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 GENERAL TAX INFORMATION GUIDE 

                                     INTRODUCTION 

This packet is designed to provide general information about the sales tax and accommodation 
tax laws imposed by the Town of Breckenridge.  It also provides instruction on how to complete 
the sales/accommodations tax return. 

The packet does not give all of the information contained in the tax codes.  If you would like a 
copy of the tax codes or if you have any questions regarding tax, you may obtain a copy on the 
Town’s website at www.townofbreckenridge.com  or you may contact the Town of 
Breckenridge Finance Division at the address and telephone number listed below. 

                   Town of Breckenridge 
                  Finance & Municipal Services Division 
                                     PO Box 8629 
                   Breckenridge, CO  80424 
                                     970-453-3182

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COLLECTING SALES & ACCOMMODATIONS TAXES

I’M PLANNING ON OPERATING A BUSINESS (OR RENTING AN ACCOMMODATION UNIT) IN THE TOWN
OF BRECKENRIDGE, WHERE DO I START?

Business owners must obtain a Town of Breckenridge Business License in order to engage in business in
the Town of Breckenridge (please refer to Chapter 1, of Title 3 of the Breckenridge Town Code for
definition). To obtain a Business License, visit our website www.townofbreckenridge.com (I WANT
TO…/Apply for/A business license) or contact the Finance office for an application. After your
application is received and approved, a business license and sales tax returns will be mailed to you.

It is also important to note that the Town of Breckenridge and the State of Colorado levy sales tax on the
“sale of business assets other than inventory.” If you are planning to sell or purchase an existing
business, please be sure that the correct amount of sales tax is collected on the sale of all tangible
personal property, not included in inventory, associated with the sale. These items include, but are not
limited to, computers, desks, chairs, tables, mattresses, etc. For your convenience, the Town
of Breckenridge has provided a return form on the Town’s website.

The Colorado Department of Revenue collects state and county taxes and is the agency where
businesses register trade names. The toll-free telephone number for the New Business Hotline is 303-
894-2200 or http://www.sos.state.co.us/. State application forms and general information for
conducting business in Colorado is available by calling that number. Colorado Business Registration
forms, CR100, and instructions are available on the state's website http://www.revenue.state.co.us/.

Regarding licensing for Summit County, according to Resolution 90-46, before the Board of County
Commissioners and the County of Summit, any person selling a product in unincorporated Summit
County shall make application to the Clerk and Recorder’s Office. Once the application is obtained,
approval from the Zoning Department is granted or denied. If granted, the Board of County
Commissioners shall consider such application at their next meeting. Businesses licenses are due and
payable the month they are approved and expire in one year. For any questions regarding Summit
County Business Licenses, please call the Summit County Clerk and Recorder's Office at 970-453-3475.

WHO MUST COLLECT SALES TAX?

Every retailer or vendor engaged in business and selling at retail shall be liable and responsible for the
payment of an amount equivalent to two and one half percent (2.5%) of all sales made by them of
commodities or services specified in Section 3-1-3 of the Breckenridge Town Code.

WHO MUST COLLECT ACCOMMODATIONS TAX?

Any person who furnishes for lease or rental any hotel room, motel room, or other accommodation unit
located in the Town shall, in addition to the two and one half percent (2.5%) sales tax, collect an excise
tax of three and four-tenths percent (3.4%) of the entire amount charged to any person or persons for
lodging services, unless the rental period is for more than (30) consecutive days during the calendar year
or receding year.

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WHO MUST COLLECT MARIJUANA TAX?

Every retailer or vendor engaged in business and selling retail marijuana shall be liable and responsible
for the payment of an additional tax amount equivalent to five percent (5%) of all sales made by them of
marijuana specified in Section 3-9-2 of the Breckenridge Town Code.

DELIVERIES

Sales of tangible personal property for delivery to a destination within the Town limits by the vendor or
an agent for the vendor are taxable irrespective of the physical location of the vendor’s place of
business. Please note that the delivery charges included in gross or billed separately on a taxable sale
ARE also taxable. To determine if a delivery address is located with the Town limits, please refer to the
Town’s website, www.townofbreckenridge.com (Departments & Services/Finance and Municipal
Services/Taxes; click on Find Local Taxes by Address in the left hand column).

Sales of tangible personal property located within the Town limits and delivered to the purchaser by the
vendor, agent for the vendor, or by common carrier to a destination outside the Town for use outside
the Town are not taxable by the Town.

