Contractor Requirements#

All contractors engaged in business in Fort Collins must obtain a City Sales and Use Tax License in addition to any required contractor license. There is no fee associated with the license.

Projects Requiring a Permit#

A City of Fort Collins use tax deposit at the rate of 4.35% is collected based on 50% of the valuation of the project.

• Final tax is calculated at completion of the project by completing a Project Cost Report and submitting appropriate documentation.
• Owner and general contractor are jointly responsible for tax on construction materials.
• City and County sales tax should not be paid when construction materials are purchased.

The instructions and necessary forms for the reconciliation process are:

• Project Cost Report Forms
  • PCR Form for Permit Numbers "B24" and later (4.35% tax rate)
  • PCR Form for Permit Numbers "B23" and earlier (3.85% tax rate)
• Subcontract Affidavit (PDF 38KB)
• Refund Claim Form (PDF 33KB)
• Use Tax on Building Permit

Projects Not Requiring a Permit#

Tax is paid by the end consumer on any construction materials

• Contractors are not considered the consumer by the City of Fort Collins.
• Whomever the work is being performed for is the consumer.

Other Resources#

• City of Fort Collins Building Services
• Fort Collins Building Permit Guide
• Fort Collins Municipal Code
• Larimer County