By Jen Coleson
The Colorado Department of Revenue has announced sales and use tax rate changes, and changes to available exemptions, that are effective July 1, 2025. (Sales & Use Tax Rate Changes Effective July 1, 2025, Colo. Dept. Rev., 06/13/2025.)
State tax.
An exemption for certain medium and heavy-duty vehicles, engines, motors, and conversion parts purchased before January 1, 2025 or August 1, 2025 onward (H) is now listed.
City Tax.
The following cities have added an exemption for certain medium and heavy-duty vehicles, engines, motors, and conversion parts purchased before January 1, 2025 or August 1, 2025 onward (H): Carbondale, Eckley, Fleming, Grover, Larkspur, Moffat, Ophir, Silt, Silverton, and Yampa.
The following cities have removed the Service Fee Cap: Alamosa, Canon City, Edgewater, and Superior.
County tax.
The following counties have added an exemption for certain medium and heavy-duty vehicles, engines, motors, and conversion parts purchased before January 1, 2025 or August 1, 2025 onward (H): Adams, Arapahoe, Conejos, Costilla, Elbert, Fremont, La Plata, Larimer, Mesa, Sedgwick, and Washington.
Douglas County has removed the service fee cap, reduced its service fee to 1.72% (from 2.33%), and added an exemption for certain medium and heavy-duty vehicles, engines, motors, and conversion parts purchased before January 1, 2025 or August 1, 2025 onward (H) and residential energy storage systems (V).
Grand County has removed the service fee cap.
Special districts.
The following special districts have added an exemption for certain medium and heavy-duty vehicles, engines, motors, and conversion parts purchased before January 1, 2025 or August 1, 2025 onward (H): RTD, CD, Eagle Valley RTA, Gunnison Valley RTA, Pikes Peak RTA, Roaring Fork RTA, San Miguel Authority for Regional Transportation, South Platte Valley RTA, Summit Combined MHA, Mesa County PSI, Arrowhead MDT, Aspen Park MDT, Bachelor Gulch MDT, Buffalo Mountain MDT, Conifer MDT, Eagle Vail MDT, Edwards MDT, Mt Vernon Country Club MDT, Pueblo West MDT, Purgatory MDT, Red Sky Ranch MDT, Southwest Plaza MDT, Two Rivers MDT, Delta Co HSD, La Junta HSD, Montezuma Co HSD, South Park HSD, and Ute Pass Regional HSD.
The following new Fire Protection (FPD) and Ambulance Districts (AD) have been added: Berthoud FPD with a sales tax rate of 1%, Cortez FPD with a sales tax rate of 0.54%, Eagle River FPD with a sales tax rate of 0.79%, Frederick-Firestone FPD with a sales tax rate of 0.50%, and Dove Creek AD with a sales tax rate of 2%.
Self-collected.
The city of Avon has added used tax for building materials. The city of Woodland Park has reduced its sales tax rate to 3%.
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