UNLAWFUL TO ASSUME OR ABSORB TAX

It is unlawful for any retailer to hold out or state to the public or to any consumer, directly or indirectly,
that the tax or any part thereof shall be assumed or absorbed by the retailer, or if added, that it or any
part thereof shall be refunded. Retailers selling through a vending machine or selling alcoholic
beverages by the drink may include the sales tax in the sales price but they may not advertise or hold
out to the public in any manner, directly or indirectly that the sales tax is not considered as an element
in the sales price to the consumer.

COLLECTION AND REFUND OF DISPUTED TAX

Should a dispute arise between the purchaser and seller as to whether or not any sales of a commodity
or service is exempt from taxation, the seller shall collect and the purchaser shall pay such tax, and the
seller shall issue to the purchaser a receipt or certificate showing the names of the seller and the
purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim
of exemption. The purchaser may then apply to the Financial Services Manager within sixty (60) days to
determine the question of exemption.

ORGANZIATIONS CLAIMING TAX EXEMPTION

Sellers have the burden of proving that a transaction was properly exempted. If an exemption is
subsequently disallowed by the municipality, you (the seller) could be liable for the tax plus penalties
and interest. The Standard Municipal Home Rule Affidavit of Exempt Sale is provided to help you
determine if a sale qualifies for exemption. The sale is not exempt from taxes simply because this
affidavit is completed. The responsibility for proper collection of taxes remains with the seller. You are
encouraged to obtain this form for each transaction and complete all of the information in the lower
Seller Verification section. Carefully review full instructions detailed on the form.

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                                         TAX REMITTANCE 

HOW DO I REMIT THE TAXES THAT I’VE COLLECTED? 

As a home rule government, the Town of Breckenridge is authorized to collect its own taxes and has 
different tax laws than the State of Colorado.  As such, Town taxes should be remitted directly to the 
Town of Breckenridge.  All State, County, and Special District (Summit Combined Housing Authority) 
taxes should be remitted to the Colorado Department of Revenue on a State sales tax return form.   

Sales tax returns, along with the appropriate remittance of sales tax collected, are due (by postmark) on 
th                                                          th
the 20  of each month following the period they were collected. If the 20  of the month falls on a 
weekend or postal holiday, the next working day is the due date.  Late returns are penalized with a 
penalty of 10% of the sales tax (minimum of $15) plus 1% interest for each month the payment is 
outstanding.  Interest is also applied to any outstanding account balances at a rate of 1% per month. 

WHAT DO I DO IF I DID NOT HAVE ANY SALES IN A GIVEN PERIOD? 

A return is required to be filed for every period that an account is active.  Without a filing for a given 
period, we are unaware if no sales were made or if the tax is outstanding.  Penalties and interest are not 
due on late $0 returns.  However, a delinquency letter may be received regarding the outstanding return 
if it is not filed in a timely manner.   

You may file a $0 return on our website www.townofbreckenridge.com (I WANT TO…/Pay/Sales Tax). 

EXCESS TAXES COLLECTED 

If any amount in excess of two and one-half percent (2.5%) of total taxable sales is collected on behalf of 
the Town of Breckenridge, the excess amount shall be remitted to the Town on the sales tax return for 
that period.  The retention by the retailer or vendor of any excess tax collections or the failure to remit 
the full amount to the Town in a timely manner is a violation of the Breckenridge Sales Tax Code.  In 
order to comply with this portion of the code, it is essential each month that the amount of tax collected 
be compared against the amount of tax remitted.  In any instance that the amount of tax collected is 
greater than the amount of tax calculated on the return form for the period, it must be remitted on the 
line titled “Excess Tax Collected.” 

I DON’T HAVE A SALES TAX BOOKLET TO REMIT MY TAXES COLLECTED.  WHAT DO I DO? 

Online tax filing instructions and tax remittance forms may be obtained from our website 
www.townofbreckenridge.com (I WANT TO…/Pay/Sales Tax).  Please note that the absence of a sales tax 
form for ANY reason does not relieve you of your duty to remit all taxes in a timely manner.

