On work requiring a building permit, use tax is paid in advance on materials and construction supply items, based on an assumption that such items make up 60% of the project as valued. Only aspects included in the valuation are included in the use tax prepayment.
Additional use tax or a refund may be due if actual materials and supplies vary. Present a copy of the permit to the retailer on every purchase of materials and supplies, regardless of where they're delivered for exemption from local tax only. Because the City permit shows the local use tax paid on its face it should be adequate documentation for exemption from local tax only. Payment of any applicable state, county and district taxes will still be necessary.
No credit is allowed for sales tax paid to another city because a permit was not presented or the retailer did not honor the permit; however, a claim may be made with the city to which the tax was paid.
For complete information, view Code Section 22-68
. (Part II-Code of Laws, Chapter 22-Taxation, Article 1-Sales and Use Tax, Division 3-Use Tax.)