What is the sales tax in Englewood CO?

The sales tax rate in Englewood, Colorado is 8.25%. This includes the 2.9% state sales tax, 0.1% RTD sales tax, 0.6% cultural facilities tax, 1.0% county sales tax, and 3.65% city sales tax.

Breakdown of Sales Tax in Englewood

Here is a breakdown of the different components that make up the 8.25% sales tax rate in Englewood:

State Sales Tax	2.9%
RTD Sales Tax	0.1%
Cultural Facilities Tax	0.6%
Arapahoe County Sales Tax	1.0%
Englewood City Sales Tax	3.65%
Total Sales Tax	8.25%

The state sales tax rate is 2.9% across all of Colorado. RTD stands for Regional Transportation District, which provides public transportation services in the Denver metro area. The 0.1% RTD sales tax helps fund these services.

The cultural facilities tax is a 0.6% sales tax collected by Arapahoe County to support cultural facilities such as museums, theaters, and other amenities. Englewood is located in Arapahoe County.

Arapahoe County also collects a 1.0% county sales tax on purchases made within the county. This brings the Arapahoe County portion of sales tax to 1.6% when combined with the cultural facilities tax.

Finally, Englewood imposes its own 3.65% city sales tax on all purchases made within city limits. When you add up all the components, it brings the total sales tax rate in Englewood to 8.25%.

What Transactions are Subject to Sales Tax?

In general, all purchases of tangible personal property and certain services are subject to sales tax in Englewood. Some examples of taxable transactions include:

Retail goods purchased at stores
Clothing and accessories

Furniture and home furnishings
Electronics and appliances
Sporting goods and equipment

Alcoholic beverages
Cars, boats, and other vehicles
Jewelry

Crafts, arts, and hobbies
Toys and games
Prepared food and drinks

Admissions to amusement parks, movies, sporting events, etc.
Hotel stays and accommodations
Short-term car rentals

These are just some examples of everyday taxable goods and services. There are also some exemptions to sales tax in Colorado and Englewood. Some exceptions include:

Most groceries, except prepared food
Prescription drugs and insulin

Gasoline
Electricity, water, steam, and gas distributed by utilities
Newsprint and printer materials

Materials and supplies used in manufacturing
Farm equipment and agricultural products

So in summary, sales tax is charged on most tangible goods, while some necessities like groceries and medicine are exempt. Services tend to be exempt as well, with the exception of accommodations, amusements, and short-term rentals.

Calculating Sales Tax on a Purchase in Englewood

Calculating the sales tax on a purchase in Englewood is straightforward. Simply take the 8.25% combined sales tax rate and multiply it by the price of the item or service before tax. For example:

Price of item before tax:	$100
Englewood sales tax rate:	8.25%
8.25% of $100:	$8.25
Sales tax due:	$8.25
Total price including tax:	$108.25

To calculate the sales tax on any transaction in Englewood, simply move the decimal point over two places on the pre-tax price and multiply by 0.0825. This will give you the total sales tax owed. Add it to the original price to get the full amount with tax included.

Sales Tax Rates in Nearby Cities and Towns

While Englewood has a sales tax rate of 8.25%, nearby cities and towns may have slightly different rates. Here are the sales tax rates in some of the communities neighboring Englewood:

Littleton: 7.25%

Sheridan: 4.0%
Cherry Hills Village: 3.5%
Glendale: 3.46%

Denver: 8.31%
Centennial: 8.1%
Greenwood Village: 4.75%

As you can see, sales tax rates can vary quite a bit even across adjacent cities and counties. Denver’s rate is slightly higher than Englewood at 8.31%, while other suburbs have much lower rates in the 3-4% range.

Shoppers should always be aware of differences in sales tax when crossing municipal and county borders during shopping trips. Some shoppers may choose to travel 10-15 minutes to a nearby city in order to save 1% or more on large purchases. But for most day-to-day shopping, the sales tax variation is small.

Historical Sales Tax Rates in Englewood

Sales tax rates in Colorado and Englewood have increased modestly over the past few decades.

In 1980, the combined sales tax rate in Englewood was 5.5%. This was composed of a 2.5% state tax and 3.0% local tax.

By 1990, the rate had risen to 6.9%, with a 3.0% state tax and 3.9% local. The increase was driven by rising city, county, and RTD sales taxes.

In 2000, Englewood’s sales tax was 7.25%, made up of a 2.9% state tax and 4.35% local rate.

Englewood increased its city sales tax again in 2005 from 3.00% to 3.65%, bringing the total to 8.25%. This rate has remained unchanged over the past 15+ years.

