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When a contractor/home owner purchases building material to be used in a licensed project, a copy of the RBC Sales and Use Tax Exemption Certificate should be presented to the vendor showing that a tax has already been paid or is going to be paid.
State sales tax should always be paid, since it is never collected on a building permit.
If you a contractor building for an exempt organization, you should submit a DR0172 Contractor Application for Exemption Certificate.
Once you receive the certificate from the State, present a copy to the Rio Blanco County Sales and Use Tax Department in conjunction with the building permit so no use tax is assessed. Also, when purchasing materials, give a copy to the vendor to exempt the purchase.
The Exemption Certificate from the Department of Revenue is only valid for State and County taxes. If building or purchasing materials within a Town or City, please contact the jurisdiction to determine their exemption requirements.
If you present a copy of your building permit and/ or your Use Tax Certificate at the time of purchase, you will be exempt from any local sales tax.
The use tax was put in place because many materials are not available in our county. This means many contractors and consumers have to purchase in other jurisdictions. We may lose the sale, but use tax retains the sales tax revenue for our own jurisdiction.
Most other jurisdictions have a higher tax rate, so on larger projects you will save a considerable amount of money.