado excise taxes in addition to the sales tax. Research indicates that consumers can and do leave high-tax areas to make major purchases in low-tax areas, such as from cities to suburbs. [14] Len Lazarick, “Raise taxes, and they’ll move, constituents tell one delegate,” Marylandreporter.com, Aug. 3, 2011, http://marylandreporter.com/2011/08/03/raise-taxes-and-theyll-move-constituents-tell-one-delegate/. The current Denmark VAT (Value Added Tax) is 25.00%.. 32 - 1 of 2 City and County of Denver, Colorado TAX GUIDE Topic No. 2021 State Sales Tax Rates California has the highest state-level sales tax rate, at 7.25 percent. [1] Special taxes in Montana’s resort areas are not included in our analysis. Losing an event that draws more than 700,000 visitors from 42 states and 35 countries hurts in many ways, but the City of Denver’s tax coffers will undoubtedly feel the loss of the 2021 National Western Stock Show most acutely. Janelle Cammenga is a Policy Analyst with the Tax Foundation’s Center for State Tax Policy. Arkansas went from 2nd to 3rd highest on its own merit—although the actual change in its local average was quite small. The combined amount will be 8.20%, broken out as follows: 3.07% City of Colorado Springs (self collected) General Fund 2.00% [11] Mehmet Serkan Tosun and Mark Skidmore, “Cross-Border Shopping and the Sales Tax: A Reexamination of Food Purchases in West Virginia,” Research Paper 2005-7, Regional Research Institute, West Virginia University, September 2005, http://rri.wvu.edu/wp-content/uploads/2012/11/Tosunwp2005-7.pdf. This shift can be traced back to Kansas City increasing its fire protection sales tax by 0.25 percentage points and Platte and Butler counties levying new 0.25 percent sales taxes to support law enforcement. 1325 G St NW [2] Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee. The December 2020 total local sales tax rate was also 8.310% . State and local governments should be cautious about raising rates too high relative to their neighbors because doing so will yield less revenue than expected or, in extreme cases, revenue losses despite the higher tax rate. [3], No state rates have changed since April 2019, when Utah’s state-collected rate increased from 5.95 percent to 6.1 percent. What the ballot question says: Shall city and county of Denver sales and use taxes be increased by $40.8 million annually, commencing Jan. 1, 2021, and by … The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the Denmark governmental revenue department. For weeks, ballots have flooded in against a backdrop of wildfires ravaging the state and a pandemic exacerbating the city's decades-long homelessness crisis. Denver’s police and sheriff budgets combine for about $378 million, or about 28 percent of the city’s 2021 budget. A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. The 8.31% sales tax rate in Denver consists of 2.9% Colorado state sales tax, 4.31% Denver tax and 1.1% Special tax. Of these, Alaska allows localities to charge local sales taxes.[1]. Denver, Colorado Sales Tax Rate - Avalara. Please select a specific location in Missouri from the list below for specific Missouri Sales Tax Rates for each location in 2021 or calculate the Sales Tax now using the Missouri Sales Tax Calculator . This report ranks states based on tax rates and does not account for differences in tax bases (e.g., the structure of sales taxes, defining what is taxable and nontaxable). [19] This base is far wider than the national median, where the sales tax applies to 34.25 percent of personal income.[20]. This is done because a surprisingly large number of ZIP codes do not actually have any residents. [15] For a list, see Jared Walczak and Janelle Cammenga, 2021 State Business Tax Climate Index, Tax Foundation, Oct. 21, 2020, https://taxfoundation.org/2021-state-business-tax-climate-index/. Five states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. For example, the National Press Building in Washington, D.C., has its own ZIP code solely for postal reasons. "Beginning [on January 1, four voter-approved sales-tax measures took effect in Denver," she says. (b) Three states levy mandatory, statewide, local add-on sales taxes at the state level: California (1%), Utah (1.25%), and Virginia (1%). [11] For example, evidence suggests that Chicago-area consumers make major purchases in surrounding suburbs or online to avoid Chicago’s 10.25 percent sales tax rate. [18] For a representative list, see Jared Walczak and Janelle Cammenga, 2021 State Business Tax Climate Index. TAX RATE . Colorado doesn't collect sales tax on purchases of most prescription drugs and groceries. The minimum combined 2021 sales tax rate for Riverside County, California is 775 This is the total of state and county sales tax rates The California statenbsp Table 1 provides a full state-by-state listing of state and local sales tax rates. 