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Old 10-05-2007, 05:40 PM
 
7 posts, read 98,646 times
Reputation: 17
Default Denver Income Tax

I've lived and worked in Colorado my whole life. I just started a new job and received my first check. Besides the normal fed and CO income taxes, they took out a "Denver Income Tax." I don't live in Denver, I live in Aurora. I Googled "Denver Income Tax" and found nothing and I checked Denver's website and found nothing about a city income tax. I've never heard of any city having an income tax. Can someone direct me to information about this. Thanks!
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Old 10-05-2007, 06:17 PM
 
2,755 posts, read 8,491,255 times
Reputation: 1369
It's probably the head tax (officially called OPT). It's not an income tax as it's a flat tax every month that your employer is charged per employee, and they have chosen to pass the costs on to you.

Two cities in the metro area require the payment of head tax: Denver and Aurora, but because these two cities so thoroughly dominate the metro area, most surrounding employers end up paying it too. The city of Denver attempts to collect head taxes from outside its boundaries by requiring the employers to collect head tax even if they simply do business inside Denver's city limits.

Although you live in Aurora, if you work in Denver you are responsible for paying it. Luckily, since you are paying Denver's head tax, it looks like you are not going to be in double-jeopardy to pay Aurora's too.

The OPT tax should be minimal, no more than a few dollars per month. If it's more than that it must be something else.
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Old 10-05-2007, 06:40 PM
 
7 posts, read 98,646 times
Reputation: 17
Default Denver Income Tax

Well that helps. I search for "OPT" on Denver's website and got some good information. Thanks!!

I guess this is the first company that I have worked for that has generously decided to let me pay this tax. I worked in Aurora for years, but for a very large company and never saw this.

My company must be passing this on to me because their main office is downtown.

Technically, according to the examples in Denver's tax guide, I shouldn't have to pay this, because I don't work in Denver. But I'm not going to push the issue since my company is moving it's office at the end of this month to Centennial, so I would like to assume that this tax would go away with my first November check. If it doesn't go away, then I'll address it with them.

Oh, the tax was $5.75, which is what the tax guide says it should be.

Thanks again, you were very helpful!


Quote:
Originally Posted by tfox View Post
It's probably the head tax (officially called OPT). It's not an income tax as it's a flat tax every month that your employer is charged per employee, and they have chosen to pass the costs on to you.
<SNIP>
The OPT tax should be minimal, no more than a few dollars per month. If it's more than that it must be something else.
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Old 10-05-2007, 09:45 PM
 
2,755 posts, read 8,491,255 times
Reputation: 1369
Quote:
Originally Posted by allioopCO View Post
Technically, according to the examples in Denver's tax guide, I shouldn't have to pay this, because I don't work in Denver. But I'm not going to push the issue since my company is moving it's office at the end of this month to Centennial, so I would like to assume that this tax would go away with my first November check. If it doesn't go away, then I'll address it with them.
Maybe so, maybe not. It would probably take a lawyer to figure out whether the move of the HQ to Centennial would eliminate the head tax. As I said, the city requires head tax as long as your employer is "doing business" in Denver (whatever that means), even if the office is located outside the city limits.
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Old 10-09-2007, 12:32 AM
 
Location: Colorado, Denver Metro Area
1,048 posts, read 2,968,040 times
Reputation: 384
It is a work privilege fee, not a tax. There is no place to put it on a W2 so they use the City Tax Box. They also do it because is few RARE conditions and special financial situations it may be tax deductable.

Moving a company’s headquarters would not make a difference if you WORK in Denver (or Greenwood Village for that matter) you must pay this fee ($20-60/year). It does not matter if you live in aurora and your company’s headquarters are on Mars, the fee still kicks in.
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Old 10-09-2007, 11:29 AM
 
7 posts, read 98,646 times
Reputation: 17
Default Denver Income Tax

According the the tax guides, if I worked in Greenwood Village I would be paying the OPT (T stands for Tax) to the city of Greenwood Village, not the city of Denver, even if my company's headquarters is in Denver.

The OPT of any given city is based on where the work is done, ie, were the employee provides services for the company. That much is clear after reading the tax guides.

Quote:
Originally Posted by ColoWeb View Post
It is a work privilege fee, not a tax. There is no place to put it on a W2 so they use the City Tax Box. They also do it because is few RARE conditions and special financial situations it may be tax deductable.

Moving a company’s headquarters would not make a difference if you WORK in Denver (or Greenwood Village for that matter) you must pay this fee ($20-60/year). It does not matter if you live in aurora and your company’s headquarters are on Mars, the fee still kicks in.
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Old 10-11-2007, 08:02 AM
 
61 posts, read 142,928 times
Reputation: 25
Default Never move to Ohio....

We get that tax in the place where we live AND where we work. And its all cities and villages. I am so looking forward to CO....
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