In previous articles, we have discussed the types of taxes that are assessed and collected by the City and County of Denver. One such tax that applies to many businesses is sales tax, and many business owners have questions related to sales tax licenses. The article below has been drafted by a tax attorney and business attorney at The McGuire Law Firm to provide additional information related to sales tax license issues in Denver.
When a business is located in Denver, Colorado and makes retail sales, leases or even rentals of tangible personal property, the city and county of Denver requires that the business have a sales tax license. Under certain circumstances, a sales tax license may not be required, but the business may be subject to the Denver use tax, and this may require the business to have a Denver consumer use tax registration. Often a business owner will ask: What if my business is not located in Denver, do I need a sales tax license? If a business is located outside of Denver, but makes retail sales, leases or rents tangible personal property in Denver, the business is required to obtain a Denver retailer’s use tax license. Other common questions and issues are outlined below regarding sales tax in Denver.
Does Denver have an annual special event fee? At this current time, there is no current annual event fee.
What if I am only selling my product for a couple of days in Denver? When a business participates in an event that is 2 weeks or less, you may be required to pay a special event fee, which would only be valid for the specific event. Any sales tax due from the special event would be due by the 20th day of the following month.
I operate my business from my home so do I need a sales tax license? Yes, any business located in Denver making retail sales, leases or renting tangible personal property must have a sales tax license. Again, if a business is not subject to sales tax, businesses located in Denver are subject to the consumer’s use tax, which may require a Denver use tax registration.
My business sells products on the web from my web site, do I need a sales tax license? Yes, if you are located or have a physical presence in Denver, your business is required to obtain a Denver sales tax license, as well as collect and remit Denver sales tax on sales made in Denver.
What is the fee for a Denver sales tax license? The current fee for the sales tax license is $50 per location, which covers a 2 year period. You can click this link for an application, but please check to make sure it is current.
If you additional questions relating to sales tax in Denver, contact a Denver tax attorney from The McGuire Law Firm. The McGuire Law Firm provides a free consultation with a tax attorney so you can discuss your questions and issues.