Fillable Initial Use Tax Return - City Of Boulder printable pdf download

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

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

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.

Initial Use Tax Return - City Of Boulder

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