2021 Colorado state sales tax Exact tax amount may vary for different items The Colorado state sales tax rate is 2.9%, and the average CO sales tax after local surtaxes is 7.44%. Our work depends on support from members of the public like you. (e) Salem County, N.J., is not subject to the statewide sales tax rate and collects a local rate of 3.3125%. The lowest non-zero state-level sales tax is in Colorado, which has a rate of 2.9 percent. California has the highest state-level sales tax rate, at 7.25 percent. The lowest non-zero state-level sales tax is in Colorado, which has a rate of 2.9 percent. A similar situation exists in Utah and Virginia. As a 501(c)(3) nonprofit, we depend on the generosity of individuals like you. The Tax Foundation is the nation’s leading independent tax policy nonprofit. New Jersey’s local score is represented as a negative. Each of the above special district taxes has numerous exemptions. Historically, compliance rates with with the Colorado Use Tax have been low. Denver’s police and sheriff budgets combine for about $378 million, or about 28 percent of the city’s 2021 budget. For our purposes, ZIP codes that do not have a corresponding ZCTA population figure are omitted from calculations. Sales Tax Rate in the United Arab Emirates is expected to reach 5.00 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations. Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee. [16], Tax experts generally recommend that sales taxes apply to all final retail sales of goods and services but not intermediate business-to-business transactions in the production chain. Companies or individuals who wish to make a qualifying purchase tax-free must have a Colorado state sales tax exemption certificate, which can be obtained from the Colorado Department of Revenue . For instance, most states exempt groceries from the sales tax, others tax groceries at a limited rate, and still others tax groceries at the same rate as all other products. No states saw ranking changes of more than one place since July. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate. These omissions result in some amount of inexactitude but overall do not have a palpable effect on resultant averages because proximate ZIP code areas which do have ZCTA population numbers capture the tax rate of those jurisdictions. For example, Tennessee has high sales taxes but no wage income tax, whereas Oregon has no sales tax but high income taxes. The current Greece VAT (Value Added Tax) is 19.00%.. [18], Hawaii has the broadest sales tax in the United States, but it taxes many products multiple times and, by one estimate, ultimately taxes 105 percent of the state’s personal income. Sales shipped into Belmar are subject to the standard 3% Lakewood sales tax rate (7.5% Combined Total). Due to ongoing annexations, the information listed below regarding unincorporated subdivisions may Denver, NC Sales Tax Rate Denver, NC Sales Tax Rate The current total local sales tax rate in Denver, NC is 7.000%. So, whilst the Sales Tax Rate in Missouri is 4.23%, you can actually pay anywhere between 4.73% and 9.61% depending on the local sales tax rate applied in the municipality. Local sales taxes are collected in 38 states. Sales tax rate differentials can induce consumers to shop across borders or buy products online. In the long-term, the United Arab Emirates Sales Tax Rate - VAT is projected to trend around 5.00 percent in 2021, according to our econometric models. AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state and local rate compared to other states. The rate change will take effect Jan. 1, 2021, and will increase monthly bills for most single-family customers by less than 70 cents if they use water at similar volumes to 2020. [12] Susan Chandler, “The sales tax sidestep,” Chicago Tribune, July 20, 2008, http://articles.chicagotribune.com/2008-07-20/business/0807190001_1_sales-tax-tax-avoidance-tax-landscape. Despite the slightly favorable