In Colorado, all business property, real and personal, is assessed at 29 percent. Property tax mill levies in Castle Rock, without any special district taxes, sum to 72.407 (or 7.2407 percent, applied to assessed value). Property taxes pay for schools, library, county roads and other services. All of the revenue generated by property taxes stays within the county.
Favorable Tax Environment - Great for Business
Colorado, and Castle Rock, operates under a competitive tax structure that rewards investments and business innovation. Colorado has the 16th most business-friendly tax climate according to the Tax Foundation’s 2017 State Business Tax Climate Index.
The sales tax rate in Castle Rock is 7.9 percent.
Town of Castle Rock4.0%
Regional Transportation District0.0%
State of Colorado2.9%
There are some special districts within Castle Rock. Current mill levies for any special district taxes can be looked up for any property via the Douglas County Assessor’s website. That same site provides an explanation of how to calculate assessed value and property tax. As a simple example, a commercial building that is not in a special district, has an actual value of $345,000, and has an assessed value of $100,000 (29 percent of its actual value), would pay $7,219.40 per year in property tax.
Colorado taxes income at a flat rate of 4.63 percent. Colorado offers businesses the choice of calculating their state tax liability on the basis of the standard three-factor formula (revenue, property and payroll) or a two-factor formula (revenue and property), whichever is less. The apportionment formula can be changed annually. There are tax credits available for investment, job training, etc.
Some communities in Colorado have an occupational tax. Castle Rock has no occupational tax.
Colorado Targeted Tax Incentives
Biotechnology Sales and Use Tax Refund – Qualified taxpayers may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property used directly and predominately in research and development of biotechnology.
Colorado Film Incentives Cash Fund – Films produced in Colorado can qualify for a 10 percent rebate of Colorado production expenses for motion picture, television, and similar film productions.