City warns shoppers to check receipts during the tax holiday
Cortez says some businesses may keep charging the city's 3.85% sales tax after it comes off on October 18 — and the remaining taxes add up to almost the same rate.
The following is a public notice from the City of Cortez, posted to the city’s news flash page on October 12, 2026. The city announced the sales tax holiday itself in a release the Cortez Current published on September 30.
Public Notice: Please Check Your Receipts During the City of Cortez Sales Tax Holiday!
Beginning October 18 and continuing through December 31, 2026 (midnight), the City of Cortez Sales Tax Holiday will be in effect. During this period, City sales tax (3.85%) should not be charged on eligible retail purchases made within the city limits.
Graphic: City of Cortez
We encourage all consumers to carefully review their receipts throughout the holiday. Some businesses may inadvertently continue collecting the City’s 3.85% sales tax, and because the amount is small, shoppers may not realize they were charged. Unless residents report these errors, the City may never learn about them.
If you believe you were incorrectly charged City sales tax during the holiday, please contact the Finance Department at City Hall so we can look into it promptly. 970-565-3402
Important: The holiday applies only to City sales tax.
The following City taxes and fees remain in effect and will still appear on receipts:
- City Use Tax (typically does not apply to most retail consumers)
- Lodger’s Tax
- Bag Fees
In addition, the following non City taxes continue to be collected during the holiday:
- State Sales Tax – 2.90%
- Hospital District – 0.40%
- Fire Protection District – 0.54%
Total still collected: 3.84%
Because this combined 3.84% rate is very close to the City’s 3.85% rate, a receipt showing a tax amount near 3.8% may appear correct even when it is not. For this reason, we strongly encourage everyone to double check receipts for possible overcollection.
If something looks incorrect or confusing, please reach out to the Finance Department at Cortez City Hall at 970-565-3402.
The notice is on the city’s news flash page.