Use Tax Deposits and Refunds for Building Permits

What Is The Use Tax Deposit?

The Use Tax Deposit is a material sales tax deposit made with the Treasurer of the City of Littleton at the time the building permit is issued. The Use Tax Deposit covers sales tax due on materials and supplies used within the City of Littleton.

The tax deposit is based on three percent of fifty-two and one-half percent (52-1/2 %) of the estimated permit valuation as accepted by the City Building Official.

After the final inspections have passed and before a certificate of occupancy can be issued on your permitted project, a use tax audit is required. If the use tax deposit was over the amount due and the proper receipts are submitted to the sales tax division, a refund may be made to the permit holder.

If the use deposit was under the required amount due, the permit holder will be required to pay the city treasurer that amount of tax due before the certificate of occupancy will be issued.

Sales Tax Refunds for Building Permits

Refund when applicable:

• Total materials actually used are less than:
  • 52-1/2 % of the estimated cost of #1 Construction permit
  • 52-1/2 % of the estimated cost of #2 Mechanical permit
  • 52-1/2 % of the estimated cost of #3 Electrical permit
  • 52-1/2 % of the estimated cost of #4 Plumbing permit
  • 52-1/2 % of the estimated cost of #5 Miscellaneous permit
• Documented Duplicate Sales Tax is paid through licensed Littleton vendors.
• Total Sales Tax paid (both through licensed Littleton vendors and tax assessed and paid with permit) exceeds the amount due at 3 % of the total materials used.

Submitting application:

• Application may not be submitted until the final building inspection is approved.
• Only receipts and invoices used by the vendors will be accepted for review.
• Also, such documents must provide sufficient detail as to description, taxable amounts and sales tax paid.

Where to apply

Applications are available at the Sales Tax Division Office and may be submitted in person or mailed to:

City of Littleton/Sales Tax Division
2255 West Berry Avenue
Littleton, Colorado 80120