Sales and Use Tax
The state sales tax rate is 2.9%. The City of Dacono’s sales tax rate is 3%. Weld County does not have a sales tax.
The assessment rate for commercial and industrial property in Colorado is set at 29% of market value, while the residential rate is adjusted every two years during reappraisal years. The residential assessment rate is 6.95% for 2022. Property taxes are assessed on any real and/or personal property (land, buildings, furniture, equipment, etc.), which directly or indirectly produce income within your business. The county assessor determines the value of property using a market, cost or income approach. Property taxes are assessed on a percentage of actual value.
Every corporation, domestic and foreign, located in or doing business in Colorado, is subject to corporate income tax. For income tax years commencing on or after January 1, 2000, the tax rate is 4.63% of Colorado taxable income.
Colorado offers businesses the choice to calculate their state tax liability on the basis of the standard three-factor formula (revenue, property, and payroll), or a two-factor formula (revenue and property), whichever is less. Only domestic operations and income are included in the apportionment formulas. Colorado is a water's edge unitary tax state.
Personal Income Tax
In 1987, the Colorado Legislature adopted a flat tax structure that greatly simplifies the determination of Colorado income tax liability. The individual income tax rate as of January 1, 2020 reduced to 4.55%. When comparing tax revenues relative to personal income, Colorado places 48th among the 50 states for state level taxes.
Unemployment Insurance Tax
State unemployment insurance rates vary among established employers, depending upon the history of taxes and benefits paid, and the Unemployment Insurance Fund balance. The tax rate is a combination of three separate factors including the base rate, an annually computed surtax, and a solvency tax surcharge. Employers in construction related businesses may be subject to a different tax base rate.
The City of Dacono does not assess an occupational tax.