Colorado is often considered one of the most difficult states for handling sales and use tax issues.  If you’re in the construction industry, it’s even harder!

I was the guest presenter at the Construction Resource Group Lunch and Learn on September 20th.   It was an enjoyable event with a lot of participation.  I want to provide the outline topics to foster discussion for others in the industry as well.  There are so many sales and use tax pitfalls for contractors and those in or serving construction related industries.

Please feel free to reach out to me with the specific of your business and with any sales and use tax questions you have.  I provide a free initial consultation that is often helpful even for those who work hard to get it right.  Please also feel free to share what sales and use tax issues have you faced and what are you facing now.

Here is the topic list:

• Colorado Sales & Use Tax
  1. What Makes Colorado So Difficult?
     1. State & State-collected Jurisdictions
     2. Home-rule (Self-collecting) Jurisdictions

• Destination Sourcing

1. Increased Compliance Burden
2. Multiple Audits
3. Use Tax

1. Licensing Requirements – “Nexus” or “Doing Business

• Construction Specific Issues
  1. Lumpsum vs. Time & Material Invoices
  2. Which Tax? – Sales Tax or Use Tax
  3. Who Pays the Tax?
  4. Improvement to Real Property vs. Sale of Tangible Personal Property
  5. Exemptions
     1. Nonprofit and Government Entity Customers
     2. Building Permits
        • Use Tax Deposit
        • Subcontractors
        • Reconciliations
     3. Jobs without Permits
     4. Out-of-State Jobs

• City-Specific Highlights and Samples
  1. Denver, Aurora, Colorado Springs, Westminster
  2. Occupation Privilege Tax (OPT)
     1. Aurora, Denver, Glendale, Greenwood Village & Sheridan

• Examples and Practical Applications
• What Have Participants Faced?
• Tax Tips and Best Practices
• Q&A
• Availability of City Specific Resources