Sales & Use Tax Information
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
Prior to 1994
|State - Colorado||2.90%||2.90%||2.90%|
|Town - Erie||3.50%||3.50%||3.50%|
|Regional Transportation District||1.00%||1.00%|
|Total|| 6.40%|| 7.40%|| 8.485%|
Unsure which Sales Tax district you fall into? Use the Sales Tax Rate Lookup map.
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 (0.985%) 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.
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
- Who is required to have a Colorado sales tax license?
Erie is a statutory Town and its sales tax is collected by the State of Colorado. Colorado imposes a sales tax on retail sales/rental/lease of tangible personal property, prepared food and drink, and certain services, as well as the furnishing of rooms and accommodations.
- Wholesale sales are not subject to sales tax.
- Generally, any retailer that is required to collect Colorado sales tax must obtain and maintain a Colorado Sales tax license, collect and remit sales tax to the State.
When a business applies for a State Sales tax license, it will be assigned a 12 digit-number. The first eight digits make up your Colorado Account Number (CAN) and the last four is the Site/Branch ID. Please provide the 12-digit number on your Erie Business License Application. If this is not available at the time of Business License Registration, please follow-up with Erie Finance Department within five business days after you receive a State Sales Tax License.
Licenses are non-transferable. A separate sales tax license is required for each separate physical location. For more information on how to apply for a Sales tax License, visit https://tax.colorado.gov/how-to-apply-for-a-colorado-sales-tax-license.
- Is it necessary to display my sales tax license at my place of business?
Yes. After receiving your local license, post it in a prominent location inside your business along with your State sales tax license. This is required by State Statute. Posting tells your customer you are licensed to collect the sales tax and it allows for easy verification of licensing by inspectors.
- What is the total sales tax rate in Erie?
The Town of Erie sales tax rate is 3.5%. Depending on where the retail sale is sourced in, the total sales tax rate will vary.
Visit a map to look up sales tax rate by address. Type in the delivery address in the search bar. In general, a sale takes place within Erie if it is delivered to the purchaser at a location within Erie.
You can also visit the Colorado State Geographic Information System to look up tax rate for location outside of Erie: https://colorado.ttr.services/.
Below is an excerpt from the Colorado Sales Tax Guide on “destination sourcing rules” when determining which sales tax rate applies to the transaction:
- If the purchaser takes possession of the purchased property or first uses the purchased service at the seller’s business location, the sale is sourced to that business location.
- If the property or service is delivered to the purchaser at a location other than seller’s business location, the sale is sourced to the location the purchaser receives the purchased property or first uses the purchased service.
- If the purchaser requests delivery of the property or service to another person, as a bona fide gift from the purchaser, the sale is sourced to the location that person takes possession of the purchased property or first uses the purchased service.
These sourcing rules do not apply to leased property. See Department Publication Sales & Use Tax Topics: Leases for sourcing rules for lease payments.
- If my place of business is outside of Erie, do I have to collect Erie sales tax?
Yes, if you deliver goods and taxable services to the purchasers at a location within Erie.