CONSTRUCTION RELATED BUSINESSES
Additional Things to Know:
Other Construction Related Requirements:
In addition to the requirements you will have as a typical business owner; business licenses, sales tax, and obtaining permits, your business should also be aware of several other things if you’re in the construction industry.

 

Contractor’s License:

In addition to your business license, you will be required to obtain a contractor’s license. You can find more information on how to do so on our Obtain a Contractor’s License page.

 

Permits to Build or Remodel:

You will find information about the approval process for your building projects on our Build or Remodel Page.

 

Grade, Excavate, or Use Public Right of Way:

If any of your construction projects are expected to require any grading, excavating, or occupy the public right of way, there are several requirements you will be required to follow. You will find helpful information on our Grade, Excavate, or Use Public ROW page.
 

Construction Parking Permits:

Construction related and service vehicles can obtain vehicle parking permits after they have gone through the building permit and right of way permitting processes. This allows contractors to park in the downtown core and residential areas at a reduced rate. You can find the application and more information on the Project Parking Permits Page.

Use Tax:
The City of Aspen has a 2.1% use tax on construction and building materials. Please refer to the guidelines below for additional information.

 

Use Tax Guidelines:

It is recommended you refer to the entire use tax guidelines to determine your valuation and amount of use tax owed. However, the outline below can provide you with basic Use Tax Information:
  • The use tax requirement applies to all contractors and owners that use construction materials in the City.
  • The liability is shared jointly between the general contractor and the owner, defined as the “Purchaser.”
  • In all cases, a use tax deposit is required for work performed in the City that consumes construction materials, including non-permit work and landscaping.
  • Some exemptions are allowed including any master permit with a total valuation below $100,000 shall be exempt from use tax.
  • The use tax deposit is paid when the master permit is issued. For a project for which a use tax deposit has been paid, materials can be purchased without paying City of Aspen sales tax or any other municipal sales tax. Upon payment of the use tax deposit, Purchaser will be issued a Use Tax Certificate which should be presented to venders in order to waive sales tax.
  • The use tax deposit calculation is based on master permit valuation.
  • The first $100,000 of each master permit valuation shall be exempt from use tax.
  • After deducting $100,000 from the master permit valuation, 2.1% shall be charged on 50% of the remaining valuation.

 

Remit Use Tax to the City:

The following form will need to be completed and returned to the finance department for you to reconcile and remit use tax. Instructions are included

 

Complete and return the form to the finance department:

City of Aspen
Finance Department
130 S. Galena St.
Aspen, CO 81611
970-920-5043
Aspen_Sales_Tax@cityofaspen.com