Construction Use Tax Reconciliations
In 2022, the American Institute of Architects performed a study of 18,229 completed construction projects. The study showed that 100% of construction projects in the study had at least one change order, and 38.25% of all projects had only one change order, 19.79% had two and 12.36% had three, etc. (per Figure 5, left). Each change order means additional materials added to the project that the contractor probably isn't reconciling with the permitting jurisdiction.
source: https://learn.aiacontracts.com/articles/the-truth-about-change-orders/
If your municipality collects use tax on the estimated or actual value of materials declared when permits are pulled, you really should be reconciling actual materials and use tax when the permits are finalled. Unreported materials equals uncaptured revenues in the form of use tax. Construction use tax reviews are my specialty, and they are extremely time/cost effective based on my perfected methodology. Again, this is the prime example of capturing revenue that your Code says you are legally entitled to collect for your municipality and citizens.
Construction Equipment Declarations
LocalEconomix specializes in providing thorough and accurate construction equipment declarations tailored specifically for municipalities throughout Colorado. If your Code allows Equipment Declarations, our proven method for reconciling use tax paid to other municipalities with any additional due to you is another revenue stream to maximize.