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Tax & Licensing

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1. Does my business need a City license?

All business activities or locations in the City must be licensed, even if no merchandise is sold. Some businesses may require additional special licenses. If you are unsure, please contact us. See the licensing web page.

2. How long does it take to get my business/tax license?

Out of city applicants may expect their license approximately 10 days after applying. Local licenses may take longer because of compliance inspections. It is suggested that you apply a minimum of a month in advance of your projected opening date. If you wish to inquire about the status of a local license application, please call (303) 235-2820. contact tax staff for their assistance.

3. Is the city of my mailing address the city to which I pay tax?

Not necessarily. ZIP codes cross city boundaries and are not accurate for determining your own or your customer's city for tax purposes. The tax resources page provides ways to identify cities for tax.

See the resources available.

4. What is the City sales tax rate?

On January 1, 2017 the City sales and use tax rate is 3.5% for twelve years to fund capital improvements. State, special district, and county tax may apply. Please see the Colorado Department of Revenue website for information. The previous rate was 3%.

5. When do I charge City sales tax?

The City sales tax must be charged when items and certain services are sold, leased or rented in Wheat Ridge, including deliveries made more than once a year by sellers using their own vehicles. See the sales tax web page.

6. When must sales tax be paid to the City?

Sales taxes are never the property of the retailer and must be paid by the 20th of the month after collecting them, as follows: average monthly tax collected is over $100, monthly; average monthly tax collected is between $20 and $100, quarterly; or average monthly tax collected is less than $20, yearly. See the filing requirements page.

7. When are sales not subject to the City sales tax?

A sale delivered outside the City or to an exempt organization with a completed exemption affidavit is not subject to the City sales tax. A sale of products as inventory for resale or that become part of inventory for resale are not subject to the City sales tax. See the exemptions web page.

8. What is use tax?

Use tax is a one-time tax that is paid in place of sales tax. It becomes due when purchases are made from vendors who do not collect the City's sales tax or who collect tax in a city that has a lower rate. The rate is the same as the sales tax rate. See the use tax web page for details.

9. When must use tax be paid to the City?

Use tax must be considered in combination with sales tax and paid by the 20th of the month as follows: if the average monthly tax total is over $100, monthly; if the average monthly tax total is between $20 and $100, quarterly; or if the average monthly tax total is under $20, yearly. See the filing requirements page.

10. Are shipping, freight and handling taxable in the City?

In most cases where retail sales are delivered in the City, yes. Special freight terms may change that. A brief on freight and shipping is available, but if the situation is complex it is recommended that you call or write. See the freight terms paper.

11. Are fuel and other surcharges taxable in the City?

Yes, any fuel offset fees or other add-on fees on taxable items are subject to City sales or use tax according to the definition of purchase price in section 22-21 of the Wheat Ridge Code of Laws. Section 22-21

12. Can I get help completing my City sales tax return?

The Tax Division can advise you by phone, email, or in person about completing your return. A tutorial is available on this website.

13. Do I have to pay tax when I buy a business in the City?

Yes; initial use tax at the same rate as sales tax (3%) applies to new or purchased businesses in the City. It is due within 20 days of license approval on all business equipment, furniture, fixtures, and supplies that were bought from a previous owner of the business, with no sales tax having been paid. It also applies to new items brought to start a business on which no local tax was paid. Initial use tax does not apply to businesses purchased via stock acquisitions or bankruptcy proceedings. The use tax page provides more information.

14. How do I get a refund of sales tax?

A seller may request a refund of sales tax paid on a prior return by submitting an amended return and all supporting documents to show the original collection of the tax and the refund of it to the customer. The refund form that's available on this website may be used if the refund extends over more than three return periods, but must be accompanied by detailed supporting information. In either case the seller must provide proof that the tax was a) refunded to the customer or b) otherwise not due to the City. Alternatively, a customer may request a refund directly from the City by submitting the refund form and copies of the invoice. All refunds are subject to review before being granted. Please contact us with any questions. See the tax staff directory.

15. How do I obtain a refund of building permit use tax?

Submit the refund form that's available on this website with a copy of the permit and copies of invoices. Any project that was completed in Wheat Ridge must be audited in order to validate a refund. See the construction use tax page.

16. Are items sold in vending machines taxable in the City?

Yes. All sales from vending machines are subject to the City sales tax. The vendor include the tax in the price and remit it to the City by backing it out.

17. Are car washes and laundries taxable in the City?

Yes. The paid use of car washes, laundry machines, air hoses, vacuums, showers, pet washes, and similar, are short term rentals of equipment that are subject to sales tax. If they're operated like vending machines (paid by inserting or scanning something of value to gain use), the vendor may add tax to the price and remit it to the City by backing it out. Sales totalled at a counter must show tax charged separately. See the short term rentals information sheet.

18. How do I obtain Colorado tax information?

The State of Colorado offers tax assistance at (303) 238-7378 and via their website https://www.colorado.gov/pacific/tax/sales-tax-rates via their website.

19. What is physical vs. economic nexus?

In general, for City sales and use tax purposes, physical nexus means a business has a physical location in the City. If a business has physical nexus, it must obtain a business license and collect and remit applicable City taxes. Even if the business has a State business license. Economic nexus means the business does not have a physical location in the City but does business in the City through deliveries and occasional or incidental business transactions but not in a permanent business location. The business must obtain a business license and collect and remit applicable City taxes but it is not required to pay a fee for the business license. The business must be able to demonstrate that it has a State business license. For more information on this definition, please refer to Senate Bill 22-032. 

See the licensing page for more details.

20. What do I do if my records are destroyed?

If a computer crash or other calamity wipes out the records you need to file a tax return, simply call the Tax Division (or email us) for an average tax amount for the last year and file an estimated return based on that. After you've recovered your data, you can amend the return to reflect the actual activity. Any amount over-paid will become a credit on your account. Account credits will be applied to outstanding amounts due on your account and any extra may be refunded to you upon request. In a severe situation, such as a widespread natural disaster, the City will establish a temporary relief policy according to the situation.

21. When does my eTax return or renewal post?

When using the credit-card payment online tool for filing City taxes or renewals, you will see a delay in the time from your filing to our posting. This is because of the way our process is carried out. If you are contacted about a tax matter that is waiting to be posted through eTax, please pardon the inconvenience and if the notice had a deadline, let us know that you filed on eTax. Thanks for your help!