Sales and use tax rate increase in 2022
Littleton voters approved a 0.75% sales and use tax rate increase in November 2021 to fund capital improvement projects and ensure long-term financial stability. Effective January 1, 2022, businesses should begin collecting the new city sales tax rate of 3.75%.
The City of Littleton sales tax must be collected on all sales of tangible personal property at retail in the city, including items delivered into the city. Shipping and delivery charges are also taxable.
The City of Littleton collects its own sales tax, and a return must be filed even if there is no tax due.
Returns are due by the 20th of the following month. If the 20th falls on a weekend or holiday, the return is due the next business day. Returns must be postmarked on or before the due date to be considered timely. For questions regarding the new tax rate, call 303-795-3768.
The Business License & Sales/Use Tax Application is available through the city's eTRAKiT system. Visit the eTRAKiT Portal and Help page, read through the instructions, then click on the eTRAKiT Portal button.
To start the application on the eTRAKiT Portal, log in (or create an account), then select Apply for New Licenses in the Licenses section.
Is the business within the Littleton city limits?
Before completing the application, use the Address Wizard to verify that the business location is within the Littleton city limits. Many addresses that include the location "Littleton" aren't actually located within the city. You will need to know the answer to this when filling out your application and it will determine whether your application will require zoning review. For questions about this form, contact the Revenue and Sales Tax Technician at 303-795-3768.
New businesses should check out Starting a Business and other no-cost business resources provided by the City of Littleton. For more information about these services, complete the Economic Development Meeting Request form or contact Economic Development at 303-795-3749.
Does the business have nexus in Littleton (Wayfair)
Littleton is a locally-collected/administered home-rule city. As a result, the licensing and tax structure may be different than those of the State of Colorado or other taxing jurisdictions. Contact the city Finance Department for questions or clarification on any issue.
The City of Littleton has amended its code to change its physical presence standards, to align with the State Economic Nexus and Marketplace Facilitator definitions. Effective January 1, 2021, the City of Littleton is a member of the State Sales and Use Tax filing system. Taxes may still be filed with the city directly, but the city does offer the option for retailers who file multiple returns to file on the State system
Businesses should contact the Colorado Department of Revenue for assistance with their Sales & Use Tax System (SUTS) account:
- Phone Monday through Friday from 8 a.m. to 4:30 p.m. — 720-795-7759
- Email DOR_TaxpayerService@state.co.us
Littleton's nexus standards are outlined the Littleton City Code Title 3, Chapter 9.
Remit sales/use tax returns and payments to:
City of Littleton
P.O. Box 1305
Englewood, CO 80150-1305
Who must obtain a business and sales/use tax license?
Any business engaged in commerce of any kind, including all service businesses and all businesses selling products and taxable goods, either in a home-based or commercial location within the City of Littleton (city limits map) is required to register with the city by completing a Business License - Sales Use Tax Application. A separate license is required for each physical location where a retailer operates a retail business within the city.
LICENSES ARE NOT TRANSFERABLE.
Business establishments located outside the Littleton city limits that engage in retail sales of tangible personal property to Littleton businesses or residents, which are delivered to locations within the city, must also obtain a sales tax license. There is no charge for the Business and Sales/Use Tax License Application.
|Combined Sales/Use Tax Rate|
|Effective January 1, 2022, the city's tax rate increases from 3% to 3.75%
|City of Littleton||3.75%||3.75%||3.75%||3.75%
|State of Colorado
|PIF / LID*
*PIF - Public Improvement Fee
*LID - Local Improvement District (TrailMark)
Who must collect the sales tax?
Every vendor must collect the 3.75% sales tax on the purchase price or sales price paid or charged for tangible personal property and certain taxable services when purchased, leased, rented or sold at retail within the City of Littleton (wholesale exempt).
How do I file the tax due?
After you have completed the application and a sales license has been issued, you can go on-line and file your return. You will require a PIN which can be provided by calling the Finance Office 303-795-3768. The city also has downloadable blank returns. The return must be completed and returned with the proper remittance on or before the 20th day of the month following the reporting period. For filing the return on time, you receive a 2.50% deduction (maximum of $100) called a "Vendor’s Fee" which is to compensate you for your cost of collecting and remitting the tax.
Sales and use tax returns may be filed online, allowing payments via credit card or electronic check. A City of Littleton sales and use tax account number (customer ID number) is required, as well as a computer-generated PIN.
What happens if I fail to file the return on time?
Returns and payments received after the 20th will be considered late. The "Vendor’s Fee" is not allowed when returns and payments are filed late. If you do not file the city tax return with the proper penalty and interest within ten days from the due date, (20th day of the following month), a "Notice of Assessment" will be sent. The taxpayer (vendor) then has ten days from the date of mailing to file the delinquent return with the proper penalty and interest, pay the amount of the assessment, or request in writing to the Revenue Manager, a revision or modification of the assessment. If the assessment is not satisfied within a ten-day period, a summons to Municipal Court may be issued.
What else should I know about sales tax?
Excess city sales tax collected must be remitted to the city on Line 6 of the sales tax return.
You must file a return even if you have not made any sales during the tax period. By filing this return, a delinquency notice will not be generated.
You must maintain your books and records used in determining your tax liability for a period of three (3) years. This is because in the event your business is selected for an audit, for whatever reason, the records will be available for review. The burden of proof of exempt sales and purchases rests with you. All information provided by you to the City of Littleton will be kept confidential.
What is a "One Time Use Tax?"
If you purchase an existing business within the Littleton city limits or establish a new business within the Littleton city limits, a one-time use tax of 3.75% must be paid on the purchase price of all furniture, fixtures, equipment and supplies made incidental to the opening of your business. This "One Time Use Tax" form will be sent to you along with your license. This form must be completed and returned to the city within 30 days even if no taxable purchases were made.
What is a "General Use Tax?"
A "General Use Tax" is a 3.75% tax imposed on every person in the city for the privilege of storing, using or consuming, in the city, any articles of tangible personal property purchased at retail and not subjected to city sales tax without regard to whether the property is purchased from sources within or outside the city. The tax due should be shown on Line 10 on the front of the sales tax return. A detailed list of the equipment purchased does not need to be included on the return itself. However, a list should be maintained by your business.
Use tax will not be collected or paid on items already subjected to the retail sales tax.
What do I need to do if and when I sell or discontinue my business?
Within 10 days after selling or discontinuing your business, you must complete a return stating the date you sold or discontinued your business and pay all collected and due sales tax prior to that date. Your license should be submitted along with your final payment.
Do I have to pay sales tax on gifts or premiums?
Any person purchasing tangible personal property to give away in any manner is a user or consumer and is liable for the tax. This includes advertising gifts of all kind in addition to prizes given in games of chance or skill or as premiums.
Where do my state taxes go?
The Colorado State Treasurer's Office developed a website that illustrates how, based on averages, the state spends your tax dollars. Visit the Colorado State Department of Treasury Tax Tracks website, enter in your annual adjusted income, and see what state services your tax dollars provide. You may also have the opportunity to express your opinions and priorities.
For more information on sales tax for the City of Littleton, Colorado, call or email theSales Tax Revenue Technician at 303-795-3768.