Penalty of $75 or 10% of the tax due, whichever is greater for late filings. 1% interest of the tax due is added per month to the deficiency from the date due until the deficiency is paid.

Effective January 1, 2016, a paper filing fee of $25.00 for each remittance or license application received in paper format and processed in-office will be imposed.

Effective January 1, 2023, The City of Englewood's sales and use rate is 3.80%. This new rate includes the general rate of 3.50% and an additional .30% for PURPOSE. The combined retail sales tax rate with state-administered taxes (CO/RTD/SC and Arapahoe County) is 8.05%.

Prior to 2023, the City's sales tax rate was 3.50%, combined with state-administered taxes (CO/RTD/SC and Arapahoe County) was 7.75%

Sales Tax

Sales tax is imposed upon the purchase price of all retail sales and purchases of tangible personal property when delivery takes place within the boundaries of the city.

Sales tax is a retail point-of-purchase tax that is paid by the purchaser for taxable goods and services and collected by the seller. It is considered a trust-fund tax. A trust-fund tax is a special type of tax where the seller, the person or entity who is liable for the tax, obtains it from another party (purchaser). The seller holds the tax until it is due to the government. A trust-fund tax is a type of tax or debt where the management or responsible employees of a corporation or other entity with limited liability can be held personally liable for its non-payment.

Filing Frequency: The due date for the return is based on the account’s filing status (reporting period). The return is due on the 20th day following the reporting period, that is monthly, quarterly or annually, for example:

Filing Status	Reporting Period	Due Date
Monthly	February	3/20/yyyy
Quarterly	April - June	7/20/yyyy
Annually	January - December	1/20/yyyy

 

A sales tax return must be filed every reporting period, even if no tax has been collected or no tax is due. Failure to file will result in non-filer penalties.

Use Tax

The City also has a 3.80% Use Tax. All businesses in the City of Englewood are liable for the 3.80% tax on the tangible personal property used or consumed in their business.

Use tax is like the City’s sales tax. Use tax is imposed when the following four conditions are met:

1. The item purchased is tangible personal property stored, used, or consumed within the boundaries of the City. In other words, all items subject to the City’s sales tax.
2. The buyer is the final buyer.
3. The item would be subject to sales tax.
4. The seller did not collect Englewood sales tax or its equivalent rate at the time of sale.

A credit will be granted against the City’s use tax for any lawfully imposed municipal sales tax paid at the time of purchase. The amount of the credit shall not exceed 3.80% (.038) and shall not include any county or special district taxes. Use tax is filed on the main tax return form.

Sales and Use Tax Imposition and Examples

The City of Englewood collects and administers several different business taxes as a Home-Rule municipality in Colorado. This requires the City portion of taxes to be remitted on separate returns from the State of Colorado. Additionally, we have our own taxability determinations and exemptions that may not be the same as the State of Colorado. The items below are not an exhaustive list, but just general category guidance.

If it is not listed or meets the specific requirements in the exemptions section 4-4-4-3 of the Municipal Code, it is taxable.

Taxable: 

• Retail sales of tangible personal property
• Prepared Food and Alcohol
• Gas and Electric Services and Steam or other Heating Services
• Construction materials for all jobs are subject to tax (no exemption for exempt property sites ** See Construction Materials & Use Tax tab below for more information)
• Fabricated labor and Transportation charges
• Renting, leasing, equipment
• Software programs
• Intermingled services not separately stated such as installation, remodel, and repair charges
• Telecommunication equipment
• Telecommunication services
• Lodging Services** (An additional Lodging tax applies on these sales and is filed on a separate line of the tax return)
• Marijuana – Medical and Retail** (An additional Retail Marijuana Excise tax applies on these sales and is filed on a separate line of the tax return)

Exempt:

• Motor Vehicles, Trailers and Semi-Trailers registered outside of the city
• Out-of-city or out-of-state sales sold to parties and delivered out of city
• Motor Fuel (except dyed diesel) used for internal combustion engines
• Medical Supplies, Prescription Drugs and Prosthetic Devices
• Food for Domestic Home Consumption
• Manufacturing/wholesale/resale purchases out-of-city or out-of-state sales
• Newspapers and Magazines
• Cigarettes
• Governmental, Religious and Charitable Sales
• SNAP or WIC food purchases
• Colorado Retail Delivery Fee of $0.28

The city's Sales Tax shall not apply to the sale of construction and building materials (as defined in section 29-2-109, C.R.S.) if such materials are picked up by the purchaser and if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the city showing that a local use tax has been paid or is required to be paid.

Englewood collects a use tax deposit on 50% of the valuation of the permit. The deposit is an average for all types of work with an estimate of 50% being taxable materials in each project. This permit allows the contractor to take to suppliers and use to not pay additional sales tax at the time of the material purchase.