While the overall sales tax rate has increased 1.75 percentage points since 1980, the growth has been gradual. And Colorado’s sales tax rates remain lower than many other states across the U.S.

Sales Tax Revenue in Englewood

Sales tax is a major source of revenue for both state and local governments in Colorado. Much of the money goes towards essential services and infrastructure.

The City of Englewood collected $12.5 million in sales tax revenue in 2021. Sales taxes made up over 50% of the city’s total general fund revenues for the year. The money helps pay for police, fire, parks, roads, and other city operations and services.

Arapahoe County received around $288 million in sales and use tax revenue in 2021. The county sales tax helps fund key services like criminal justice, transportation, and social services.

Statewide, Colorado netted $3.48 billion in sales tax revenue in 2021. Education receives the largest share, about 65% of sales tax dollars. Other services funded include health care, transportation, public safety, human services, and natural resources.

Without the sales tax contribution, governments would likely need to increase property taxes or other fees to maintain services. Sales tax provides a stable, significant funding source tied directly to economic activity and consumption.

Sales Tax Compliance in Englewood

All businesses selling taxable goods or services in Englewood must collect and remit sales taxes to the city and state. This includes brick-and-mortar stores, restaurants, online retailers, and service providers.

Vendors must register for a sales tax license in Englewood and file regular sales and use tax returns reporting taxable sales and calculating tax due. Returns are generally filed on a monthly, quarterly, or annual basis.

Englewood and Colorado have policies and procedures in place to ensure compliance:

Tax audits – Businesses may be audited to review sales records and tax payments.
Penalties – Late payments or underpayments can lead to penalties and interest fees.

Tax notices – The city sends notices to businesses that are delinquent on taxes.
Revocation of licenses – Severe non-compliance can result in loss of sales licenses and authority to do business.

By law, retailers can only absorb the sales tax themselves in rare circumstances or for occasional discounts. Otherwise, they must collect the full sales tax rate from consumers at the point of sale.

Sales Tax Exemption Certificates

Colorado does provide various sales tax exemption certificates that allow certain individuals, organizations, and circumstances to be exempt from paying sales tax:

Wholesale certificates – Valid for vendors buying inventory they will resell.

Agricultural certificates – For farmers and ranchers purchasing equipment and livestock.
Manufacturing certificates – For manufacturers buying equipment, tools, and materials.
Charitable certificates – Issued to charitable, religious, and nonprofit organizations.

Religious and governmental certificates – For organizations like churches, schools, and government agencies.
Multiple points of use certificates – Allows exemption for items used across multiple states.

Businesses and organizations must submit specific documentation to obtain these seller’s permits and exemption certificates. They present the certificates to retailers when making tax-exempt purchases.

Relevant Sales Tax Laws in Englewood

There are a few key laws that govern sales tax collection, policies, and procedures in Englewood:

Englewood Municipal Code Chapter 054 – Establishes Englewood’s sales and use tax policies.

Colorado Revised Statutes Title 29, Article 2 – Provides Colorado state sales tax regulations.
HB 19-1240 – Bill allowing Colorado municipalities to collect sales tax on remote online sales.
Colorado Sales and Use Tax Rules (Code 1 CCR 201-5) – Regulations on tax administration from the Colorado Department of Revenue.

Englewood’s sales tax laws and rules align closely with the state of Colorado’s. The city has adopted the state’s base sales tax laws while adding its own local sales taxes on top.

Sales Tax Filing and Payments

Businesses in Englewood must register for a sales tax license, file regular returns, and remit sales tax payments to the city. Here are some tips for staying compliant:

Register for a tax license through the Englewood Finance Department before commencing business.
File your Englewood sales tax return each month or quarter, reporting gross sales.
Use the city’s worksheet to calculate total tax due on taxable sales.

Remit payment on the same date as your return is due, payable to City of Englewood.
Pay electronically via the city’s online portal, mail a check, or pay in person.
Keep detailed sales records in case of any tax audits.

Contact the Englewood Finance Department for specific due dates, forms, and payment instructions. They also provide resources to assist vendors with compliance.

Conclusion

In summary, the sales tax rate in Englewood, CO is 8.25%. This consists of state, county, city, and other local sales taxes that apply on purchases made within Englewood city limits. All retailers must collect the full 8.25% on taxable goods and services.

Sales tax provides an important stream of revenue that funds city and state government services. Both Englewood and Colorado have laws and procedures in place to ensure proper collection and remittance of sales tax by businesses.

Consumers should be aware of sales tax rates when shopping in different cities and counties. And businesses need to take steps to remain compliant with registration, reporting, and payment of Englewood sales taxes.