Sales Tax FAQ

Everything you need to know about paying sales tax in Mountain Village.

The Town of Mountain Village was incorporated in accordance with a voter mandate as a Home Rule Municipality in March of 1995. On January 1, 2012, the Town of Mountain Village started self-collecting sales tax and implemented an online business revenue system called MUNIRevs. More information about our sales tax code can be found in chapter 3.04 of our Municipal Code.

Registration, business licensing and tax form submittals are all done online. Registration begins with applying on MUNIRevs and obtaining a business license. Certain businesses may be granted a “no fee” business license if they have no nexus in the Town of Mountain Village.

Below you will find answers to many of your most pressing sales tax questions:

Sales Tax FAQ

Online Travel Company Rental Information

Online travel companies (“OTCs”) such as VRBO and Airbnb collect and remit taxes for short term rentals (“STRs”). The Town does not get remittance information for individual properties.

These properties will still require a business license with the Town, which will be the responsibility of the owner and will continue to have tax forms for remitting any taxes for sales that may be made not using one of these companies.

If you have questions or concerns, please contact: Julie Vergari.

Payment Options

ACH debit payments are preferred, although we do offer payors an ACH credit payment option which must be applied for and approved. We also accept credit card payments with a 2 percent credit card convenience fee (for transactions up to $2,500) or a manual (paper) check with a processing fee of $10 per payment included. Even if check payment is used, filing of forms still must be completed and submitted on MUNIRevs.

Due Dates

Taxes are due on the 20th of the month following the reporting period of the remittance. If the 20th falls on a weekend or federal holiday, the due date will be the next business day following the weekend or holiday. All forms and payments must be received on or before the due date to be considered timely. Postmark dates do not constitute compliance with due dates.

TheTown offers a timely vendor discount to businesses that file and pay on time. The discount is 3.33 percent of the total taxes assessed.

Business licenses expire on December 31 of the year of application no matter when they were obtained. Licenses that require a fee will be pro-rated by half if obtained on October 1 or after. New licenses are due 15 days from the (Mountain Village) start date. Renewals are due January 1 of the year but are granted a 30 day grace period without penalties.

Filing Frequency

Businesses needing to remit sales taxes to the town will automatically default to monthly remittances but can request other filing frequencies. If remittances are $300 or less per quarter, quarterly filing will be granted. Annual filing is available at the discretion of our finance director.

Taxable Items

The Town of Mountain Village follows the State of Colorado tax guidelines in determining taxable items with the following exceptions:

There shall be exempt from taxation under the provisions of this Chapter, the same exemptions as those specified in Section 39-26-701, et. seq., C.R.S., as amended from time to time, except the exemption allowed for the purchase of machinery or machine tools by Section 39-26-709, C.R.S., as amended from time to time.

See Chapter 3.04.040 of our Municipal Code for more information.

Deductions

Deductions to taxable sales are limited to the same deductions as the State of Colorado guidelines, which are:

Service sales (sales that were exclusively for services, not tangible personal product)
Sales to governmental agencies, religious or charitable organizations (these sales should be documented and records kept)
Sales of gasoline
Sales of drugs by prescription and prosthetic devices
Trade-ins for taxable resale
Bad debts charged-off, returned goods, trade discounts and allowances where tax as paid (cash discounts are not allowed)
Cost of utilities, excluding tax (restaurants only)
Sales of agricultural compounds and pesticides

Expenses are not deductible from taxable sales.

Tax Rates

Town of Mountain Village City Sales Tax – 4.5 percent
Lodging Tax – 4 percent
Restaurant/Bar Tax – 2 percent

These taxes are all remitted to the Town of Mountain Village. Of the lodging and restaurant taxes collected:

50 percent of the lodging tax we collect goes to Colorado Flights Alliance for its Airline Guarantee Program. Less two percent administrative fee of the remittance. The other 50 percent is used for destination marketing and communicating Town services and initiatives.
- See Chapter 3.12 of our Municipal Code for more information.
100 percent of the restaurant tax we collect goes to Colorado Flights Alliance for its Airline Guarantee Program. Less two percent administrative fee of the remittance.
- See Chapter 3.14 of our Municipal Code for more information.

Other taxes consist of:

Colorado State Sales Tax - 2.9 percent
San Miguel County Sales Tax – 1 percent
San Miguel Authority for Regional Transportation (SMART) Tax - .25 percent

All of these taxes are submitted to the State of Colorado.

For more information on our sales taxes collection, please visit our Sales Tax Collection page.

Construction Use Tax

Use tax is collected on permitted construction projects in the Mountain Village. We collect Mountain Village use tax of 4.5 percent and the San Miguel County use tax of 1 percent. Sales of materials to contractors of a permitted job need not collect these local sales taxes for the materials.

See Chapter 3.16 of our Municipal Code for more information.

Colorado Senate Bill 22-023

We have received several inquiries about the new Colorado Senate Bill 22-032 concerning license fees for (retail) taxpayers who have incidental or no physical presence in the jurisdiction in which they are filing. Mountain Village has historically set up those businesses with incidental or no physical presence in the Town with zero-fee licenses based on information provided in the license application/renewal. The application, approval, and checkout process is the same as fee licenses, and when checking out, you will see a “calculated amount,” but the amount due shown below will be $0. Applicants must “checkout”, paying nothing, for the license to be completed. If there is a charge for your license and you feel this is in error, please contact Julie Vergari , (970) 369-6448.

Short-Term Rental/Lodging Providers

When applying for a license for short-term rentals, the business type is “vacation rental,” and the “business name” should be the property name/address as opposed to the owner name or a nickname. This makes the identification process clear and consistent among properties.

In an effort to make tax filing less onerous for self-managed short-term rental owners who primarily use online travel companies (OTC) for reservations (AirBnb, Vrbo, etc.), we are now setting the filing frequency to annual on new licenses and license renewals unless otherwise requested. (Self-managed short-term rental owners are those who own and operate their properties without the assistance of a management company.) OTCs now collect and remit taxes for properties booked through their sites, but owners are responsible for tax collection and remittance on any reservations booked outside of these sites. Annually, owners will need to report and remit on those reservations. If no reservations were made outside of an OTC site, please file an annual return with $0 in revenues. If you are unsure as to whether an OTC is remitting taxes on your behalf, please email with the name of the OTC you are using. While we do not get specific unit information from the OTC we can confirm they are remitting taxes to the Town.

Tax Exemptions

Attached is the form that should be completed in support of each exempt sale. This form should not be sent in with the return but maintained by the seller for sales tax audit purposes.

Mountain Village Sales Tax Exemption Form Download PDF

Please visit our Facebook page for updates on paying your sales tax in Mountain Village

Mountain Village Sales Tax Facebook Page

Questions? please contact Julie Vergari.

Sales Tax FAQ

Below you will find answers to many of your most pressing sales tax questions:

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