The voters of Montrose County passed a 1% county sales / use tax plus a .75% Public Safety Improvement (PSI) county-wide sales tax in the November 2007 elections. This is a total county tax of 1.75%. Certain items are optional exemptions and are subject to the county tax only by the expressed inclusion of the exemption in County resolution 109-2007 and 110-2007. They are not automatically the same as the state’s exemptions. These items are identified in 29-2-105(1)(d) of the Colorado Revised Statutes as amended.
The following are incorporated municipalities within Montrose County which adhere to additional and/or different sales tax requirements:
City of Montrose
Town of Naturita
Town of Nucla
Town of Olathe
General Use Tax Information
Montrose County has a 1.0% use tax on motor vehicles and building materials. For specific information regarding the application of sales or use tax on motor vehicle purchases, please contact the Montrose County Motor Vehicle Department at (970) 249-3362 or the Colorado Department of Revenue at www.colorado.gov, or 303-238-7378.
For information regarding the application of use tax on construction and building materials, please contact the Montrose County Planning and Development Department at 970-249-6688.
Sales & Use Tax What is the difference between the sales tax and the use tax?
A sales tax is a tax levied on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller. In order to apply a sales tax, there must be a point of sale.
A use tax is a tax applied to construction materials for the cost associated with building within the county or on a motor vehicle registered within Montrose County yet purchased outside the Montrose County boundaries. The use tax only applies if a sales tax was not collected on a retail purchase; or if collected in another jurisdiction, town, etc, the difference between that which was paid at the time of purchase and that which is paid at the time of use.
Will I need to pay both the sales and the use taxes?
The 1% county sales and use tax is only applied either to the use (construction) of goods, or to the sale of materials required for construction — not both!
If the use tax is paid at the time a building permit is issued, then the permit holder is exempt from the 1.0% sales tax because the 1.0% use tax has already been paid to the county. Other taxes (ie - city, state, PSI) shall apply if applicable to the purchase of materials.
A Building permit must be presented at the time of purchases within the county in order to be exempt from the 1.0% sales tax on construction materials only. The .75% Public Safety Sales Tax applies to all purchases.
The 1.0% county sales and use tax applies to the purchase of motor vehicles. Motor vehicles purchased within Montrose County are subject to the 1.0% county sales tax; motor vehicles purchased outside Montrose County are subject to the 1.0% county use tax. The purchaser will pay either the sales or use tax — not both!
Please note: Sales tax revenue for specific businesses or vendors is not public information. Montrose County staff cannot provide confidential detailed information regarding which businesses are or are not reporting or amounts remitted by specific entities.
This form is updated every January and July and contains explanations of state and regional sales taxes; a list of city and county sales tax rates for which the state collects the tax; and phone numbers and tax rates for home-rule cities that collect and administer their own taxes.
This form has information for collecting state and local sales taxes for special events, including instructions for those who do not have a standard sales tax license and instructions for collecting sales tax at special events for those who do have a standard license.
This form provides general information on use tax and explanations for the appropriate application of use tax on motor vehicles and building materials.
Montrose County sales taxes are administered by the State Department of Revenue. For more information regarding collection guidelines, licensure, reporting and compliance, please contact the State of Colorado:
State of Colorado Department of Revenue