GENERAL LICENSING INFORMATION

Business Licenses
The city of Durango has business licensing requirements for all business conducted within its corporate limits. The requirement extends to those businesses not physically located within the city limits, but which send employees into the city to sell, repair, or deliver merchandise and/or provide services to residents. It also extends to businesses operating on a year-round basis, a seasonal basis, or from a home. In an effort to maintain the residential character of Durango's neighborhoods, businesses operating from homes within the city (known as home occupations) require the issuance of a special use permit and a review process by the Planning and Community Development office.

Some business categories need to provide additional information, such as proof of insurance in specific limits or occupational bonds; and additional license fees can be required. These are termed specialty licenses and include but are not limited to private investigators/security guards, pawnbrokers, and river rafting companies.

Standard or regular business licenses expire on December 31 of each year and must be renewed by January 31 to avoid a late fee. License fees are based on the number of people employed and range from $38.50 to $110 annually. Seasonal business licenses can be issued for operations ranging from one day to six months, and fees range from $15 to $30.

License fees for home occupations are identical to those for standard or seasonal licenses, depending on the needs of the applicant. The special use permit needed to operate a home occupation can require the payment of a $50 one-time review fee. That fee is assessed for administrative reviews that involve potential commercial impact to the neighborhood and notice to adjacent property owners of the applicant's intent to establish a specific business.

A $15 application fee is collected on every business license application, as well as changes of location for established businesses. License fees are not transferable to new ownership, and multiple locations of businesses within the city are subject to individual licensing. There is a two-week minimum review and approval process associated with the issuance of any business license.

In addition to sales tax, lodgers' tax is collected by hotels, motels, and inns in the city at a rate of 2%. Like the sales tax license, city and state licensing is needed for lodgers' tax. The city license fee for this non-expiring license is $10. The New Business Hotline can provide information about the state's lodgers' tax license and fee.

Liquor Licensing
Liquor licensing requires twofold approval, which is initiated at the local level and is submitted for state review and approval once local approval is granted. Two tests must be met to qualify as the holder of a liquor license. First is the good moral character of the applicant, which is proven through fingerprinting and background investigations conducted at the local, state, and federal levels. The second is the needs and desires of the designated neighborhood, which is proven by the circulation of petitions prepared by the clerk's staff. Local and state application forms are available in the clerk's office, and it takes approximately 60 days from the date of completing application to gain local and state review and approval. Fees vary depending on the class of license sought. Liquor licenses are issued for a twelve-month period beginning of the day of issuance of the state license.

ENGAGE IN BUSINESS means performing or providing services or selling, leasing, renting, delivering or installing tangible personal property for storage, use or consumption. Engaged in business in the City includes, but is not limited to, any of the following activities by a person:

1. Directly, indirectly, or by a subsidiary maintains a building, store, office, sales room, warehouse or other place of business with the jurisdiction;

2. Sends one or more employees, agents, or commissioned sales persons into the jurisdiction to solicit business or to install, assemble, repair, service, or assist in the use of its products or for demonstration or other reasons;

3. Maintains one or more employees, agents, or commissioned sales persons on duty at a location within the jurisdiction;

4. Make more than one delivery into the jurisdiction within a twelve month period.

NONPROFIT CORPORATION means a corporation in which no part of the income or profit is distributable to its members, directors, or officers. The corporation may be organized for any lawful purpose, including, without being limited to, any one or more of the following purposes: charitable, benevolent, eleemosynary, educational, civic, patriotic, political, religious, social, fraternal, literary, cultural, athletic, scientific, agricultural, animal husbandry, and professional, commercial, industrial, or trade associations.

HOME OCCUPATION means any activity conducted for financial gain as an accessory use, in a residential structure, and is secondary to the principal residential use.

SEASONAL BUSINESS means a business operated on less than a year-round basis and generally associated with a specific period of time or "season" such as the tourist season, hunting season, rafting season, growing season, skiing season, etc.

Specialty licenses, bonds, insurance, or special use permits may be required in addition to the general business license.

Business licenses are nontransferable with a change of ownership or change of location.

POSTING AND EXHIBITING: Every license granted shall be posted in a conspicuous place at the business location for the full term of the license. Licenses shall be removed upon expiration. It shall be the duty of each person, or a designated representative or agent, to whom a license has been issued to show the same at any proper time when requested to do so by and City official.

REFUSE DISPOSAL: Business licensees must arrange for the disposal of refuse generated by their business operation by contracting with either the City or private waste removal contractors. In an attempt to stem abuse and to ensure that prospective licenses are aware of their responsibilities, those seeking business licenses for locations within the city limits must declare how refuse generated through business operations will be disposed of prior to the issuance of the license.

The license fee for every business in the City, except seasonal and liquor licensed businesses, shall be according to the number of employees hired, whether full or part time. An owner shall, for the purposes of this section, be considered an employee. The number of employees shall be determined by the monthly average of employees during the preceding year. The license fee for a new business shall be based on the estimated monthly average number of employees for the next ensuing twelve (12) months. The license fee schedule shall be:

The fee for a new license shall be reduced sixty-five (65) percent for an annual license after October 1, but before December 31, for the fourth quarter of any year.

The business license fees shall not apply to any non profit organizations as defined above.

SEASONAL BUSINESS LICENSE FEE shall be fifteen dollars ($15.00) per season to include the first three (3) months of operation. For each month beyond three, up to and including the month of operation, an additional five dollars ($5.00) per month shall be imposed.

RENEWAL: Licenses expiring on December 31 shall be renewed and fees paid annually by January 31. A late fee of $15.00 shall be assessed for renewals completed after January 31. Licenses not renewed by April 15 will be cancelled.

SALES/USE TAX LICENSE: Businesses involved with storage, use, consumption, selling, leasing, or delivering in this City, including retail sales, telecommunication services, gas and electric services, food or drink served or furnished, and motel and hotel accommodations shall obtain a Sales/Use Tax License. A Sales/Use Tax License fee of two dollars and fifty cents ($2.50) shall accompany each application for said license.

SALES TAX BOND: A fifty dollar ($50.00) bond is required for all businesses applying for a Sales/Use Tax License. The bond shall be conditioned upon and security for the payment of the sales/use taxes due. The cash bond may be used as a credit upon filing the appropriate returns when they are due.

LODGER'S TAX LICENSE: Every vendor engaged in the business of providing temporary lodging shall obtain a Lodger's Tax License and remit lodger's tax to the City. A one-time fee of ten dollars ($10.00) is required for new applications.

Lodgers tax is collected on the rental accommodations for a period of less than thirty (30) days at a rate of 2 percent. Lodgers tax is payable in addition to the city sales tax.

Taxes are to be reported and paid on a monthly basis. If the tax liability is estimated to be less than $300 per month, the applicant may request to file and pay on a quarterly basis. The due date of returns is twenty (20) days following the end of the month/quarter. Delinquent returns are subject to a penalty of ten (10) percent plus interest.

The burden of ensuring a nondiscriminatory environment or delivery of services rests with the owner or operator of the facility.