Sales and use tax is also due for all construction materials purchased for non-permitted work in the city.

Sales of construction materials or supplies to be used by a contractor for the construction of an improvement to any exempt institutions or agencies are not exempt. The contractor is deemed to be the end-user of the materials.

Construction Use Tax Permit Cost Example

Contract Price	5,000,000
(less permit fees)	(50,000)
(less non-construction materials already subject to sales tax)	(100,000)
Net contract use tax valuation	= 4,850,000
x50%	x 50% = 2,425,000
x 3.8% = Construction Use Tax Due at Time of Permit	x 3.8% =92,1250

What if my construction materials are more or less than 50% of value when completing project?

A reconciliation should be made when the construction materials are more or less than the 50% deposit made through the permit. To do the reconciliation, you will need to maintain documentation to support the total cost of materials including materials used by all subcontractors; all non-taxed rented equipment and direct-purchase suppliers’ costs. A job cost report, copy of the permit, profit and loss statement and other supporting documents may be necessary to support the reconciliation.

In addition, subcontractor affidavits should be retained for the permit work to confirm the amount of construction materials for every area of the project.

Please note, regardless of whether a reconciliation is requested or made, the City has the right to audit any construction permit to determine proper taxes paid.

Documentation should be maintained by the contractor holding permit to support all job costs for the statute of limitations or up to the closure of a tax audit on the projects, whichever is later.

Construction Use Tax Reconciliation Form

A 2% Englewood Lodging Tax applies to all lodging services for any hotel, motel, inns, or short-term rental stays which are less than 30 days in duration. This tax is in addition to the 3.8% City Sales Tax and reported on the sales tax return.

• Menstruation products
• Baby/toddler diapers
• Adult incontinence products

 

Business owners are encouraged to come forward voluntarily and remit all sales, use, lodging, and other taxes owed to the City of Englewood in exchange for a partial or full waiver of late penalties due to delinquent remittances.

Licensed Taxpayers

Licensed taxpayers who need to come forward and amend prior filings due should use the return amendment process with their self-audit review. A partial or full waiver of penalty may be requested on the amended returns filed and will be considered on a case-by-case basis for reasons of good cause.

Unlicensed Taxpayers

A Voluntary Disclosure Agreement is available to taxpayers who are not licensed for the taxes due to the city and who are coming forward to remit and get licensed.

Your business is NOT eligible if any of the following conditions are true:

• Your company is under audit by Englewood.
• Your company has been previously contacted by Englewood for any tax delinquencies.
• Your company is currently licensed and registered for tax with Englewood.
• For VDAs, all taxes collected from customers are considered held in trust and must be remitted regardless of the timeframe or period of lookback. For taxes due, but not collected from customers, the lookback period will be limited to 3 years for regular sales and purchases and 7 years for use tax due on capital assets.
• Statutory interest is per month from when the tax was due will be added to the disclosure. A schedule of taxes with a summary due by month for the lookback period is required.
• An Englewood VDA agreement must be completed, and the taxpayer’s name declared prior to acceptance.

Documents

• VDA Agreement
• VDA Calculation Worksheet

Motor Vehicles

Motor vehicles that are primarily registered and maintained within the City of Englewood are liable for sales and use tax. This tax can be remitted through a licensed automobile dealer, the Department of Motor Vehicles, or collected from the lessor as part of the monthly lease payments.

Mobile Homes and Manufactured Homes

Mobile Homes and Manufactured Homes are initially categorized as tangible personal property, and they may later become permanently attached to real property. The tax rate for the first sale or purchase of these homes is 52% of their value, with a tax exemption of 48% applied to the original sale price.
Any subsequent sales of these properties are not subject to tax.

The term "mobile home" is defined as a vehicle designed to provide temporary living quarters and which is built into, as an integral part of or a permanent attachment to, a motor vehicle chassis or van.

A "manufactured home" means any preconstructed building unit or combination of preconstructed building units, without motive power, where such unit or units are manufactured in a factory or at a location other than the residential site of the completed home, which is designed and commonly used for occupancy by persons for residential purposes, in either temporary or permanent locations, and which unit or units are not licensed as a vehicle.

Food for Domestic Home Consumption(FDHC) is exempt from tax. This is defined in 7 U.S.C. Section 2012(k) (2014), as amended, for purposes of the supplemental nutrition assistance program, or any successor program, as defined in 7 U.S.C. Section 2012(t).

Taxable Situations and Food Purchases

Food sold by other retailers who do not participate in the acceptance of the program payment forms is taxable.

