Sales Tax Frequently Asked Questions

FAQs

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  1. What should I do if I erroneously collect the wrong sales tax amount?

    By state statute, any additional sales tax collected needs to be refunded to the purchaser, or, if unable, remitted to the taxing jurisdiction. Any additional sales tax collected should be entered on Line 8, Excess tax collected, on the Colorado Retail Sales Tax Return DR0100.

  2. When do I need to pay Larimer County sales tax?

    The Larimer County tax of 0.8% is paid by the purchaser for each sale of tangible personal property occurring within Larimer County.

  3. Are there any exemptions for collecting the County sales tax?

    For the most part, Larimer County follows the State's exemptions. Please refer to the Sales Tax FYI Publications for specific items. There are two exemptions that the State Department of Revenue has that the County does not, school-related sales and beetle wood products.

  4. Is there sales tax on food items?

    If the food items are purchased for home consumption, no Larimer County sales tax is collected. Ready made food items for immediate consumption, such as food served at restaurants, convenience store, catered events or grocery prepared deli meals, are taxable. Please refer to the Sales Tax FYI Publications - Sales 4 for more details.

  5. Is there sales tax on delivery of items?

    If the delivery cost is separated on the invoice AND there was a choice of the delivery method, delivery is non-taxable. If the delivery is included in the overall costs, and not separated on the invoice, or there was no choice of delivery, delivery is taxable.

  6. I believe that I overpaid my county sales tax. How do I request a refund?

    All Larimer County sales tax request for refunds are processed through the Colorado Department of Revenue. Complete the DR0137, Claim for Refund. The form and all back-up documentation should be sent to the Department of Revenue, Business Tax Accounting, 1375 Sherman St., Room 208, Denver CO 80261.

  7. Is there a deadline on how long I can request a refund?

    By State Statue, all requests for refunds have a deadline of three years. This deadline is for both sales and use tax.

  8. I need proof that my delivery address is not in any city limits.

    You can use the Colorado Department of Revenue's Sales and Use Tax Simplification (SUTS) Lookup Tool to show what tax rate should be changed for delivery at a specific address.  The system lets you print a .pdf sheet to forward the information to any vendor.

  9. How do I prove that our organization is exempt from County sales tax?

    If you are State exempt because you are a government or charitable organization and the items you want to purchase are for the organization's own use, present a copy of the exemption certificate at the time of purchase.

  10. Why do I need a State sales tax number to apply for the County's sales tax license?

    Because the County is "Statutory" or "State Collected", all Larimer County sales tax is remitted to the State and then passed on to the County under the State's sales tax number. The State's sales tax number is used as a reference whenever issues arise with the State.

  11. When starting a business, where do I start?

    For general information and links regarding the opening of a business in Larimer County, please refer to Establishing A Business In Larimer County.

  12. As a vendor, am I allowed to retain a vendor fee when I submit the sales tax?

    The Larimer County Service Fee, also known as the Vendor's Fee, is two and twenty-two one hundredths percent (2.22%) for all Larimer County sales tax filers who submit timely filed returns. It is not allowed on a delinquent return.

  13. I purchased a business in Larimer County. Can I continue to use the existing license?

    When a business has a change of ownership, new State and County licenses must be applied for.

  14. If I am purchasing items for resale, do I pay sales tax?

    If the tangible personal property is inventory for resale it is exempt from sales tax. However, at the time of purchase, a copy of your State and Town or City (when applicable) sales tax licenses must be presented.

  15. Does receiving a Larimer County sales tax license imply that a business has permission to open?

    No. The purpose of the Larimer County sales tax license is to show the public that the business has the authority to collect and remit Larimer County sales tax. It does not imply that a business has permission from Larimer County to operate. It is the owner's responsibility to contact the various County departments or other taxing jurisdictions to determine the legality of doing business.

  16. When does my Larimer County sales tax license expire?

    The Larimer County sales tax license does not expire. However, it does become invalid if the business closes or ownership changes.

  17. How do I request a change of mailing or location address?

    The easiest way to change an address is to call the office at (970) 498-5930. You will need to provide your Larimer County or State sales tax number, your name and phone number, name of the business, and new address. A new license will be sent out with no fee the next time licenses are processed. Be advised, we can only change the address in the Larimer County sales tax system. The Colorado Department of Revenue, other taxing jurisdictions or other County departments, do not get this change and will have to be contacted separately.

  18. Are there any fees associated with the license?

    There is no fee for submitting and processing the first license. If you would like a stamped copy of the receipt of the application, there is a $0.25 per copy fee. If you need a second license and it is processed during Larimer County's regular processing period, no fee is due. However, if you need an immediate second license, a processing fee of $5.00 will be due.