The City of Durango collects 3.5% in city sales tax. Both a city and a state sales tax license are required to sell retail merchandise anywhere within the city limits. City sales tax licensing is administered by the City Clerk's Office. Sales tax licenses must be renewed annually to remain active.
A Durango sales tax license is required for any business involved in selling, leasing, storing, use, consumption, and/or delivery within the City of Durango, including:
Food or drink served or furnished
Motel and hotel accommodations
Gas and electric services
Every vendor (such as hotels, motels, inns, VRBOs, and Airbnb ) engaged in the business of providing temporary lodging must obtain a lodger's tax license and remit lodger's tax to the city. The current tax rate (in addition to the 3% sales tax) is 2%. As with the sales tax license, city and state licensing is needed for a lodgers' tax.
State Sales Tax License
The Colorado Department of Revenue collects state and county taxes. For state applications and general information regarding conducting business in the State of Colorado, see the Colorado Secretary of State Business Center or phone (303) 894-2200 and press 2.