Taxable Food specifically not included as FDHC:

• Carbonated water marketed in containers
• Chewing gum
• Seeds and plants to grow foods
• Prepared salads and salad bars
• Packaged and unpackaged cold sandwiches
• Deli trays
• Hot or cold beverages served in unsealed cups that are vended by or through machines
• Non-coin-operated coin collecting food and snack devices
• Prepared food for immediate consumption
• Alcohol

FDHC purchased by a Business from a grocer or retailer who did not collect tax on the food for domestic home consumption at the point of sale is not exempt from tax and use tax should be accrued and remitted by purchaser.

Prepared Food

Food and Drink sold by restaurants is subject to tax as it is considered prepared and does not qualify for tax exemption.

Most restaurants will be charging tax on the food based upon the location of the restaurant where the food is prepared and picked up. However, restaurants that provide their own delivery of food should charge tax based upon the jurisdiction of the address where the food is delivered.

Caterers providing food to events located in the City of Englewood should charge tax for the prepared food based upon the address of the event.

Digital Products

The retail sale of digital products is subject to tax.

Digital Product means an electronic product including, but not limited to: (1) "digital images" which means works that include, but are not limited to, the following that are generally recognized in the ordinary and usual sense as "photographs," "logos," "cartoons," or "drawings," (2) "digital audio-visual works" which means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any, (3) "digital audio works" which means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones. For purposes of the definition of "digital audio works," "ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication, and (4) "digital books" which means works that are generally recognized in the ordinary and usual sense as "books."
The Englewood Municipal Code imposes tax on tangible personal property which includes digital products that are delivered or stored by digital means, including, but not limited to, video, music, or electronic books. The method of delivery does not impact the taxability of a sale of tangible personal property. Examples of methods used to deliver tangible personal property under current technology include but are not limited to compact discs, electronic downloads, and internet streaming.

Software

Software Program means a sequence of instructions that can be measured, interpreted and executed by an electronic device (e.g., a computer, tablets, smart phones) regardless of the means by which it is accessed or the medium of conveyance. Software program includes: (1) custom software program, which is a software program prepared to the special order or specifications of a single customer; (2) pre-written software program, which is a software program prepared for sale or license to multiple users, and not to the special order or specifications of a single customer. Pre-written software is commonly referred to as "canned," "off-the-shelf ("COTS")," "mass produced" or "standardized;" (3) modified software, which means pre-written software that is altered or enhanced by someone other than the purchaser to create a program for a particular user; and (4) the generic term "software," "software application," as well as "updates," "upgrades," "patches," "user exits," and any items which add or extend functionality to existing software programs.

Software as a Service means software that is rented, leased or subscribed to from a provider and used at the consumer's location, including but not limited to applications, systems or programs.

Software License Fee means a fee charged for the right to use, access, or maintain software programs.

Software Maintenance Agreement means an agreement, typically with a software provider, that may include (1) provisions to maintain the right to use the software; (2) provisions for software upgrades including code updates, version updates, code fix modifications, enhancements, and added or new functional capabilities loaded into existing software, or (3) technical support.

A tax return is due even if no sales activity took place during the period.

Filing through the tax portal is the recommended method. Manual filed returns will be charged a $25 processing fee. In the tax portal, open the return task for the period you are completing the return. Enter the various types of sales into the form in the Munirevs system. It will calculate the subtotals for each section and the taxes due automatically. Sales for various special taxes need to be entered in on the corresponding line including Lodging services, marijuana and use taxes.

After the return task is completed, you must follow the system steps to also schedule payment. Filing the return without the payment tasks being completed will result in an open uncompleted task.

