State, County and Local Sales and Use Taxes

As of January 1, 2025 all sales tax is reported to Colorado Department of Revenue.

Sales Tax

City of Aspen voters have approved both sales and lodging taxes for business done within City limits.  For City sales taxes, portions of these were adopted at varying times, with some extending into perpetuity and others scheduled to sunset unless reaffirmed by voters.  Original adoption dates and current expiration dates (when applicable) are denoted in the following chart. 

City of Aspen taxes are levied in tandem with State, other local jurisdiction and special district taxes. When combined, the aggregate sales tax rate will be 10.35% starting in 2026, the sale tax rate was 9.3% prior to 2026.

Tobacco Product Sales Tax

On November 7, 2017, City of Aspen voters approved ballot measure 2B, adding an additional tax on all tobacco and tobacco related products effective January 1, 2018.  The tax was initially established as a 40% tax on all nicotine or tobacco related products or $3.00 per pack of cigarettes.  The per pack tax was however approved with an escalator, ratcheting up ten cents annually until it reaches $4.00 per pack in 2028.

This tax was adopted by voters to influence and discourage the use of tobacco by local youth, and came on the heels of City Council adoption of Ordinance 17 (Series 2017) which raised the legal age to purchase tobacco products in Aspen City limits to 21 years old.  As such, the ballot question included language that specified the tax revenue “shall be used for the specific purposes of financing health and human services, tobacco related health issues, and addition and substance abuse education and mitigation.”

Use Tax for Construction Materials

On November 6, 2007, City of Aspen voters approved the application of a 2.1% use tax on all construction and building materials, which became effective January 10, 2008.  This tax is complimentary to and supplemental to sales tax - if the general contractor / owner pays sales tax on construction materials purchased in or delivered to sites within the City of Aspen city limits, an exemption can be granted as double taxation of these materials is not prohibited.  

The liability of use tax remittance is shared jointly between the general contractor and the owner of the property.  As such, it is important for both parties to be engaged in the permitting and reporting processes associated with the construction, in order to ensure a timely certification of occupancy and tax compliance process is followed.  

Generally, the use tax program can be summarized by the following:

• A use tax deposit is paid at the time of issuing a master permit with the Community Development Department and is held until the project has been completed and a certificate of occupancy has been issued.  
• For purposes of calculating the use tax deposit, the applicant should take the use tax rate of 2.10% times fifty percent of valuation (excluding the first $100,000) included in the master permit.  The fifty percent prorate is an estimation of the taxable construction materials included in the project vs. the cost of services and labor that would not otherwise be taxed.
• Once a CO has been issued, the contractor / owner has 90 days to submit a final reconciliation return that will disclose either the use tax deposit was (1) sufficient to cover the tax obligation; (2) in excess of the tax obligation and the contractor / owner is due a refund; or (3) less than the amount of use tax due and an additional payment is required. 
  • If the contractor / owner is due a refund, they must submit for a refund of the use tax overpaid within 90 days from the certificate of occupancy being issued, else the entire deposit is forfeited.
  • If the contractor / owner deposit was underpaid relative to the final use tax computation, a check should be included with the final reconciliation return and/or be received within the 90-day period following the certificate of occupancy being issued.  If payment is not received by this time, penalties (10.0% of unpaid tax) and interest (1.5% per month) shall be assessed.
• The City of Aspen has three (3) years from the issuance of certificate of occupancy to conduct an audit.

Proceeds from the adopted tax were specifically designated in the ballot question to be used for "the cost of operation, maintenance, capital replacement, and improvement of the City transit service and pedestrian amenities" and are therefore deposited into the City's Transportation Fund.

Use Tax for Motor Vehicles

On November 5, 2024, City of Aspen voters approved the application of a 2.1% use tax on the sale and use of motor vehicles.  This tax is in place of levying a sales tax on these purchases and shall be levied on all motor vehicle sales regardless of the point of sale, provided the vehicle shall be registered within the City of Aspen city limits.  Proceeds from the adopted tax are specifically designated in the ballot question to be used for "the maintenance of roads and bridges and other transit related infrastructure".  Use taxes on motor vehicle sales shall be collected and remitted to Pitkin County's Motor Vehicle window within the Clerk and Recorder's Office.