In response to Ms. Hale’s letter of last week, non-permitted projects are still subject to use tax. The “large riding arena up river” project mentioned last week was completed in full compliance. Use tax is just sales tax. It is not an additional tax. If you don’t pay sales tax here at 3.6 percent, you pay use tax here at 3.6 percent. And if you happen to pay sales tax somewhere else, you’ll get credit for it. With any construction project in our county, you are exempt from having to pay any other jurisdiction’s local (city and county) sales tax (CRS 29-2-105(2)). It allows you to bring the tax revenue back home (as use tax) where the construction impact is taking place. This levels out the playing field when your jurisdiction does not have a large sales tax base (with Home Depots, Lowes, Halliburtons, etc.) to help mitigate the construction impact. Why pay 4.75 percent to pave some other county’s roads when you can bring the revenue back home and pay 3.6 percent? Double standard? I think not. Fair? Yep.
Sales & Use Tax Administrator
Rio Blanco County