City of Aspen Business Occupation Taxes and Business Licenses

The City of Aspen issues business licenses in order to generate revenues and to review and control the types of businesses and their proposed locations in Aspen and to set up accounts which will be used to keep track of the sales taxes collected from businesses and remitted to the City.

The City does not charge a business license "fee" because many businesses would be exempt from paying such a license "fee" under various state laws. Instead, the City requires each Business License applicant to pay a "Business Occupation Tax" based on the average number of full-time-equivalent employees (FTE's) (it is intended that by calculating the amount of "business occupation tax" to be paid in accordance with the number of employees of each business, that larger businesses will be assessed greater amounts). Business Occupation Taxes are a means of raising revenues for the City, very similar to property taxes; there is therefore no intention nor presumption of equating the costs of administering the business license program with the amounts of business occupation taxes collected.

All business which are located in Aspen and/or which conduct any business activities (including both retail activities and services only) within the corporate limits of the City of Aspen are required to obtain a City of Aspen Business License for each calendar year and to pay the appropriate annual Business Occupation Tax based on the average number of FTE's.
Currently, these business occupation taxes are:

• 0-5 employees = $150
• 6-15 employees = $200
• 16-49 employees = $400
• 50 or more employees = $750

There are no pro-rations for partial years.

Businesses with liquor licenses are given FREE Business Licenses since they already pay a Liquor Occupation Tax and it is the City's intention NOT to charge any one business more than one "occupation tax". Non-profit groups (with "Non-Profit CRS Section 501-c-3 certification" from the State of Colorado) are also given FREE Business Licenses.

Business licenses are required for ALL business activities conducted in Aspen. That includes activities for 1 day or 365 days. For example, if a business opens for Christmas, they are liable for a business occupation tax of $150 for the calendar year in which that Christmas falls. Non-profit organizations are also required to obtain business licenses for retail activities and they are also required to collect sales taxes, although their business licenses are issued at no cost.

If you are required to obtain a City of Aspen Business License, you must complete the "Combined Application For: Business License, Business Occupation Tax, and Sales Tax License". If you have a business location in Aspen, it is suggested that you contact each of the departments listed on the back of the application form for their approvals prior to paying the City Cashier the appropriate amount of Business Occupation Tax. When your application form has been approved by the departments listed and you have paid the appropriate Business Occupation Tax to the City, you should receive your City of Aspen Business License and, if required, your City of Aspen Sales Tax License, in about two weeks.