Sales Tax FAQs

Staff speaks with a community member at an event.

The City of Fort Collins Sales Tax Division provides comprehensive information about business licensing requirements, tax collection procedures and payment options for businesses operating within City limits.

 

 

The documents on this page are provided for printing purposes. For assistance viewing or reading these documents, please contact the City's ADA Coordinator via email adacoordinator@fortcollins.gov or phone: 970-416-4254. 

Business License Requirements

Who needs a license to do business in the City?

Fort Collins requires any business operating within City limits to get a City Sales and Use Tax License. This includes retail businesses and service-only businesses. If you have multiple locations in the City, you need a separate license for each one.

You are doing business in the City if you:

  • Have a building, store, office, salesroom, warehouse or other business location in city limits 
  • Send employees, agents or sales people into the Fort Collins to find customers or help with products 
  • Have employees, agents or sales people working at a location in city limits 
  • Own, lease, rent or control property in Fort Collins 
  • Make more than one delivery in Fort Collins within 12 months 

Visit the Payment and Regulations Page for more details

What other licenses might I need?

What is the fee for the sales and use tax license?

There is no fee for City of Fort Collins license.

What if I am doing business from my home?

The City Zoning Department requires a Home Occupation License if you run a business from your home within City limits. The license costs $25 and you renew it every two years.

What does City of Fort Collins do with my account and payment information?

The City follows Municipal Code Section 25-166 - Confidentiality rules about sharing account information. The City does not store bank account or credit card information.

Sales Tax Information

Sales tax is charged on all sales, purchases and leases of goods and taxable services sold by businesses in Fort Collins. The business collects the tax and sends it to the City.

Filing and Payment

How is sales tax remitted?

Businesses file tax returns based on their assigned reporting period. You may file monthly, quarterly or annually depending on how much tax you collect. Returns are due by the 20th of the month after your reporting period. Mailed returns must be postmarked by the 20th. If the 20th falls on a weekend or holiday, the return is due the next business day. 

All City businesses must charge and collect Fort Collins sales tax on goods and taxable services sold in the City. Tax-exempt items are listed in Section 25-73(c) of the City Municipal Code

You must send any extra sales tax you collect to the City. If you didn't collect tax or collected the wrong amount on a sale, you still owe the proper tax to the City.

Where do I send the taxes?

Fort Collins collects its own taxes. Send the 4.35% sales tax you collect directly to Fort Collins. Send state and county taxes directly to the Colorado Department of Revenue.

The best way to pay Fort Collins tax is through the online sales tax system

Pay Sales Tax Online

Other Payment Options

Mail a check with your return to: 

P.O. Box 440 

Fort Collins, CO 80522 

You MUST include a return with your payment 

For cash payments, go to the City of Fort Collins Utilities Customer Service office at 222 Laporte Ave.

When is my tax return due?

Returns are due by the 20th of the month after your reporting period: 

  • Monthly returns: due the 20th of each month
  • Quarterly returns: due April 20, July 20, Oct. 20 and Jan. 20 
  • Annual returns: due Jan. 20 

If the 20th falls on a weekend or holiday, the return is due the next business day. 

Online returns must be entered by 11:59 p.m. MST on the due date to avoid late charges. 

Do I file a return if I owe no taxes?

Yes. You must file a return even if you owe no sales or use tax for the period. Not filing will result in a deficiency notice.

What happens if I file my tax return late?

Late returns will have penalties and interest. If you don't file with proper penalties and interest within five days of the due date, you'll get a "Notice of Determination, Assessment and Demand for Payment." You have 20 days from delivery to file the return with penalties, interest and assessment fee, or request a hearing in writing from the Financial Officer. If you don't pay within 20 days, the City may use other collection methods.

Online Payment Options

What payment types are accepted online?

You can pay sales, use and lodging tax online. You can pay new returns and outstanding balances. Accepted payments include e-checks, MasterCard and Visa. If you use an e-check and have debit blocks on your account, contact our office for bank information to avoid rejected transactions. Credit/debit card payments have a 2.75% processing fee.

Will I get confirmation if I file and pay online?

Yes, you'll get an email confirming your return and payment were processed.

Why do I pay a fee with credit cards?

The payment processor charges a service fee to process the transaction and cover operating costs.

Use Tax

What is use tax?

