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Sales and Use Tax

Sales tax information is compiled and reported to the Town Manager, Mayor, Board of Trustees, local newspaper and this website. The sales tax collection information is compiled as a whole and compared with the prior year. All individual business sales tax information is confidential and will not be released. See the Sales Tax Report here.

Sales Tax Collection

Town of Fraser sales tax is 5% and is collected on all sales, leases and rentals of items within the boundaries of the Town, including items delivered into the Town. If you sell, lease or rent items within the boundaries of the town, you will need to obtain the proper forms to collect sales tax, in addition to a Town of Fraser Business License.  

The Town of Fraser is a statutory municipality within the State of Colorado. The Colorado Department of Revenue collects Fraser sales tax on behalf of the Town and provides vendors with the appropriate forms for submitting sales tax collections, the sales tax license application and business registration form. The following link answers many questions regarding sales tax, including forms for obtaining a new sales tax license - see the Colorado Department of Revenue FYI page.

Use Tax Collection

  • Construction Materials - The Town imposes a 4% use tax on goods and materials purchased outside the Town of Fraser for use, storage, or consumption within the Town, including specified construction types. See the Municipal Use Tax Worksheet for formulas used to determine the amount of use tax to be paid. Proof of tax paid, in the form of invoices and receipts, must be presented to be exempted from the tax at the time of building permit application.
  • Motor Vehicles - The Town imposes a 4% use tax on motor vehicles purchased by residents of the Town of Fraser. The tax is collected by Grand County for the Town of Fraser when the vehicle is registered. A 1% sales tax is collected by Grand County when both the buyer/lessee and seller of the motor vehicle reside within Grand County.

Lodging Tax Collection

  • Nightly rentals
  • Hotels/Motels
  • Bed and Breakfasts

Are you renting your house or condominium to someone? If you rented that property to someone for less than 30 days you owe sales tax. There may be other tax liabilities, such as county lodging tax or a local marketing district tax. The following link answers many questions regarding lodging tax rates, collection and sales tax - the Colorado Department of Revenue FYI page. This link is to the Grand County Lodging Tax Return form (Colorado Department of Revenue Form 1485). Grand County has an information page which you may also find helpful.  

As noted in the Colorado Department of Revenue FYI page, in order to collect sales tax, you must have a Colorado Sales Tax License. Upon submission of your application for your sales tax license, a onetime $50.00 state sales tax deposit is required. The deposit will be refunded automatically after $50.00 in state sales tax is remitted to the Colorado Department of Revenue. DO NOT subtract the $50.00 deposit from any sales tax return filed. Doing so results in non-filing and deficiency notices. Allow six to eight weeks after the total state sales tax is paid for your refund to reach you by mail.

You may also wish to register the name of your business with the Colorado Department of Revenue.

Audits

It is our goal to assist in the education of all business collecting Fraser sales tax. It is the responsibility of the business owner to comply with local and state rules and regulations. All businesses must collect and remit all required sales taxes. From time to time, it is necessary to conduct audits to ensure that these taxes are being collected and remitted. If your business is selected for audit, you will be notified in writing and will be given detailed instructions about the audit process.

 

Beth Williams - Finance Manager, 970-726-5491 x206

Contact the Town

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Last updated: 4/20/2017 11:34:48 AM