Collecting Use Tax
Rio Blanco County Sales and Use Tax Department collects use tax in several different ways depending on the project. Rio Blanco County also has agreements with both of the Towns within the County to collect the County's building material use tax.
The use tax can be remitted based on an estimated valuation provided by the Rio Blanco County Building Division. This requires the customer to exempt themselves from all local sales tax by providing the vendors with a Use Tax Exemption Certificate. This comes in the packet from the department for a new permit. This is mostly done on larger projects so there is no monthly filing of invoices. Accurate records must be kept in case there is a discrepancy in the final project numbers.
The use tax can be filed monthly on a Rio Blanco County Use Tax return which will include supplying the department with the necessary materials invoices. On smaller projects (garages, sheds, some remodels, etc.) the use tax can be filed on a one time basis. You must contact the Sales and Use Tax Administrator directly to set this up.
Calculating Use Tax
The building material use tax collected on an estimated valuation is considered a pre-payment of sales tax on building material used for the licensed project. To calculate the use tax due on a Rio Blanco County building permit, building materials are estimated to be one-half of the valuation of the project given at the time of permit, multiplied by the use tax rate of 3.6%.
The contractor/home owner must present a copy of the Rio Blanco County Use Tax Certificate to the vendor when purchasing the building materials to prevent double taxation. If no permit copy is presented, the vendor is required to collect the local sales tax. If the contractor/home owner has a building permit issued from any entity in Rio Blanco County, only the State sales tax will be due if the permit is presented at the time of purchase.
At the end of the project, the project amounts will be reviewed to insure the right amount of use tax has been collected. Rio Blanco County reserves the right to audit any construction project.