Return Line Specific Instructions

• Line 1- Gross Sales & Service: Enter the total amount of sales and service for the period. Please do not include sales tax collected.
• Line 2A- Bad Debts Collected: Enter any taxable bad debts collected that were written off on line 3D of previous returns.
• Line 2B- Total of Lines 1 & 2A
  Deductions:
• Line 3A- Non-taxable Service: Enter the amount of nontaxable services (labor, service charges) included in Gross Sales & Service (line 1)
• Line 3B- Sales for Resale: Enter the amount of sales to customers for the purpose of resale. Be sure to keep copies of your customers' Colorado resale certificates on file for verification purposes. If you do not obtain a copy of their resale certificate, sales tax must be charged.
• Line 3C- Shipped Out of City: Enter the amount of sales that you shipped to customers outside of the City of Englewood.
• Line 3D- Bad Debts: Enter the amount of taxable sales that you reported to the City as taxable on a prior period sales tax return which have since proved to be uncollectable.
• Line 3E- Trade-ins for Resale: Enter the dollar amount of credit allowed on goods which were taken in trade for later resale.
• Line 3F- Gas & Cigarettes: Enter the amount of sales for fuel used to operate internal combustion engines and the amount for cigarettes. Please Note: The sale of any tobacco product which is not a cigarette (that is pipe tobacco, cigars and chewing tobacco) is taxable.
• Line 3G- Government, Religious & Charitable: Enter sales to government, religious and charitable organizations as defined in the exemption section. Be sure to obtain a copy of their Colorado exemption certificate.
• Line 3H- Returned Goods: Enter the amount of returned goods that were reported as taxable on a prior sales tax return.
• Line 3I- Prescriptions: Enter the amount of medicines, prosthetic devices, eyeglasses and other medical supplies, which require a physician’s prescription.
• Line 3J- Other Deductions: Enter the amount of goods and or services which are non-taxable under the Englewood Municipal Code and were not included in other lines. Examples are Lotto sales and sales mistakenly reported as taxable on a previous return. Please use space provided on the tab titled "3J 3L and 3M Other Deductions".
• Line 3K- Groceries: Enter the amount of sales for food products, which qualify as non-taxable.
• Line 3L & 3M- As line 3J above. Other Deductions: Enter the amount of goods and or services which are nontaxable under the Englewood Municipal Code and were not included in other lines. Examples are Lotto sales and sales mistakenly reported as taxable on a previous return.
  Total Deductions: Add up the total deductions from 3A-3M and enter it here.
• Line 4- Net Taxable: Enter the total of gross sales and services less total deductions here (line 2B –Less Total Deductions). Computation of tax
• Line 5A- City Sales Tax: Multiply Net Taxable (line 4) x 3.8% (0.038).
• Line 6- Excess Tax Collected: When you collect more tax during the period than your return shows that tax is reported on this line.
• Line 7- Adjusted City Tax: The total of lines 5A & 6.
• Line 9- Total Sales Tax Due: Line 7.
• Line 10A- Amount Subject to Use Tax: Enter the amount of purchases subject to use tax for which no municipal sales tax was paid and multiply by 3.8% (0.038).
• Line 10B- City Use Tax: Amount subject to Use Tax (line 10A) multiplied by 3.8% (0.038).
• Line 10C- Additional: Use Tax: Enter the amount of additional use tax due. This is where you account for a municipal tax paid of less than 3.8% (.038).
• Line 10D- Total Use Tax Due: Total of lines 10B & 10C.
• Line 11A- Lodgers Gross Rentals: The amount of short-term gross rentals (less than 30 days).
• Line 11B- Lodging Tax Due (line 11A x 2%)
• Line 11C- Amount Subject to Medical Marijuana Tax (3.8%): Enter the amount subject to medical marijuana tax.
• Line 11D- Total Medical Marijuana Tax - Input in 11C x 3.8%.
• Line 11E- Amount Subject to Recreational Marijuana Tax (3.8%): Enter the amount subject to recreational marijuana tax.
• Line 11F- Total Recreational Marijuana Tax - Input in 11C x 7%.
• Line 11G- Total Marijuana Tax (SUM OF 11D, 11F)
• Line 11H- TOTAL TAX DUE: (SUM OF LINES 9, 10D, 11B, 11G)
• Line 12A- Sales Tax Penalty: For returns filed after the due date, multiply Line 9 by 10% (0.10).
• Line 12B- Sales Tax Interest: For returns filed after the due date multiply Line 9 by 1% (0.01) per month or part of a month from the date due. Interest on late returns begins to accrue on the day after the due date.
• Line 12C- Use Tax Penalty: For returns filed after the due date, multiply Line 10D by 10% (0.10).
• Line 12D- Use Tax Interest: For returns filed after the due date multiply Line 10D by 1% (0.01) per month or part of a month from the date due. Interest on late returns begins to accrue on the day after the due date.
• Line 12E- Lodging Tax Penalty: For returns filed after the due date, multiply Line 11B by 10% (0.10).
• Line 12F- Lodging Tax Interest: For returns filed after the due date multiply Line 11B by 1% (0.01) per month or part of a month from the date due. Interest on late returns begins to accrue on the day after the due date.
• Line 12G- Marijuana Tax Penalty: For returns filed after the due date, multiply Line 11G by 10% (0.10)
• Line 12H- Marijuana Tax Interest: For returns filed after the due date, multiply Line 11G by 1% (0.01) per month or part of a month from the date due. Interest on late returns begins to accrue on the day after the due date.
• Line 13- TOTAL TAX, PENALTY & INTEREST (Sum of Lines 11H, 12A, 12B, 12C, 12D, 12E, 12F, 12G, 12H)
• Line 14- Add/Deduct: If you had an error on prior returns, you will receive a notice from the City. Enter any adjustments from these notices here.
• Line 15- TOTAL DUE & PAYABLE: Total of lines 13 & 14. This is the amount due and payable for the period.