The City of Colorado Springs imposes an additional 1% automobile
rental tax in addition to the general sales tax. The additional tax applies
to the rental of vehicles commonly recognized as passenger cars. The
automobile rental tax is reported separately from the general sales tax
on the sales tax return.
The additional 1% tax does not apply to the rental of a vehicle to a
person who enters into a written agreement for a period of at least 30
consecutive days. The additional 1% tax also does not apply to any
vehicles licensed as trucks, trailers or motorcycles.
Taxable and Non-Taxable Charges
Most charges, fees, and pass through taxes (excluding direct taxes) that
are included as part of a rental contract are subject to the general
sales tax and auto rental tax such as:
A.
Time & Mileage
B.
Additional Driver
C.
Airport Fee
D.
Airport Customer facility Charge
E.
Carbon Offset Fee
F.
Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)
G.
Frequent Flyer Program Fee
H.
Government Administration Rate Supplement
Optional rental Items, such as an infant car seat or, ski rack, are taxed at
both rates if not separately stated on the invoice. If separately stated,
then only the general sales tax rate applies.
Optional insurance charges such as Personal Accident Insurance (PAI)
and Personal Effects Coverage (PEC) provided by the rental company
are taxable at both rates. Optional insurance is not taxable if provided
by a third party.
Refueling charges are not taxable if the rental contract imposes a
refueling charge when the vehicle is returned with less than a full tank of
gas.
State ownership tax (a direct tax) is not taxable.
Automobile
Rental Tax
CS CODE SECTION
2.7.104 Words and Phrases:
Automotive Vehicle, Economic
Nexus, Engaged in Business,
Marketplace, Marketplace
Facilitator,
Purchase or Purchase Price,
Purchase or Sale
2.7.309, 2.7.312, 2.9.101, 2.9.102,
2.9.103, 2.9.104, 2.9.105, 2.9.106,
2.9.108, 2.9.109
This guide provides an
overview of specific
subject matter and is not
intended to be substituted
for the full text within the
City of Colorado Springs
Tax Code.
09/2020
Question? email us at:
salestax@coloradosprings.gov
City of Colorado Springs
Tax Guide
TOPIC NO. 104
CITY OF COLORADO SPRINGS
AUTOMOBILE RENTAL TAX GUIDE PAGE 2
Types of Vehicles Not Subject to the Automobile Rental Tax
The special tax rate does not apply to vehicles commonly used in the construction, maintenance,
and repair of roadways, and are not designed for transportation of person or cargo over the
public highways such as:
cranes off-highway trucks
concrete pumpers special mobile equipment
The special automobile rental tax rate does not apply to recreational vehicles such as:
travel trailer motor-homes
collapsible camping trailers truck campers
camping trailers pickup campers
other vehicles used for overnight accommodations.
The general sales tax rate does apply to the rental of this type of equipment and recreational
vehicles.
Required to Collect:
Effective September 2020, Marketplace facilitators engaged in business are required to collect
and remit sales tax and excise tax upon automobile rentals to include peer to peer and
carsharing transactions.
