Overview The City of Montrose derives more than 80% of its general fund revenues from city sales and use tax. The city does not collect any property taxes.
The sales tax collected by the City of Montrose to fund essential operations such as law enforcement, streets and parks has not changed since 1986 when city residents voted to increase the rate from 2% to 3%.
Since 1986 and prior to the MRD increase, there have been three city ballot measures to temporarily increase the local sales tax rate for outside organizations such as Montrose County School District (1% in 1991 and .5% in 2002) and Montrose Library District (1% in 1994). The last of these temporary increases expired in 2008. In 2007 voters approved two sales tax increases for Montrose County (1% for Roads and .75% for Public Safety).
The Finance Department collects all city sales, use, and excise taxes. Montrose is a home-rule city and therefore collects its own sales tax under the sales and use tax policies and other business regulations found in Title V of the Municipal Code.
State and County tax should be remitted to the Colorado Department of Revenue.
The City of Montrose uses MUNIRevs, an online sales and use tax licensing and reporting system, to provide a secure, online tool for businesses to apply for sales tax licenses, file tax returns, and submit payments. Visit the MUNIRevs website to register and begin remitting. Be sure to review the instructions and MUNIRevs FAQs or contact MUNIRevs directly if additional assistance is needed. Unlimited phone and Web support is available Monday through Friday from 9 a.m. to 5 p.m. by contacting MUNIRevs at firstname.lastname@example.org or (888)751-1911.
Current Sales Tax Rates
As of June 1, 2014, the City of Montrose requires all sales tax licensees to collect the 0.3% sales tax in behalf of the Montrose Recreation District (MRD), as directed under Referred Measure "B".
The measure was approved by Montrose voters at the 2014 General Municipal Election held April 1, 2014, authorizing the MRD to raise $1,252,500 during 2015, the first full fiscal year of the rate. The 0.3% MRD sales tax increase will remain in effect until June 1, 2039, and is designated for "Recreation District facilities."
The sales and use tax rates for retail sales in the city as of June 1, 2014, are:
3.30% - City and MRD
1.75% - Montrose County
2.9% - State
7.95% - Total
The total sales tax rate is 8.75% for restaurants and 8.85% for hotel / lodging establishments.