Colorado Springs, CO Local Taxes & Fees: Business Tax Classification (2026)

City Code Sec. 302, "Classification And Occupation Tax Established," separately classifies the business of selling fermented malt beverages, malt, vinous or spirituous liquor at retail and fixes a license tax by category: hotel/restaurant, tavern, brewpub, distillery pub, vintner's restaurant, lodging and entertainment, and optional premises licensees each owe $400 annually; beer and wine, retail liquor store, liquor licensed drugstore, club, fermented malt beverage on/off premises, and racetrack licensees owe $300; arts licensees owe $200. Sec. 303 requires payment to the City Clerk's Office by January 31 each year, delinquent February 1, with the Clerk issuing a receipt showing the payer's name, trade name, annual period and business location that must be kept on the premises and produced on request.

A business that starts after January 1 pays a prorated tax due at the start of business and before a license issues; no proration or refund applies if a business only temporarily closes. Sec. 304 makes it unlawful to operate without paying the tax in full, with each 24-hour period of unpaid operation charged as a separate offense. Sec. 305 adds 1% monthly interest on delinquent tax and allows the City to sue to recover unpaid amounts; nonpayment alone is not grounds for license suspension or revocation, but repeated delinquency can support license nonrenewal.

Declared policy in Sec. 301 ties the classification scheme to an equitable distribution of tax burden among licensees under Colorado Revised Statutes title 12, articles 46, 47 and 48.