County Uses Deposit Method for Construction Use Tax Collection
Effective January 10, 2008, all Pitkin County construction use tax is collected using the deposit method whereby the general contractor pays an estimate of the use tax liability at the beginning of each project. The general contractor is responsible for paying all construction use tax under their scope of work, including purchases made by subcontractors. The "general contractor" for purposes of use tax is considered to be a contractor who has a direct contract with the property owner or its agent. The Pitkin County use tax is in effect everywhere in the county, including within municipal jurisdictions. Contact the Pitkin County Finance Department to pay the deposit if not done when the permit was issued.
County Does Not Allow Sales Tax Credits against Construction Use Tax Liability
Pitkin County will not allow credits for sales taxes paid to other jurisdictions on or after January 1, 2009. It is the contractor's responsibility to obtain a waiver of sales taxes at the point of purchase for materials that will be imported into Pitkin County, or obtain a refund for sales taxes withheld by other jurisdictions. Refunds can be obtained from the Colorado Department of Revenue. Sales taxes collected for Pitkin County remain eligible for credit against Pitkin County use tax.