impact on the overall rate, this lower rate represents an implicit acknowledgment by New Jersey officials that their 6.625 percent statewide rate is uncompetitive with neighboring Delaware, which has no sales tax. Colorado allows counties and cities to collect a maximum local sales tax of 4.20% on all non-exempt purchases within their jurisdiction. DENVER — Denver voters have approved a 0.25 percent sales tax increase to pay for aid and resources for the city’s homeless population. Groceries and prescription drugs are exempt from the Colorado sales tax The CO sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. [15] Some states exempt clothing or tax it at a reduced rate. Economic impact studies have shown the Stock Show generates some $120 million of economic activity to the metro Denver area. 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 Even though Colorado Springs saw a local sales tax decrease from 3.12 to 3.07 percent,[9] a Denver increase raised the state’s overall local average. Whenever you make a purchase at a licensed Colorado retailer, your sales tax will be automatically calculated and added to your bill. The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.44 percent), Wyoming (5.33 percent), Wisconsin (5.43 percent), and Maine (5.50 percent). (c) The sales taxes in Hawaii, New Mexico, and South Dakota have broad bases that include many business-to-business services. Before joining the team, she interned at the Mackinac Center for Public Policy, the Reason Foundation, and the Illinois Policy Institute. The money raised would be divided among six categories covering a range of environmental issues. Denver’s total sales tax rate is jumping to 8.81% next year in the name of resolving homelessness and curbing climate change, voters have decided. KPE Capital Gains As with income tax rates, capital gains rates will not change for 2021, but the brackets for the rates will change. [17] Justin M. Ross, “A Primer on State and Local Tax Policy: Trade-Offs among Tax Instruments,” Mercatus Center at George Mason University, Feb. 25, 2014, http://mercatus.org/publication/primer-state-and-local-tax-policy-trade-offs-among-tax-instruments. Changes to tax rates effective January 1, 2021 Specific Changes Location County/City Code Rate Notes Tax Type Morgan City 15-007 0.25% * Highways Tax Military Rec - Park City 22-300 15.00% * MIDA Accommodations Tax Military Rec - Wasatch 26-300 15.00% * MIDA Accommodations Tax While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts. See also T. Randolph Beard, Paula A. Gant, and Richard P. Saba, “Border-Crossing Sales, Tax Avoidance, and State Tax Policies: An Application to Alcohol,” Southern Economic Journal 64:1 (July 1997), 293-306. Voters in the Mile High City chose to increase their local taxes by 0.5 percentage points to fund efforts to reduce the city’s carbon emissions and to support homelessness relief programs.[10]. Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. To review the rules in Colorado, visit our state-by-state guide. To lookup the sales tax due on any purchase, use our Colorado sales tax calculator. Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Colorado sales tax code) can be downloaded from the Colorado Department of Revenue here . [6], Missouri moved in the opposite direction, going from 13th to 12th highest. [5] Jared Walczak, “Results of 2020 State and Local Tax Ballot Measures,” Tax Foundation, Nov. 3, 2020, https://taxfoundation.org/2020-ballot-measure-election-results/. The Denver Revised Municipal Code (DRMC) imposes a 4.81% sales tax on the purchase price paid or charged on retail sales including retail sales made online to Denver customers, leases, or rentals of taxable tangible personal DENVER – Colorado voted to pass Proposition 116, which cuts the state income tax rate from 4.63% to 4.55% and will reduce the state’s revenue by millions in the midst of a recession. California has the highest state-level sales tax rate, at 7.25 percent. Sales and use tax compliance in Colorado is notoriously complex because the state allows home rule. We include these in their state sales tax. It must be noted that some cities in New Jersey are in “Urban Enterprise Zones,” where qualifying sellers may collect and remit at half the 6.625 percent statewide sales tax rate (3.3125 percent), a policy designed to help local retailers compete with neighboring Delaware, which forgoes a sales