PERMIT USE TAX RECONCILIATION ACTUAL METHOD Sales Tax ...

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PERMIT USE TAX RECONCILIATION – ACTUAL METHOD

A permit use tax reconciliation form must be submitted to the City’s Finance – Sales Tax Division for

projects with a valuation of $50, 000 or more within 90 days of project completion. Contractors have the

option of using the short or actual method. The short method is the quickest way to see if there might have

been an over or under payment on a permit. The actual method is more accurate but requires more

documentation and the process can take longer to complete. See instructions for information on

completing and submitting this form.

Please submit this form with the following documentation:

☐ Final AIA progress bill and/or documentation to support final price of the completed project

☐ Subcontractor affidavits and final job cost accounting records

☐ If you are claiming credit for City of Brighton tax paid to vendors on construction materials, submit

corresponding invoices.

☐ If you calculated an overpayment, submit a claim for refund form

General Contractor Name

Street Address

City, State, Zip

Project Street Address

Permit Number (s)

1. Original Contract Price

2. Total Change Orders

3. Total Contract Price (Line 1 + 2)

4. Actual Taxable construction cost (See instructions)

5. Use Tax Due (Line 4 x 3.75%)

6. Use tax pre-paid on permit

7. Sales tax paid to vendors on materials

8. Use tax due difference (Line 5 – 6 – 7)

CONTINUE TO PAGE 2 – FOR WILL NOT BE ACCEPTED WITHOUT PAGE 2

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If line 8 is less than zero – submit this form together with the claim for refund form and backup

If line 8 is greater than zero – additional use tax is due, submit this form together with your payment and

backup

I declare that I have examined this permit use tax reconciliation form and that it is true and correct to the best of

my knowledge and belief

(Signature) (Date)

(Print Name) (Title)

(E-mail) (Phone)

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PERMIT USE TAX RECONCILIATION – ACTUAL METHOD

SUBCONTRACTOR AFFIDAVIT

Date

Subcontractor Contact

Subcontractor Name

Sub-Contractor Address

City, State, ZIP

General Contractor (GC)

Permit Number(s)

Project Address

The following information is needed in order for the general contractor to complete the City’s

Construction Permit Project Cost Reconciliation using the actual method.

1. Did your company pull a building permit as a subcontractor for this project?

☐ No

☐ Yes – permit number(s)

2. What was the description of the work provided per your subcontract with the GC?

3. What was the total final contract price (including change orders) for the above project?

4. Was any part of your contract subcontracted to others?

☐ No

☐ Yes – please complete page 3 of this affidavit. Send your subcontractors a blank copy of this

affidavit and request that they complete and send back to you. Then forward these lower tier

subcontractor affidavits along with your affidavit to the GC or directly to the City of Brighton’s

Sales Tax Division.

5. Total price charged to the GC for all construction materials purchased from suppliers and used by

your company on the project. (Excluding any sales tax paid and any materials fabricated by your

company)

CONTINUE TO PAGE 2

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6. If your company fabricated any items (i.e. ducting, cabinetry, etc.) for the job what was the total

price charged to the GC for all fabricated materials / items (raw materials + fabrication labor)

used by your company for the project?

7. Amount of City of Brighton Sales Tax paid to vendors on the above materials. Please submit

copies of corresponding invoices.

I certify, under penalty of perjury, that the above amounts are accurate

(Signature) (Date)

(Print Name) (Title)

(E-mail) (Phone)

Please either submit this affidavit to the GC OR submit directly to the City of Brighton.

City of Brighton

Attention Sales Tax

500 S 4th Ave

Brighton, CO 80601

E-mail to [email protected]

Phone 303-655-2041

CONTINUE TO PAGE 3 IF YOUR COMPANY HIRED SUBCONTRACTORS

mailto:[email protected]

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Complete this page only if you answered yes to question 4 on page 1 of the subcontractor affidavit. List

all lower tier subcontractors that you hired for this project.

Subcontractor Name

Description of work

Final Contract Price

Primary Contact Name

Contact Email

Contact Phone Number

Subcontractor Name

Description of work



Contact Email


Subcontractor Name

Description of work



Contact Email


Subcontractor Name

Description of work



Contact Email


MAKE COPIES OF THIS PAGE AS NEEDED

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INSTRUCTIONS PERMIT USE TAX RECONCILIATION – ACTUAL METHOD

A permit use tax reconciliation form must be submitted to the City’s Finance – Sales Tax Division for

projects $50, 000 or more within 90 days of completion.

You have the option of using the short or actual method. The short method is the quickest and easiest way

to determine if there might have been an over or under payment on a permit. The actual method is more

accurate, but requires more documentation and the process can take longer to complete.

These instructions are for the actual method

Questions? E-mail [email protected] or call 303-655-2041

STEP 1 – GATHER NECESSARY DOCUMENTS

Assemble and make copies of the following to include with the reconciliation form

Final AIA progress bill and/or documentation to support final price of the completed project

Invoices showing City of Brighton tax paid on construction materials

Subcontractor affidavits and final job cost accounting records – subcontractor affidavits can be

submitted to the GC and all documentation can be submitted together, or subcontractors can

submit the affidavit directly to the City of Brighton.

STEP 2 – CALCULATE ACTUAL CONSTRUCTION USE TAX

Line 1 – Enter the original total project contract price.

Line 2 – Enter total project change orders.

Line 3 – Add line 1 and line 2.

Line 4 – Total actual taxable cost of construction – this is the total combined actual purchase price of all

materials used to complete the project. The amount is generally derived from the general contractor’s

final job cost records and/or purchase invoices. When subcontractors are used, their taxable construction

materials must be obtained through a signed affidavit. The total taxable construction amount on line 4

should include the following:

All cost of construction materials

Cost of fabrication labor that goes into fabricating a completed unit. Examples of completed nits

are stairs, cabinetry, and shelving, ducting, and specialty fixtures.

Cost of materials purchased by subcontractors. A signed affidavit is required.

Line 5 – Multiple line 4 by the City of Brighton’s tax rate of 3.75% to arrive at the total construction tax

due for the project

Line 6 – Enter the amount of all city taxes paid on the permit

Line 7 – Sales tax paid to vendors on construction materials

CONTINUE TO PAGE 2


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In the event that City of Brighton sales tax was charged by vendors on construction materials please

provide a copy of the invoice showing City of Brighton tax. Please note that credit cannot be claimed for

another jurisdiction’s tax paid on construction materials

Line 8 – Calculate Line 5 Minus lines 6 and 7 to arrive at the total tax difference

If line 8 is greater than zero – This is the total due. Please mail check with form and supporting

documentation.

If line 8 is less than zero – complete the claim for refund form and submit with this form and

supporting documents

STEP 3 – SUBMIT FORM WITH APPROPIRATE DOCUMENTATION

If you are making a payment

Makes Checks payable to City of Brighton

Mail form, payment and supporting documents to

City of Brighton

Sales Tax Division

500 S 4th Ave

Brighton CO 80601

If you are NOT making a payment

You have the option to submit all documentation via e-mail to [email protected]


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