City of Northglenn Sales Tax Rates

Sales Tax (except food for home consumption)

• Colorado: 4 %
• Adams County:  .75 %
• Northglenn: 4 %
• Total: 8.75 %
  
  

Sales Tax on Food for Home Consumption

• Colorado: None
• Adams County: None
• Northglenn: 3%
• Total: 3 %
  

Use Tax

• Colorado: 4 %
• Adams County: None
• Northglenn: 4 %
• Total: 8 %
  
  

Accommodations Tax

• Colorado: 4 %
• Adams County: . 75 %
• Northglenn: 5 %
• Total: 9.75 %
  
  

Please Note:

• Northglenn charges an additional 4 % sales tax on all marijuana products. Additional state taxes will apply.
• 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%
• Science and Cultural Facilities District .10%
• Adams County taxes are paid directly to the State of Colorado on the state tax return.
• The city imposes a  3% excise tax on the price paid to gain admission to any place or event in the city which is open to the public.

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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 are taxable in Northglenn, but may be taxed differently by the state and other Colorado jurisdictions. Please consult with appropriate municipality.

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. 

Use Tax
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 or 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)
  
  

Reminders

• 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.

Audits
The city's audit program is an essential element in establishing equity and compliance amongst taxpayers, ensuring the accuracy of tax remittance through taxpayer assistance, oversight, and guidance. The city desires to complete the audit process with as little disruption to your business as possible. The audit can be conducted at either your business location, alternative location, or by mail/email. Please contact the Sales Tax Division for further information.

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.

Compute Use Tax
A business in Northglenn buys a computer to use in the business. The following examples illustrate how use tax is applied:

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% Northglenn, 4% state, 0.75% county).

Since Northglenn sales tax of 4.0% was charged, no use tax is due.

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% state, 0.75% county).

Since no city tax was charged, Northglenn use tax of $400 ($10,000 x 4%) is due.

The computer is purchased and picked up in Denver and brought into Northglenn.

• Price of computer $10,000
• Sales tax charged $765
• Invoice Total $10,765
• $765 divided by $10,000 equals 7.65% tax charged (3.65% Denver, 4.00% state).

Since only 3.65% city sales tax was charged, 0.35% additional use tax (4.0% Northglenn minus 3.65% Denver) is due to Northglenn in the amount of $35 ($10,000 x 0.35%).

The computer is purchased in Denver and delivered to your business in Northglenn.

• Price of computer: $10,000
• Sales tax charged: $765
• Invoice total: $10,765
• $765 divided by $10,000 equals 7.65% tax charged (3.65% 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.

Construction Use Tax
Construction within the city limits is taxable. Contractors working on such construction projects are subject to the tax on all purchases of tangible personal property, which property is used, stored or consumed on those projects. Click here for more information.