▼

Sales Tax

Show All Answers

1. What is the Sales Tax rate for the City of Centennial?

The Sales Tax rate for Centennial is 2.5 percent. The combined sales tax rate of 6.85 percent includes several jurisdiction and district taxes. Not all sales by all vendors should have the 6.85 percent sales tax collected. For example, only a sale to a customer located in the RTD/FD/SCFD district should include the combined 1.2 percent. If you have questions about what sales taxes should be collected on sales to your customers, please contact the City at 303.325.8000.

2. Why has Centennial decided to collect its own Sales Tax?

On June 10, 2008, Centennial residents adopted a home rule charter by a vote of 13,441 in favor to 6,436 opposed. As mandated in Centennial’s charter, the City is governed by a Council/Manager form of government. This system of governing consists of one Mayor, eight City Council members and a professional City Manager. Two Council members are elected from each of the City’s four districts while the Mayor is elected at large. The City Manager is appointed by the City Council and directly oversees the daily operations of the City. The City Council directs City policy while the City Manager is responsible for carrying out Council’s policies.

Since February 2001, the State of Colorado collected the City’s Sales Tax and sent it to the City. Often times the City would not receive the Sales Tax for 45 days after the date the State received it. In addition, the State determined which businesses should be audited and what is taxable and what is exempt from Sales Tax. Essentially, the State of Colorado administered the City’s Sales Tax program. While this was convenient, it may not have been as prudent from a revenue administration perspective as the City needed. The City notified the State of Colorado that effective January 1, 2009, the City would collect and administer its own Sales Tax. Collecting its own Sales Tax allows Centennial to determine the policies and procedures relating to Sales Tax and brings the Sales Tax revenue to the City when the returns are filed, not 45 days later.

3. How many other cities collect their own Sales Tax in the State of Colorado?

There are 66 home rule cities in the State of Colorado that collect their own sales tax.

4. When are the sales tax payments due?

Sales Tax Returns are to be filed and payments are to be made no later than the 20th day of the month after each filing period unless the 20th day falls on a Saturday, Sunday or holiday. In those cases, the return and payment are due the following business day. Payments will be considered late if they are mailed after the due date. Proof of mailing date must be from a U.S.P.S. postmark, not a meter mark. All returns filed after that date are considered late and therefore delinquent. Penalty and interest is due on the delinquent tax.

5. When is the filing period?

Each business that has a Retail Sales Tax License will have a filing period appropriate for the volume of Centennial sales tax collected. Some businesses might have a significant volume of sales for the State of Colorado to warrant filing the sales tax return each month. However, that same business might have a smaller volume of Centennial sales tax collected and might only need to file each quarter. The determination about how often a business files sales tax returns is made by the City. Requests for change in filing status should be made in writing and sent to the City.

6. What businesses are required to have a Retail Sales Tax License?

All businesses that sell taxable property or services into the City of Centennial are required to have a Retail Sales Tax License. These businesses include businesses that have a physical location inside the City and businesses located outside of the City, but have nexus and engage in business in the City.

7. The license application wants me to put down a NAICS Code and list lots of information about my business that doesn’t seem to apply to Sales Tax. Why does the City need to know that information?

The questions about NAICS, square footage of the business, type of business, etc. relate to the registration of the business and help the City by gathering information that assists the City’s planning and economic development efforts.

8. The license application asks for my Social Security Number. I don’t want to provide that unless I understand why that’s important to the City.

Since Sales Tax is a tax paid by the customer to the City and held in trust by the vendor/retail business, the information requested on the License Application is required so that the City has the necessary information in the event the retailer does not remit the sales tax to the City and it becomes necessary for the City to enforce the Ordinance. The answers to all of the questions in Section Two on the second page of the application are considered to be highly confidential and are not part of the City’s public records policy. Information provided in Section Two of the License Application is treated with the same confidentiality as the information on the returns that are filed by the vendor.

9. Why does my return and payment get mailed to a P.O. Box in Denver?

The City has contracted with a local bank to provide lockbox services. Lockbox services allow the City to focus on the recording of sales tax, customer service, audit services, and business registration management. A lockbox receives the license applications, sales tax returns and payments, and all other correspondence. The service records the receipt of the information and transmits that information to the City electronically. The sales tax payments are deposited directly into the City’s bank account. The lockbox process is allowing the City staff to focus time and resources on Sales Tax Administration and not cash receipting.

10. Can I just file and pay the taxes through the Web site?

Vendors may file the Sales Tax Return and pay sales tax collected to the City of Centennial through the City’s Web site. Payment of the Sales Tax is through an ACH (Automated Clearinghouse) payment from the vendor’s bank account. The on-line file and pay feature can be accessed through the City’s Web site by visiting the Online Payments page. Click on the button labeled “Taxpayer Access” under the feature titled, “Online Payments.”

11. Can I pay the sales tax with a credit card?

The City has made the decision not to provide the ability for vendors to pay sales tax due with credit cards. The credit card companies require that the City pay a percentage of the sales tax to the merchant service provider for the ability to use credit cards. Some cities pass that cost on to the vendors as a convenience fee. Centennial has decided not to pursue that method of payment at this time due to the cost to the City and/or the vendor.

12. I have questions about what the ordinance really says. Is it located on the Web site?

The City has posted the City of Centennial Sales and Use Tax Ordinance and the Business License Ordinance on the City’s Web site under Taxes and Licenses

13. Does the City have a General Use Tax?

The City of Centennial does not have a General Use Tax. The City does have a Use Tax on Motor Vehicles and Building Materials.

14. What other taxes does the City have?

Property taxes are levied by local governments on all privately owned real property regardless of use. The amount of the taxes levied are based on the assessed valuation of the property and the City’s mill levy. The tax is assessed by multiplying the assessed valuation by the mill levy rate. Assessed valuation is established by the Arapahoe County Assessor. To look up your property's assessed value, visit the County Assessor's Parcel Search.
The City’s Property Tax is collected by the Arapahoe County Assessor. Questions regarding Property Tax should be directed to the Administration Office of the Arapahoe County Assessor at (303) 795-4651, or information regarding property taxes can be found at the Arapahoe County Assessor's Office.

15. Where do I file my return and pay the sales tax in person?

To pay in person go, to the Civic Center at 13133 E. Arapahoe Road and ask for the Sales Tax Department. The staff at the reception area will refer them to the Contractor Licensing area for assistance. You can also file and remit through the Lockbox address – P.O. Box 17383, Denver, CO 80217-0383