Sales & Use Tax Information

Tax Rates

Town of Erie Sales/Use tax and, for properties in Boulder County, Boulder County Sales/Use tax is collected on material valuation at the time of permit fee collection.  Permit holders should take a copy of their permit and permit receipt to their vendors to avoid paying this tax twice. 

Sales Tax

Sales tax is a tax collected on all retail transactions. As a statutory Town, the Town of Erie's sales tax is collected by the State of Colorado. Please visit the Colorado Department of Revenue website for more information or for required forms.

You may also contact them via phone:

  • Denver Office: 303-238-7378
  • Greeley Office: 970-352-1121

Tax District		Weld County
Areas
Incorporated
Prior to 1994		Weld County
Areas
Incorporated
Since 1994		Boulder
County
State - Colorado2.90%2.90%2.90%
County

1.185%
Town - Erie3.50%3.50%3.50%
Regional Transportation District
1.00%1.00%
Cultural District

0.10%
 Total 6.40% 7.40% 8.685%


Unsure which Sales Tax district you fall into? Use the Sales Tax Rate Lookup map.

Use Tax

The Town of Erie collects a Use Tax on construction and building materials used or consumed within the Town. All projects in the Town in which a building permit is obtained are subject to the Town’s Use Tax of 3.5%. The Use Tax also applies to the delivery of construction and building materials, and any fabrication labor needed to turn material into a final product, e.g. custom cabinets, pre-fabricated concrete.

Construction & Building Materials

Construction and building materials are those materials that are used on projects to become an integral and inseparable part of a structure or project, including public and private improvements.  Construction materials include but are not limited to such things as asphalt, bricks, builders’ hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand, sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, weather stripping, wire netting and screen, water mains and meters, and wood preserver.  

The above materials, when used for forms, or other items which do not remain as an integral or inseparable part of a completed structure or project are not construction materials. Construction and building materials do not include carpeting, furniture, removable fixtures, window coverings, or tools or similar items. However, because these items are delivered into Erie and often installed in Erie, the contractor is responsible for ensuring the Town’s Sales Tax is paid on these items (see above).

Collection of Use Tax

Prior to issuance of building or planning permits, the applicant must pay a deposit on the Use Tax in addition to other applicable permit fees. The deposit is based on an estimated taxable materials percentage of 50% of the total contract valuation. The Town Use Tax (3.5%) is collected on the estimated material valuation at the time of permit. If the project is located in Boulder County, the County Use Tax (1.185%) is also collected in the same manner. 

Once the Use Tax deposit has been paid, the purchase of the materials for the project by the contractor or any of their subcontractors should not include a town or county Sales Tax. The permit issued will indicate a Use Tax has been paid and a copy will need to be provided to any retailer or supplier of materials for the project.

Since the Use Tax paid at time of permit is based on an estimate, there may be a difference in the actual amount owed at the time of project completion. The permit holder should perform a Building Materials Use Tax Reconciliation within 90 days from Certificate of Occupancy (C.O.) or Final Inspection. The permit holder will be responsible for paying any additional Use Tax owed to avoid penalty and interest.

Please use the appropriate reconciliation form depending on which County (Boulder or Weld) the permit was issued for. Forms should be completed and emailed to the Finance Department.

NOTE: For projects not requiring a permit, Use Tax is due to the Town if a legally imposed local Sales Tax has not been paid.

Audit

The Town retains the right to audit records within 36 months of Certification of Occupancy or final inspection. The following records must be kept and may be requested by the Town to reconcile the Use Tax deposit to the actual Use Tax due:

  • Final bill to the owner of the project including all change orders.
  • List of subcontractors: contact information and final contract amount for each one.
  • Invoices for purchases made by the contractor.
  • Detailed job cost summary.

Please call the Town of Erie Finance Department at 303-926-2700 with any questions.

Disclaimer: This information is directed to General Contractors and is intended to answer potential questions concerning the payment of Use Tax to the Town of Erie. Please refer to Town of Erie Ordinance Section 2-11-2 for full ordinance citation.

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