Business owners will need to figure out how to reprogram their cash registers and customers will have to pull a bit more money from their wallets when the city sales tax increase takes effect on Jan. 1, 2001.
In April of 1999, Moffat County residents voted to increase the city sales tax from 2.00 percent to 2.25 percent.
The building of the new public safety center was the main reason for the increase, said City Finance Director Bruce Nelson.
The total sales tax consumers pay at registers will only increase from 7.00 percent to 7.15 percent because the Colorado state sales tax will simultaneously decrease by 0.10, from 3.00 percent to 2.90 percent on Jan. 1. The county sales tax will remain at 2.00 percent.
The City of Craig sent every business owner a notice explaining the tax increase, Nelson said. The City obtained the mailing list from the state's sales tax department.
The notice includes a table for calculating city, county and states sales tax rates for purchases up to $100. Computer users can also access a business tax calculator on the Internet at www.businesstax.state.co.us.
Nelson was unsure why the state tax decreased, but suspected it had to do with a population increase resulting in a state revenue surplus.
For more information, please contact:
n Colorado Department of Revenue
General Sales Tax Information
n City of Craig
(970) 824-8151, Ext. 307
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