When are sales tax due?
Sales tax returns are due on the 20th day of each month, following the month of sale
How often do I remit the sales tax I've collected?
Your filing frequency for sales tax remittance depends on your sales volume, and will be the same filing frequency as required by the State of Colorado. The State may require you to file your sales tax payment monthly, quarterly or annually. The qualifications are:
Monthly – $300 or more of sales tax per month (state, county, RTA, and city combined)
Quarterly – Under $300 of sales tax per month (state, county, RTA, and city combined)
Annually – If after one year of operations, your business collects $15 or less of sales tax per month (state, county, RTA, and city combined)
When completing the remittance form, should I round to whole numbers?
No, the City does not permit rounding of the dollar amounts. Please use complete amounts (dollars and cents) in calculations and on the remittance form.
Where do I remit the sales tax I have collected?
City of Gunnison sales tax (4%) is remitted directly to the City of Gunnison. The County, Rural Transportation Authority, and State Taxes are remitted to the State of Colorado.
May I use the sales tax revenues I collect to pay operating expenses, such as payroll?
No, the money you collect for City, County, and State sales tax is a liability that MUST be paid to the appropriate jurisdiction. You are granted a vendor fee for collecting this tax for the governmental entities, but the remaining money must be remitted when due.
What sales are exempt?
Service sales; sales to licensed dealers for taxable resale; items shipped out of the city; sales to government, religious and charitable organizations who hold an IRS section 501(c)(3) qualification letter and hold a Colorado exemption certificate; sales of gas and cigarettes; bad debts charged off on which tax has been paid; returned goods, discounts and rentals on which tax has been paid; trade ins for taxable resale; sales of drugs by prescription and prosthetic devices; sales and purchases of feed for livestock or poultry; and purchases of orchard trees.
Does the City of Gunnison tax groceries?
Yes, non-prepared foods (groceries) are taxed by the City, but not by the State of Colorado.
Are wood pellets taxable?
Yes. The City of Gunnison collects sales tax on wood pellets that are purchased for residential heating purposes. The State of Colorado does not.
Are internet sales taxable?
If you live in Colorado and buy goods over the internet from a vendor also located in Colorado, state sales tax will be collected at the time of sale. If goods are purchased from a vendor NOT located in Colorado, sales tax will not be collected by the vendor but the purchaser is obligated to pay 2.9% use tax to the State of Colorado. If a business sells goods over the internet and both the seller and customer are located in the same jurisdiction, then all state and local sales taxes must be collected. For example, if the business and customer are both located in Colorado but in different counties, collect only state sales tax. If the business and customer are both located in Gunnison, then collect state, county, and city taxes.
Are ITunes taxable when I download the music?
State sales tax is collected on the purchase but unfortunately, the City of Gunnison does not benefit from that sale since Apple's corporate headquarters are not located in Gunnison.
Do I have to collect sales tax on occasional sales?
If a charitable organization conducts sales for a total of 12 days or less during a calendar year andthe net proceeds from all these events do not exceed $25,000 in that calendar year, the sales are not subject to sales tax. The City of Gunnison does not impose City sales tax on occasional yard sales.
Do I collect sales tax on my rental property at Vacation Rentals by Owners?
Yes. City of Gunnison sales tax is collected on any short-term lodging unit rented for less than 30 consecutive days. The City follows State guidelines concerning sales taxes on short term rentals. Please use this link for more information.
Are there additional taxes imposed on marijuana sales?
Yes. Commencing July 1, 2015, there is imposed a tax, in addition to taxes set forth in Gunnison Municipal Code subsections (A) and (B), in the amount of five percent on the sale of medical marijuana, medical-marijuanainfused products, retail marijuana and retail marijuana products, and an excise tax in the amount of five percent of the cash value of the transaction on the sale by a retail marijuana cultivation facility or retail marijuana products manufacturing facility to a licensed marijuana establishment outside the city of Gunnison.