Two Colorado localities, Town of Carbondale and City of Edgewater, made the switch from self-administered to state-administered for sales tax effective January 1, 2024. Those taxpayers registered for sales tax in the state need to be sure their nexus, collection, and reporting settings are updated in their sales tax systems such that these cities are collecting local tax as they are now administered by and reported to the state. For sales tax returns for the reporting period starting January 2024, the return is due on February 20, 2024 and will be filed with the State of Colorado.
The Town of Carbondale will cease to accept sales tax licenses and sales tax returns for any sales for the period on or after January 1, 2024, but the Town of Carbondale will continue to pursue delinquencies for prior period unfiled returns. Sales tax licensing will be managed by the State of Colorado. Sales tax returns will be administered by the State of Colorado using the Town of Carbondale Jurisdiction #24-0007 for periods beginning January 1, 2024.
Carbondale short-term rental tax return filers should note that if they remit their taxes through AirBnB or VRBO, they will no longer be required to fill out sales tax forms but will continue to file the lodging tax and the short-term rental tax with the Town of Carbondale through MuniRevs. Other taxes that the Town of Carbondale will continue to self-collect through MuniRevs include the tobacco tax, waste reduction fee, 5% marijuana sales tax and 5% marijuana excise tax. The 3.5% marijuana general sales tax will be remitted through the State of Colorado as of January 1, 2024. Special events vendors will obtain a special events sales tax license through the State of Colorado for any events with sales as of January 1, 2024.
The City of Edgewater will no longer accept sales tax returns for any sales that occur after December 31, 2023. Sales tax returns will be administered by the State of Colorado using the City of Edgewater Jurisdiction #11-0032 for periods beginning as of January 1, 2024. (Colorado Department of Revenue memorandum effective January 1, 2024)