tax. (d) Special taxes in local resort areas are not counted here. In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. On November 3, 2015, Colorado Springs voters approved a sales and use tax rate increase of 0.62% to fund road repair, maintenance and improvements. This is the total of state, county and city sales tax rates. In 2021, the 28 percent AMT rate applies to excess AMTI of $199,900 for all taxpayers ($99,950 for married couples filing separate returns). The Colorado sales tax rate is currently %. The increase, known as the Homelessness Resolution Tax, would raise Denver's local sales tax rate to 4.56% and result in a total rate of 8.56% after adding in regional and state sales tax. "We will use the sales tax to fund the programs we talked about.” The lowest Your are expected to voluntarily list your liable purchases on a Colorado Use Tax Return, which should be attached with payment to your Colorado Income Tax Return. Denver’s total sales tax rate is jumping to 8.81% next year in the name of resolving homelessness and curbing climate change, voters have decided. FOOD AND DRINK . The local sales tax is collected in addition to the Colorado sales tax of 2.9%, so the actual sales tax you pay on purchases in Colorado may vary between 2.9% and 7.100% depending on which county or city the sale is made in. TAX GUIDE. [2] This number includes mandatory add-on taxes which are collected by the state but distributed to local governments. Combined with the state sales tax, the highest sales tax rate in Colorado is 11.2% in the city of Winter Park . Effective January 1, 2021, the City of Colorado Springs sales and use tax rate will decrease from 3.12% to 3.07% for all transactions occurring on or after that date. A special tax rate of 4.00% is imposed upon food and drink not exempted under Denver Revised Municipal Code Sections 53-26 and 53-97. 32 . Collectively, these additional taxes are known as the RTD/CD/FD sales tax. Public Improvement Fees (PIF) may also be imposed in certain areas of the city; PIF is not a tax … What the ballot question says: Shall city and county of Denver sales and use taxes be increased by $40.8 million annually, commencing Jan. 1, 2021, and … You can print a 8.31% sales tax table here . Effective January 1, 2021, the City of Colorado Springs sales and use tax rate will decrease from 3.12% to 3.07% for all transactions occurring on or after that date. Colorado allows cities and counties to collect additional local sales taxes on top of the Colorado sales tax - Denver, for example, has a sales tax of 3.62% on tangible items and Falcon, Colorado is subject to an additional 1% county sales tax. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. Colorado does not treat candy or soda as groceries, which means they are not subject to reduced grocery sales tax rates. FOOD AND DRINK. These include new exemptions, new sales or use taxes, and new rate changes. Last updated January 2021 Most of Denver is located in a special tax district which collects an additional 1.2% sales tax (broken up into the Regional Transportation District at 1%, Scientific and Cultural Facilities District at 0.1%, and the Metropolitan Football Stadium District tax at 0.1%). This report provides a population-weighted average of local sales taxes as of January 1, 2021, to give a sense of the average local rate for each state. Avoidance of sales tax is most likely to occur in areas where there is a significant difference between jurisdictions’ rates. Crittenden County takes some of the credit for this improvement, as it reduced its local rate from 2.75 to 1.75 percent. Washington, DC 20005, Tax Expenditures, Credits, and Deductions, Small Business, Pass-throughs, and Non-profits, Research & Analysis of Digital Tax Policies, Sources of Government Revenue in the OECD, Opportunities for Pro-Growth Tax Reform in Austria, Tax Proposals, Comparisons, and the Economy, Combined State and Local Sales Tax Rates (Map), The Role of Competition in Setting Sales Tax Rates, Sales Tax Bases: The Other Half of the