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Business Licenses
All businesses located in Erie must be granted a business license before conducting business. Licenses are renewed annually and can be completed online.
Who Must Obtain a Business License
Review the details below for more about business types and licensing requirements.
General Businesses
The Town of Erie requires all new businesses with a physical location in Erie to apply for a business license and renew it annually. This type of license falls in the category of doing business as wholesale, retail, service, manufacturing, or contracting. Review the municipal code provisions for Businesses & Occupation Licenses.
Home Occupation Businesses
The Town requires all businesses that are operating out of the home to apply for a Home Occupation Business License and renew it annually. This type of license falls in the category of home-based wholesale, retail, service, manufacturing, or daycare business where family members reside. The home occupation business must abide by strict zoning use guidelines set by the Town’s Unified Development Code.
New Business Inspections & Licensing Requirements
Depending on the type of business, an inspection may be completed by various agencies or Town departments. These inspections may be completed by the following departments:
- Zoning, Signage, or Banners – Commercial businesses must contact Planning department for approval on the specific kind of business and zoning requirements and sign or banner permits for their business location.
- Certificate of Occupancy - Commercial businesses must obtain a certificate of occupancy before opening the business. Contractors, subcontractors, and tradesmen must also obtain a Town of Erie Contractors License.
- Fire Inspections & Permits - Fire protection for the Town of Erie is provided by Mountain View Fire Rescue. Applicants are encouraged to contact the fire department directly to apply for any required fire department permits and to request any required inspections.
- Food-Related Businesses - Restaurants, grocery stores, and other food-related businesses in the Town of Erie are regulated by either the Boulder or Weld County Health Departments. Contact the county where your business will reside for more details on what they may need from you.
- Beer & Liquor Sales - The Town of Erie requires a license for the sale of all alcoholic beverages within Town limits. Any business intending to manufacture, sell or deal in spirituous liquor in the state of Colorado must apply for a liquor license. Please review more information on how to apply for a liquor license.
Note: Contractors, subcontractors, and tradesmen need to have a Town of Erie Contractors License but NOT a Business License if they do not have a physical business address in Erie. Please email the Building Department at bldgfax@erieco.gov to obtain a contractor’s license.
How to Obtain a General Business License
Step 1 - Gather Info: The following information will be required to complete a business license application:
- Email address
- Photo ID matching one of the business contacts
- Detailed description of the business
- Payment in the amount of $50.00
- Tax ID number
- Signature
Step 2 - Access the Application: Please use the customer self-service portal to access the Business License online application.
Step 3 - Register: Register and create an account for the business or log in if you already have an account.
Step 4 - Fill in All Information: After signing in, please click on the Business License link to complete the application.
Step 5 - Review & Approval: Upon receipt of the completed application, the information will be reviewed by several departments. Upon approval, the Business License will be emailed to the email address on file.
How to Obtain a Home Occupation Business License
Please read the Home Occupation Regulations 10-3-4 in the Town of Erie Municipal Code before applying for the home occupation business license.
Step 1 - Gather Information: The following information will be required to complete a home occupation business license application:
- Email address
- Photo ID matching one of the business contacts
- Detailed description of business
- written narrative on home occupation (type business, # of employees, etc.)
- Floor Plan – a hand drawn plan to include the following:
- Total square footage of entire home.
- Total square footage of the home office area.
- Highlight the location of home office area.
- Payment in the amount of $25.00
- Tax ID number
- Signature
Step 2 - Access the Application: Please use the customer self-service portal to access the Home Occupation Business License application.
Step 3 - Register: Register and create an account or log in if you already have an account.
Step 4 - Fill in Information: After signing in, please click on the Home Occupation Business License link to complete the application.
Step 5 - Review & Approval: Upon receipt of the completed application, the information will be reviewed by several departments. Upon approval, the business license will be emailed to the email address on file.
