Frequently Asked Questions

For single and one-time sales such as a yard sale, a sales tax license is not required, but the sales tax must be collected and remitted.  If you have more than two occasional sales in one year, a sales tax license is required. 

For occasional sales reporting, please complete the remittance form below and mail with payment to City of Lafayette – Sales Tax, 1290 S Public Road, Lafayette, CO 80026.

Lafayette-Occasional Sale Remittance

The filing frequency is determined based on the total amount of monthly sales tax collected:

• For an Annual Frequency: If the monthly average sales tax collected is $0-$15 (or less than $180.00 per year), you need to file your annual returns by January 20.
• For a Quarterly Frequency: If the monthly average sales tax collected is $16-$300, you need to file quarterly returns by the 20th day of the month following the reporting period. 
  • The due dates are as follows: 1st quarter (April 20), 2nd quarter (July 20), 3rd quarter (October 20), and 4th quarter (January 20).
• For a Monthly Frequency: If the monthly average sales tax collected is greater than $300, you are required to file monthly returns by the 20th day of the month following the reporting period.

Economic nexus means the connection between the city and any retailer who does not have a physical presence in the State of Colorado, which connection is established when the retailer meets any one (1) of the following criteria:

1) In the previous calendar year, the retailer has made retail sales of goods or services delivered into the State of Colorado exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended, and the location at which property or a product is delivered or the service rendered is within the city; or

(2) In the current calendar year, ninety (90) days has passed following the month in which a retailer has made retail sales of goods or services delivered into the State of Colorado exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended, and the location at which property or a product is delivered, or the service rendered is within the city.

Engaged in business in the city means performing or providing services or selling, leasing, renting, delivering, or installing tangible personal property for storage, use or consumption within the city. Engaged in business in the city includes, but is not limited to, any one (1) of the following activities by a person or retailer:

(1) Directly, indirectly, or by a subsidiary maintains a building, store, office, salesroom, warehouse, or other place of business within the taxing jurisdiction;

(2) Sends one (1) or more employees, agents or commissioned salespersons into the taxing jurisdiction to solicit business or to install, assemble, repair, service, or assist in the use of its products, or for demonstration or other reasons;

(3) Maintains one (1) or more employees, agents or commissioned salespersons on duty at a location within the taxing jurisdiction;

(4) Owns, leases, rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or

(5) Any retailer who does have a physical presence in the State of Colorado, without having a physical presence within the city, that in the preceding calendar year or the current calendar year makes more than one (1) retail sale of tangible personal property, products, or services, where the location at which property or a product is delivered by any means, including common carrier within the city, or the service rendered occurs within the city; or

(6) Makes retail sales of tangible personal property, products, or services sufficient to meet the definitional requirements of economic nexus, as set forth in this section 110-37.

Consumer’s use tax is a self-reported tax that is due when insufficient sales tax was paid at the time of purchase of taxable goods and services. 

If no sales tax was charged on items delivered to or picked up in the City of Lafayette, the City rate of 3.87% is due as a use tax.  

If you have paid sales tax on purchases outside of Lafayette and brought them back into Lafayette, an incremental use tax may be due if the municipal rate of sales tax paid was less than 3.87%.  If the municipal rate charged on purchases picked up outside of Lafayette was more than 3.87%, then no additional consumer’s use tax is due.

Retailers may owe use tax on items they purchase for their own business use that are not charged sales tax or sufficient sales tax at the time of purchase.  

Consumer’s use tax is not due on items that are purchased directly for inventory or manufacturing inputs that become part of the retailer’s products to be resold.

 Consumer’s use tax is reported on line 11 and 11A in the sales tax return.

Effective July 1, 2022, the State of Colorado imposes a Retail Delivery Fee of $0.28 on all deliveries by motor vehicle to a location in Colorado with at least one item of taxable tangible personal property. The retailer or marketplace facilitator that collects the sales or use tax on the tangible personal property sold and delivered, including delivery by a third party, is liable to also collect and remit the retail delivery fee to the state.

Retail Delivery Fee is not subject to the City of Lafayette sales or use tax

The City of Lafayette normally taxes delivery, transportation, freight, and other charges that effect the delivery of tangible personal property to purchasers/customers in the City (see the definition of Purchase Price in Sec.110-37 of the Lafayette Municipal Code). However, the City considers the Retail Delivery Fee to be unrelated to these other charges and costs that actually affect delivery. The Retail Delivery Fee is not subject to the City of Lafayette sales or use tax.

Effective January 1, 2023, per the Colorado Revised Statutes 25-17-505, a carryout bag fee of $0.10 per bag is imposed on each single-use bag provided by a retailer.    

The Carryout Bag Fee is not subject to the City of Lafayette sales or use tax.

The City of Lafayette normally taxes delivery, transportation, freight, and other charges that effect the delivery of tangible personal property to purchasers/customers in the City (see the definition of Purchase Price is Sec.110-37 of the Lafayette Municipal Code). However, the City considers the Carryout Bag Fee to be unrelated to these other charges and costs. 

Carryout Bag Fees are currently reported with the form below.

Lafayette Carryout Bag Fee Form