Equation, https://taxfoundation.org/2020-ballot-measure-election-results/, https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/recent-changes-for-local-taxes, https://dor.mo.gov/business/sales/taxcards/multiletter-jan.pdf, https://tax.ohio.gov/static/ohiotaxalert/archivedalerts/taxratechange73120.pdf, https://coloradosprings.gov/sales-tax/alert/sales-and-use-tax-rate-change-effective-112021, https://www.coloradopolitics.com/2020-election/election-2020-denver-voters-approve-pair-of-sales-tax-increases-to-fight-climate-change-tackle/article_03d80448-1e36-11eb-bd26-cfcd2a8f28ac.html, http://rri.wvu.edu/wp-content/uploads/2012/11/Tosunwp2005-7.pdf, http://articles.chicagotribune.com/2008-07-20/business/0807190001_1_sales-tax-tax-avoidance-tax-landscape, http://www.documentcloud.org/documents/603373-the-unintended-consequences-of-public-policy.html, http://marylandreporter.com/2011/08/03/raise-taxes-and-theyll-move-constituents-tell-one-delegate/, https://taxfoundation.org/2021-state-business-tax-climate-index/, http://taxfoundation.org/blog/how-does-your-state-sales-tax-see-blue-and-black-or-white-and-gold-dress, http://mercatus.org/publication/primer-state-and-local-tax-policy-trade-offs-among-tax-instruments, https://taxfoundation.org/publications/facts-and-figures/. Denver, Colorado, Ballot Measure 2B, Sales Tax to Fund Housing and Homeless Services and TABOR Spending Limit Increase (November 2020) A "yes" vote supported authorizing the city and county of Denver to levy an additional 0.25% sales tax generating an estimated $40 million per year to fund housing and homeless services, thereby increasing the total sales tax rate in Denver from 8.31% … Losing an event that draws more than 700,000 visitors from 42 states and 35 countries hurts in many ways, but the City of Denver’s tax coffers will undoubtedly feel the loss of the 2021 National Western Stock Show most acutely. Colorado enacted its sales tax in 1935 and adopted its use tax in 1936. The five states with the highest average local sales tax rates are Alabama (5.22 percent), Louisiana (5.07 percent), Colorado (4.75 percent), New York (4.52 percent), and Oklahoma (4.45 percent). Denver Water offers many options for paying your bill. We represent this anomaly as a negative 0.03 percent statewide average local rate (adjusting for population as described in the methodology section below), and the combined rate reflects this subtraction. Click the link to learn more. We weight these numbers according to Census 2010 population figures to give a sense of the prevalence of sales tax rates in a particular state. Sales taxes are just one part of an overall tax structure and should be considered in context. [7] Missouri Department of Revenue, “Sales and Use Change,” Dec. 29, 2020, https://dor.mo.gov/business/sales/taxcards/multiletter-jan.pdf. The five states with the highest average combined state and local sales tax rates are Tennessee (9.55 percent), Louisiana (9.52 percent), Arkansas (9.51 percent), Washington (9.23 percent), and Alabama (9.22 percent). [19] Janelle Cammenga, Facts and Figures 2020: How Does Your State Compare? Colorado is notoriously one of the most difficult states for managing sales tax. Two Rivers Metropolitan District is a new taxing district, with a sales tax rate of 4% and a vendor service fee of 3.33%. Local Sales Tax - Denver 7.65% 2021 Denver sales tax Exact tax amount may vary for different items If approved, it would take effect on Jan. 1, 2021. , CO Sales Tax Rate. Sales Tax Rate Change Summary To: All retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2021 David Harris, Director Illinois Department of Revenue informational Self-collected tax Boulder: sales tax Denver Sales Tax Clearinghouse publishes quarterly sales tax data at the state, county, and city levels by ZIP code. [8], Colorado saw changes that did not result in a new ranking. Retail sales taxes are one of the more transparent ways to collect tax revenue. Because of this, some sources will describe California’s sales tax as 6.0 percent. Five states follow with 4 percent rates: Alabama, Georgia, Hawaii, New York, and Wyoming. Help us continue our work by making a tax-deductible gift today. See “Second Quarter 2019 Changes,” Utah State Tax Commission, April 1, 2019, https://tax.utah.gov/sales/ratechanges. Sales Tax Rate Change Summary To: All retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing, effective January 1, 2021 David Harris, Director Illinois Department of Revenue informational FY 2021-11 Tax-Rates.org provides free access to tax rates, calculators, and more. Forty-five states and the District of Columbia collect statewide sales taxes. