Instructions for Initial Use Tax Return
General Instructions
Specific Instructions
Lines 1-8 – Taxable Purchases. List the total purchase
Use Tax In General
price (including freight/shipping charges) subject to use tax,
classifying purchases as closely as possible with the
The Boulder Revised Code imposes a use tax upon the
categories listed on lines 1-7. Purchases not resembling one
privilege of persons in the city to use, store, or consume
of the categories listed may be listed on line 8, provided that
tangible personal property located in the city and taxable
a description of the purchases is listed on a supplemental
services purchased or leased at retail and furnished within
schedule and submitted with the return.
the city. If Boulder sales tax is not paid to a vendor licensed
and authorized to collect the same at the time of purchase,
Line 9 – Total Taxable Amount. Total the amounts listed
then use tax must be remitted directly to the City.
on lines 1 through 8 and enter the result on line 9.
Credit may be taken against Boulder use tax for legally
Line 10 – Gross Use Tax Due. Multiply the amount
imposed sales or use taxes paid to other municipalities.
computed on line 9 by the applicable use tax rate listed on
Such credit may not exceed the Boulder use tax due.
this line 10 and enter the product on line 10.
For additional information regarding use tax, refer to the
Line 11 – Credit for Tax Paid. Enter the amount of legally
Boulder Revised Code 3-2-1(b) and Tax Regulation 43.
imposed sales or use taxes previously paid to Boulder or
another municipality.
Purpose of Form
Only sales or use tax which is legally imposed and
The Initial Use Tax Return is required to be filed by any
previously paid to Boulder or another municipality may be
person who purchases or establishes a business in the City.
credited against use tax due. Sales or use taxes paid by the
Subsequent use tax liabilities are reported on the City of
previous owner may not be setoff against the current
Boulder Sales/Use Tax Return, which is filed on a routine
owner’s liability. Check also to ensure that credit is not being
basis.
taken for state sales tax or other state collected taxes such
Purchase of Existing Business. Tangible personal
as RTD, cultural district, football district, or county sales
property and taxable services, except inventory held for
taxes. For additional information on previously paid sales or
lease, rental, or resale, which is acquired through the
use tax, refer to the Boulder Revised Code 3-2-9(b).
purchase or takeover of an existing business in the City, is
subject to use tax. This tax is reported on the Initial Use Tax
Line 12 – Net Use Tax Due. If the amount on
Return.
line 11 exceeds the total on line 10, enter a
zero on line 12. Otherwise, subtract the
Use tax is due from the new owner even though the
amount listed on line 11 from the total listed
previous owner may have paid sales or use tax on the
on line 10 and enter the difference on line 12.
purchase of the property at the time of original purchase.
Lines 13-14 – Late Filing Charges. If the tax will be
Purchasers
of
an
existing
business
are
reported or paid after the due date, compute and add
encouraged to obtain current tax liability
penalty and interest as follows:
information from the City certifying that the
seller is current with their tax obligations.
13) Penalty – Multiply the amount on line 10 by 10%.
New Businesses. New businesses must report use tax due
14) Interest - Interest accrues only in whole-month
on tangible personal property and taxable services, except
inventory held for lease, rental, or resale, acquired prior to
increments from the due date. Multiply the amount
and during the start of business in the City. This tax is
listed on line 10 by 1% and multiply this result by
the number of months from the due date to the
reported on the Initial Use Tax Return.
anticipated postmark date rounding up to the next
Due Date
whole month.
The reporting period for Initial Use Tax returns includes all
Line 15 – Total Amount Due. Add lines 12 through 14 and
transactions prior to first day of operation and up through the
last day of the month in which operation began. Returns are
enter the total on this line 15. This is the total due. Make
th
due the 20
of the month following the month of inception.
check payable for this amount to the City of Boulder and
mail payment with the return to the address at the bottom of
Returns filed by mail must be postmarked by the due date.
the return.
Reminders
Signature Required – After reviewing the form for
Ongoing filings required. Use tax will be due on start up
accuracy, sign and date the form. The person completing
property and taxable services only one time; however, use
the return on behalf of the taxpayer must sign and date the
tax liabilities may arise from future purchases of non-
form at the bottom. A printed name is also required. If the
inventory tangible personal property and certain taxable
taxpayer is not an individual person, the title of the officer or
services. Even service businesses that do not make taxable
agent completing the form on behalf of the taxpayer must
sales will likely have ongoing use tax liabilities. Future use
also be printed on the form. Forms without a signature will
tax liabilities are reported on line 8A of the City of Boulder
be returned and may not be considered timely filed.
Sales/Use Tax Return.
Enclosures. Mail the completed return and in the envelope
provided along with payment and applicable enclosures. Do
not staple the check or other enclosures to the return.