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     SALES TAX RATE 

     For Sales within the Town of Breckenridge

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                          ACCOMMODATIONS TAX RATE 

                      For properties located within the Town of Breckenridge  

12.275% Sales and Accommodation Tax
        LODGING (MOTEL, HOTEL, CONDO RENTAL<30 DAYS)                                                  $                   100.00 

TAX BREAK DOWN                    NOT TO TOWN          EXCISE               MARKETING                 OPEN SPACE           HOUSING
2.900%      STATE      $    2.900 $               2.90 $                -   $                     -   $                -   $             -
2.500%  TOWN - SALES   $    2.500 $                -   $               1.93 $                    0.07 $               0.50 $             -
3.400%  TOWN - ACCOM   $   3.400  $                -   $               2.00 $                    1.40 $                -   $             -
0.725%  MHA 1- TOWN*   $   0.725  $            0.005   $               -    $                     -   $               -    $          0.72
2.000%  COUNTY -  TOWN $    2.000 $               0.07 $               1.93 $                      -  $                -   $             -
0.750%  MTS 2- COUNTY* $   0.750  $              0.75  $               -    $                     -   $               -    $            -
12.275%                $  12.275  $             3.725  $             5.860  $                  1.470  $             0.500  $          0.720
1       Multi-Jurisdictional Housing Authority
2       Mass Transportation System
* MHA and County Tax distributed to the Town include a Vendor Fee, shown as "NOT TO TOWN"                                                   
                                                                                                                                                  
                                              MTS 2- COUNTY*                                          STATE 
Tax Rates on                                         0.750%                                           2.900% 

$100 Lodging Sale COUNTY -  TOWN 
                                  2.000% 

                                 MHA 1- TOWN 
                                  0.725% 

                                                                                                                      TOWN - SALES 
                                                                                                                         2.500% 

                                              TOWN - ACCOM 
                                                     3.400%

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                                    MARIJUANA TAX RATE 

                                  For Sales within the Town of Breckenridge  

13.875% Marijuana Tax
        LODGING (MOTEL, HOTEL, CONDO RENTAL<30 DAYS)                                                 $             100.00

TAX BREAK DOWN                      NOT TO TOWN               EXCISE     MARKETING                   OPEN SPACEHOUSING MARIJUANA 
2.900%  STATE            $    2.900 $                    2.90 $       -  $                        -  $             -  $       -  $             -
2.500%  TOWN - SALES     $    2.500 $                      -  $     1.93 $                      0.07 $           0.50 $       -  $             -
5.000%  TOWN - MARIJUANA $    5.000 $                      -  $       -                              $            -   $       -  $           5.00
0.725%  MHA 1- TOWN*     $  0.725   $                 0.005   $      -   $                       -   $           -    $    0.72  $            -
2.000%  COUNTY -  TOWN   $    2.000 $                    0.07 $     1.93 $                        -  $             -  $       -  $             -
0.750%  MTS 2- COUNTY*   $   0.750  $                   0.75  $      -   $                       -   $            -   $      -   $            -
13.875%                  $  13.875  $                  3.725  $    3.860 $                    0.070  $         0.500  $    0.720 $           5.00
1       Multi-Jurisdictional Housing Authority
2       Mass Transportation System
* MHA and County Tax distributed to the Town include a Vendor Fee, shown as "NOT TO TOWN"

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INSTRUCTIONS FOR COMPLETING THE
SALES/ACCOMMODATIONS TAX RETURN

LINE 1 GROSS SALES AND SERVICE: Report all receipts for the period covered; include all sales, both
retail and wholesale; services rendered; rent receipts; and all amounts both taxable and nontaxable,
received in the conduct of your business.
LINE 2A BAD DEBT COLLECTED: Report the bad debts collected which were previously deducted on Line
3D - "Bad Debts Charged Off."
LINE 2B TOTAL LINES I AND 2A: Add Lines 1 and 2A.
LINE 3 DEDUCTIONS: The following items are exempt from taxation:
3A Deduct all services which are nontaxable.
3B Deduct sales made to other town LICENSED retailers who purchase such merchandise for the
purpose of resale to the consumer.
3C Deduct all sales delivered to the purchaser outside the Town limits of Breckenridge if BOTH the
following conditions exist:
(a) The sale is to a purchaser who is a nonresident of Breckenridge, and
(b) Delivery is made by common carrier, conveyance by the seller, or by mail to the purchaser OUTSIDE
the Town of Breckenridge.
3D Deduct all sales which were originally taxable sales and which you deem "uncollectible/bad" and
have written off as such.
3E Deduct the value of property traded-in, which will be resold in the usual course of business.
3F Deduct all sales of gasoline and cigarettes.
3G Deduct all qualifying sales to exempt organizations if the purchases are made in conjunction with
their exempt status and funds drawn on the organization.
3H Deduct all sales which were returned by the purchaser and were previously reported as net taxable
sales.
3I Deduct al sales of prescription drugs and prosthetic devices, prescribed.
3J-3L Deduct all other exemptions not covered on Lines 3A through 3I. Other deductions must be
explained in space provided.

