The Commerce City sales tax is 4.5%, charged by the city on most retail sales within its limits and stacked with state, county, and district taxes for a combined 9.25% rate at the register. Commerce City is a home-rule municipality, which means it administers and collects its own tax rather than routing collections through the Colorado Department of Revenue. If you run a business here, you register, file, and pay directly with the city’s Finance Department.
What You Actually Pay at the Register
The 4.5% city rate is one layer of four. A taxable purchase in Commerce City carries:
- Colorado state tax: 2.9%
- Adams County: 0.75%
- Regional Transportation District (RTD): 1.0%
- Scientific and Cultural Facilities District (SCFD): 0.1%
- Commerce City: 4.5%
Together those total 9.25% on most taxable purchases.1Adams County. Sales Tax Rates
Use Tax on Out-of-Town Purchases
A matching 4.5% use tax applies to items bought without paying Commerce City sales tax but then stored or used inside the city. This mostly catches businesses buying equipment or supplies from out-of-state vendors who don’t collect the local tax. The combined use tax rate is 8.50% as of January 1, 2026, because Adams County and certain fire district taxes don’t apply to use tax:
- Commerce City: 4.50%
- State of Colorado: 2.90%
- RTD: 1.00%
- SCFD: 0.10%
The point is to keep locally sourced and out-of-state goods on equal footing.2Commerce City. Sales and Use Tax
What’s Exempt
Several categories are fully exempt from Commerce City sales and use tax:
- Food for home consumption. Prepared foods, hot meals, cold sandwiches, deli trays, energy drinks, carbonated water sold in containers, and snack foods marketed for immediate consumption remain taxable.3Commerce City. Sales and Use Tax Frequently Asked Questions
- Prescription drugs for human consumption.
- Prosthetic devices.
- Livestock and agricultural supplies, including cattle, sheep, swine, goats, breeding horses, livestock feed, seeds for food products, and orchard trees.
- Newspapers published daily through weekly and admitted as second-class mail, along with newsprint and printer’s ink sold to publishers.
- Long-term lodging under a written agreement for at least 30 consecutive days.
The grocery line is where businesses most often slip up. A pre-made deli sandwich sits on the taxable side; a loaf of bread doesn’t.4Commerce City. Sales and Use Tax Code and Regulations
Construction Projects
Pulling a building permit in Commerce City triggers use tax on project materials. Rather than tracking every receipt, the city assumes 60% of total construction cost is taxable materials, applies the current use tax rate to that figure, and collects the result as an estimated deposit at permit issuance.5Commerce City. Tax Information Brochure Construction Industry
That word “deposit” matters. Once the project is complete, actual material costs are reconciled against the 60% estimate. You might owe additional tax or receive a refund.5Commerce City. Tax Information Brochure Construction Industry For construction work that doesn’t require a city building permit, use the Prepaid Tax Estimate Form instead.2Commerce City. Sales and Use Tax
Retail Marijuana
Recreational marijuana sold in Commerce City carries an extra 7% special sales tax on top of the standard 4.5%, bringing the combined city-level rate to 11.5%. This covers all forms, including edibles and infused products.6Commerce City. Tax Guide – Marijuana Industry
Retailers file two separate returns each month: the standard Sales and Use Tax Return for the 4.5% portion, and the Retail Marijuana Tax Return for the 7% special tax. Both are due by the 20th of the following month.6Commerce City. Tax Guide – Marijuana Industry
Occupational Privilege Tax
Commerce City also charges an Occupational Privilege Tax on both sides of the paycheck. Any employee who earns at least $250 in a calendar month for services performed within city limits owes $2.00 for that month. The employer withholds that $2.00 and pays a matching $2.00 per qualifying employee, remitting both parts together.
The threshold is gross compensation for work done inside Commerce City, including salary, wages, and commissions. Employers with workers who split time across jurisdictions need to track by location, not just by headcount.
Getting a Sales and Use Tax License
Any business making taxable sales inside Commerce City needs a city sales and use tax license before collecting tax from customers. The application asks for your Federal Employer Identification Number (or Social Security Number for sole proprietors), the legal business name as filed with the state, physical and mailing addresses, the start date of operations, and the names and contact details for all owners, partners, or corporate officers.
Applications are available through the Finance Department website and the online tax portal. The license does not require annual renewal, so once it’s issued it stays active as long as the business operates.2Commerce City. Sales and Use Tax
Filing Deadlines and How to File
All sales and use tax returns are due by the 20th of the month following the end of the reporting period, whether you file monthly, quarterly, or annually. Mailed returns must be postmarked by the 20th to count as timely.7Commerce City. Instructions for Sales and Use Tax Return
If your business had zero taxable sales for a period, you still have to file a zero return. Skipping it can trigger delinquency notices and penalties, and this is where new businesses most often get tripped up.7Commerce City. Instructions for Sales and Use Tax Return
Two online filing options are available: MUNIRevs, the city’s own portal, and SUTS, Colorado’s statewide Sales and Use Tax System. Either lets you select the reporting period, enter your totals, and pay by ACH bank transfer or credit card.2Commerce City. Sales and Use Tax The portal generates a confirmation receipt on submission. Save it, especially near the deadline.
What Happens If You File Late
When tax isn’t reported and paid on time, the city charges interest on the balance owed. The rate is set each year by the Colorado State Division of Banking and can change from year to year, so call the Finance Department to confirm the current rate before paying off an overdue balance.8Commerce City. Taxes and Fees
If you want to dispute a deficiency assessment or another tax determination, Commerce City has formal procedures laid out in its Rules Governing Finance Hearings, available through the Finance Department’s website.