Sales Tax Information for Local Businesses

If you have a business in Salida registered through the State of Colorado, you should have recently received a letter from the City regarding sales tax. The City Council repealed the 3-1/3% vendor fee for businesses collecting sales tax in the City of Salida. The change goes into effect in July 2011.

Beginning with any tax returns for the period of July 2011, businesses collecting sales tax are required to remit to the State of Colorado the full amount of the 3% city sales tax paid by customers. The tax is reported and paid to the state when businesses file the DR 0100, Colorado Retail Sales Tax Return.

Monthly filers will see this change on sales tax returns due in August for the period of July. Quarterly filers will see this change on sales tax returns due in October for the third quarter (July – September).

The replacement booklet of tax returns mailed by the Colorado Department of Revenue reflects this change in the second column where city sales tax collections are reported.

The Colorado Department of Revenue provided city staff with a listing of 1,052 businesses in Salida. After sorting the list and removing duplicate records, we mailed notices to over 900 registered businesses. It is likely that some of these businesses are inactive or may not be required to file sales tax. If you are not sure whether or not you need to report sales tax, please contact the Colorado Department of Revenue or the City of Salida.

Should you have any questions about this change, please contact the finance department at the City of Salida. A representative can be reached directly at 719-530-2623 or by email at finance@cityofsalida.com.