As a home rule government, the Town of Breckenridge is authorized to collect its own taxes. As such, Town taxes should be remitted directly to the Town of Breckenridge. This includes a 2.5% Sales Tax, 3.4% Accommodations Tax, 5% Medical Marijuana Tax, and a 1% Real Estate Transfer Tax (RETT). All State, County, and Special District (Summit Combined Housing Authority) taxes should be remitted to the Colorado Department of Revenue on a State sales tax return form.
Business owners must obtain a Town of Breckenridge Business License in order to engage in business in the Town of Breckenridge (please refer to Chapter 1, of Title 3 of the Breckenridge Town Code for definition). To obtain a Business License, contact the Town Clerk's office for an application. After your application is received and approved, you will be designated as a monthly or quarterly filer and a business license and sales tax returns will be mailed to you. Sales tax returns, along with the appropriate remittance of sales tax collected, are due on the 20th of each month following the period they were collected. Late returns are penalized with a penalty of 10% of the sales tax (minimum of $15) plus 1% interest for each month the payment is outstanding.
The Town also requires hotels, motels, bed & breakfasts, property management companies, and homeowners who short-term lease (less than 30 days) their Breckenridge residences to collect a 3.4% Breckenridge Public Accommodation Tax. All businesses, property managers, and homeowners collecting the accommodations tax are required to have a Town of Breckenridge Accommodation Unit License and a State of Colorado Sales Tax License. This 3.4% accommodations tax is remitted directly to the Town of Breckenridge along with the 2.5% sales tax. For your convenience, the sales and accommodations taxes are reported on the same click here for tax return.
It is also important to note that the Town of Breckenridge and the State of Colorado levy sales tax on the “sale of business assets other than inventory.” If you are planning to sell or purchase an existing business, please be sure that the correct amount of sales tax is collected on the sale of all tangible personal property, not included in inventory, associated with the sale. These items include, but are not limited to, computers, desks, chairs, tables, mattresses, etc. For your convenience, the Town of Breckenridge has provided a return form.
The Colorado Department of Revenue collects state and county taxes and is the agency where businesses register trade names. The toll-free telephone number for the New Business Hotline is 303-592-5920 or click here for SOS site. State application forms and general information for conducting business in Colorado is available by calling that number. Colorado Business Registration forms, CR100, and instructions are available, click here for the state's website.
Regarding licensing for Summit County, according to Resolution 90-46, before the Board of County Commissioners and the County of Summit, any person selling a product in unincorporated Summit County shall make application to the Clerk and Recorder’s Office. Once the application is obtained, approval from the Zoning Department is granted or denied. If granted, the Board of County Commissioners shall consider such application at their next meeting. Businesses licenses are due and payable the month they are approved and expire in one year. For any questions regarding Summit County Business Licenses, please call the Summit County Clerk and Recorder's Office at 970.453.3475.
Please contact the Accounting Coordinator, with any questions at 970-453-3182 or WebsiteFinance@townofbreckenridge.com
South Dakota v. Wayfair Inc.
In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair Inc. to remove the physical presence requirement when determining whether a vendor has nexus sufficient to require the vendor to collect the jurisdiction’s taxes, the Town of Breckenridge does not anticipate any immediate changes to our sales tax collection practices.
As one of the most significant sales tax cases in the last 50 years, we are carefully navigating this new economic landscape. The Town is committed to working with local and statewide governments to determine a thoughtful and consistent course of action that is in the best interest of enterprise and, particularly, small business owners.
In this era of e-commerce, we will ensure economic and tax policies are designed to build on the success of our town and its people.
Below is our current ordinance language about retail sales by vendors who are engaged in business in the town.
Sec. 3-1-1. - Legislative intent.
It is the intent of this chapter that every person in the town who purchases at retail or leases any "tangible personal property" or purchases a taxable service as defined by this chapter is exercising a taxable privilege. All sales, leases, and purchases of "tangible personal property" as defined in this chapter are taxable unless specifically exempted in this chapter. The sales tax imposed on tangible personal property by this chapter applies to each transfer of ownership, possession, and control of such property and may occur more than once during the life of the property. (Ord. 31, Series 2013)
Sec. 3-1-2. – Definitions
ENGAGED IN BUSINESS IN THE TOWN: Performing or providing services or selling, leasing, renting, delivering or installing tangible personal property for storage, use or consumption within the town. "Engaged in business in the town" includes, but is not limited to, any one of the following activities by a person:
1. Directly, indirectly or by a subsidiary maintains a building, store, office, salesroom, warehouse, or other place of business within the taxing jurisdiction;
2. Sends one or more employees, agents or commissioned salespersons into the taxing jurisdiction to solicit business or to install, assemble, repair, service or assist in the use of its products, or for demonstration or other reasons;
3. Maintains one or more employees, agents or commissioned salespersons on duty at a location within the taxing jurisdiction;
4. Owns, leases, rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or
5. Makes more than one delivery into the taxing jurisdiction within a twelve (12) month period.