When you purchase a vehicle, you are responsible for payment of sales tax, ownership tax and license fees. Denver Motor Vehicle does not provide official estimates of the taxes and fees required to register a vehicle in the State of Colorado. The fees paid by you, to license your motor vehicle in the State of Colorado are based upon the year, weight, taxable value and the date of purchase.

 

Requirements and Statutes 

 

Sales Tax is calculated on the net purchase price (which is the total purchase price less the amount allowed by a dealer for any trade-in).

The rate of tax for Denver County residents is as follows:

EXAMPLE #1: Sales tax to be paid in 2002 on the purchase of a 1998 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance.

$17,000 - $2,000 = $15,000 x 7.72% = $1,158.00

Ownership Tax is a personal property tax based on the taxable value of your vehicle. The taxable value of a vehicle was calculated as a percentage of the Manufacturers Suggested Retail Price (MSRP) when the vehicle was brand new. This value remains constant throughout the life of the vehicle. (See Example #2 below)

The percentage applied to your MSRP depends on the vehicle type. The Manufacturers Suggested Retail Price (MSRP) of a vehicle is not the same as the purchase price.

 

The ownership tax rate is based on the age of the vehicle from the date of manufacture. The ownership tax is calculated by multiplying the taxable value by the tax rate. (See Example #2 below)

EXAMPLE #2: Ownership tax in 2002 for a 4 year old 1998 passenger vehicle with an MSRP of $20,000.  

Ownership Tax = Taxable Value x Tax Rate

 

                            = (MSRP x 85%) x Vehicle Age (4th year) Tax Rate (0.90%)

                            = ($20,000 x 85%) x 0.90%

                            = $153.00