Contractor Requirements#
All contractors engaged in business in Fort Collins must obtain a City Sales and Use Tax License in addition to any required contractor license. There is no fee associated with the license.
Projects Requiring a Permit#
A City of Fort Collins use tax deposit at the rate of 3.85% is collected based on 50% of the valuation of the project.
- Final tax is calculated at completion of the project by completing a Project Cost Report and submitting appropriate documentation.
- Owner and general contractor are jointly responsible for tax on construction materials.
- City and County sales tax should not be paid when construction materials are purchased.
The instructions and necessary forms for the reconciliation process are:
- Project Cost Report at 3.85%(PDF 67KB)
- Subcontract Affidavit (PDF 38KB)
- Refund Claim Form (PDF 33KB)
- Use Tax on Building Permit
Projects Not Requiring a Permit#
Tax is paid by the end consumer on any construction materials
- Contractors are not considered the consumer by the City of Fort Collins.
- Whomever the work is being performed for is the consumer.