Instructionsfor Initial Use Tax Return
General Instructions Specific Instruction s
Use Tax In Gene ar l Lines 1-8 – Taxable Purchases . List the total
purchase price (including freight/shipping charges) subject to
The Wheat Ridge Code of Laws imposes a use tax upon the use tax, classifying purchases as closely as possible with the
use, storage, or consumption of tangible personal property categories listed on lines 1-7. Purchases not resembling one
located in the city and taxable services purchased or leased of the categories listed may be listed on line 8, provided that
at retail and furnished within the city. If Wheat Ridge sales a description of the purchases is listed on a supplemental
tax is not paid to a vendor licensed and authorized to collect schedule and submitted with the return.
the same at the time of purchase, then use tax must be
remitted directly to the City. Line 9 – Total Taxable Amount. Total the amounts
listed on lines 1 through 8 and enter the result on line 9.
Credit may be taken against Wheat Ridge use tax for legally
imposed sales or use taxes paid to other municipalities. Line 10 – Gross Use Tax Due. Multiply the
Such credit may not exceed the Wheat Ridge use tax amount. amount computed on line 9 by the applicable use tax rate
listed on this line 10 and enter the product on line 10.
For additional information regarding use tax, refer to the
Wheat Ridge Code, section 22-66. Line 11 – Credit for Tax Paid. Enter the amount of
legally imposed sales or use taxes previously paid to Wheat
Purpose of F orm Ridge or another municipality.
The Initial Use Tax Return is required to be filed by any Only sales or use tax which is legally imposed and
person who purchases or establishes a business in the City. previously paid to Wheat Ridge or another municipality
Subsequent use tax liabilities are reported on the City of may be credited against use tax due. Sales or use taxes
Wheat Ridge Sales/Use Tax Return, which is filed on a paid by the previous owner do not offset the current
routine basis according to how much tax is owed on average. owner’s liability. Check also to ensure that credit is not being
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 Wheat Ridge City Code, section 22-66.
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
Return. on line 11 exceeds the total on line 10,
enter a zero on line 12. Otherwise, subtract
Use tax is due from the new owner even though the the amount listed on line 11 from the total
previous owner may have paid sales or use tax on the listed on line 10 and enter the difference on
purchase of the property at the time of original purchase. line 12.
Purchasers of an existing business are Lines 13-14 – Late Filing Charges. If the tax will
encouraged to obtain a Certificate of Taxes Due be reported or paid after the due date, compute and
from the City certifying the seller’s local tax add penalty and interest as follows:
status.
New Businesses. New businesses must report use tax on 13) Penalty – Multiply the amount on line 10 by 10%.
tangible personal property and taxable services, except
inventory held for lease, rental, or resale, acquired prior to 14) Interest - Interest accrues only in whole-month
and during the start of business in the City. This tax is increments from the due date. Multiply the amount
reported on the Initial Use Tax Return. listed on line 10 by 1% and multiply this result by
the number of months from the due date to the
Due Date anticipated postmark date rounding up to the next
The reporting period for Initial Use Tax returns includes all whole month.
transactions prior to first day of operation and up through the
Line 15 – Total Amount Due. Add lines 12 through 14
last day of theth month in which operation began. Returns are
due the 20 of the month following the month in which and enter the total on line 15. This is the total to pay.
business activity started. Returns filed by mail must be Make check payable for this amount to the City of Wheat
postmarked on or before the due date. Ridge and mail the payment with the return to the address
at the bottom of the return.
Reminders
Ongoing filings required. Use tax is due on start-up Signature Required. After reviewing the form for
property and taxable services only one time. However, use accuracy, sign and date the form. The person completing
tax liabilities may arise from future purchases of non- the return on behalf of the taxpayer must sign and date the
inventory tangible personal property and certain taxable form at the bottom. A printed name is also required. If the
services. Even service businesses that do not make taxable taxpayer is not an individual person, the title of the officer or
sales may have ongoing use tax liabilities. Ongoing use tax agent completing the form on behalf of the taxpayer must
liabilities are reported on line 10 of the City of Wheat Ridge also be printed on the form. Forms without a signature will
Sales/Use Tax Return. Be aware that inventory converted to be returned and may not be considered on time.
any business use, including demonstration or donation, is
subject to use tax.