The City of Gunnison announced this week that it is rolling out significant updates to its sales tax administration and business licensing requirements, which take effect Jan. 1.
According to the city, these changes support the City Council’s Strategic Framework and its goal to promote economic prosperity by streamlining systems, aligning with state processes and improving consistency and administrative support for both new and existing businesses operating within Gunnison. All Gunnison businesses, whether brick-and-mortar shops, home-based operations, mobile vendors, or service providers are encouraged to review the new requirements carefully.
City sales tax licensing ending in 2026
Beginning Jan. 1, Gunnison will no longer issue its own sales tax license, and any existing City sales tax licenses will no longer be required. Businesses that have not yet applied for or renewed their state license must do so through the Colorado Department of Revenue.
State to collect all city sales tax starting Jan. 1
Effective Jan. 1, all sales taxes for purchases made within Gunnison will be collected by the State of Colorado. This means businesses will no longer submit sales tax filings or payments to the city beginning with transactions dated Jan. 1, 2026. Instead, businesses must remit the city’s 4% sales tax directly to the Colorado Department of Revenue as part of their state sales tax filings.
This transition also eliminates the vendor fee—a small percentage businesses were allowed to retain for timely filing. Beginning Jan. 1, vendor fees will no longer be offered.
Filing deadlines will remain aligned with state filing schedules:
New business license required for all Gunnison businesses
Alongside the shift in sales tax licensing, the City of Gunnison is introducing a new requirement: all businesses operating within the city are required to obtain a City of Gunnison Business License beginning Jan. 1.
This license helps ensure that businesses are operating in compliance with zoning and land-use regulations and supports economic development and emergency response efforts. This new business licensing is not intended as a regulatory burden but as a communication and data tool—allowing for better communication and coordination with businesses.
The license applies to every type of business operating locally—including service-based businesses that may not have been required to hold a city license in the past. Whether a business operates from a commercial storefront, a home office, or a mobile unit, the requirement is the same: a valid 2026 City of Gunnison Business License must be on file.
The standard license fee is $20, with fee exemptions for governments and nonprofit organizations. Businesses are encouraged to apply as soon as possible through the City’s online Business Licensing portal or by contacting the Finance Department for assistance.
While business licenses are typically due by December 31 each year, the City has introduced a one-time grace period for the first year of implementation. For 2026 only, businesses will have until March 31 to complete the new licensing requirement.
Checklist for local businesses
To prepare for the transition, the City recommends that every local business complete the following steps:
Information sessions planned for January
To assist businesses with the transition, the City of Gunnison will host two public information sessions on Wednesday, Jan. 14, at the City Council Chambers located at 201 W. Virginia Avenue. Sessions will be held from 8:30 to 9:30 a.m. and 6 to 7 p.m. City staff will be available to answer questions and provide support.
Local businesses with questions ahead of the sessions may contact the city’s finance department at 970-641-8070 or visit the City’s website at www.GunnisonCO.gov/salestax or www.GunnisonCO.gov/businesslicense
Comments
No comments on this item Please log in to comment by clicking here