To assist you in your research, the PEDC is providing information on Colorado taxes, as well as other local taxes.
Colorado Taxes at a Glance
Local Taxes
Business Tax Refunds
Enterprise Zones
COLORADO CORPORATE INCOME TAX
(expanded explanation)
Tax years beginning on or after:
| % of Colorado taxable income: |
| January 1, 2000 | 4.63% |
| January 1, 1999 | 4.75% |
| Prior to January 1, 1999 | 5.0% |
Note: Colorado offers two methods for calculating corporate income tax: a two-factor formula (revenue and property) and a three-factor formula (revenue, property, and payroll), whichever is less. The apportionment method can be changed annually.
RETAIL SALES TAX AND USE TAX
(expanded explanation)
Statewide rate:
| 2.9 percent (Effective 01/01 /01) |
| Jurisdictions' rates: | Up to 4.0 percent |
| Specific metro rates: | Regional Transportation District 0.6 percent |
| | Cultural Facilities District | 0.1 percent |
| | Football Stadium District | 0.1 percent |
| Sales Tax Exemptions: | Various, including groceries, pharmaceuticals, and others. |
REAL AND PERSONAL PROPERTY TAX
(expanded explanation)
| Mill levies: | Varies by jurisdiction |
| Nonresidential real and personal property assessment ratio: | 29 percent |
| Residential real property assessment ratio: | 9.15 percent in 2001 and 2002 |
INDIVIDUAL INCOME TAX
(expanded explanation)
Tax years beginning on or after:
| % of Colorado taxable income: |
| January 1, 2000 | 4.63% |
| January 1, 1999 | 4.75% |
| Prior to January 1, 1999 | 5.0% |
OCCUPATIONAL TAX
(expanded explanation)
| Denver: |
| | Affects employees with a salary greater than $500 per month.
Employee pays $5.75 per month.
Employer pays $4.00 per month. |
Greenwood Village and Aurora: |
| | Affects employees with a salary greater than $250 per month.
Employee pays $2.00 per month.
Employer pays $2.00 per month. |
UNEMPLOYMENT INSURANCE TAX
(expanded explanation)
WORKERS' COMPENSATION RATES
(expanded explanation)
| Rate: | Based on payroll and subject to industry type |
TAX AND SPENDING LIMITATION (TABOR AMENDMENT)
(expanded explanation)
The Taxpayer's Bill of Rights (TABOR), an amendment to the State Constitution, was voted on and passed in 1992. TABOR requires that all tax increases be voted on by the people. Under TABOR, the maximum annual percentage change in state fiscal year spending equals inflation plus the percentage change in state population in the prior calendar year, adjusted for revenue changes approved by voters. For fiscal year 2001-2002, this limit is estimated to be 10.0%.
Local district fiscal year spending is limited to inflation in the prior calendar year plus annual "local growth." Local growth for a non-school district is defined as the net percentage change in actual value of all taxable real property in a district. For a school district, it means the percentage change in its student enrollment.
For additional Colorado tax information:
http://www.revenue.state.co.us/home_rev.cfm
Revised January 2002
LOCAL TAXES
| Town: | 3.0% |
| RTD: | 0.8% |
| County: | 1.0% |
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