Some municipalities have elected a home rule designation which gives them greater autonomy and control over the taxes within their jurisdictions. Home rule jurisdictions generally choose to self-collect their taxes for their jurisdictions. A list of self-collecting jurisdictions can be found in DR1002.
Under certain conditions a home rule jurisdiction can elect to be considered a state-administered jurisdiction.
Local jurisdictions sales tax due rate is based on the destination address of the taxable good or service purchased. The Colorado Sales/Use Tax Rates Form DR 1002 lists taxation jurisdictions that are collected by the state and the local jurisdictions that are self-collecting, along with their contact information. Please contact self-collecting jurisdictions directly for more information about their sales and use tax policies and procedures.
Services are not subject to sales tax. Colorado taxes retail sales of tangible personal property and select services including telephone services, rooms and accommodations, food for immediate consumption, and certain utility services. Service charges that are separable from the tangible property and are separately stated on an invoice are not subject to El Paso County sales tax. If the items of tangible property and service charges are lumped into one purchase price, the entire transaction is subject to sales tax.
Delivery and freight charges are generally not subject to sales tax, as long as the charges are separated by purchased item and stated that way on the customer invoice. Charges are separate from the purchase if they are for service performed after the property is offered for sale and the seller allows the buyer to use the seller’s transportation service or to use alternative transportation service, including but not limited to the buyer picking up or taking the property from the seller’s location. Taxable delivery and freight charges related to tax exempt sales (tax exempt item, sale to tax exempt charity, shipping out of state, etc.) are not subject to sales tax because the delivery charges are considered part of the exempt sale.