Use tax complements sales tax. You pay use tax to the City when you store, use, distribute or consume goods or taxable services in Fort Collins. You owe use tax when you haven't paid Fort Collins sales tax (or at least the current Fort Collins rate). Use tax makes competition fair between City vendors who collect Fort Collins sales tax and outside vendors who don't.

When do I pay use tax?

Pay initial use tax when you start a business on your initial use tax return. If you buy an existing business, you owe use tax on furniture, fixtures and equipment. Report additional supplies, equipment, etc. subject to use tax on each City of Fort Collins Sales and Use tax return.

What items are subject to use tax?

Examples include (not a complete list):

  • Office supplies
  • Magazine subscriptions 
  • Furniture and fixtures
  • Books
  • Tools and equipment
  • Brochures and handouts
  • Leased and rented items
  • Cash registers
  • Cleaning and janitorial supplies
  • Paper products
  • Non-customized software programs
  • Advertising items
  • Computers and calculators 
  • Signs 

Lodging Tax

Does the City charge lodging tax?

Yes. The City charges 3.0% lodging tax (plus the 4.35% sales tax) for rooms or accommodations if you stay less than 30 days in a row. Lodging tax applies to hotel rooms, motels, guesthouses, trailer courts, guest ranches, mobile homes and similar places when someone pays to use the room for less than 30 days total.

How do I pay lodging tax?

Lodging businesses must get a separate Lodging Tax License and pay lodging tax on a separate monthly return.

Food Tax

Does Fort Collins tax food for home consumption?

Yes. Only the base rate of 2.25% applies to food for home consumption. Contact the State of Colorado and Larimer County about their food taxes.

What counts as food for home consumption?

Food for home consumption includes all food except:

  • Prepared food or food for immediate consumption
  • Carbonated water in containers
  • Chewing gum
  • Seeds and plants to grow food
  • Prepared salads and salad bars
  • Cold sandwiches
  • Deli trays 
  • Food or drink from vending machines or coin-operated devices 

Tax Exempt

How do I apply for a Tax Exempt License?

Before you apply, you will need copies of the following documents. Please submit everything listed on the application checklist. Incomplete applications will not be processed.

  • Listing of all officers of your organization
  • Articles of Incorporation
  • Federal tax exemption letter and forms required by Internal Revenue Service Code Section 501(c)(3). (Form 1023)
  • Bylaws
  • Colorado Certificate of Incorporation
  • Copy of Colorado exemption certificate
  • Financial statements showing source of funds and expenditures

Apply Now

Which organizations in Fort Collins are tax exempt?

Special Situations

How does sales tax work for special events in Fort Collins?

City issues a temporary sales tax license(PDF, 259KB) for one-time events. The license is for that specific event and you pay sales tax to the City two weeks after the event. You need a separate temporary license for each event. You can get a permanent City Sales and Use Tax License if you participate in multiple events.

Apply for a Temporary Sales Tax License(PDF, 259KB)

The Colorado Department of Revenue collects state and county tax on special events. Contact them for more information.

What do I do if I sell my business or stop operating?

Within 10 days of selling or closing your business, file a return stating the date you sold or closed and pay all sales and use taxes owed. If you sell the business, the new owners must get a new sales and use tax license. You cannot transfer your license.

Do I need a license for garage sales? How many can I have per year?

You don't need a license for garage sales. You don't collect sales tax on garage sale items. You can have up to five garage sales per year, each lasting one weekend, from Friday through the following Monday.

Corrections and Refunds

How do I get a refund if I overpaid?

Fill out and submit a refund claim form(PDF, 189KB)  with documentation explaining the reason. Refunds only go to the person who paid the tax. The time limit for refunds is three years.

Submit a Refund Claim Form(PDF, 189KB)

How do I correct a return I already filed?

If you made an error on a previous return, file an amended return for that period. Write the date of the return you're amending at the top of the new return. Fill out the return with correct figures for that period. 

If you paid too much, fill out a refund claim(PDF, 189KB) and you'll get a check. 

If you didn't pay enough, send the additional taxes with the amended return. Penalties and interest may apply. 

Resources and Support

Does the City offer sales and use tax classes?

Yes, the Sales Tax Division offers tax classes.

See Class Times

Where can I pay taxes?

The best way to pay Fort Collins tax is through the online sales tax system

Pay Sales Tax Online

Other Payment Options

Mail a check with your return to: 

P.O. Box 440 

Fort Collins, CO 80522 

You MUST include a return with your payment 

For cash payments, go to the City of Fort Collins Utilities Customer Service office at 222 Laporte Ave.