• Sales/Use Tax Change
• Sales Tax - Consumer
• Sales Tax - Vendor
• Use Tax - Motor Vehicle
• Use Tax - Building Materials
• Project Cost Reports

FAQs

1. Why is a Project Cost Report (PCR) required?

   A Project Cost Report is the tool used to compare the estimated building material costs to the actual building material costs to ensure the correct tax was collected.

2. What is needed to submit a PCR packet?

   A complete PCR packet will include a complete PCR form, a copy of the permit showing how much use tax was paid and a final job cost summary at a minimum. Additional documentation, such as copies of receipts, invoice and subcontractor's affidavits can also be included and give a clearer picture of the project. Usually this results in a higher refund or less additional taxes due.

3. When is the PCR packet due?

   The completed PCR packet is due 60 days after the issuance of either a Certificate of Occupancy (CO), letter of completion, or finalization of the project. A penalty of 10% of the use tax deposit and interest will be assessed on the 61st day even if a refund is requested.

4. The tax rate changed during my project, what rate should I reconcile at?

   The taxability of the project will be the rate at the time the building permit was issued unless the dates of purchases are documented. If the dates are provided, we will use the tax rate at the time of the purchase. Ways you can document the purchase dates are to:

   1. Provide a more detailed cost worksheet with the purchased listed with the date.
   2. Provide copies of your receipts.
       
5. As a homeowner doing the work as a contractor, I do not have a final cost summary. What documentation can I use instead?

   Any worksheets showing the total cost of the project as accepted. Bank draw records are also another way to show the total cost. (Hint: if you ask the bank for a copy of your file after the project is completed, you have an organized packet that shows the total cost and copies of all the receipts and invoices)

6. I purchased materials and paid sales tax because I did not have my building permit. How do I get credit for the sales tax?

   Since there is a mechanism in place to exempt the sales tax, a copy of the receipt needs to be provided with the PCR packet to receive credit for the sales tax.

7. I purchased materials and paid sales tax in another county because I did not have my building permit. How much sales tax credit will I get?

   If you provide copies of the receipts with the PCR packet, you will get credit for the amount of sales tax paid, not to exceed the Larimer County rate. So if you purchase and pay sales tax on the material in Littleton, you will get credit for the Arapahoe County sales tax. Since this is lower than the Larimer County sales tax of 0.8%, additional taxes are still due on the materials. By the way, Weld County does not have a county sales tax, so no county sales tax credit is given for purchases made there. If you purchase and pay sales tax on materials in Alamosa, even though the county tax rate is 2.0%, only a 0.8% credit would be given since it is the amount that you prepaid. Policy on the credit of sales tax paid is dictated by Colorado State Statutes.

8. How long does it take to get my refund?

   We audit/review every Project Cost Report submitted for projects located in Larimer County and the Cities and Towns within Larimer County. It is our goal to complete the review and process the payment within 90 days of receiving the PCR packet. Incomplete reports and missing receipts may add processing time.

9. Instead of submitting copies of receipts and invoices, can I give the originals and get them back after the audit?

   We are unable to return any documentation after the review/audit. By State Statue, the Larimer County Sales Tax department is required to keep records of refunds and the backup documentation for three years.

10. Is labor taxable?

    Most labor is not taxable. Some samples of non-taxable labor would be grading, supervision, observation, and installation. Fabrication labor is taxable. Fabrication labor is usually found in cabinetry or iron work, where the raw material is created into a taxable product.

11. I had a subcontractor that gave one price for both labor and materials. How do I determine the material cost?

    With a lump sum contractor, where there is no breakdown of labor and material, use a 50-50 breakdown. You can ask you subcontractor to complete a Subcontractor Affidavit which would provide the actual breakdown. If the subcontractor wants, they can mail or fax it directly to the Sales Tax office.

12. I disagree with the assessment of additional taxes due. How do I dispute the assessment?

    Larimer County must follow the Colorado Revised Statues with regard to assessed tax disputes. Please refer to Section 29-2-106.1 C.R.S. for the dispute procedure. Hearings will only be schedule for disputes regarding legal interpretation. A hearing is not allowable for argument over valuation or assessment amounts.