El Paso County, Colorado

Quick Links

• Use Tax Policies (pdf)
• Administrative Fee Schedule (pdf)
• Estimate Use Tax and Administrative Fee (link)

Use Tax Forms

• Consumer Use Tax Remittance (fillable pdf)
• Use Tax Exemption Request Form (fillable pdf)
• Reconciliation Reports
  • Reconciliation Report (fillable pdf)
  • Reconciliation Report (single page - printable)
  • Reconciliation Report (multiple pages - printable)

If you need to submit Use Tax for a project that Regional Building Department does not require a permit for, click here for the required form.  If your portion of the project does not require a permit, but it is part of a larger project that does, obtain a copy of the permit from the general contactor and submit use tax along with the Consumer Use Tax Remittance.  If the general contractor paid Use Tax when the permit was issued and the permit contains an exempt certificate, materials may be purchased using this permit exempt from El Paso County's 1% Sales Tax and no additional remittance of Use Tax would be required. If you have questions about this process send an email to usetax@elpasoco.com or call 719-520-6400 and choose option 5

Note: El Paso County does not have a general Use Tax.  Use Tax for El Paso County is only collected on construction and building materials as defined below and Motor Vehicles.

Definition. The term "construction and building materials" means any tangible personal property which is stored, used or consumed in the County, and which is intended to become part of, attached to, or a component of any building, structure, road or appurtenance in the County.

Collection Prior to April 1st, 2009.  When the voters of El Paso County first approved the 1% Sales and Use Tax the Board of County Commissioners enter into an Intergovernmental Agreements (IGA) with the City of Colorado Springs to administer and Collect Use Tax on the behalf of El Paso County.  The City of Colorado Springs will continue to collect use tax on all permits issued before April 1st 2009. 

 

Collection On or After April 1st, 2009.  On November 20th, 2008 the Board of County Commissioners approved Resolution 08-481 which changes the point of use tax collection from the City of Colorado Springs to the Pikes Peak Regional Building Commission (PPRBC) via an Intergovernmental Agreement.  The new collection procedures will take affect on April 1, 2009

 

The following written information is a general overview of the Use Tax collection system.  To view the Resolution in its entirety please follow the links below:

Resolution 08-481  and  Intergovernmental Agreement.

                                                       

 

Use Tax Exemption

 

When the permit applicant believes a project is exempt from Sales and Use Tax, the applicant must submit a Colorado Certificate of Exemption and a completed Use Tax Exemption Request Form to El Paso County for approval prior to issuance of the building permit. 

           

27 East Vermijo Avenue

Colorado Springs Colorado

80903-2208

Phone: 719-520-6400

Fax: 719-520-6486

Email: usetax@elpasoco.com

*Response is quicker via email

 

 

The Use Tax Collection System

 

Whenever a building permit is issued for construction related work within the jurisdiction of the Regional Building Department, the permit applicant shall choose one of following methods offered to ensure the payment of the El Paso County Use Tax.  The three methods are as follows:

 

·        Job Material Valuation Method

·        Actual Cost Method

·        Affidavit Method

 

1. A permit applicant who selects to pay Use Tax by the job material valuation method can choose to submit 100% of the estimated Use Tax or deposit 50% of the estimated Use Tax with the Regional Building Department when the permit is issued.  If the Permit owner chooses to deposit 50% of the estimated Use Tax, the remaining balance is collected as a condition for the issuance of the Certificate of Occupancy or final inspection, whichever occurs later.  40% of the total construction cost is the estimated value of materials used in determining Use Tax owed.  The permit receipt shall serve as the Exemption Certificate for use when purchasing building and construction materials.    

Note: The permit owner is responsible for insuring subcontractors receive a copy of the permit receipt for use when purchasing building and construction materials.

 

EXAMPLE:

Total building valuation	$180,000.00
40% of $180,000 =	$  72,000.00 (estimated material cost)
$72,000 at 1% =	$  720.00 amount added to permit fee

In the above example, half of the $720.00 ($360.00) shall be deposited along with the applicable administrative fee and the permit will be issued.  The remaining balance must be submitted prior to the Certificate of Occupancy or final inspection, which ever is later.

When the permit owner believes the material cost for the project is less than the 40% estimated cost using the job material valuation method, the permit owner may submit a Reconciliation Report containing a list of all receipts and contract amounts associated with the project.  The Reconciliation Report must be submitted within (180) calendar days of Certificate of Occupancy or final inspection which ever occurs later.  El Paso County will provide a written decision within (30) calendar days whether a refund will or will not be issued.   During this (30) day period the County may request from the permit owner or subcontractors some or all of the receipts listed on the Reconciliation Report.

2. The permit applicant may elect to pay for the Use Tax on the materials used by the actual cost method, which follows the same formula for estimating Use Tax and payment schedule as determined by job material valuation method with the following conditions:

 

EXAMPLE:

Total building valuation	$180,000.00
40% of $180,000 =	$  72,000.00 (estimated material cost)
$72,000 at 1% =	$  720.00 amount added to permit fee

In the above example, half of the $720.00 ($360.00) shall be deposited along with the applicable administrative fee and the permit will be issued.  The remaining balance must be submitted prior to the Certificate of Occupancy or final inspection, which ever is later.

·        The permit applicant must declare prior to the issuance of a building permit that they will follow the actual cost method of determining Use Tax due. The permit receipt shall serve as the Exemption Certificate for use when purchasing building and construction materials. 

Note: The permit owner is responsible for insuring subcontractors receive a copy of the permit receipt for use when purchasing building and construction materials.

·        As a condition of receiving a Certificate of Occupancy or final inspection, the permit owner shall make an appointment for a tax payment reconciliation conference with El Paso County and deposit a payment with Regional Building Department in an amount determined by the job material valuation method.  The County personnel assigned this duty shall schedule a meeting no more than sixty (60) calendar days from the date the request is received.

·        The customer shall complete and submit a Reconciliation Report containing a list of all receipts and contract amounts associated with the project no more than (30) calendar days from Certificate of Occupancy or final inspection which ever occurs later.   The County personnel will request at least (15) calendar days prior to the meeting from the permit owner or subcontractors some or all of the receipts listed on the Reconciliation Report.  Failure to provide all requested receipts will disqualify the permit applicant from calculation of Use Tax under this method. 

·        Adjustments up or down from the Use Tax deposited will be made after the reconciliation is complete. 

·        If the reconciliation reveals an underpayment of Use Tax, the permit holder will have (30) calendar days from final written reconciliation notice to remit payment without incurring interest or penalties. 

 

3. The permit applicant who selects the affidavit method shall sign the affidavit stating that regardless from where construction and building materials are purchased, it is agreed and understood that all applicable County Sales and Use Taxes will be paid by the permit applicant; the applicant shall maintain records demonstrating payment of the applicable Sales and Use Taxes; any construction and building purchased in which El Paso County Sales Tax was not paid is subject to Use Tax which shall be submitted using a separate  Consumer Use Tax Remittance form for each permit; and they further agree and understand that they may be subject to an audit of these records.