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Financial Services
Sales Tax Division
215 North Mason Street, 2 ndFloor
P.O. Box 580
Fort Collins, CO 80522
970.221.6780
970.221.6782 - fax
fcgov.com/salestax
A GUIDE TO THE MANUFACTURING EQUIPMENT USE TAX REBATE PROGRAM
2021 Program
Purchasers of qualifying manufacturing equipment can apply directly to the City of Fort Collins Finance Department for a rebate of
a portion of the use tax paid to the City. The 3% use tax must have been paid in full to the City of Fort Collins prior to the request
for the rebate. The taxpayer will be responsible for providing proof that the use tax was paid. Sales taxes paid directly to vendors
are not eligible for the rebate. Use tax paid on purchases made from a vendor that fails to collect City of Fort Collins sales
tax on the purchases as required by law are not eligible for the rebate. Sales or use taxes paid to another taxing jurisdiction
for purchases of manufacturing equipment are not eligible for the rebate.
The rebate program is governed by Chapter 25 of the Code of the City of Fort Collins, and in particular, Sections 25-63 through
25-69. The Code may be found here: https://www.municode.com/library/co/fort_collins/codes/municipal_code?
nodeId=CH25TA. To the extent this Guide conflicts with the Code, the Code shall control.
WHO QUALIFIES?
Manufacturers, who in an industrial setting, produce a new product, article, substance or commodity that is different from and has
a distinctive name, character or use from the raw or prepared materials used to manufacture the product.
WHO DOES NOT QUALIFY?
Companies that do not directly manufacture new products will not qualify for the rebate program. Examples of such companies
include: publishers, ready-mix concrete producers, loggers, mining operations, farmers, construction contractors and wood
preservers. Additionally, the following processing is not considered to be manufacturing for the purposes of this program:
electroplating, plating, metal heat treating or polishing, lapidary work, fabrication of signs and advertising displays, milk bottling and
pasteurizing, typesetting, engraving, plate printing, preparing electrotyping and stereotype plates. Manufacturing shall not include
product research, development and testing.
ADDITIONAL QUALIFICATIONS:
Only purchases of manufacturing machinery to be used in the City of Fort Collins directly and exclusively in the manufacture of
tangible personal property, for sale or profit, are eligible for the rebate.
The firm applying must have a sales and use tax license with the City and be classified as a manufacturer under the NAICS. The
firm applying for the rebate must certify compliance with all Federal, State and local laws and regulations for the manufacturing
facility located in Fort Collins. Firms must be current with all payments to the City of Fort Collins and in compliance with any
contractual agreements with the City.
