Business / Sales Tax License Requirements
When is a Business License required?
- If you own a business in Durango city limits (no matter whether it is home based or store front)
- If you enter Durango city limits to sell items or to render a service
- If you ship items into Durango city limits
- If you have recently bought a business (licenses are not transferable between owners)
- If you have changed your business location in Durango
- A business must have a license for each physical location
In summary, anyone conducting business within the city limits must have an annually-issued license. There is a one-time $30 application processing fee, in addition to the annual fee (which is determined by the number of employees within the city of Durango).
Types of licenses:
Annual Business License
1. For any business with a physical presence in Durango
- For example, a store front or a home based business in city limits
- Home based businesses must apply for a Home Occupation Special Use Permit
2. Retail sales or service based
3. Employees entering city limits
- Businesses that are not physically located within the city of Durango that send one or more employees or representatives into the city to sell, repair, or deliver merchandise and/or provide services
4. More details about the Home Occupation Special Use Permit
- Required for any home based business that is located within city limits
- Required for businesses that use their home address for state and federal taxes
- Any work, no matter how small or big, even if it is work managed on a home computer
- Apply for a SUP at the Community Development Department at River City Hall
Sales Tax Only License
1. For any businesses that make sales and ship items to Durango
2. No employees entering city limits
3. Sales tax only licenses are for businesses that have no physical presence in Durango and that do not send a salesperson or delivery truck or representative into the city, but deliver product into the city by common carrier
- Required for special event vendors (farmers market, festivals, bike rally, etc.)
- Licenses are available for businesses that are only selling at 1 to 15 events or are selling at more than 15 events in a calendar year. Event business licenses are based on the number of event days.
Who already has a City of Durango Business License?
What is the process for getting a business license application approved?
Applications submitted for businesses located inside city limits are routed from the City Clerk's Office to the Planning, Building, Code Enforcement, and Fire departments to ensure compliance with City Code. A business license cannot be issued without the approval of all four departments.
Depending upon the nature of the business, applicants for a business license may be required to submit additional documentation, such as: 1. Proof of insurance in specific limits or occupational bonds
2. Sub-licenses for:
- Cross connection control technicians
- Lodgers tax
- Merchant patrol / private investigators
- Pawnbrokers / second hand goods dealers
- River rafting companies
- Tree trimmers
Business licensees must arrange for the disposal of refuse, including recyclables, by contracting with either the city or private waste removal contractors. To ensure that prospective licenses are aware of their responsibilities, those seeking business licenses for locations within city limits must declare how refuse generated through business operations will be disposed.