Construction Use Tax RequirementsThe City of Longmont requires that use tax be paid on construction and building materials used or consumed in Longmont.
Who’s Responsible for Paying Use Tax to the City of Longmont?
Generally, the general contractor pays the use tax. The rates for use tax due on building materials for construction projects are:
• City of Longmont construction use tax at 3.53%
• Boulder County use tax at 0.985%.
Use tax can be paid by one of two options:
1. At the time a permit is obtained by using an estimated calculation based on 50% of the general contract and/or mechanical contract costs to calculate the taxable amount. Once this is completed/paid and a permit is obtained, the permit copy can be used when purchasing construction materials so that City of Longmont and Boulder County sales tax will not be charged again.
2. Pay as you go. You can request this option at the time a permit is obtained. If you select the pay-as-you-go option you must follow these steps:
- You must keep all receipts, invoices and statements showing purchases of necessary construction materials purchased from any source outside the city.
- You will, on or before the 10th day of each month following the start of the construction project, file a return with the City of Longmont that includes a City-supplied spreadsheet of material costs. You must also attach receipts, invoices, and statement copies for lumber, fixtures, materials, and any other supplies purchased the previous month.
- You shall also pay to the City of Longmont the full amount of the use tax due for the preceding month or months.
Any failure to follow these steps shall be a violation, and any person in violation shall be subject to the penalties and punishment provided in the City of Longmont Municipal Code (Section 4.04.320). The Sales Tax Division, as well as the Building Inspecting Division, will review the monthly return information for accuracy and completeness.
Building Permit Monthly Cost Reports
These reports are used to record costs incurred by the general contractor for materials directly purchased, including subcontractor costs not reported on subcontractor affidavits. This detail normally includes direct material purchases (taxable) along with engineering, permit fees, design fees, and overhead (nontaxable) broken out by category type. Enter invoice total, amount of taxable materials, and taxable other (equipment, trailer rentals, shipping etc.). Any sales tax paid on materials for the City of Longmont should be included for credit of sales tax paid.
Follow these instructions and use these blank reports for your monthly costs:
For more information please contact:
Sales Tax Administrator
City of Longmont