Frequently Asked Questions

For single sales such as a yard sale, a sales tax license is not required but the sales tax should be remitted on a letter to the City of Lafayette stating that you had "a one time sale in the City of Lafayette for $___ and here is the tax of $___". If there are more than two occasional sales in the city, a license would be required.

Send the letter and the tax to City of Lafayette – Sales Tax, 1290 S Public Road, Lafayette, CO 80026.

The City of Lafayette offers three filing frequencies: monthly, quarterly, or annual. If the monthly average for remittance is $40 or greater, monthly filing is required. If less than $40 per year or fewer than two sales transactions are expected, annual filing is desired.

Once a license is issued, returns must be remitted by the 20th of the month following the end of the filing period. If there were no sales for the period, a zero return is expected. Failure to file a return can incur additional penalties and interest as well as collection activity and assessments.

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.

Effective July 1, 2022, the State of Colorado imposes a Retail Delivery Fee of $0.27 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.