Fine Print
Exemptions include the operation of any business exempt by federal or state law, newsboys, or an employee (nanny, telecommuter, etc.). Businesses located outside the Town are required to obtain a Business License if selling taxable services to Erie residents, soliciting through sales or agent representatives in Erie, performing service work under maintenance agreements, leasing equipment to an Erie resident or business, or installing tangible goods in Erie.
Pursuant to Colorado Senate Bill 22- 032 - Simplify Local Sales and Use Tax Administration, the Town of Erie no longer requires businesses to apply for General Business License if, the business does not have a physical location in the Town.
Pursuant to Colorado Senate Bill 21-199 Remove Barriers to Certain Public Opportunities, the Town of Erie no longer requires business applicants to state their citizenship status.
License Fees
General Business/Home Occupation licenses are issued each calendar year and shall be renewed annually on or before Dec. 31 each year.
| General Business License | Fee |
|---|---|
New | $50.00 |
Renewal | $50.00 |
| Home Occupation License | Fee |
New | $25.00 |
Renewal | $25.00 |
Sales Tax Information
As a statutory town, the Town of Erie’s sales tax is collected by the State of Colorado. The State imposes a sales tax on retail sales/rental/lease of tangible personal property, prepared food and drink, and certain services. Please contact the Colorado Department of Revenue for more information.
- Who is required to have a Colorado sales tax license?
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Erie is a statutory Town and its sales tax is collected by the State of Colorado. Colorado imposes a sales tax on retail sales/rental/lease of tangible personal property, prepared food and drink, and certain services, as well as the furnishing of rooms and accommodations.
- Wholesale sales are not subject to sales tax.
- Generally, any retailer that is required to collect Colorado sales tax must obtain and maintain a Colorado Sales tax license, collect and remit sales tax to the State.
When a business applies for a State Sales tax license, it will be assigned a 12 digit-number. The first eight digits make up your Colorado Account Number (CAN) and the last four is the Site/Branch ID. Please provide the 12-digit number on your Erie Business License Application. If this is not available at the time of Business License Registration, please follow-up with Erie Finance Department within five business days after you receive a State Sales Tax License.
Licenses are non-transferable. A separate sales tax license is required for each separate physical location. For more information on how to apply for a Sales tax License, visit https://tax.colorado.gov/how-to-apply-for-a-colorado-sales-tax-license.
- Is it necessary to display my sales tax license at my place of business?
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Yes. After receiving your local license, post it in a prominent location inside your business along with your State sales tax license. This is required by State Statute. Posting tells your customer you are licensed to collect the sales tax and it allows for easy verification of licensing by inspectors.
- What is the total sales tax rate in Erie?
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The Town of Erie sales tax rate is 3.5%. Depending on where the retail sale is sourced in, the total sales tax rate will vary.
Visit a map to look up sales tax rate by address. Type in the delivery address in the search bar. In general, a sale takes place within Erie if it is delivered to the purchaser at a location within Erie.
You can also visit the Colorado State Geographic Information System to look up tax rate for location outside of Erie: https://colorado.ttr.services/.
Below is an excerpt from the Colorado Sales Tax Guide on “destination sourcing rules” when determining which sales tax rate applies to the transaction:
- If the purchaser takes possession of the purchased property or first uses the purchased service at the seller’s business location, the sale is sourced to that business location.
- If the property or service is delivered to the purchaser at a location other than seller’s business location, the sale is sourced to the location the purchaser receives the purchased property or first uses the purchased service.
- If the purchaser requests delivery of the property or service to another person, as a bona fide gift from the purchaser, the sale is sourced to the location that person takes possession of the purchased property or first uses the purchased service.
These sourcing rules do not apply to leased property. See Department Publication Sales & Use Tax Topics: Leases for sourcing rules for lease payments.
- If my place of business is outside of Erie, do I have to collect Erie sales tax?
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Yes, if you deliver goods and taxable services to the purchasers at a location within Erie.