Instructions - Actual Method
INSTRUCTIONS FOR CONSTRUCTION USE TAX RECONCILIATION RETURN –
ACTUAL METHOD FOR PERMITS ISSUED 1/1/11 AND AFTER
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;
3) Copies of subcontractor affidavits and purchase invoices showing any city or county taxes paid. 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 - Calculate the total combined actual purchase price of all materials, taxable rentals and tangible personal property used to complete the project. These amounts are generally derived from the general contractor’s final job cost records and/or purchase and rental invoices. When subcontractors are used, their taxable construction costs must be obtained through a signed affidavit. The total taxable construction amount on line 4 should include the following:
- Cost of all construction materials.
- Cost of all fabrication labor that goes into fabricating a completed unit. Examples of completed units are stairs, cabinetry, shelving, ducting, specialty fixtures.
- Cost of supplies, printing, and any other tangible property used or stored at the Boulder job site when city tax is not charged by the vendor. Examples include hay bails, blueprints, fuels for off road equipment, safety equipment and food.
- Rentals or leases of equipment, tools or other tangible property used or stored at the Boulder job site when city tax is not charged by the vendor. Some examples are cranes, jackhammers, lifts, fencing, signs, barricades, portable toilets, trailers, storage units, dumpsters, generators, air compressors, fans, lighting.
- Cost of materials, rentals, and tangible property purchased by subcontractors. General contractors should obtain from all subcontractors an affidavit specifying all taxable costs, including construction materials, fabrication labor and rentals. Affidavit Form
- Line 5 - Multiply total actual taxable construction costs 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.