Loveland Businesses Must Update Payment Information as Sales Tax Processing Shifts to Dallas
Businesses that collect and remit sales tax to the City of Loveland must update their payment information by October 31 to accommodate new processing arrangements that relocate remittance handling to a Texas-based facility.
The city announced October 14 that effective October 31, all sales tax returns, payments, applications, special event forms and renewals will be processed at a new remittance address in Dallas. Online filers must notify their banks of a new Originator ID number by the same date to ensure proper electronic payments.
The change affects all businesses required to collect Loveland's 3% municipal sales tax, which combines with the state's 2.90% rate and Larimer County's 0.80% rate for a total 6.70% sales tax rate throughout most of the city. Loveland's combined rate remains lower than Fort Collins at 7.55% and comparable regional municipalities.
Electronic Filers Must Update Bank Information
Businesses using the city's Citizen Access online payment system must provide their financial institutions with the new Originator ID number 1846000609 by October 31. This identifier, sometimes called a customer number or Client ID, allows banks to route electronic payments correctly to the new processing facility.
The city did not announce changes to remittance addresses for Public Improvement Fee, Centerra Regional Sales Fee, or Promenade Regional Sales Fee payments, which will continue using existing addresses.
New Mailing Address Takes Effect for Paper Returns
Businesses submitting paper returns and payments must update their accounts payable systems with the revised PO Box address: City of Loveland Sales Tax, PO Box 202126, Dallas, TX 75320-2126.
Municipalities commonly outsource tax payment processing to financial centers like Dallas for operational efficiency and cost reduction. Large-scale processors offer specialized technology for check scanning, fraud detection and secure deposits that typically exceed capabilities of local municipal offices while reducing staffing and equipment expenses for cities.
Postmark Protection Remains During Transition
The city confirmed that sales tax filing timeliness is determined by postmark date rather than receipt date, providing protection for businesses during the transition period. If payment delivery is delayed, taxpayers may receive failure-to-file notices, but no late fees will be assessed for returns postmarked by their deadlines.
This postmark policy offers a grace period that protects businesses from the standard 10% late penalty on unpaid taxes when mail processing causes delays beyond their control.
Standard penalties for genuinely late payments include a 10% assessment on the tax due, with interest accruing at rates set annually by Colorado statute. Businesses receiving penalty notices can appeal by providing documentation such as postmarked envelopes to the sales tax office for review.
City Maintains Local Customer Service
Despite relocating payment processing functions to Dallas, the City of Loveland sales tax office continues operating locally for taxpayer assistance. Businesses with questions about the payment address changes or sales tax compliance can contact the office at [email protected] or 970-962-2698.
The processing transition follows standard municipal finance practices that allow cities to focus staff resources on taxpayer service, compliance assistance and audit functions rather than routine payment handling operations.
Businesses should verify their updated information is submitted to banks and accounts payable systems before the October 31 effective date to avoid disruptions in their regular filing schedules.