Sales and use tax decreasing in Colorado Springs on Jan. 1

COLORADO SPRINGS, Colo. (KRDO) – The City of Colorado Springs is notifying residents about some decreasing tax rates coming next year.

In November of 2019, voters approved a five-year extensions of the 2C sales tax that generates funds for road improvements. Starting in 2021, the 2C sales tax rate will decrease from 0.62% to 0.57% throughout the extension. The extension will focus on improving road conditions near neighborhoods.

Also effective on Jan. 1, the city's sales and use tax rate will be 3.07% for all transaction. However, the reduced tax rate will not apply to purchases of food for at-home consumption, prescriptions, residential utility bills or other items exempt from the city's tax guidelines.

The city has notified business owners about the upcoming decreases. More information can be found at ColoradoSprings.gov/SalesTax.