What is Use Tax and what is it used for?

Use Tax is a tax imposed by a state or municipality to compensate for the sales tax lost when an item is purchased outside of the state or municipality but is used within the state or municipality. For example, you buy your car in a state that has no sales tax, but you live across the border in a state that does have sales tax. When you bring your car home and register it in your state, the state taxing authority will bill you for the sales tax it would have collected had you bought the car within the state. The City of Manitou Springs collects Use Tax for building materials purchased for commercial and residential property improvements within the City. Use Tax revenues go into the City’s general fund, which helps pay for City services including police, fire, street repairs, and park maintenance. 

Effective as of January 1, 2019, the City’s Use Tax rate is 3.5%.

Show All Answers

1. What improvements require a permit? Do I need a permit?
2. How much does a permit cost?
3. Which improvements require that plans be submitted prior to permitting? Am I required to submit plans?
4. What is Use Tax and what is it used for?
5. What is the Pikes Peak Regional Building Department (PPRBD)?
6. Can I operate a short-term rental (AKA Vacation Rental) in the City?
7. What do I need to know about performing work in the City’s Local Historic Districts?
8. What do I need to know about performing roofing work in the City’s Local Historic Districts?
9. Are there any penalties for pulling a Property Improvement Permit after the work has been completed?
10. How do I locate an easement?
11. How do I locate/obtain a surveyor?