County Changes Calculation for Construction Use Tax Deposit
Effective June 1, 2019, the Pitkin County construction use tax deposit calculation has been changed in response to changes in Colorado sales tax collection. The State of Colorado enacted legislation (HB19-1240) effective June 1, 2019 providing for new sales tax sourcing rules which affects vendors that deliver to destinations throughout the state. Prior to June 1, Colorado businesses were required to collect only the sales tax they had in common with the buyer. After June 1, Colorado businesses must collect and remit the full sales tax rate in effect at the location of the consumer — the destination of the sale — when taxable goods are delivered to a Colorado address. Due to these changes in the Colorado Department of Revenue’s collection of sales tax on deliverable goods purchased outside of Pitkin County the Pitkin County Board of Commissioners have enacted a resolution modifying the procedures for the collection of use tax on building materials. The resolution changes the amount of the Pitkin County use tax deposit from 50% to 10% of the total project valuation to better reflect the estimate of the use tax liability at the beginning of each project.
If you have paid a use tax deposit of 50% and have a construction project that has not yet received its Certificate of Occupancy (CO) as of June 1, 2019 we are providing the option for an interim reconciliation as of May 31, 2019 so that your deposit on file after June 1, 2019 is equal to 10% of the estimated building materials for the remainder of the project. This may result in a refunding of a portion of the deposit for your project. If you wish to perform an interim reconciliation please complete the forms to the left and provide all required back-up as requested. The County will then calculate the refund, if applicable, or amount of use tax due.
The completion of an interim use tax reconciliation return does not exempt you from completion of a final return. Taxpayers have 90 days beginning with the issuance of the Certificate of Occupancy to file a final use tax return and pay any use tax due. Please note, the taxpayer shall keep and preserve all invoices, receipts and statements showing such purchases of building materials for a period of three (3) years after issuance of the CO. The County may, within such three (3) year period, conduct an audit of such records and any other relevant information to verify the actual purchase price of the building materials used therein and to determine the actual tax due.
If you have any questions, please call 970-920-5229 or email email@example.com.
County Does Not Allow Sales Tax Credits against Construction Use Tax Liability
Pitkin County will not allow credits for sales taxes paid to other jurisdictions on or after January 1, 2009. It is the contractor's responsibility to obtain a waiver of sales taxes at the point of purchase for materials that will be imported into Pitkin County, or obtain a refund for sales taxes withheld by other jurisdictions. Refunds can be obtained from the Colorado Department of Revenue. Sales taxes collected for Pitkin County remain eligible for credit against Pitkin County use tax.