The City of Colorado Springs requires businesses to collect and remit sales tax in accordance with local regulations. Collecting and remitting sales tax is not only required by law, but it also helps fund essential city services that benefit everyone in the community. Businesses that fail to remit sales taxes they collected from citizens or fail to collect sales tax as required by law, may face penalties, interest, and enforcement actions.
Delinquent Sales Tax? Take Immediate Action!
If you owe delinquent sales tax, we urge you to take immediate action to avoid costly penalties and interest. The longer you wait, the more difficult and expensive it may become to resolve your balance. Failure to act now can result in serious consequences including, penalty and interest, lien or seizure of assets, court summons, or revocation of business licenses.
How to Resolve Your Sales Tax Debt
Step 1: File Your Past-Due Returns
Even if you cannot pay the full amount you owe, it is critical that you file your delinquent returns. If you do not file a return, we may impose an estimated tax liability that exceeds the amount your business collected causing you to pay more than what was required.
Step 2: Pay Your Delinquent Sales Tax
You can pay your past-due taxes in full through the City of Colorado Springs Online Payment System. We accept credit cards, debit cards, and ACH payments.
Can’t pay in full?
We understand that some businesses may face financial challenges. We encourage you to explore options such as sale of assets, bank loans, or other funding sources. It is important to contact us and make arrangements to pay the tax due voluntarily. Penalty and interest will continue to accrue until the tax is paid in full.
Penalties for Non-Compliance
Failing to remit sales taxes is a serious offense. The City of Colorado Springs uses various enforcement tools to collect delinquent sales taxes. If you do not take action to make all outstanding tax payments, we may take the following enforcement actions:
- Lien on your business property or other assets
- Seizure of business property or assets
- Summons to Court which may result in a criminal action
- Revocation of business licenses
Avoid these consequences by taking action today!
Have you received a Tax Assessment and Demand for Payment?
When a Tax Assessment & Notice of Deficiency is issued, you have 30 days to notify the department if you disagree with the bill or make payment in full. Be sure to read the notice carefully to understand your rights and to see what documentation is required.
If you do not pay or protest the bill within the 30-day allotted time, the amount stated on the assessment becomes final. Failure to pay the balance in full or start a monthly installment plan may result in further enforcement actions.
Have you received an Intent to Lien?
The City of Colorado Springs is authorized to file a judgment/lien to collect your unpaid tax debt. Our office will send a Notice of Intent to Issue Judgment/Lien to the taxpayer's last known email or mailing address. This is a courtesy letter to allow the taxpayer one final chance to pay their tax debt.
The taxpayer has 10 days from the date of the notice to pay the balance in full with certified funds. Only a bank cashier's check or a money order can be accepted as certified funds. Please work directly with the Enforcement Officer Team to arrange for payment. If payment is not received within 10 days, a lien will be issued for the full amount due, which may result in seizure of property or assets.
Help & Support
We are committed to helping businesses comply with their tax obligations. If you need assistance with filing returns, calculating taxes owed, or setting up payment arrangements, please contact us.
Phone: 719-385-5903, option 2
Email: salestax_collections@coloradosprings.gov
Office Hours: Monday – Friday, 8:00 a.m.–4:30 p.m.