Thursday, December 7, 2017

Public Safety Sales Tax to start Jan. 1, 2018

On Tuesday, November 7, 2017, the majority of the eligible electors of Mesa County approved a ballot issue to impose a 0.37% (37 cents on a $100 purchase) sales tax to fund public safety functions. This sales tax shall be collected on all sales of tangible personal property and services taxable pursuant to C.R.S. §39-26-104 in the incorporated and unincorporated areas of Mesa County Colorado. The Public Safety Sales Tax shall become effective on January 1, 2018.

Items exempt from this sales tax shall include, without limitation:
  • The exemption for sales of machinery or machine tools specified in C.R.S. §39-26-709(1)
  • The exemption for sales of electricity, coal, wood, gas, fuel, oil or coke specified in C.R.S. §39-26- 715(1)(a)(II)
  • The exemption for sales of food specified in C.R.S. §39-26-707(1) (e). For the purposes of this subsection, “food” is defined in C.R.S. §39-26-102(4.5)
  • The exemption for vending machine sales of food specified in C.R.S. §39-26-714(2)
  • The exemption for sales by a charitable organization specified in C.R.S §39-26-718(1)(b)
  • The exemption for sales of farm equipment and farm equipment under lease or contract specified in C.R.S §39-26-716(2)(b) and (2)(c)
  • The exemption for sales of low-emitting motor vehicles, power sources or parts used for converting such power sources specified in C.R.S §39-26-719(1)
  • The exemption for sales of wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles specified in C.R.S. §39-26-723
  • The exemption for sales of components used in the production of energy, including but not limited to alternating current electricity, from a renewable energy source specified in C.R.S. §39- 26-724; except that this sub-subparagraph (i) shall not apply to any incorporated town, city or county that adopted the exemption specified in sub-subparagraph (a) of this subparagraph (9) prior to May 27, 2008
  • The exemption for sales that benefit a Colorado school specified in C.R.S. §39-26-725
  • The exemption for sales by an association or organization of parents and teachers of public school students that is a charitable organization specified in C.R.S. §39-26-718(1)(c)
  • The exemption for sales of prescription drugs dispensed in accordance with a prescription by a licensed provider or furnished by a licensed provider as part of professional services provided to a patient or client as specified in CRS §39-26-717(1)(a)

For the purpose of the Public Safety Sales Tax, all retail sales are consummated at the retailer’s place of business, unless the tangible personal property sold is delivered by the retailer or his agent to a destination outside Mesa County, or to a common carrier for delivery outside the limits of Mesa County. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax imposed by Article 26 of Title 29, C.R.S., regardless of the place to which delivery is made. If a retailer has no permanent place of business in the County, or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of the Public Safety Sales Tax shall be determined by the provisions of Article 26 of Title 39, C.R.S. and by rules and regulations that may be adopted by the Colorado Department of Revenue from time to time.

This Public Safety Sales Tax shall apply to mobile telecommunications services to the greatest extent permitted under C.R.S §29-2-105 (1.5).

The term “countywide” includes all incorporated areas (i.e., municipalities, including, but not limited to, all statutory cities and towns and all home rule cities and towns) and all unincorporated areas within Mesa County, Colorado.

The collection, administration and enforcement of the Public Safety Sales Tax shall be performed by the Executive Director of the Colorado Department of Revenue in the same manner as the collection, administration and enforcement of the Colorado State sales tax, as supplemented by Article 2 of Title 29, C.R.S.

At the time of making a tax return of the Public Safety Sales Tax, every vendor shall be entitled to withhold a vendor’s fee to cover the vendor’s expenses in the collection and remittance of the Public Safety Sales Tax in the amount equal to three and one-third percent (3 and 1/3%). If any vendor is delinquent in remitting the Public Safety Sales Tax, other than in unusual circumstances shown to the satisfaction of the Executive Director of the Department of Revenue, the vendor shall not retain any amounts to cover such vendor’s expenses in collecting and remitting said Public Safety Sales Tax.

For the 2017 year, the combined sales tax rate is 4.9% for transactions outside the City of Grand Junction limits and 7.65% for transactions within the City of Grand Junction. For the 2018 year, the combined sales tax rate will be 5.27% for transactions outside the City of Grand Junction limits and 8.02% for transactions within the City of Grand Junction. Please see the details of these tax rates in the following tables.

2017 tax rates:
State of Colorado Sales Tax 2.90%
Mesa County Sales Tax 2.00%
City of Grand Junction Sales Tax 2.75%
Total 7.65%

2018 tax rates:
State of Colorado Sales Tax 2.90%
Mesa County Sales Tax 2.00%
City of Grand Junction Sales Tax 2.75%
MC Public Safety Sales Tax 0.37%
Total 8.02%

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