PDF document

- 1 -

                                                        7500 West 29th Avenue 
                                                         Wheat Ridge, CO  80033 
                                                        www.ci.wheatridge.co.us 

 General Licensing, Sales and Use Tax Information 

This brochure is provided to help you become aware of and comply with the general 
tax and licensing provisions of the City of Wheat Ridge Municipal Code.  More detailed 
information and information specific to business types as well as copies of the Wheat 
Ridge Tax Ordinance are available upon request.   

                                 Compliance Tips 

Every person or organization doing business detail and the inner pages of this booklet give 
of any kind in Wheat Ridge must have a City some examples.  The City website covers the 
business license, even if they “don’t sell  subject in more detail.  
anything.”  The Tax Office will gladly fax or  
mail one to you: just call (303)235-2820.  You  Businesses that collect the City sales tax are 
can also find the form on our website, listed permitted to keep two percent of the total 
above.                                       sales tax due, up to a maximum of $100 per 
                                             filing period on line 8 of the return. Don’t 
ZIP codes cross city boundaries and ARE worry, if you forget to take it, it becomes a 
NOT accurate for local tax purposes.  See credit to your account that may be refunded on 
“Local Taxes by Address” under Online  request unless the account has a debit 
Services at www.taxcolorado.com.             balance.   
                                                
Items used in business, such as office 
supplies and equipment, are subject to sales 
                                                                Tax Fact 
tax.  If they’re purchased from a seller who             
doesn’t charge any local tax, use tax is owed.  The City of Wheat Ridge administers sales and 
Section 22-68 of the City Code provides more    use tax, telephone occupation tax, lodging tax, 
                                                admissions tax, liquor occupation tax and 
           Tax Rates                            construction use tax.  The Tax Division employs 
                                                three full time people: a supervisor/auditor, an 
 City of Wheat Ridge             3.0%           auditor and a technician.   
 State of Colorado               2.9% 

 Jefferson County Open           0.5% 
                                                LICENSE REQUIRED TO COLLECT TAX            
 Regional Transportation 1.0%                    
                                                Section 22-20 requires that you have a city 
 Cultural/Scientific District    0.1% 
                                                business/sales tax license in order to collect the 
   City sales tax.  This is an effort to gain some 
                                accountability from remote sellers who were 
                                                collecting tax and remitting it miscellaneously.   
 Combined Rate                   7.5% 

VMAR13

- 2 -

   For your convenience, Wheat Ridge offers two online filing choices:  
                                   Salestaxonline.com  
                                         and  
                          https://salestax.ci.wheatridge.co.us  

What is taxable? 
 
 All sales, leases and rentals of physical goods (tangible personal property) 
        Food:  all food is taxable regardless of where it is to be consumed, except qualifying 
          WIC and Food Stamps purchases. 
        Software:  all software, commercial, custom or customized is taxable. 
        Freight:  in general, charges for freight, delivery, transportation, shipping and 
          handling to the final user are taxable unless they are separately invoiced. 
    
 Certain services (and any resulting tangible 
   personal property) 
        Telecommunications services, including internet           Tax Fact 
          services                                          
        Pay television services (cable or satellite TV)  Alaska, Oregon, Montana, New 
        Linen/uniform services                           Hampshire and Delaware have 
        Alarm/security services                          the lowest combined sales taxes.  
        Credit bureau services                           Their revenues are primarily from 
        Marketing/advertising services                   royalties or property taxes. 
        Fabrication charged to the final user 
    
 Other  
        Maintenance agreement:  the full price of a contract or agreement to maintain or 
          service anything but real property is taxable.   
        Storage unit rental:  any space rented for storage is deemed a storage unit 

Exemption Requirements 
 
1. Exempt organizations wishing     Newspapers  
to purchase and use goods free      Prescription drugs and prosthetic devices 
of Wheat Ridge tax must license     To government institutions and entities:  United 
with the City.                        States,  Colorado and Colorado districts, cities and 
                                      counties 
2.  An exemption form is required   To charitable or religious organizations   presenting a 
to be kept for 3 years for each       valid Wheat Ridge exemption license  
customer who buys tax-free.         To purchasers who will resell the items and who 
State form DRP 563 or any multi-      present a valid Wheat Ridge sales and use tax 
jurisdictional form is acceptable.    license number  
                                    Farm items: machinery, parts, livestock, poultry, feed, 
See the City website for details      medicines, fertilizers and seeds 
or call the Tax Division.