LINE 3 TOTAL DEDUCTIONS: Total all deductions claimed in Lines 3A through 3L.
LINE 4 TOTAL TOWN NET TAXABLE SALES AND SERVICES: Subtract TOTAL DEDUCTIONS on Line 3 from
Line 2B.
LINE 5 AMOUNT OF TOWN SALES TAX: Report the amount of sales tax calculated. The sales tax is
calculated by multiplying Line 4 - "Net Taxable Sales and Services' by Town's 2.5% sales tax rate.
LINE 6 ACCOMMODATIONS TAX: This is an additional tax required to be collected on all room rentals in
any establishment for periods of less than thirty (30) days. Enter the amount of room rental for the
period on line A and/or line B and multiply by 3.4%. The method that you use to differentiate between
groups and individuals is of your choosing. However please be consistent in the methodology.
6A Report theamount of sales related to Group lodging sales
6B Report the amount of sales related to Free & Independent Traveler (F.I.T.) lodging sales (the balance
of lodging sales not reported as Group Sales.

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LINE 7 EXCESS TAX COLLECTED: Report the amount of tax collected in excess of the effective rate of tax
levied on retail sales.
LINE 8 TOTAL TAX DUE: Add Lines 5, 6, and 7.
LINE 12 LATE FILING: Report the penalty assessed for filing after the due date. The penalty is 10% of Line
8. Report the interest which is 1% per month of Line 8. Enter the total of penalty and interest in the
appropriate space for Line 12. There is a minimum penalty of $15.
LINE 13 TOTAL TAX, PENALTY AND INTEREST DUE: Add Line 8 and Line 12.
LINE 14 ADJUSTMENTS FOR PRIOR PERIODS: Report underpayment adjustments to returns previously
filed, or amended, in Line 14A. NOTE: All amounts reported as prior period adjustments must be
supported by written documentation.
LINE 16 TOTAL DUE AND PAYABLE: Add Line 13 and Line 14. Make check or money order payable to
Town of Breckenridge.

PERIOD COVERED 01/01/14 - 01/31/14 ACCOUNT NUMBER TOWN OF BRECKENRIDGE
DUE DATE 02/20/14 SALES TAX RETURN
TAXPAYER NAME AND ADDRESS DIVISION OF FINANCE & MUNICIPAL SERVICES - TOWN OF BRECKENRIDGE - PO BOX 1517 - BRECKENRIDGE, CO 80424
(970) 453-3182

COMPUTATION OF TAX
5. AMOUNT OF TOWN SALES TAX 2.5% OF LINE 4 $ -
6. A - AMOUNT OF LINE 4 SUBJECT TO ACCOMMODATIONS TAX (GROUP BUSINESS) $ - X 3.4% = $ -
B - AMOUNT OF LINE 4 SUBJECT TO ACCOMMODATIONS TAX2 (F.I.T. ); BALANCE$ - X 3.4% = $ -
NOT REPORTED IN LINE 6A. TOTAL OF LINES 6A & 6B $ -
1. GROSS SALES AND SERVICE 1 $ - 7.
2A. ADD: BAD DEBTS COLLECTED 8. ADD EXCESS TAX COLLECTED
2B.3. TOTAL LINES 1 & 2A $ - 9. TOTAL TAX DUE: (ADD LINES 5, 6, 7, AND 8) $ -
A. NON-TAXABLE SERVICE SALES 10.
B. SALES TO OTHER LICENSED DEALERS FOR 11.
PURPOSES OF TAXABLE RESALE 12. PENALTY 10% (MINIMUM $15.00 PENALTY) not auto calculated $ -
C. SALES SHIPPED OUT OF TOWN AND/OR STATE
INTEREST (1% PER MONTH) not auto calculated $ - TOTAL $ -
D. BAD DEBTS CHARGED OFF
DEDUCTIONS E. TRADE-INS FOR TAXABLE RESALE 13. TOTAL TAX, PENALTY AND INTEREST DUE (ADD LINES 8 AND 9) $ -
14. A - ADD
F. SALES OF GASOLINE AND CIGARETTES
G. SALES TO GOVERNMENTAL, RELIGIOUS, AND B - DEDUCT
CHARITABLE ORGANIZATIONS 15. TOTAL DUE AND PAYABLE (MAKE CHECK OR MONEY ORDER PAYABLE TO TOWN OF $ -
H. RETURNED GOODS BRECKENRIDGE)
I. PRESCRIPTION DRUGS / PROSTHETIC DEVICES SCHEDULE - A : SPECIAL MESSAGE TO TOWN (COMPLETE THE BOX BELOW IF ANY OF THE BELOW APPLY)
CHECK HERE FOR CHANGE OF ADDRESS / PHONE NUMBER / FAX NUMBER
J. OTHER DEDUCTIONS
(including long-term rentals)
2CHECK1 TOTALF.I.T. -FREEHERERECEIPTSANDFORINDEPENDENTFROMFINALTOWNTAXACTIVITYTRAVELER. RETURNMUSTTHETOBEMETHODTOWNREPORTEDTHATOFANDBRECKENRIDGEYOUACCOUNTEDUSE TO DIFFERENTATEFOR IN EVERYBETWEENRETURNGROUPSINC. ALL SALES,& INDIVIDUALSRENTALS,ISLEASESOF YOURANDOWNALLCHOOSING. SERVICES BOTHHOWEVER,TAXABLEPLEASEAND NON-TAXABLEBE CONSISTENT
TOTAL DEDUCTIONS (A THRU J) $ - IN YOUR METHODOLOGY.
4. TOTAL TOWN NET TAXABLE SALES & SERVICES (2B MINUS 3) $ - ALWAYS SIGN YOUR FORM

