City of Colorado Springs notice of sales and use tax rate decrease

Share this page:

COLORADO SPRINGS, Colo. – In November 2019, Colorado Springs voters approved a five-year extension of the 2C sales tax that generates revenue specifically for road improvements. The extension is at a reduced tax rate of 0.57%, down from 0.62%.

Effective Jan. 1, 2021, the new City of Colorado Springs sales and use tax rate will be 3.07% for all transactions occurring on or after that date. The 0.57% road repair, maintenance, and improvements tax will expire five years from the date of implementation and will apply to all transactions that are currently taxable under the City Sales and Use Tax Code. The tax will not apply to purchases of food for domestic home consumption, prescriptions, residential utility bills or other items exempt from the City sales and use tax.

The City Sales Tax Office sent a notification to all licensed retailers individually notifying them of the decrease, so that point of sale systems can be updated to reflect the lower rate. Additional information regarding the new sales tax rate can be found at

Nearly 1,100 lane miles were repaved from 2016-2020 using 2C sales tax funds, plus extensive concrete work on adjacent curbs, gutters, sidewalks and pedestrian ramps which lengthens the life span of road surfaces. For more information on the 2C program and how this tax revenue is used, including plans for 2021-2025, visit

Subscribe to City News

Get a weekly update of news, events and upcoming public meetings from the City of Colorado Springs.