City of Gunnison shifts sales tax collection to the state starting in 2026
The City of Gunnison is changing how its local sales tax is administered. Starting January 1, 2026, the city will no longer collect its own sales tax and will move to state-collected city sales tax through the Colorado Department of Revenue. Sellers must ensure tax calculation and remittance are set up correctly ahead of the transition.
Written by Alex Lamachenka
Head of DemandGen
Published
TL;DR
Gunnison’s 4% city sales tax will be collected by the State of Colorado starting January 1, 2026. Sellers must update calculation and file through the state, with the first returns due in February 2026.
What changed
- Previous rule: The City of Gunnison administered and collected its own city sales tax and allowed a vendor fee.
- New rule: Gunnison’s city sales tax will be collected and remitted through the State of Colorado, and the city’s vendor fee is eliminated.
- Effective date: January 1, 2026.
Who this affects
- Sellers making taxable sales in Gunnison, including remote sellers
- Ecommerce businesses shipping to Gunnison addresses
- Brick-and-mortar and mobile businesses operating in Gunnison
- CPAs and accountants handling Colorado sales tax returns
- Businesses currently holding a Gunnison city sales tax license
Next steps for sellers
- Update sales tax calculation so Gunnison’s 4 percent city tax is routed through Colorado’s state-collected city tax system beginning January 1, 2026.
- Confirm Gunnison sales are included on Colorado sales tax returns rather than city-filed returns.
- After calculation is correct, prepare for new filing timelines through the state:
- Monthly filers: January 2026 return due February 20, 2026
- Quarterly filers: Q1 2026 return due April 20, 2026
- Annual filers: 2026 return due January 20, 2027
- Account for the elimination of the city’s allowable vendor service fee starting January 1, 2026.
If you use TaxCloud
If you use TaxCloud, all sales tax changes, including City of Gunnison updates, are automatically applied in the sales tax calculation engine across all jurisdictions, including state-collected city tax changes. Sellers do not need to manually adjust rates or remittance logic.
Official sources:
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Colorado Official State Web Portal Source link
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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