The city of Colorado Springs wants to give taxpayers a break, and it’s trying to get the word out before its amnesty program ends Aug. 14.

The program was launched in May, and so far, response has been slim, officials said.

Many business owners may not realize they owe sales-and-use taxes. Or individuals who have never signed up for a business license may owe fines, said Candice Bridgers, of the Revenue and Collections Division.

The city sales-and-use tax rate is 2.5 percent. It applies to sales, purchases and leases of personal property and taxable services. Use tax is levied when a business buys items for its own use without paying the city sales tax.

Bridgers said use tax is commonly overlooked, especially in the service industry.

Officials said consumers also sometimes fail to pay sales tax on Internet purchases and products delivered from outside the city.

“Most property or goods sold will require use or sales tax. It applies to goods that are purchased for individual or business use,” Bridgers said.

The amnesty program waives a 10 percent penalty and reduces interest charges to 6 percent from the standard rate, which can reach 18 percent.

“We look at this as a win-win program,” Bridgers said.

Anyone who is late paying sales and use taxes incurred before March 31 of this year will benefit. Revenue raised from the amnesty program will go toward city services, which are experiencing a shortfall, she said.

A similar campaign at the state level brought in significant revenue, Bridgers noted.

City auditors uncover these liabilities, and a team of a half-dozen investigators is working to find truants.

FOR MORE INFO

• Call the Sales Tax Department at 385-5903, or visit www.springsgov.com/salestaxamnesty

This July 2005 photo shows Ta’shon Rain Little Light in Crow Agency, Mont. Ta’shon, 5, had stopped eating and walking, and complained constantly that her stomach hurt. IHS said it was in her head. In fact, she had cancer. Photo by The Little Light family

AP