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Use Tax
   

There are two types of use tax:

1) General Use Tax 

2) Building Use Tax


General Use Tax Rate: 3.75 %

Use tax is imposed on the use, storage or consumption of tangible personal property or taxable services not subjected to the city sales tax (e.g. supplies, fixtures, furniture and equipment [not inventory] that is stored, used or consumed within Aurora upon which no local legally imposed sales and use tax was paid at the time of purchase, lease or rental).  Use tax is complimentary to sales tax, but is paid directly to the city rather than to a vendor collecting on behalf of the city.

In other words, use tax is simply "sales tax that wasn't paid to the vendor."


internet purchase picture
Items Delivered into City from Out-of-City Vendor

It is the responsibility of the Aurora business making a purchase from a company outside of Aurora to verify that the vendor is licensed to collect Aurora tax, if in fact the company does charge a local sales tax on its invoice. Sales tax paid to an unlicensed vendor does not result in payment to the city. As a result, the purchaser is still responsible for payment of Aurora Use Tax.


Examples of Taxable Situations Concerning General Use Tax

1. ABC Paper Company buys a machine from a manufacturer in Chicago. ABC will use the machine to make books at its Aurora facility. The Chicago firm does not collect Aurora sales tax. ABC is required to pay the city 3.75 percent use tax. ABC will include this on line 10 of their Aurora Sales and Use Tax return.

2. XYZ Bookstore buys a carload of cash registers. They will be stored in Aurora and shipped to various stores in and out of Aurora as needed. The vendor did not charge XYZ Aurora sales tax. XYZ must pay 3.75 percent Aurora use tax on all cash registers, including those to be shipped to stores outside of Aurora. XYZ will include this on line 10 of their Aurora Sales and Use Tax return.

3. Tafoya Construction Company buys a shipment of steel beams from a steel mill in Pittsburgh. The shipment is received in Aurora. The Pittsburgh firm does not collect Aurora sales tax. Tafoya is required to remit 3.75 percent Aurora use tax on the cost of the steel on line 10 of their Aurora Sales and Use Tax return.

4. Angie Office Furniture has an executive chair in inventory. The President of Angie needs a new chair for her office. Because Angie is a dealer in office chairs, they buy them free of Aurora sales tax. When they withdraw the chair from inventory for their own use, they are required to pay 3.75 percent Aurora use tax. Angie will report the use tax on line 10 of their Aurora Sales and Use Tax return.

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City of Aurora Colorado -- 15151 E. Alameda Pkwy -- Aurora, CO 80012            Access Aurora: 303-739-7000