Construction Use Tax

Contractors working in the City are subject to use tax on the materials and equipment used to complete the work. For many construction projects, a contractor is required to pull a permit. Use tax is collected at the time the permit is issued. The use tax collected is based on the project's estimated value as follows:

Estimated value * 50% * 3.75%

Contractors doing work under a permit should provide a copy of their permit to materials vendors as proof the City tax was prepaid.

Because the tax paid on the permit is based on an estimate, there may be a refund or additional tax due when the project is complete. Contractors may complete a Project Cost Reconciliation Form providing a complete accounting of all costs including materials and rentals used by subcontractors. Additional information and forms: Project Cost Reconciliation

For additional information about building specifications and permit requirements contact the Building Department at 303-538-7250 or visit their web page at Building Permits Home.

Construction Equipment

Contractors that store or use construction equipment in the City are required to file an Equipment Declaration Form. The form is required for all leased or rented equipment and any purchased equipment with an original price of at least $2500.

The Form along with proof of any sales tax paid on the equipment must be filed for each project completed in the City. Additional information and forms: Construction Equipment Declaration

 

Return to Sales Tax Home