Use Tax/Sales Tax Exemption
Any owner/contractor intending to build or remodel a structure within the Town of De Beque is required to pay a 2% use tax to the town on all construction materials. The use tax is not an additional tax. It only assures that the Town of De Beque receives the revenue to which it is legally entitled, as opposed to another governmental entity.
The owner/contractor is required to submit an estimated value of materials to the Town prior to the start of construction. The estimate will be used to calculate the tax due. For hard bid projects including labor and materials, the Town will use a table of valuations from the International Building Code to calculate the tax due.
The owner/contractor will be provided with a certificate(s) that can be given to suppliers at the time of purchase showing proof that 2% use tax has been paid to the Town. The supplier will reduce the amount of tax charged at time of purchase accordingly and will require the certificate be turned over to them for their records.
Upon completion of the project, the owner/contractor shall submit actual invoices and proof of purchase for materials to the Town to determine whether any additional tax is due, or if a refund of use tax is due to owner/contractor.
Your cooperation is greatly appreciated. The US Tax Application is available to Online or at the Town Hall.
Town Hall: (970) 253-5475