- 3 -

Use tax exists to protect local businesses from losing sales to
competitors in areas with lower sales tax rates.

When is use tax not due to Wheat Ridge?

• When you paid the correct Wheat Ridge sales tax to your supplier.
• When you plan to resell the items in the normal course of business, unless you use them first.
• When you paid another city’s sales tax that is equal to or greater than the Wheat Ridge sales tax
(3%).

How is use tax paid to Wheat Ridge?

When you establish an account with the City of Wheat Ridge by licensing your business, you will
receive a sales and use tax reporting form monthly, quarterly or annually depending on your level of
activity.

What is the Wheat Ridge use tax rate and to what does it apply?

Use tax applies to the same goods and services and at the same rate as the sales tax (3%).

• You buy a desk that is delivered for use at your • You buy maintenance supplies through mail
business location in Wheat Ridge. The sup- order for use at your Wheat Ridge location.
plier charges Wheat Ridge sales tax along with The supplier charges tax of %,but you
other applicable taxes for a total rate of 7. % don’t know what city’s tax was included! Call
NO use tax is due to Wheat Ridge. the supplier and ask them what city’s tax they
charged you. It is possible that they deter-
• You pick up a computer you bought in unin- mined sales tax using your ZIP code and
corporated Jefferson County for use at your wrongly charged a bordering city’s rate. Pay
Wheat Ridge location. The supplier charges use tax to Wheat Ridge and request either a
only 4. % tax (state, RTD, CSD and refund of the incorrect city tax from the sup-
county sales taxes). plier or permission to short pay the invoice.
Use tax IS due to Wheat Ridge

• You buy boxes of paper that are delivered for
use at your location in Wheat Ridge. The sup-
plier charges state, RTD, CSD, and
county sales taxes, but not Wheat Ridge sales
tax (total tax charged, 4. %).
Use tax IS due to Wheat Ridge

• You pick up a chair in Arvada and take it to
use at your Wheat Ridge location. The sup-
plier charges Arvada sales tax of 3. % along
with other applicable taxes. Remember, the
Call the Tax Office with any questions.
Wheat Ridge tax is only 3%.
NO use tax is due to Wheat Ridge (303) 235-2825

- 4 -

• You buy an assortment of computer parts via • You buy a nifty new line of tools free of tax to
the internet for use in improving your sell at retail. However, you take a few tools
information system at your Wheat Ridge out of stock and have an employee demonstrate
office. The supplier, who sells exclusively on their use in the showroom. This is considered
the internet, mails the parts to you. The current a taxable use even though you might sell them
prohibition on taxing such sales allows the later at a discounted price because converting
supplier to charge no tax at all on the sale. inventory to business use is considered a
However, this does not release your tax transaction involving taxable goods.
obligation. Use tax IS due to Wheat Ridge
Use tax IS due to Wheat Ridge

• You pick up break room snacks in another town to feed employees at your Wheat Ridge location. The
supplier charges the town's sales tax of 2% along with other applicable taxes. (This example is
based on a former rate in Lakewood; it’s now the same as in Wheat Ridge.)
Partial use tax IS due to Wheat Ridge.

Here’s how you calculate and report it, based on an imaginary invoice as shown below:

1. Calculate the tax rate you paid
A. Tax on invoice $ 6. 0
Supplier Co. Invoice B. Purchase price of goods $ 100.00
000 Some Street C. Total rate charged (A divided by B) 0.06
Some City, CO
2. Calculate the tax rate difference
Your Company A. Wheat Ridge combined rate 0.07
000 Any Street B. Total rate charged from 1C 0.06
Wheat Ridge, CO 80033 C. Tax rate difference (A minus B) 0.010

1/1/2007 will call On acct.
3. Calcluate the tax owed to Wheat Ridge

A. Purchase price from 1B $ 100.00
Snacks $100.00
B. Tax rate difference from 2C 0.010
Tax 6. % 6. 0
Total due $106. 0 C. Tax amount due (A times B) $ 1.00

4. Calculate the reported purchase
A. Tax amount due from 3C $ 1.00
B. Wheat Ridge city tax rate 0.03
C. Report this (A divided by B) $ 33.33
Report the result of 4C
on Schedule B of the Wheat Ridge Sales and Use Tax Return. Tax is recalculated

Call the Tax Office with any questions.
(303) 235-282

- 5 -

                     LodgingTax 
                  
This is a 10% tax on the price of rooms or accommodations that are leased, rented or 
otherwise furnished by agreement and for consideration to one occupant for less than 30 days.   

