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 July 1, 2020, the City’s Use Tax rate is 3.8%.