Business Licenses and Tax FAQ
Business License and Tax FAQs
What is a “sales tax” and when is it due?
Sales tax is a “transaction tax” that is imposed upon the sale, purchase, and lease of tangible personal property and/or taxable services by persons engaged in business in the City. The sales tax is collected by the retailer or lessor upon the selling or leasing price of the property or services and is then remitted to the Colorado Department of Revenue.
A “sale” typically means the conveyance, acquisition, or transfer of title or possession, in exchange for any consideration or thing of value, by any person.
Note: The City does not tax food items purchased in a grocery store.
What is the sales tax rate in the City of Castle Pines?
2.75% City of Castle Pines, 2.9% State of Colorado, 1% Douglas County, 0.1% Cultural District.
Total Sales Tax: 6.75%
How is the sales tax calculated?
The sales tax must be added to the purchase price of the item or service. Licensed retailers must provide the customer with a receipt that shows the sales tax paid as a separate and distinct charge.
What is a “use tax” and when is it due?
Effective July 1, 2008, the City imposed a use tax of 2.75% on the use and consumption of all building and construction materials and supplies used on projects within Castle Pines. Use taxes must be collected and paid by every person using or consuming building and construction materials or storing, using, or consuming any motor or other vehicles, purchased at retail, on which registration is required. Use taxes also include site development materials and supplies that are not included in most building permits. Use tax is due on all materials used or consumed in developing the site that was not charged on the building permit. Site development work includes, but is not limited to the following:
- Curb & gutter
- Fill material
- Overlot grading
- Pavement & related materials/supplies
- Pipes & conduit
- Right-of-way permits
- Street cuts
The use tax is due within twenty (20) days from the end of the month following the use or consumption of materials and supplies. The City’s Project Cost Report & Use Tax Return form is available online.
I operate a business in the City of Castle Pines. I sell items or services subject to sales tax. What are the City’s licensing requirements for my business?
First, you must obtain a sales tax license through the State of Colorado Department of Revenue. To do so, call 303.238.7378 or visit their website.
You must also obtain a City of Castle Pines Sales Tax License. This requires a license application to be filled out and a $10 annual fee. For new licenses applied for after July 1 of any year, the license fee for the first year is $5. This license expires each year on Dec. 31 and therefore the $10 annual fee must be paid by January 1st of each year your business operates in the City.
All contractors must obtain a Contractor License prior to operating within the City. Business Licenses are a two-year license expiring on Dec. 31 and the license fee for the subsequent year is due on Jan. 1. Contractor Licenses are two-year licenses expiring on Dec. 31 of the next full year after the application date. The current fee schedule and applications for Business and Contractor Licenses are available online.
I operate a business in Castle Pines. I do not sell items or services subject to sales tax. What are the City’s licensing requirements for my business?
You must obtain either a Business License or Contractor License with the City of Castle Pines. A Business License is required for all businesses, including without limitation persons or businesses delivering, selling, leasing, renting, exercising control over, repairing, assembling, servicing, installing, assisting in the use of, and/or demonstrating taxable and non-taxable tangible personal property within the City, regardless of whether the person has a physical office location within the boundaries of the City. New businesses must obtain a business license within 30 days after the commencement of business to avoid any late fees. All contractors must obtain a Contractor License prior to operating within the City. Any contractor doing work in the City must be licensed even if the work being performed does not require a building permit. The current fee schedule and applications for Business and Contractor Licenses are available online.