Full Text
Town of Monument -Sales & Use Tax Seminar Presentation December 2024 ---PAGE BREAK--- Overview 2 Monument is a home rule town situated at the base of the Rampart Range in El Paso County, Colorado, United States. Monument is one of the three communities that make up the Tri-Lakes area, along with Palmer Lake and Woodmoor. Town of Monument is a self-collected municipality as of January 1, 2025. For sales made starting in January 2025 and in the future, Monument will directly collect its own taxes. Taxes paid previously for Monument were remitted through the Colorado Dept. of Revenue and then passed back to the town. Monument will also be the point of contact if any Town taxes for periods prior to 2025 were not remitted through the Monument State of Colorado return and need to be remitted for compliance with Town laws. The Town of Monument's services are dependent, in part, on tax revenues received. We recognize the importance of providing adequate levels of service and infrastructure while maintaining a fair tax structure. ---PAGE BREAK--- Presentation Outcomes 3 • IncreaseCompliance and Understanding regarding Monument’sTaxCodeAnd Procedures. • Provide SourcesOf Information &Guidance. • EnsureTaxes Are FirstTime. • AllowTaxpayersToSpend LessTimeAnd Effort On Tax Issues, MoreTime Managing Their Business. ment.org/475/Sales-Tax ---PAGE BREAK--- Resources 4 • Town of Monument website: www.townofmonument.org • Sales and Use Tax webpage: • Town of Monument Sales and UseTaxCompliance Best point of contact: [EMAIL REDACTED] • Colorado Dept of Revenue –CurrentTax Rates by Jurisdiction Website address: ---PAGE BREAK--- Home Rule Town 5 • TheTown of Monument administers its own tax codes rules and regulations. • Any taxes owed to Monument are paid directly to Monument as of January 1, 2025. • Disclaimers: • The rates shown in this presentation are effective only based upon the date published. • (This presentation addresses only Monument’s Codes and Rules. ) ---PAGE BREAK--- Overview of Taxes/Fees Collected 6 • SalesTax Rate – 3.5% • UseTax Rate – 2.0% ment.org/475/Sales-Tax ---PAGE BREAK--- Town of Monument Map Town of Monument, Colorado Municipal Boundaries ---PAGE BREAK--- How to find whether an address is in Monument? 8 Resources available on the Sales and UseTax web page: • ColoradoAddress Locator –Third Party Database, free of charge service: www.Colorado.ttr.services ---PAGE BREAK--- SALES TAX 9 ---PAGE BREAK--- Tax Rates 10 Town of Monument Total Retail Sales Tax Rate – 7.63% Town of Monument 3.50% State of Colorado 2.90% El Paso County 1.23% Total Retail Sales Tax Rate (outside PPRTA) 7.63% Remit Tax Collected to Town of Monument (3.50%) Remit Tax Collected to Colorado Department of Revenue (4.13%) Town of Monument Total Sales Tax Rate - 8.63% Town of Monument 3.50% State of Colorado 2.90% El Paso County 1.23% Pikes Peak RTA 1.00% Total Retail Sales Tax Rate (inside PPRTA) 8.63% Remit Tax Collected to Town of Monument (3.50%) Remit Tax Collected to Colorado Department of Revenue (5.13%) ---PAGE BREAK--- SalesTax - Overview 11 The Monument Municipal Code Chapter 3 imposes tax on the purchase price paid on retail sales, leases and rentals of tangible personal property and certain enumerated services. The sales tax collected by retailers for the Town of Monument is public money. The retailer must hold and pay the tax when due to Monument on the sales tax returns. Sales tax is also known as a “trust” tax. ---PAGE BREAK--- Am I required to collect Sales Tax for Monument? 12 Yes, if you are engaged in business in Monument (performing any activity in connection with selling, leasing or delivering) a sales tax license is required. Monument Municipal CodeChapter 3 provides the legal basis for the administration of the Sales, Use and LodgingTax. ---PAGE BREAK--- SalesTax - Imposition 13 1. Tangible Personal Property (TPP) 2. Telephone&TelecommunicationsServices 3. Coal, Petroleum, Electricity,Gas, etc. 4. Prepared Food, Candy, and Drinks 5. Digital Goods 6. Lodging Services ---PAGE BREAK--- Sales Tax – Exemptions • Direct sales to charitable and governmental organizations • Essential hygiene items • Food for Domestic Home Consumption • Medical Supplies • Resale/Wholesale Purchases • Newspapers/Magazines • Cigarettes • Prepared food if purchased with SNAP or WIC benefits • Colorado Retail Delivery Fee • Carryout Bag Fee • General rule: if it is not specifically exempted it is considered subject to Tax 10/11/2024 Town Council Strategic Planning Work Session - Planning Department 14 ---PAGE BREAK--- Tax Return 15 • Monument Tax & Business Registration Portal • • There is a $25.00 manual filing fee for any paper filings of returns, applications, or other documents, that are able to be filed through the portal above. Return Basics • Gross Sales • Enumerated Deductions • Net Taxable Sales • Sales tax • Vendor’s Fee, Penalty and Interest (if applicable) ---PAGE BREAK--- Tax Return Example 8 ---PAGE BREAK--- USE TAX 17 ---PAGE BREAK--- Use Tax Rates & Types • Use Tax Due on Construction Materials at the rate of 2.0% • Two methods of deposit calculated as follows: 1) A 2.0% tax deposit on 100% of the materials declared by the contractor through the Community Core site OR 2) A tax deposit is calculated on 50% of the valuation of the permitted work • Example $1,000,000 permit valuation • 50% of the $1,000,000 is $500,000. • 2% Use Tax is calculated on the $500,000 • $10,000 of use tax deposit is made • Use Tax is also due on Motor Vehicles registered within the Town. • Payable to the Department of Motor Vehicle at the time of registration or applicable by the licensed dealer’s at the time of sale. ---PAGE BREAK--- Use Tax Exemptions • Sales of construction materials or supplies to be used by a contractor for the construction of an improvement to any exempt institutions for which the State of Colorado has issued an 89 Exemption Certificate are exempt. • Construction materials purchased outside of Monument with sales or use taxes previously paid greater or equal to the use tax due are also exempt from additional tax. • Motor vehicles that are not required to be registered within the Town 10/11/2024 Town Council Strategic Planning Work Session - Planning Department 19 ---PAGE BREAK--- QUESTIONS • Please contact us… • Phone – • Email – [EMAIL REDACTED] Please let us know if this presentation was helpful or what additional information we may provide. Thank you! 44