Finance Department P: 303-450-8729 F: 303-450-8708 email@example.com Northglenn City Hall 11701 Community Center Drive Northglenn, CO 80233 8 a.m. to 5 p.m. weekdays
The chart below shows the applicable tax rates for the city of Northglenn.
• The 5% City Accommodations Tax must be collected on charges for sleeping rooms or accommodations in the city if the occupancy is for a period of less than 30 consecutive days.
• Total State of Colorado tax rate is composed of:
State of Colorado 2.90%;
Regional Transportation District 1% and
Science and Cultural Facilities District .10%
• Adams County taxes are paid directly to the State of Colorado on a state tax return.
|Northglenn Tax Rates|
|Sales Tax (Except food for home consumption)||Sales Tax on Food for Home Consumption||Use Tax||Accommodations Tax|
• Note: Northglenn charges an additional 2 percent sales tax on all marijuana products. Additional state taxes will apply.
Businesses and Taxes
1. The computer is purchased and picked up in Northglenn. Price of computer $10,000 Sales tax charged $875 Invoice Total $10,875 $875 divided by $10,000 equals 8.75% tax charged (4.0% Northglenn, 4.00% state, 0.75% county). Since Northglenn sales tax of 4.0% was charged, no use tax is due.
2. The computer is bought and picked up in an unincorporated area and brought into Northglenn. Price of computer $10,000 Sales tax charged $475 Invoice Total $10,475 $475 divided by $10,000 equals 4.75% tax charged (4.00% state, 0.75% county). Since no city tax was charged, Northglenn use tax of $400 ($10,000 x 4.0%) is due.
3. The computer is purchased and picked up in Denver and brought into Northglenn. Price of computer $10,000 Sales tax charged $762 Invoice Total $10,762 $762 divided by $10,000 equals 7.62% tax charged (3.62% Denver, 4.00% state). Since only 3.62% city sales tax was charged, 0.38% additional use tax (4.0% Northglenn minus 3.62% Denver) is due to Northglenn in the amount of $38 ($10,000 x 0.38%).
4. The computer is purchased in Denver and delivered to your business in Northglenn. Price of computer $10,000 Sales tax charged $762 Invoice Total $10,762 $762 divided by $10,000 equals 7.62% tax charged (3.62% Denver, 4.00% state). Since the item was delivered outside of Denver, Denver tax should not have been charged, and Northglenn use tax of $400 ($10,000 x 4.0%) is due. Contact the seller to obtain credit for the Denver tax charged in error.
When Do I Charge City Sales Tax? The city sales tax must be collected on all sales, leases and rentals of items in the city, including items delivered into the city. Certain services such as cable television, telephone, gas and electric are also taxable. Professional services such as accounting, advertising and legal are generally not taxable.
Some items that are taxable in Northglenn, but may be taxed differently by the state and other Colorado jurisdictions are:
• Cable TV
• Coin-operated laundry services and equipment
• Computer software (both canned and customized)
• Construction for nonprofit organizations
• Equipment used in manufacturing
• Linen services
• Machinery used in business
• Maintenance contracts
• Natural gas/electricity for manufacturing and residential use
• Sound and security systems, including monitoring
Some sales are not taxable, such as:
• Prescription drugs (for humans only)
• Certain sales to exempt organizations Labor, excluding fabrication labor, is not taxable if separately stated on invoices.
All exempt sales must be properly documented and records must be kept by the seller for audit purposes. Please call the Sales Tax Division for more information on how to handle exempt sales. Sales tax is collected at the point of delivery or where service is performed (if taxable). Northglenn sales tax must be charged on merchandise delivered to purchasers located within the city. Northglenn sales tax should not be charged on merchandise delivered to purchasers located outside the city. Contact the city where an item is being delivered to determine if that city’s sales tax should be collected. City boundaries are difficult to identify and mailing addresses do not always correspond to the correct boundaries. Be careful not to rely on mailing addresses to decide which tax to collect.
A variety of businesses are selected for audits throughout the year. Almost all businesses are audited within the first three years of licensing with the city. During an audit, the city tax auditor visits the business and reviews business records to verify all city taxes have been paid. All businesses liable for Northglenn taxes are required to keep adequate records for an audit. If a business is selected for an audit, the business will be notified in writing and will be given detailed instructions about the process.
What is use tax and does it apply to me? Use tax applies to every business located in Northglenn that makes purchases other than resalable inventory. City use tax is due when a city sales tax has not been paid on the purchase, rental or lease of tangible personal property that is used, stored, consumed in Northglenn or delivered into Northglenn.
How do I know if I need to report use tax?
The easiest way to determine if use tax is due is to review purchase invoices and check for the following:
• Was the invoice for the purchase, rental or lease of tangible personal property, or for a warranty or maintenance agreement related to personal property?
• Did you pay city sales tax of less than 4.0 percent? (To determine the percent tax charged, divide the sales tax charged by the purchase price.)
• Was the item used, stored, consumed or delivered into Northglenn? If you answered “yes” to all three questions, then you need to report the difference in the city tax rates on line 15 of the City of Northglenn Sales/Use tax return. (See example 3)
• Use tax does not apply to inventory that is held for resale.
• Use tax must be paid on items taken from inventory to be used in the business.
• Use tax must be paid on the labor portion of an invoice if materials are not separately stated from labor.
Purchase of a Business
Use tax is due on the fair market value of furniture, fixtures, supplies and equipment associated with the purchase of a business. Unpaid taxes from a prior owner also become the responsibility of the new owner.
Frequently Asked Questions
• When are my taxes due?
Tax returns are generally due on the 20th of the month following the reporting period. If the 20th falls on a holiday or a weekend, the due date is the next business day. Returns must be postmarked on or before the due date to be considered timely.
• If I have no tax liability, do I still need to file a tax return?
Yes, a return must always be filed even if there is no tax due.
• Is a postmark of the 20th acceptable as proof of mailing date?
Yes, but be careful to make sure that the post office has the proper postmark if taxes are mailed on the 20th.
• When do I report/remit sales and use taxes? If more than $100 in tax will be remitted each month, returns must be sent monthly. If less than $100 in tax will be remitted each month, a quarterly filing basis will be granted upon request. An annual filing status may also be granted upon approval. Return booklets are sent at the beginning of the year for monthly and quarterly filers. Annual filers will receive their tax returns at the end of the year.
• What happens if I do not file on time?
A 15 percent penalty will be assessed on delinquent taxes. Additionally, an interest rate of 0.5 percent per month will be charged.