You might be wondering if there is a usage tax you need to pay if you reside in Larimer County or intend to conduct business there. The answer is that there is a use tax in Larimer County. This page will explain use tax, how it operates in Larimer County, and the steps you must take to comply.
Let’s start by defining usage tax. Use tax is a charge on tangible personal property that was not subject to sales tax but is used, stored, or consumed in a certain jurisdiction. In other words, even if you purchase something from a vendor outside of your state or one who does not charge sales tax, you can still owe use tax on it. In contrast to out-of-state companies who would not be required to collect sales tax, this makes sure that local firms are not at a disadvantage.
The use tax rate in Larimer County is 0.8%, the same as the county’s current sales tax rate. This means that you might have to pay 0.8% of the purchase price in use tax if you acquire something from an out-of-state vendor or someone who does not collect sales tax. There are a few exceptions to this rule, though. For instance, depending on the county where the vehicle will be registered, you can be responsible for paying a varied use tax rate if you buy a car.
You should keep note of any purchases you make that might be subject to use tax if you want to stay in compliance with Larimer County’s use tax regulations. This includes orders placed over the phone, over the mail, or online. If you need assistance determining whether a purchase is subject to use tax, speak with a tax expert or get in touch with the Larimer County sales tax office.
Larimer County levies a 0.8% sales tax in addition to the use tax. Greeley, which is in Weld County but close to Larimer County, has a higher sales tax rate at 3.56%. This implies that you must collect and submit sales tax at the higher rate if you conduct business in Greeley.
The use tax rate in Larimer County is 0.8%, the same as the sales tax rate, to sum up. You might owe use tax on things you buy online or from out-of-state merchants. In order to maintain compliance, keep track of any purchases that might be subject to use tax and seek advice from a tax expert or the Larimer County sales tax office if necessary. Additionally, keep in mind that Greeley’s sales tax rate is greater than Larimer County’s if you conduct business there.