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Page Last Updated August 20, 2008 |
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The Office of the City Clerk is responsible for many areas of recordkeeping and licensing for the City of Fort Morgan. Sales Tax Licensing is one of those areas. CURRENT TAX RATES
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ON THE LINK FOR INFORMATION BY CATEGORY:
RECAP • Visit City's Planning & Zoning Department - fulfill their requirements to receive Building Inspector's approval.
• Obtain State of Colorado sales
tax license (on State Form CR 0100) - hang in conspicuous place in the
business. DETAILS When a new business wants to open in Fort Morgan that will be selling retail, tangible items, the business owner must first visit the City's Planning and Zoning Department, located at the City Complex building, 710 E. Railroad Avenue. The Planning & Zoning Dept. will help the business owner ensure that all zoning requirements are met and that the Building Inspector will approve the location. If you have questions for the Planning & Zoning Dept., they can be reached at 970-542-3907. Their fax number is 970-542-3039.
Once the business owner has complied with the zoning requirements, they must obtain their State of Colorado sales tax license and then the City of Fort Morgan sales tax license. There is no fee for a City sales tax license. Both of these license should be obtained prior to opening the door to the public.
The State of Colorado/Department of Revenue information and forms are available on their website at www.revenue.state.co.us. Click on Main Categories - Taxation; click on Main Categories - Forms. State Form CR 0100 must be completed by the business owner, received by the Colorado Department of Revenue along with the proper payment, and a new Revenue registration account number issued BEFORE a City of Fort Morgan sales tax license can be applied for. The required form may be mailed to the State at: 1375 Sherman Street Denver, CO 80261-0009 A business owner may take the application form to the State in person at one of their walk-in offices in Denver, Fort Collins, Colorado Springs, Grand Junction or Pueblo. More information on the State's procedure is contained on their website. They can be reached for questions at 303-238-7378.
Once the registration account number has been received or the actual State license has been received through the mail, a copy of the form with the number on it or the actual license must be provided to the City of Fort Morgan, Office of the City Clerk. A one-page application must be completed. There is no fee to obtain a City sales tax license.
Once the City sales tax is issued, it must be posted in a conspicuous place in the business.
When taxes are collected, both State of Colorado and City of Fort Morgan taxes must be paid to the Colorado Department of Revenue. Fort Morgan is a "state-collected city." The taxes must be paid using the Department of Revenue Form DR0100. The form may be found on the State's website at www.revenue.state.co.us. Click on Main Categories - Taxation; click on Main Categories - Forms.
DO I NEED A CITY SALES TAX LICENSE? If you are selling tangible goods and your business location is within the City limits of Fort Morgan, you must obtain both a State of Colorado sales tax license and a City of Fort Morgan sales tax license.
If you will only be selling a service (not selling tangible goods), you technically do not need any sales tax licenses, but the State of Colorado highly recommends it for various reasons. The City of Fort Morgan also recommends that you register your business with the State. Click on their website for instructions/information on registration - www.revenue.state.co.us.
Example:
If a hairdresser/cosmetologist is only performing haircuts, perms,
etc., she/he DOES NOT need sales tax licenses (State and City). If
that person is selling any products (shampoo, hair spray,
brushes, combs, boutique items), she/he DOES need both sales tax licenses (State
and City). The hairdresser would not charge State or City sales tax to
the customer for the service; but must charge both State and City sales tax
on the price of the tangible products sold (currently 5.9% total).
IS THERE A FEE TO OBTAIN A SALES TAX LICENSE? To obtain the State of Colorado sales tax license, there IS a fee. The amount varies depending on the type of business. To obtain a City of Fort Morgan sales tax license, there currently IS NO fee.
WHAT DO I NEED FOR INTERNET SALES FROM MY HOME? If the internet sales of tangible goods are made from a residence within the City limits of Fort Morgan and to a buyer within the State of Colorado, the seller must obtain both State and City sales tax licenses. If the internet sales are made to a buyer in Fort Morgan, the seller must charge both State and City sales tax (currently 5.9% total). If the internet sales are made to a buyer outside the Fort Morgan City limits, but to a buyer that lives within the State of Colorado, the seller must charge the State sales tax (currently 2.9%).
If
the internet sales are made to a party outside the Fort Morgan City limits
and outside the State of Colorado, the seller does not charge State sales
tax. However, that buyer must pay a 2.9% USE TAX directly to
the State of Colorado. Click here to skip to details on obtaining the sales tax licenses.
