Effective January 1, 2016, an additional 0.50% sales tax will go into effect in Chaffee County. The total amount collected by retailers within the City of Salida will change from 7.9% to 8.4%. Business owners should have all received a notice from Chaffee County at the end of November.
The total amount of sales tax collected beginning in 2016 breaks down as follows:
- State of Colorado – 2.9%
- Chaffee County – 2.5% (currently 2.0%)
- City of Salida – 3.0%
In addition to sales tax, short-term rental businesses are also subject to Chaffee County’s 1.9% lodging tax and the City of Salida’s occupation tax on lodging of $2.50 per room per night.
The City’s webpage, Doing Business in Salida, contains additional information and links to resources for anyone operating a business here.
Sales tax is the city’s primary source of funding for municipal services, such as police, fire protection, streets maintenance, public improvements, planning and general governance. As a result of the 2015 special election, 54.3% of the City’s sales tax is now restricted for capital spending, achieved through a reduction in the amount available for operations.