Instructions (48/52) Short Method
INSTRUCTIONS FOR CONSTRUCTION USE TAX RECONCILIATION RETURN –
48/52 - SHORT METHOD FOR PERMITS ISSUED 1/1/2011 AND LATER
PLEASE NOTE: Homeowners that pull permits to work on their personal residence and do not contract out all work cannot use the short method because there is no total contract price. The actual method must be used.
The 48/52 Short Method is the easiest and quickest way to determine if there may be an underpayment or overpayment of taxes on the permit.
Enter your business name and the address & description of the project.
Make copies of:
1) The final job cost accounting record (or other accounting or billing documents) that show the actual total cost of construction
2) The project invoice(s) showing the final total project price billed to customer. Mail these documents and the reconciliation form to the address at the bottom of the form.
Line 1 - Enter the Boulder permit number(s) for the project.
Section B. Calculation of use tax due or to be refunded
- Line 1 - Enter the original total project contract price.
- Line 2 - Enter total project change orders.
- Line 3 - Add lines 1 + 2
- Line 4 - Multiply line 3 by 48 % to arrive at total taxable purchases. (Line 3 x 48 % = Line 4)
- Line 5 - Multiply result on Line 4 by the combined Boulder city and county tax rate of 4.21% to arrive at the tax due for the project. (Line 4 x 4.21% = Line 5)
- Line 6 - Enter the amount of all city taxes paid through the permit.
- Line 7 - Enter the amount of all county taxes paid through the permit.
- Line 8 - Enter the total amount of Boulder city and county taxes paid directly to material vendors. (Note: These vendors must have a Boulder sales tax license and copies of these invoices must be submitted with the reconciliation. Credit cannot be claimed for other city/county taxes paid on construction materials purchased and picked up in other cities).
- Line 9 - Add all taxes paid on the project to arrive at total taxes paid (Lines 6+7+8 = Line 9)
- Line 10 - Subtract Line 5 from Line 9. If line 5 is greater than line 9, enter the difference on Line 10 (this is additional tax due). If there is a tax amount due on line 10, skip Line 11 and proceed to Line 12.
- Line 11 - Subtract Line 5 from Line 9. If line 5 is less than line 9, enter the difference on Line 11 (this is refund amount). If there is a refund amount on line 11, skip to Section C; Otherwise continue to Line 12.
- Line 12 - Enter the latest of the certificate of occupancy (CO) date, letter of completion (LOC) date, or City established completion date based on final inspection.
- Line 13 – Enter the date that is 90 days after the date recorded on line 12. (Note: if using the automated form, this will calculate and fill automatically).
- Line 14 – Enter the date the reconciliation is hand delivered or postmarked for mailing to the City. If the reconciliation is filed on time, skip to Section C; Otherwise continue to Line 15.
- Lines 15/16 - If the reconciliation is filed late, and the interactive form is being used, the amounts of penalty and interest on lines 15 & 16 will automatically calculate. Otherwise manually calculate the penalty and interest as shown on the form based on the tax amount owed on line 10.
- Line 17 – Add the tax, penalty and interest together to arrive at total amount due (Lines 10+15+16 = Line 17).
Sign and print name, title, date and phone number as indicated. If payment is due, mail the job cost record, completed reconciliation form and payment (from either line 10 or 17) to the address at bottom of the form. If the reconciliation results in a refund on line 11, mail the job cost record, final billing and completed reconciliation.