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Tax & Licensing

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1. Does my business need a City of Wheat Ridge Business License?

All business activities or locations within the city must be licensed, even if no merchandise is sold. Some businesses may require additional specialty licenses. If you are unsure, please contact us or view our licensing web page for additional information. 

See the licensing web page.

2. How long does it take to get my Business and Tax License?

Licenses for businesses located within the City of Wheat Ridge should apply a minimum of 30 days in advance of the projected opening date. If you wish to inquire about the status of a local license application, please email wrtax@ci.wheatridge.co.us. Out of city applicants may expect their license approximately five business days after applying. 

3. What is physical vs. economic nexus?

In general, for city sales and use tax purposes, physical nexus means a business has a physical location, performs services, or maintains and leases equipment within the city. If a business has physical nexus, it must obtain a business license and collect and remit applicable city taxes even if the business has a State of Colorado business license. Economic nexus means the business does not have a physical location in the city and does business in the City through third-party deliveries or incidental business transactions. The business must complete a remote seller form to create an account and collect and remit applicable city taxes, but it is not required to pay a fee for the business license. The business must be able to demonstrate that it has a State of Colorado business license. For more information on this definition, please refer to Senate Bill 22-032. 

See the licensing page for more details.

4. Is the city of my mailing address the city to which I pay tax?

Not necessarily. ZIP codes cross city boundaries and are not accurate for determining your own or your customer's city for tax purposes. The tax resources page provides ways to identify cities for tax.

5. What is the City of Wheat Ridge sales tax rate?

The current City of Wheat Ridge sales and use tax rate is 3.5%. State, special district, and county taxes may also apply. Please see the Colorado Department of Revenue website for information. 

6. When do I charge city sales tax?

The city sales tax must be charged when items and certain services are sold, leased or rented in Wheat Ridge, including deliveries made more than once a year by sellers using their own vehicles.

See the sales tax web page.

7. When must sales tax be paid to the city?

Sales taxes are never the property of the retailer and must be paid by the 20th of the month after collecting them, as follows: average monthly tax collected is over $100, monthly; average monthly tax collected is between $20 and $100, quarterly; or average monthly tax collected is less than $20, yearly. 

See the filing requirements page.

8. When are sales not subject to the city sales tax?

A sale delivered outside the city or to an exempt organization with a completed exemption affidavit is not subject to the city sales tax. A sale of products as inventory for resale or that become part of inventory for resale are not subject to the City sales tax.

See the exemptions web page.

9. Do I have to pay tax when I buy a business in the city?

Yes; initial use tax at the same rate as sales tax (3.5%) applies to new or purchased businesses in the City. It is due within 20 days of license approval on all business equipment, furniture, fixtures, and supplies that were bought from a previous owner of the business, with no sales tax having been paid. It also applies to new items brought to start a business on which no local tax was paid. Initial use tax does not apply to businesses purchased via stock acquisitions or bankruptcy proceedings.

The use tax page provides more information.

10. What is use tax?

Use tax is a compensating tax equal to the city sales tax, due on all items on which no local sales tax was paid or on which a lesser local sales tax was paid.

See the use tax web page for details.

11. When must use tax be paid to the City?

Use tax must be considered in combination with sales tax and paid by the 20th of the month. 

See the filing requirements page.

12. Are shipping, freight and handling taxable in the City?

In most cases where retail sales are delivered in the City, yes. Special freight terms may change that. A brief on freight and shipping is available, but if the situation is complex it is recommended that you email wrtax@ci.wheatridge.co.us if you need additional assistance.

See the freight terms paper.

13. Are fuel and other surcharges taxable in the City?

Yes, any fuel offset fees or other add-on fees on taxable items are subject to City sales or use tax according to the definition of purchase price in section 22-21 of the Wheat Ridge Code of Laws. Section 22-21

14. Are items sold in vending machines taxable in the City?

Yes. All sales from vending machines are subject to the City sales tax. The vendor include the tax in the price and remit it to the City by backing it out.

15. Are car washes and laundries taxable in the City?

Yes. The paid use of car washes, laundry machines, air hoses, vacuums, showers, pet washes, and similar, are short term rentals of equipment that are subject to sales tax. If they're operated like vending machines (paid by inserting or scanning something of value to gain use), the vendor may add tax to the price and remit it to the City by backing it out. Sales totalled at a counter must show tax charged separately. See the short term rentals information sheet.

16. How do I get a refund of sales tax?

A seller may request a refund of sales tax paid on a prior return by submitting an amended return and all supporting documents to show the original collection of the tax and the refund of it to the customer. The refund form that's available on this website may be used if the refund extends over more than three return periods, but must be accompanied by detailed supporting information. In either case, the seller must provide proof that the tax was a) refunded to the customer or b) otherwise not due to the City. All refunds are subject to review before being granted. Please contact us with any questions.

See the Local Tax Refund Request Form

17. How do I obtain a refund of building permit use tax?

Submit the refund form that's available on this website with a copy of the permit and copies of invoices. Any project that was completed in Wheat Ridge must be audited in order to validate a refund. See the construction use tax page.