Local Government -- Information for Local Governments Entities Implementing a New Tax or Changed Tax Rate

Before the Tax Election
  1. Contact the Colorado Department of Revenue (DOR) about an ordinance or resolution for any new tax or change in rate by January for an April or May election, or by July for a November election.
  2. Send proposed draft of the ordinance or resolution to the DOR for review of the tax-related portions. A sample can be sent to you upon request.
  3. DOR will review and provide feedback.
  4. An ordinance or resolution must be written and approved prior to an election and signed by the county board, city council or petition signed by 5% of the electors.
  5. Proposal must be submitted at the next regular general election if within next 120 days. If no general election, then within 30-90 days at a special election.
  6. Must publish proposal four separate times, one week apart, in official newspaper (or other media) of the county.
  7. Develop ballot question and comply with general election laws.
  8. Comply with the requirement for the contents of sales tax ordinances and resolution as detailed in §29-2-105, C.R.S.
  9. Notify the DOR, Local Government Support Unit, of the adoption of new tax or change in tax rate 45 days prior to effective date of January 1 or July 1.
Action after Election
  1. Within 10 to 14 days after the election send a copy of the following to the DOR,
a.  The ballot question or sample ballot.
b.  The election results (certified copy must ultimately be submitted when available).
c.  The abstract of the votes cast.
d.  The proof of publication (copies of the newspaper articles or certification from the local media that the proposal was published).
e.  Finalized ordinance or resolution.
  1. Return signed copy of a Memorandum of Understanding sent to you by the DOR if you are implementing a new tax. This is for the control of confidential sales tax distribution information.
  2. It is the ultimate responsibility of the local government to notify their vendors of the new tax or tax change in their jurisdiction. A listing of accounts and mailing addresses will be supplied to the local jurisdiction by the DOR for their notification.
  3. All requirements for new taxes and changes must be finalized with the DOR by May or November respectively so that forms and publications updates [Colorado Sales/Use Tax Rates (DR 1002) and the History of Local Sales/Use Taxes (DR 1250)], can be expedited.
Contact:
Colorado Department of Revenue
Local Government Support Unit
Shannan Marsh, Room 208
PO Box 17087
Denver, CO 80261
Phone: 303-205-8211 x6897
Fax: 303-866-3211
Email: dor_localgovsupport@state.co.us