by Terri Wiebold

In preparation for the new sales tax which took effect on July 1, the city of Castle Pines North (CPN) and the Castle Pines Chamber of Commerce hosted a series of informational tax seminars at DazBog Coffee in CPN.

According to City Treasurer, Doug Gilbert, the seminars were designed to educate residents and business owners about the new sales tax and use tax, as well as the new licensing requirements for individuals and businesses.

Sales Tax - What Residents Need to Know

The sales tax rate for the city of Castle Pines North, voted for by residents in the November election, is two and three-fourths percent (2.75%).

For the most part, all tangible personal property and services that are subject to state sales tax are subject to city sales tax. All items that are exempt from state sales tax are exempt from city sales tax, with a few exceptions.

Effective July 1, 2008, every consumer is required to pay applicable sales taxes at the point of purchase, and every retailer is required to submit sales tax revenues to the Colorado Department of Revenue as required by the state. Retailers are entitled to retain a portion of the revenue equal to three point three percent (3.33%) of the amount of sales tax due.

Sales tax return forms and additional information are available from the Colorado Department of Revenue at www.revenue.state.co.us.

Use Tax - What Residents Need to Know

The use tax rate for the city of Castle Pines North – also voted for by residents in the November election – is two and three-fourths percent (2.75%).

Use taxes must be collected and paid by every person using or consuming building and construction materials in CPN, and shall be paid to the city when a building permit is issued.

Additionally, persons storing, using, or purchasing at retail any motor vehicles (or other vehicles) on which registration is required, shall pay use taxes. Use tax on
motor vehicles shall be paid to the Douglas County Motor Vehicle Department upon registration of a motor vehicle.

Licensing Requirements

Any person or business selling taxable personal property must obtain a license for a fee of $5. This includes retail businesses, home-based businesses, and consultants. Applications are available at .

For additional information on what is subject to sales tax and use tax or collection and payment thereof, please contact the Castle Pines North city clerk and request a copy of Ordinance 08-05 or contact the city treasurer at 720-548-3253.

Additional information is also available from the Colorado Department of Revenue’s call center at 303-238-7378 or by going to www.taxcolorado.com. Guidelines provided by the Colorado Department of Revenue are also posted on the Master Association website at
http://www.cpnhoa.org/pages/news/articles/2008/qtr3/salesTax.htm.