Permit Packet Info Sheet
Contractors and homeowners acting as their own contractor may be required to reconcile the prepayment of estimated Construction Use Taxes with actual taxes due based on the final contract price or final project cost.
The following table summarizes reconciliation reporting requirements.
Please see reverse for additional information regarding project valuation and construction use tax. To obtain forms, sign-up for email alerts and read frequently asked questions (FAQs), visit our website at: www.bouldercolorado.gov/constructionusetax
For questions regarding use tax, contact the City of Boulder Finance Department at 303-441-3288. For questions regarding building permits and project valuation, contact City of Boulder Planning & Development Services at 303-441-1880.
Project Valuation - Fees and Estimated Taxes (Focus is on Scope of Work)
Additional Payment of Construction Use Tax
Because the valuation calculated for permit fees may exclude certain construction materials and other taxable items, a contractor or homeowner may prefer to prepay additional use taxes above those calculated using 50 percent of the permit valuation.
The building department will accept additional prepayments of use taxes at any time prior to the completion of the project. These use tax payments do not affect permit fee calculations.
Permit Placard (Applies to ALL Construction Materials Related to the Project )
It is important to provide a copy of the building permit placard to all vendors when purchasing construction materials in order to avoid paying taxes twice. This is evidence that a local use tax has been paid or is required to be paid.
Because a pre-payment estimate was made at the time the permit was issued, construction materials may be purchased exempt from city and county tax only for the project to which the permit applies.
State and other non-municipal taxes, such as RTD, still apply. The exemption from sales tax applies only to construction materials (tangible personal property that becomes an integral and inseparable part of real property).
General contractors should provide a copy of their permit (showing tax pre-payment) to all subcontractors that purchase construction materials so they too can purchase materials without paying the city and county tax.
Taxes on Construction Materials
Taxes on all construction materials must be paid to the City of Boulder as follows:
Taxes on Non - Construction Materials
Taxes on non-construction materials, supplies and rental equipment can be paid as follows:
Reconciliation on ALL Taxable Costs of Construction
Once the project is completed, if the final contract price or final project cost is $20,000 or more, reconciliation of all taxable costs of construction vs. prepayment of estimated tax is required within 90 days from the completion of the project.
Last Updated on Wednesday, 25 July 2012 09:13