WHAT ABOUT FOOD SALES? If a business located within the City limits of Fort Morgan prepares food to be sold, they must obtain both State of Colorado and City of Fort Morgan sales tax licenses. If a business prepares food for on-site consumption or if tables/chairs are available, it must charge (and pay) both State and City sales tax (currently 5.9% total).
If
a business prepares food for home consumption only or for take-out
only (no tables/chairs on site), it does not charge (or pay) State sales
tax, but it must still charge and pay City sales (currently 3.0%). Click here to skip to details on obtaining the sales tax licenses.
WHAT ABOUT SPECIAL EVENTS PERMITS / CRAFTS SALES (FESTIVALS, ETC.)? To be a vendor of tangible products at a special event (craft sales, Festival in the Park vendors, etc.), you must obtain a special events permit from the State of Colorado, Department of Revenue. At an event held within the City limits of Fort Morgan, both City (3.0%) and State (2.9%) sales tax (total of 5.9%) must be charged to all customers and paid to the State of Colorado (Fort Morgan is a state-collected City). The only permit or license required is the State of Colorado Special Events Permit. Also, the State has a special tax return form that must be used. Click here to jump below to links to the two required State of Colorado forms (in Adobe Acrobat PDF format). More information on special events is available on the State's website - www.revenue.state.co.us.
WHAT ABOUT GARAGE SALES? If a City of Fort Morgan resident wishes to host a garage sale, an adult party involved in the sale must visit the City of Fort Morgan Police Department in person to complete the required form. That person will be given a copy of the signed form which must be posted at the location of the sale in a place where an Officer can see it while driving by. Important information on the rules of advertising are also available. Two (2) sales may be held in a calendar year at each address and each sale may be held for a maximum of two (2) days. REMEMBER -- ONLY USED ITEMS FROM A HOME ARE ALLOWED TO BE SOLD AT GARAGE SALES - NO RETAIL PRODUCTS ARE ALLOWED. Goods from home-based businesses are not allowed to be sold at RETAIL AT a garage sale. State and City sales tax licenses are not required. For questions on hosting garage sales, please contact the Fort Morgan Police Department at 970-542-3930.
To access the State of Colorado, Department of Revenue's list of frequently asked questions and answers, please click click on www.revenue.state.co.us. Then click on Main Categories - Taxation; click on Main Categories - Tax Information Index; under Tax Information Index click on Sales and Use Tax.
ESTABLISHED BUSINESS - MOVING INTO FORT MORGAN
RECAP • Discuss new business address with Planning & Zoning Department to verify Zoning Code requirements are met and make changes, if needed, to obtain Building Inspector's approval.
• File Change of Address form with
State of Colorado, Department of Revenue (State Form DR 1102) to obtain
corrected license - hang in conspicuous place in the business
• Open doors of business to the
public
DETAILS If a business owner has their State of Colorado sales tax license and they have been doing business in another Colorado location, and they now wish to open a business in Fort Morgan, they must first find a business location and visit the City's Planning and Zoning Department to ensure compliance with the City's zoning requirements (see first paragraph above). The business owner must also notify the State of Colorado, Department of Revenue, of the location change and file the appropriate address change forms with the State. If Planning & Zoning tells the business owner that all requirements are met, they must complete a City of Fort Morgan Sales Tax License Application, along with a copy of the completed forms sent to the State. Once a new license is received from the State, a copy must be provided to the City Clerk's office.
The new City sales tax license must be posted in a conspicuous place in the business.
OUT-OF-STATE BUSINESS WITH SALES IN FORT MORGAN
RECAP (No physical business location in Fort Morgan City limits) • Obtain State of Colorado sales tax license (on State Form CR 0100). • Make sales in City of Fort Morgan. • Pay State and City taxes to State of Colorado, Department of Revenue (on State Form DR 0100) (Fort Morgan is a "state-collected city").
DETAILS
Those
businesses whose main office/warehouse is located outside the City
limits of Fort Morgan, but have sales to businesses inside the City
limits of Fort Morgan - must obtain a State of Colorado sales tax license,
but DO NOT need to obtain a City of Fort Morgan sales tax license.
They must collect State and City sales taxes, but they simply pay them to
the State of Colorado, Department of Revenue, along with State Form DR 0100.
To obtain a City of Fort Morgan sales tax form, click
on the link below for the desired form. STATE OF COLORADO, DEPARTMENT OF REVENUE, CONTACT INFORMATION
The State of Colorado,
Department of Revenue, has a website that contains most of the question and
answers, as well as contact information, that a business owner would want to
know. Click the link that follows to reach their question/answer
information:
www.revenue.state.co.us.
Their main telephone number is 303-238-7378. CITY OF FORT MORGAN CONTACT INFORMATION
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