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1. Who is required to have a Colorado sales tax license?

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.

2. Is it necessary to display my sales tax license at my place of business?

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.

3. What is the total sales tax rate in Erie?

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:

1. 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.
2. 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.
3. 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.

4. If my place of business is outside of Erie, do I have to collect Erie sales tax?

Yes, if you deliver goods and taxable services to the purchasers at a location within Erie.

5. What are some other resources to explain sale tax?

• Erie Website Sales Tax information: www.erieco.gov/136/Sales-Tax-Information
• One-stop shop to start a Business in Colorado: MyBiz.Colorado.gov
• Sign up for a free Business tax class at: https://tax.colorado.gov/business-tax-class
• State Sales and Use tax website: https://tax.colorado.gov/sales-use-tax.
• Colorado Sales Tax Guide & publications: https://tax.colorado.gov/sales-use-tax-guidance-publications
• Revenue Online Portal: https://www.colorado.gov/revenueonline/