The Town imposes a 3.5% sales tax on retail sales of tangible personal property and furnishing of utility services. In addition, the State of Colorado imposes a 2.9% sales tax, Garfield County imposes a 1.0% sales tax, and RFTA imposes a .8% sales tax. This is a total of 8.2% tax that must be collected by vendors on sales that occur within the New Castle town limits. Some sales are exempt from state, county, and/or RFTA tax. There are no exemptions from Town sales tax.
Of the 3.5% Town sales tax, 1% is reserved for street maintenance, and 0.5% is reserved for recreation, parks, trails, and open space purposes. The remaining 2% is used to fund Town operations in general.
To get a sales tax license, file the Colorado Business Registration (Form CR 100) with the Colorado Department of Revenue. Businesses that have no permanent place of business but sell goods at Burning Mountain Festival or other fairs, festivals, bazaars, etc., and businesses that meet the requirements for a Standard Sales Tax License, but also sell at other locations, such as at Burning Mountain Festival and other fairs and festivals, should obtain a Sales Tax Special Event License. For more information, call Town Treasurer/Finance Director Lyle Layton at (970) 984-2311, or call the Colorado Business Assistance Center at (800) 333-7798, or the Colorado Department of Revenue at (303) 232-2416, or visit the Department of Revenue’s website.
The Town imposes a use tax of 2% on construction materials purchased outside of the Town and upon which no other local tax has been paid. A Use Tax Return is required for the calculation of this amount. Options are to keep all receipts and attach them to the form or to use a formula to calculate the total amount of use tax due. Most contractors prefer to use the formula: Valuation x .45 x .02 = use tax due. Use tax revenues are used to fund Town operations in general.
Vendors of short-term lodging must collect a tax on short-term lodging equal to 2.5% of the purchase price paid for such lodging. “Short-term lodging” is the leasing or renting of rooms or other accommodations for a period of time less than 30 consecutive days. Vendors should remit the tax with the Lodging Tax Return. The lodging tax revenues are used exclusively for economic development, community enhancements and/or marketing of the Town.
Telephone Utility Tax
Each year, the Town receives a telephone utility tax of $6 per local telephone account.