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Local Gov Tax Changes Checklist

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, there are many important steps in the process. The information provided below is intended to help local governments seek assistance from the Department, but is not intended to provide legal advice or to provide an exhaustive list of all legal requirements that may apply. Local governments should consult with their legal advisors to ensure that they comply with all legal requirements. 

New Taxes Imposed and Changes Made by Ordinance or Resolution

  1. Contact the Colorado Department of Revenue (DOR) about an ordinance or resolution for any new tax or change in rate by:
    1. January for a new tax or change that will take effect in July; or
    2. July for a new tax or change that will take effect in January.
  2. Send a proposed draft of the ordinance or resolution to the DOR for review of the tax-related portions. A sample can be sent to you upon request.
  3. DOR will review and provide feedback regarding the tax provisions in the draft.
  4. Comply with the requirement for the contents of sales tax ordinances and resolution as detailed in section 29-2-105, C.R.S.
  5. Notify the DOR, Local Government Support Unit, of the adoption of a new tax or a change in tax rate at least 45 days prior to the effective date of January 1 or July 1.

New Taxes Imposed and Changes Made by Ordinance or Resolution Submitted to an Election
 

Before the Tax Election

  1. Contact the Colorado Department of Revenue (DOR) about an ordinance or resolution for any new tax or change in rate by January for an April or May election, or by July for a November election.
  2. Send a proposed draft of the ordinance or resolution to the DOR for review of the tax-related portions. A sample can be sent to you upon request. If applicable, ensure that the ordinance or resolution complies with the requirements detailed in section 29-2-105, C.R.S.
  3. DOR will review and provide feedback regarding the tax provisions in the draft.
  4. Submit a copy to the Department of the ordinance or resolution submitting the question to registered electors at a general or special election no later than 14 days after the adoption of the ordinance or resolution.  Include a copy of the measure that will appear on the ballot.

Action After Election

  1. No later than 14 days after the election and 45 days prior to the effective date, send a copy of the following to the Department:
    1. The ballot question or sample ballot.
    2. The election results (certified copy must ultimately be submitted when available).
    3. The abstract of the votes cast.
    4. The proof of publication *if applicable (examples would be copies of the newspaper articles or certification from the local media that the proposal was published).
    5. Finalized ordinance or resolution.
  2. Return a signed copy of a Memorandum of Understanding sent to you by the DOR if you are implementing a new tax. This is for the control of confidential sales tax distribution information.
  3. Although the Department will update its publications and search tools, it is often helpful for vendors to hear from the local jurisdiction directly about important changes.  When possible, we will provide a listing of accounts and mailing addresses to the local jurisdiction for this purpose.
  4. All requirements for new taxes and changes must be finalized with the DOR by May or November respectively, so that forms and publications updates can be expedited.

For further research, refer to these important sections of the Colorado Revised Statutes that influence these recommendations. 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.