COLORADO STATE PROPERTY TAXES

In October 2023, Colorado Public radio published an interesting article about property taxes titled “Property Taxes Explained: Will that 40 percent value jump really mean 40 percent higher taxes? The CPR article states:

“Coloradans received some truly eye-opening letters from their county governments this year.

In parts of Western Colorado, the taxable value of the average home is 55 percent higher than just a couple years ago. It was an 80 percent average increase for Pitkin County. On the Front Range, Douglas County homes have gained 40 percent in value.

Those were the outliers, but not by much. The average Colorado home gained 37 percent in value over just two years, according to preliminary data analyzed by CPR News.

That story is well-known by now, as countless headlines have warned that sharp increases in value will lead to much larger tax bills next year. It’s also turned into a major political fight through the ballot measure known as Prop. HH.

Still, there’s a bigger question that’s gotten lost in the shuffle: How much are tax bills actually going to increase, and where would all that money go?

The short answer is — it all depends on where you live. But here’s what we’ve learned about the bigger picture:

Where are property values rising the fastest?"

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Colorado Sales Tax Nexus And Destination Sourcing Rules

The Colorado General Assembly adopted SB21-282, which extends the small business exception to destination sourcing requirements. This exception applies only to businesses with less than $100,000 in retail sales.

As of February, 1st 2022 however, all retailers must apply the destination sourcing rules when calculating, collecting and remitting Colorado sales tax.  Basically, sales tax is calculated based on the buyer’s address when the taxable product (or service) is delivered and could involve multiple home rule taxing municipalities as well the Colorado Department of Revenue.

It is also used when a product or service has a lease/rental agreement with periodic recurring payments. The Department does not have the authority to grant exceptions to these rules.

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