FAQs • Pueblo, CO • CivicEngage

I am a contractor doing a job for an exempt organization. Am I still required to pay sales tax?: Yes, all construction materials purchased or used within the City are taxable. There are no jobs that are exempt from sales and/or use tax. Construction contractors and/or subcontractors who perform a construction contract for a charitable or religious organization are considered to be the end user of all tangible personal property used or consumed and thus subject to sales and use tax. If the 3.7% City of Pueblo sales tax has not been paid, a 3.7% use tax is due. For more information, refer to the City of Pueblo Tax Guide.

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Finance - Sales Tax

1. Who is required to obtain a business license with the City of Pueblo?: Anyone conducting any type of business or making deliveries within the City limits of Pueblo is required to obtain a license. Refer to Title 9, Section 9-1-2 and Title 14, Section 14-4-81 of City of Pueblo Ordinances.

2. How much does a business license cost?: There is a base fee of $50 for a business license. Depending on the type of business being conducted, there may be additional fees and requirements involved. You can refer to Title 9 - Licenses and Permits or contact our office at (719) 553-2659 for specifics.

3. Why am I required to obtain a business license when I do not sell anything?: There are two basic types of business licenses: a Sales / Use Tax License and a Use Tax License. A Sales / Use Tax License is for businesses that sell and possibly also provide a service. A Use Tax License is for service type businesses only (i.e., contractors, doctors, attorneys, lawn service, and accountants).

4. What is the City sales and use tax rate?: The sales and use tax rate is 3.7%. The total tax rate for Pueblo is 7.6%. The breakdown consists of 3.7% for the City tax, 2.9% for the state tax, and 1% for the county tax.

5. What is use tax?: There is a 3.7% use tax imposed on purchases made outside the City limits of Pueblo for use, storage, or consumption in the City of Pueblo. Refer to Title 14, Section 14-4-63 of the Pueblo City Ordinances for additional information.

6. Am I still required to file a return even if no tax is due?: Yes, you must file a return even if there is zero to report.

7. Do I need to notify your office if my business closed?: Yes, we need written notification that your business has closed.

8. Do I need to have a separate license for each business location?: Yes, each business location must obtain a separate license.

9. Do I need to notify your office if my business name or address changes?: Yes, any type of change requires an update application being completed. Inspections may also be required for an address change.

10. If my business goes through a change of ownership, can the new owner operate with my license?: No, business licenses are not transferable. The new owner must go through the licensing process.

11. Is a state tax-exempt license sufficient for both state and city tax?: No, an organization must present both a state and city tax-exempt license.

12. I am a contractor doing a job for an exempt organization. Am I still required to pay sales tax?: Yes, all construction materials purchased or used within the City are taxable. There are no jobs that are exempt from sales and/or use tax. Construction contractors and/or subcontractors who perform a construction contract for a charitable or religious organization are considered to be the end user of all tangible personal property used or consumed and thus subject to sales and use tax. If the 3.7% City of Pueblo sales tax has not been paid, a 3.7% use tax is due. For more information, refer to the City of Pueblo Tax Guide.

13. I would like to set up as a temporary street vendor. Do I need to obtain a license?: Yes, in addition to a temporary use permit, you must obtain a sales tax license, a peddlers permit, and may need to go through inspections. Please contact the Finance Department at (719) 553-2659 for specific requirements.