Use tax is a compensating tax equal to the City sales tax of 3%, due on all items used in business on which no local sales tax was paid or on which a lesser local sales tax was paid.
If your new business will have a Wheat Ridge location, complete the Initial Use Tax Form
(an Excel version
is also available). Initial Use Tax is due on purchases of business equipment, furniture, and fixtures as part of a business acquisition, based on the greater of stated values in the contract or the values to be filed for county property tax purposes. If your business was acquired in a multi-holder stock purchase, no initial use tax is due.
Use tax may also be due on purchases made for operating supplies, furnishings, equipment and fixtures. What is taxable at the City level differs from what is taxable at the State level. Suppliers often rely on State rules in preparing invoices, which creates potential for unpaid City Use Tax that would be assessed with penalty and interest were your company to be audited. (Part II-Code of Laws, Chapter 22-Taxation, Article 1-Sales and Use Tax, Division 3-Use Tax.)
For more information, contact us at (303) 235-2822