Sales Tax

City-Limit Tax Rate

Retail sales inside the City limits are taxed at a total tax rate of 7.9%, which includes a 2.9% state tax, a 2% county tax, and a 3% city tax.

The City of Durango collects sales, use and lodgers tax.

TAX Type	Description	Rate
Sales	Collected by retailer at the point of sale or rental.	3%
Use	Payable by the "user" of the product when City of Durango sales tax had not been collected at the point of sale or on rental payments.	3%
Lodgers	Lodgers tax is payable in addition to the city sales tax.	2%

Reporting

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 the 20th of the month following the end of the month/quarter. Delinquent returns are subject to a penalty of ten (10) percent plus interest.

In addition the licensee must post a refundable $50 sales tax bond to be used as a credit on the first sales tax return.