SHOW BELOW CHANGE OF OWNERSHIP AND/OR ADDRESS, ETC. I HEREBY CERTIFY UNDER PENALTY OF PERJURY THAT THE STATEMENTS MADE HEREIN ARE TO THE BEST OF MY KNOWLEDGE, TRUE
AND CORRECT.
BY
TITLE
COMPANY
BUSINESS ADDRESS ? PHONE
MAILING ADDRESS ? DATE

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RECORD REQUIREMENTS

RETENTION PERIOD
All records pertaining to transactions involving a sales tax liability must be preserved for a period of not
less than three (3) years.

RECORDS TO BE KEPT
The records must include the normal books of account maintained by the ordinarily prudent business
person engaged in such business, together with bills, receipts, invoices, cash register tapes or other
documents of original entry supporting the entries in the books of accounts together with all schedules
or working papers used in connection with the preparation of tax returns.

GROSS SALES AND SERVICE
To verify the reported gross sales and service amount, copies of the source documents used by the
business should be kept on file. This would include such records as daily cash register tapes, sales
invoices, and sales receipts. Bank records should also be kept, but they should not be the only
documentation retained.

NON-TAXABLE SERVICE SALES
The records that are required to be kept on file to confirm the deduction taken for non-taxable service
sales are the source documents such as cash register receipts, sales invoices, or sales receipts which
indicate that a non-taxable service was rendered.

SALES TO OTHER LICENSED DEALERS FOR PURPOSES OF TAXABLE RESALE
When a business sells an item to a licensed vendor who intends to resell the item purchased, a list
should be kept with the names and sales tax numbers of the businesses who are making nontaxable
purchases. Also, a list of the items purchased along with their prices should be kept on file. If there is a
question about the validity of a Breckenridge account number given by a vendor making the purchase,
please contact the Town of Breckenridge Sales Tax Division.

SALES SHIPPED OUT-OF TOWN AND / OR STATE
The records that should be kept to verify sales shipped out of the Town limits include bills of lading,
postal receipts, and any other shipping records that include the name and address of the customer and
the weight and value of the item being shipped.

BAD DEBTS CHARGED OFF
If a business takes a deduction for bad debts charged off, copies of the Federal Income Tax returns
should be kept on file to document the deduction taken.

TRADE-INS FOR TAXABLE RESALE
When tangible personal property is taken as a trade-in, sales invoices or sales receipts indicating the
allowance given should be retained by the business taking the trade-in.

RETURNED GOODS AND OTHER DEDUCTIONS
Cash register receipts, sales invoices, or sales receipts should be kept on file to verify the amounts
reported on the return.

SALES TO GOVERNMENTAL, RELIGIOUS, AND CHARITABLE ORGANIZATIONS
When a sale is made to a customer claiming to be tax exempt, the business making the sales must retain
a copy of the invoice or sales receipt, along with a form containing the organization’s name and State tax
exempt #. If payment is not made directly with the exempt organization’s funds, then tax must be
charged. The following is the form to be used to document the non-taxable sale.

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