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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 4.35% 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:

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.