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Tax Information
City of Aspen's Cigarette Tax
This tax is in addition to the standard 2.4% City sales tax. Therefore, please continue to collect and remit the existing City sales tax on these products – this does not change.
The new tax is structured such that on January 1, 2018:
- Each cigarette sold will generate an additional $0.15 in tax ($3.00 per pack of 20)
- All other tobacco or nicotine product (excluding FDA approved cessation products) will generate a 40% tax on the retail price.
- Additionally, all delivery products (e-cigarettes, e-cigars, vape pens, e-hookah, etc.) packaged with tobacco or nicotine product or even by themselves shall also require the 40% tax to be applied at the time of sale.
This tax will be collected at the point of sale, which is different than the State required 84 cents per pack which is collected at the wholesaler/distributor level.
- Local businesses will therefore likely need to address changes to their POS system to capture the quantity of cigarettes sold, as well as to identify all other tobacco or nicotine products and delivery devices for which to apply the 40% tax.
Applications for City of Aspen retail tobacco sales licenses will be distributed in early December. As part of your licensing agreements, local business selling tobacco products must adhere to the stipulations.
City of Aspen 2.4% Sales Tax
The City has authorized sales tax rates totaling 2.4%. The City's 2.4% sales tax and 2.0% lodging tax are remitted directly to the City of Aspen.
The remaining 6.9% sales taxes (State, Special District and County) are remitted directly to the State of Colorado.
| Retail Sales in Aspen | % |
| City of Aspen | 2.4 |
| State of Colorado | 2.9 |
| Roaring Fork Transit Tax | .4 |
| Pitkin County Tax | 3.6 |
| Total | 9.3 |
Collect & Remit City Sales Tax
- A tax return must be filed every month from your business even if no tax is due on or before the 20th of each month.
- You can find specific information about City taxes within The City of Aspen's Municipal Code: Title 23: Taxation.
Things to know
- Sellers of merchandise are never exempt from collecting sales tax. Only buyers of merchandise that are able to prove they are exempt are not required to pay sales taxes.
- Non-profit organizations are required to collect sales tax from purchasers unless they are able to prove they are tax exempt.
- Sales tax applies to the sale of all retail merchandise and lodging stays of less than 30 days within Aspen's City limits. Services are not subject to sales taxes.
- Shipments of merchandise via common carriers (such as UPS or the post office) to locations outside of the City limits are exempt from the City's 2.4% sales tax.
Frequently Asked Questions
Find frequently asked sales tax questions.
City of Aspen 2% Lodging Tax
In order to raise revenues for specific purposes (25% to fund the Local Transit Services and 75% to promote tourism in Aspen), voters have approved a Lodging Tax of 2%.
Lodging taxes are reported on your sales tax return. The tax is imposed on the leasing or renting of rooms or other accommodations in commercial lodging establishments. The person who is renting the accommodations is required to pay the tax and the person from whom the accommodations are rented is required to collect and remit the tax to the City.
| Lodging in Aspen | % |
| City of Aspen | 2.4 |
| Lodging-Tax Aspen | 2.0 |
| State of Colorado | 2.9 |
| Roaring Fork Transit Tax | .4 |
| Pitkin County Tax | 3.6 |
| Total Lodging Tax | 11.3 |
Collect & Remit City Lodging Taxes
A taxpayer whose monthly tax due to the City is less than $10 dollars may file returns and pay sales and lodging tax monthly or annually at the end of each calendar year. A taxpayer whose monthly tax due to the City is $10 dollars or more must file returns and pay sales and lodging taxes monthly and continue to file monthly for each month of the remainder of the calendar year.
- Taxability of convenience/booking/service fee: You must collect sales and lodging taxes on such fees. It is considered part of the room charge and is not exempt from taxes.
- Taxability of resort fee: You must collect sales and lodging taxes on this fee. It is considered part of the room rental charge and is not exempt from taxes.
- You can find specific information about City taxes within The City of Aspen's Municipal Code: Title 23: Taxation.
Vacation Rental Permit
If you would like to rent or lease your home or property for a short period of time, a vacation rental permit is required.
Frequently Asked Questions
View answers to Frequently Asked Questions about the Lodging tax.
Wheeler Opera House Real Estate Transfer Tax & Housing Real Estate Transfer Tax
These taxes are due on the purchase of all real property (land, buildings, condos, townhomes, etc.) within the city limits of Aspen. They are submitted and paid to the City Cashier in the Finance Department prior to recording the purchase deed at the Pitkin County Clerk and Recorder's Office.
There Are Two Separate RETTs Totaling 1.5%
- Wheeler Opera House Real Estate Transfer Tax (WRETT) of 0.5%
- The Actual Cash Consideration is taxed at the WRETT rate of 0.5%
- Housing Real Estate Transfer Tax (HRETT) of 1.0
- The first $100,000 of the transaction is deducted prior to applying the HRETT rate of 1.0%. (Total Consideration - $100,000 X 0.01)
RETT Forms
Frequently Asked Questions
Find answers to frequently asked Real Estate Transfer Tax questions.
Use Tax
The City of Aspen has a 2.1% use tax on construction and building materials. Please refer to the guidelines below for additional information.
Use Tax Guidelines
It is recommended you refer to the entire use tax guidelines (PDF) to determine your valuation and amount of use tax owed. However, the outline below can provide you with basic Use Tax Information:
- The use tax requirement applies to all contractors and owners that use construction materials in the City.
- The liability is shared jointly between the general contractor and the owner, defined as the “Purchaser.”
- In all cases, a use tax deposit is required for work performed in the City that consumes construction materials, including non-permit work and landscaping.
- Some exemptions are allowed including any master permit with a total valuation below $100,000 shall be exempt from use tax.
- The use tax deposit is paid when the master permit is issued. For a project for which a use tax deposit has been paid, materials can be purchased without paying City of Aspen sales tax or any other municipal sales tax. Upon payment of the use tax deposit, Purchaser will be issued a Use Tax Certificate which should be presented to venders in order to waive sales tax.
- The use tax deposit calculation is based on master permit valuation.
- The first $100,000 of each master permit valuation shall be exempt from use tax.
- After deducting $100,000 from the master permit valuation, 2.1% shall be charged on 50% of the remaining valuation.
Remit Use Tax to the City
The following form will need to be completed and returned to the finance department for you to reconcile and remit use tax. Instructions are included