Use Tax

Acquisition of a City Business 

Per Sec. 3-28-85 of the City of Brighton's Municipal Code, when a City of Brighton business is acquired City sales tax is due on the price paid for tangible personal property acquired with the purchase of the business and for use in operation of the business. 

Purchase of a motor vehicle

City of Brighton tax is due when a City resident purchases a motor vehicle. If the vehicle was purchased outside the City limits and the vendor did not collect City of Brighton sales tax, the purchases will generally pay the tax when the vehicle is registered with the County. The County will then remit City of Brighton tax collected to the City. 

Permitted Projects 

Construction materials, fixtures and supplies that become a part of a piece of real property in the course of a permitted project in the City of Brighton are subject to the City of Brighton’s construction use tax per the City’s Municipal Code. 

When a permit is pulled for a project in the City of Brighton, construction use tax is pre-paid on an estimated basis. The Contractor is responsible for tracking items and ensuring that the appropriate tax is ultimately remitted to the City. 

To avoid double payment of City tax, both the general contractor and subcontractors should present a copy of the building permit to all suppliers when purchasing construction materials that will become a part of the real property. Suppliers should not charge a city sales tax on materials regardless of where they are purchased. Suppliers should keep a copy of the permit or the permit number for their records. Credit will not be given for another jurisdictions’ tax paid on construction materials. Please note that taxes other than City taxes may still be due. 

Project Exemptions 

Charitable, governmental, or religious organizations are exempt for the City of Brighton’s sales and use tax when in the conduct of their regular charitable, governmental or religious capacity. 

The City of Brighton does not issue its own exemption certificate. The City recognizes the State of Colorado Contractors Exempt Certificate (89) that is issued to the general contractor for a specific exempt project. Exemption from building use tax is granted only if the specific exempt certificate is presented to the City’s Building Division at the time a permit is issued. 

Contractors working on exempt projects are still subject to tax for consumable supplies and other taxable transactions not exempted per the City’s Municipal Code.