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Local Government Entities Implementing a New Tax or Changed Tax Rate

Local Government Entities Implementing a New Tax or Change to an Existing Tax

If your local government is considering a new tax, or a change to an existing tax, that will be administered by the Colorado Department of Revenue, we want to help. We encourage local governments to contact us early in the planning stages for new taxes and tax changes (e.g., base changes, rate changes, and boundary changes). Once engaged, we can provide model ordinances or resolutions and offer feedback on drafts. Early engagement also ensures we can plan for the system programming and retailer notification resources needed to successfully implement your tax on time. Statutory local governments, special districts, and home rule jurisdictions that implement a new sales or use tax to be administered by the Department or change an existing sales or use tax administered by the Department, should keep the following important statutory deadlines in mind. Please see section 29-2-205(3), C.R.S., for a complete list of sales or use tax changes that are subject to these requirements. 

  • Any new sales or use tax or any change to an existing sales or use tax imposed may only take effect on either January 1 or July 1 following the date of enactment of the ordinance, resolution, or election that imposes the new tax or makes the change.
  • The Department must receive a copy of an ordinance or resolution submitting new taxes or tax changes to electors not later than 14 days after the adoption of the ordinance or resolution.
  • The Department must receive a copy of an ordinance or resolution imposing a new tax or making a change to an existing tax at least 45 days before its effective date. 

We encourage you to reach out as early as possible so we can help implement your tax successfully. 

For further research, refer to these important sections of the Colorado Revised Statutes. Other sections may apply depending on the type of local government or tax involved. 

  • Section 29-2-102. Municipal sales or use tax - referendum - repeal.
  • Section 29-2-103. Countywide sales or use tax - multiple-county municipality excepted.
  • Section 29-2-104. Adoption procedures - repeal.
  • Section 29-2-105. Contents of sales tax ordinances and proposals.
  • Section 29-2-202. Applicability.
  • Section 29-2-205. Notice requirements - effective and applicability dates - definition.

We’d also recommend reviewing the Tax Implementation Timelines for April Elections and November Elections.

Contact the Local Government Support Unit

  • Email: dor_localgovsupport@state.co.us
  • Phone: 303-866-4908
  • Fax: 303-866-3211
  • Mailing Address:
    Colorado Department of Revenue
    Local Government Support Unit
    Attn: Milo Hay, Room 208
    PO Box 17087
    Denver, CO 80261