Colorado § 29-2-103 - Countywide sales or use tax - multiple-county municipality excepted.

§ 29-2-103. Countywide sales or use tax - multiple-county municipality excepted.

(1) Each county in this state is authorized to levy a county sales tax, use tax, or both in accordance with the provisions of this article. No proposal for a county sales tax, use tax, or both shall become effective until approved by a majority of the registered electors of the county voting on such proposal pursuant to section 29-2-104. Such a proposal for a sales tax, use tax, or both, upon approval by a majority of the registered electors voting thereon, shall be effective throughout the incorporated and unincorporated portions of the county except when less than countywide application is authorized pursuant to subsection (2) of this section.

(2) A county may levy a sales tax, use tax, or both, in whole or in part, in less than the entire county when the following conditions are met:

(a) (Deleted by amendment, L. 2008, p. 990, § 4, effective August 5, 2008.)

(b) The area to be excluded from the tax levy is comprised solely of a portion of a municipality whose boundaries are located in more than one county; and

(c) All other counties in which a portion of the municipality described in paragraph (b) of this subsection (2) is located have agreed to provide fair compensation to the county for any services extended to such municipality as a result of revenues derived from the county tax levy from which the municipality is excluded.

(3) The approval provisions of subsection (1) of this section, the restrictions on contents of sales or use tax proposals set forth in section 29-2-105, and the collection, administration, enforcement, and distribution procedures of part 2 of this article 2 apply to county sales or use taxes or both levied pursuant to subsection (2) of this section.

Source: L. 67: p. 660, § 3. C.R.S. 1963: § 138-10-3. L. 75: Entire section amended, p. 962, § 3, effective July 14. L. 79: Entire section amended, p. 1126, § 2, effective April 25. L. 85: Entire section amended, p. 1028, § 1, effective May 2. L. 2008: (2)(a) and (2)(b) amended, p. 990, § 4, effective August 5. L. 2024: (3) amended, (SB 24-025), ch. 144, p. 554, § 5, effective July 1, 2025.

ANNOTATION

Law reviews. For article, "Colorado Sales and Use Tax Consequences in Sales of Businesses", see 11 Colo. Law. 679 (1982).

This section does not authorize a county to levy a special sales tax. A county may impose a special sales tax in addition to the county's general sales tax only when there is express constitutional or statutory authority to do so. The county general sales tax authority contained in this section does not contain express authority for counties to impose a countywide special sales tax on the sale of retail marijuana. City of Northglenn v. Bd. of County Comm'rs, 2016 COA 181, 411 P.3d 1139.