Cortez sales tax drops to zero from October 18
The city's 3.85% sales tax is suspended until the end of the year to refund money over-collected for the recreation center between 2021 and 2025.
The following is a news release from the City of Cortez, posted to the city’s news flash page on September 30, 2026. The release itself is dated August 5, 2026.
Local Business Reminder: Sales Tax Holiday and Rate Adjustments
CORTEZ, CO - The City of Cortez is reminding all local businesses, accountants, and management teams of the upcoming Sales Tax Holiday, which will temporarily reduce the City’s sales tax rate to 0% beginning October 18, 2026, before returning to the standard 3.85% on January 1, 2027.
Graphic: City of Cortez
This temporary rate change is part of the City’s corrective effort to provide relief to residents following the overcollection of sales tax associated with the Cortez Recreation Center tax rate between 2021 and 2025. The City understands that these adjustments will require businesses to update their point of sale systems twice during the fourth quarter.
The City also recognizes that the timing of the sales tax holiday may help offset some of the administrative burden, and appreciates the continued cooperation of local businesses as these changes are implemented. The period from October through December is traditionally associated with higher consumer spending, including big ticket purchases and large seasonal gatherings. With added affordability during this time, the temporary reduction is expected to provide relief for residents and encourage increased shopping activity that supports economic growth throughout the community.
With the suspension of the City’s portion of the sales tax, the aggregate rate will decrease from 7.69% to 3.84% for the remainder of 2026. This translates to savings of approximately 38 cents for every $10 spent; $3.85 for every $100; and $38.50 for every $1,000. Colorado’s Taxpayer’s Bill of Rights (TABOR) requires local governments to refund revenue that exceeds established limits. The temporary sales tax holiday is part of the City’s compliance with this requirement.
Businesses are encouraged to contact the City of Cortez Finance Department at (970) 565 3402 with any questions as the City continues preparing additional guidance and resources for the community ahead of the Sales Tax Holiday.
Two different phone numbers for the city’s finance department appear in the city’s material: the release above gives (970) 565-3402, while the notice graphic the city published with it gives 970-564-4006. Both come from the City of Cortez.
The notice is on the city’s news flash page.