Salida is a business-friendly city that supports its local business owners and operators. We recommend anyone forming a new business start by reading through the resource guide developed by the Colorado Department of Revenue. For more specific information about operating a business in Salida, contact the City Clerk.
In order to begin doing business in Salida, you must:
- Register your business with the State of Colorado
- You must register your business with the Secretary of State. The City does not require a general business license. Certain types of businesses, however, must register with the City and/or apply for special licenses (eg. arborist, alcohol sales, marijuana sales, short-term property rentals). Useful information about registration, and starting a new business generally, may be found as part of this resource guide.
- Register for a sales tax license and/or employee witholding
- If you will have sales and/or employees, you must register with the Colorado Department of Revenue for sales tax, state wage withholding and unemployment insurance. If you know what you need, go directly to their list of forms. If you already have a sales tax license in for another area in the state, you must add your Salida location to your existing license.
- Zoning Verification
- If you are thinking of opening a new business, be sure that what you are planning meets the zoning requirements of the proposed location. Zoning requirements can be found at on the Zoning and Land Use page or by calling the City Planner at (719) 530-2628. If the use of the use of the building is changing a change of use applicationmay be required to be completed prior to opening your business.
- Verification of Customer Classification for Water & Wastewater Service
- Businesses operating out of a residential property may trigger a change of use for the classification of the customer account with The Salida Utilities. Customers must notify the City of any property changes and are responsible for the payment of any additional system development fees.
- Pass an inspection by the Salida Fire Department
- For business locations open to the public, the fire department inspects new business locations before a certificate of occupancy is issued. Existing business locations are inspected once a year. In some cases, the business may qualify to do a self-inspection. We recommend business owners complete a checklist in advance to prepare for the inspection. Small fees do apply for inspections by fire department personnel.
- Obtain required permits or licenses from the City of Salida
- Salida does not require a general business license, but if your business falls into one of the following categories, you will need to obtain the appropriate permit:
Tax Information for Businesses
Effective January 1, 2016, the total amount of sales tax collected by retailers in the City of Salida will be 8.4%.
The City of Salida imposes a 3% sales tax on gross receipts of tangible personal property and services as further defined in the Salida Municipal Code §4-3.
Businesses in Salida are subject to sales taxes which total 7.9%, going to 8.4% as of January 1, 2016:
- Colorado – 2.9%
- Chaffee County – 2% (going to 2.5% in 2016)
- City of Salida – 3%
The majority of the City’s general funds are derived from sales tax. Salida does not have a mill levy, so no portion of your property tax bill is used to provide municipal services.
You may find support for your business from:
- Salida Chamber of Commerce
- Salida Business Alliance
- Colorado Small Business Development Center (SBDC) Network
- Chaffee County SBDC
The Colorado Department of Revenue offers free workshops on sales and use tax to enhance your knowledge on sales and use taxes. To view a schedule of live and online workshops, make a reservation, or sign up for an upcoming webinar, visit the Tax Workshops and Education Web page at www.TaxSeminars.state.co.us.
- The applicant must decide what kind of license they wish to hold. The most common license within the City is a Hotel & Restaurant liquor license.
- An applicant must be registered with the Colorado Secretary of State and have a current City of Salida sales tax license. Salida is a Statutory City and does not collect sales tax. When registering a new business through the Colorado Secretary of States office the process for applying for a sales tax license is started.
- Make an appointment with the Deputy City Clerk to review the application (1-1/2 hrs.)
- Fill out a Colorado Retail Liquor License Application – form DR 8404
- Fees are paid to the Colorado Department of Revenue and The City of Salida.
- The Salida City Council, as the Liquor Licensing Authority, must approve the application prior to Colorado Department of Revenue approval.
- All new license applications require compliance with Fire Code.
See Salida Municipal Code Sec 6, Article I.
Any professional arborists are required to obtain a license from the City and file evidence of insurance.
The Salida Municipal Code defines an Arborist as any person engaged in the business or occupation of trimming, pruning, treating or removing trees within the City.
See Salida Municipal Code Section 7-7-70.
Lodgers providing short-term rentals
The Salida city council recently approved an ordinance that requires a business licenses to operate a short-term rental property. The license must be obtained by July 1, 2016. Thereafter, the license must be renewed before June 1st annually. To obtain the required license, short-term rental businesses must meet requirements adopted as part of Article V, Chapter Six of the Salida Municipal Code.
Steps to obtain the business license are as follows:
- Complete and return the application form along with the Fire Department Self-Inspection Worksheet and Checklist
- Pay the applicable fee as a new ($50) or renewing ($25) license
All lodgers (hotels, motels, bed-and-breakfasts, vacation rentals, etc.) must register their business with the City of Salida as well as with the State of Colorado as indicated above. The NAICS for this tye of business is 721199. You may need an Agent Designation Form and, if you did not already receive these in the mail, a Quarterly Tax Return for Salida’s occupational lodging tax.
- The City of Salida imposes an occupation tax on persons or entities providing short term commercial lodging in the City of Salida (“Lodgers”).
- The occupation of lodging includes dwelling facilities provided by hotels and motels, vacation homes, rooms in private residences, or other forms of housing for periods of less than 30 days.
- The City tax is based on a $2.50 flat fee per room rented in the reporting period.
- Rooms rented to tax-exempt organizations may be excluded from the calculation of the tax.
- The purpose of the tax is for funding parks and recreation and arts facilities in the City.
- Quarterly tax returns are mailed out at the beginning of each year.
- In addition, the Chaffee County Visitor’s Bureau is funded by a 1.9% countywide lodging tax approved by voters in 1990. Quarterly tax returns are mailed out each quarter.