Interim City Manager Amber Blake signed into order the deferral of sales tax payments to help mitigate the impacts of the COVID-19 pandemic on businesses that qualify within city limits. The City is accepting applications for the deferral of payments due during the period when the Emergency Declaration is in effect.
“The intent of this order is to relieve some of the pressure our small businesses are experiencing due to the COVID-19 pandemic. The City is striving to find ways to assist our business community, we are hopeful that this action will help. If this order can save a small business in long run, it was effective,” Blake said.
To qualify for the temporary deferral of the payment of City sales and use taxes, a business must meet the following criteria:
- Have a current business license issued by the City.
- Is required to collect and remit sales and/or use taxes to the City under the provisions of the City Code.
- Is not otherwise delinquent as of April 10, 2020 in any payment of sales or use taxes to the City and is not delinquent in filing any sales or use tax return due to the City.
- Has a physical location or a substantial bona fide physical presence within the City during the entire period described for the deferral of sales and use taxes.
- Had total gross sales subject to tax within the City of less than two million dollars ($2,000,000) during the twelve (12) month period ending on February 29, 2020.
Payment of sales or use taxes for sales after March 1, 2020 and during the period the Emergency Declaration is in effect, may be deferred until 90 days after the month in which the Emergency Declaration is terminated. All taxes will need to be paid in full at that time. No interest or penalties will be imposed on deferred amounts that are paid when due. A business cannot defer more than $10,000 in sales or use taxes.
The sales tax deferral application and Order 2020-02 are available at DurangoGov.org/SalesTax Submit completed forms to Finance@DurangoGov.org. For more information, please call (970) 375-5000.
The application and signed order are attached to the full news release.