  Hotels and motels                            Auto or RV camps 
  Apartment or extended stay hotels            Trailer courts or parks 
  Guest houses and guest ranches               Inns and beds-and-breakfasts 

Admissions Tax   
  
 This is a 4% tax on charges for admission to amusement or entertainment events and 
 activities, such as bowling, arcades, children’s playrooms or any other event with an 
entrance fee or cover charge.  The tax is NOT applicable to: 
  Functions of the U.S. government and Colorado state and local governments 
  Functions of Wheat Ridge licensed exempt charitable and religious organizations 
 (Not to be confused with sales by exempt organizations of tickets to public events) 
  Functions of public and non-profit private schools having a Wheat Ridge exemption 
    letter  
  Refunded admissions charges, if the tax was also refunded 
  Free passes or complimentary admissions 
  Non-profit museums 

                                                Building Materials Use Tax 
 
This tax is paid at the time a building permit is obtained.  The use tax rate of 3% is  
applied to 60% of the total estimated project cost and exists to ensure tax is paid to the City for 
items attached to property in the City.  To avoid double taxation the contractor should present 
a copy of the permit to  suppliers in order to avoid paying city tax (only) at the time of purchase. 
Common construction projects requiring permits: 

  Decks                                     Window replacement 
  Room additions                            HVAC or water heater installation or 
  Retaining walls                             replacement 
  Interior remodels, basements              Fences 
  Storage sheds over 120 square             Roofing 
    feet                                      Many more, please call Building and 
  Electric service changes                    Zoning Enforcement at (303) 235-2855 

Telecommunications Tax 
 
 The Wheat Ridge Municipal Code Sec. 22-121 imposes a flat tax on basic local exchange 
 service providers who may pass it on to their customers.  In 2013 it’s $2.05 per line. 

                                                   Liquor Occupation Tax 
 
Operators of establishments serving or selling alcoholic beverages are subject to an 
occupation tax based on the type of products and manner of selling them.

- 6 -

City of Wheat Ridge                                 www.ci.wheatridge.co.us 
       Tax Office     (303) 235-2820 
       Tax FaxOffice    (303)234-5924 
 Main Switchboard    (303) 234-5900 
 Zoning      (303) 234-5931 
 Code/Animal/Park Enforcement  (303) 235-2926 
   
State of Colorado     www.taxcolorado.com 
 Department of Revenue   (303) 238-7378 
 Secretary of State    (303) 894-2200 
       State tax/exemption license verification www.colorado.gov/revenueonline/ 
  
Jefferson County     www.co.jefferson.co.us 
 Assessor’s Office    (303) 271-8666 
 GIS s     Addres Wizard   www.co.jefferson.co.us/awiz/ 

                                                            Audits 
 Returns Due the 20th of each month                          
                                                            Our goal is to educate taxpayers in order 
 All City of Wheat Ridge tax returns are due on the 20th  to gain voluntary and accurate 
   of each month following the assigned reporting period.   compliance.  Our obligation is ensuring 
                                                            the collection of tax due to Wheat Ridge 
 When the 20th falls on a weekend or holiday, returns are for provision of services to its citizens, 
   due the next business day.                               businesses and visitors.  To meet this 
                                                            obligation, audits must be conducted. 
 A return must be postmarked on or before the due date     
   to be considered timely.                                 Any business may be selected for audit.  
                                                            During an audit, a City Sales Tax Auditor 
                                                            visits a business to review accounting 
                                                            records for verification of payment of 
                                                            Wheat Ridge tax.  If your business is 
                                                            selected for audit you will be notified in 
 You must file a return even if you owe no tax.             writing as to the period to be audited, 
                                                            records that might be needed and 
                                                            commencement of the audit. 
           Reporting Frequency  
                             
                                                            Initial Use Tax 
 Monthly:  average tax due is more than $100 
                                                             
   per month 
                                                            Initial use tax is due on equipment, 
                                                            furnishings and fixtures when 
 Quarterly:  average tax due is between $20               someone purchases an existing 
   and $100 per month                                       Wheat Ridge business or opens a 
                                                            new business or location and hasn’t 
 Annually:  average tax due is less than $20              paid local sales tax on such items.   
   per month                                                See the City website for details.

PDF file checksum: 2705105865

(Plugin #1/7.24/11.3)