BOULDER, Colo.—Boulder is suspending any actions on an audit the city says shows that contractors owe back taxes while an outside firm reviews the tax assessments.
The city earlier this month mailed notices to hundreds of contractors saying a recent audit found that use taxes weren’t estimated accurately and need to be paid for projects completed in the past three years. The collection notices totaled as much as $5.2 million in back taxes, prompting an outcry from business owners and threats of lawsuits.
Boulder’s tax code requires contractors to pay a use tax on materials bought elsewhere. Many area builders say it’s unclear that the actual costs need to be reconciled with the city’s upfront estimate.
City officials say a full review of Boulder’s construction use-tax code should take about 60 days.
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Information from: Daily Camera,