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. In October, the Denver Board of Water Commissioners adopted rate changes to help pay for our new Lead Reduction Program that launched in January 2020. The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. This article contains the Florida Department of Revenue's TIP on what those rates are going into 2021. (a) City, county and municipal rates vary. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. Home-rule jurisdictions can establish their own tax laws and enforce them via audit. Denver. [12], At the statewide level, businesses sometimes locate just outside the borders of high sales-tax areas to avoid being subjected to their rates. Best Deals From www.avalara.com The Denver sales tax rate is 4.31%. Denmark's VAT rate of 25% ranks as one of the ten highest VAT rates in the world.Countries with similar VAT rates include Iceland with a VAT of 26%. Effective January 1, 2021 City Sales and Use Tax. Sources: Sales Tax Clearinghouse; Tax Foundation calculations; State Revenue Department websites. A narrow tax base is non-neutral and inefficient. Tafoya and Rietheimer were among the backers of the Denver green roof initiative, which was passed by voters in 2018 and later revised and broadened by the City Council, as well as a series of proposals that led to the enactment of a new city climate-change tax last November. TAX RATE. This rate includes any state, county, city, and local sales taxes. [7], Ohio saw a 0.8 percentage-point tax increase in Hamilton County in October that tipped the scales to move the state from the 21st to the 20th spot. On making an exempt purchase, Exemption Certificate holders may submit a completed Colorado Sales Tax Exemption Form to the vendor instead of paying sales tax. getty The Internal Revenue Service (IRS) has announced the annual inflation adjustments for the tax year 2021, including tax rate schedules, tax tables and cost-of-living adjustments. These rates are weighted by population to compute an average local tax rate. 2021 Sales/Use Tax Rate Tables PDF Version 01/2021 - 03/2021 - PDF Statewide sales/use tax rates for the period beginning January, 2021 XLS Versions 01/2021 - 03/2021 - XLS Statewide sales/use tax … DENVER – Colorado voted to pass Proposition 116, which cuts the state income tax rate from 4.63% to 4.55% and will reduce the state’s revenue by millions in the midst of a recession. For Denver, that means raising the sales tax to 8.56% from 8.31% to support green projects in the city. Table 22, Tax Foundation, Feb. 13, 2020, https://taxfoundation.org/publications/facts-and-figures/. [16] Liz Malm and Richard Borean, “How Does Your State Sales Tax See That Blue and Black (or White and Gold) Dress?” Tax Foundation, Feb. 27, 2015, http://taxfoundation.org/blog/how-does-your-state-sales-tax-see-blue-and-black-or-white-and-gold-dress. No state rates have changed since Utah increased the state-collected share of its sales tax from 5.95 percent to 6.1 percent in April 2019. New water rates start Jan. 1. Sales tax rates differ by state, but sales tax bases also impact how much revenue is collected from a tax and how the tax affects the economy. The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. [4] This rate includes two levies, summing 1.25 percentage points, which are imposed statewide but distributed to localities. [17] Despite agreement in theory, the application of most state sales taxes is far from this ideal. Effective January 1, 2021 City Sales and Use Tax The following cities have abolished the additional city sales and use tax for Municipal Street Maintenance and Repair: City/County Name Local Code Local Rate Total Rate The Colorado state sales tax rate is 2.9%, and the average CO sales tax after local surtaxes is 7.44%. Click here for a larger sales tax map, or here for a sales tax table. Colorado's sales tax rates for commonly exempted items are as follows: Unlike a Value Added Tax (VAT), the Colorado sales tax only applies to end consumers of the product. We work hard to make our analysis as useful as possible. States can vary greatly in this regard. Most states whose rankings improved (California, Iowa, Nevada, South Dakota, and Utah) did so only in comparison to those that enacted more substantial local rate increases. If you need to download Colorado local sales tax rates, visit the Colorado sales tax database download page. Subject: LOCAL TAX CHANGES – EFFECTIVE January 1, 2021 (Continued) 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%

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