A. Any person required to pay use tax upon building materials or supplies shall keep and preserve all invoices and statements showing all purchases, made both inside and outside the Town, for necessary lumber, materials, fixtures or other supplies. It shall be the duty of any such person and his or her contractors and subcontractors to furnish the Town Treasurer with such information as he or she may require to assess such purchases. The Town Treasurer may request the Building Official to assist him or her in determining the amount of the use tax due.

B. The full amount of the use tax due shall be, until paid, a lien upon the real property benefited by such improvement, and the Town Treasurer is authorized to file, when appropriate, a notice of such lien with the County Clerk and Recorder.

C. No final inspection shall be performed for any building erected or altered until evidence of payment of all use taxes due and owing is supplied to the Building Official.

D. Upon issuance of a building permit, a certificate shall be issued to the building permit applicant by the Building Official. The certificate shall state in part that no statutory or home rule city, town or city and county shall apply any sales tax to the sale of construction and building materials designed for the use, construction or alteration of property located in the Town.

E. The estimated valuation figure on which the use tax is determined shall be established by a formula in accordance with the annually updated building valuation data established by the International Code Council (ICC) and published in Building Safety; provided, however, that the Building Official may modify the valuation data based upon a review of local conditions, which modification is subject to the prior approval of the Town Manager; and further provided that the Building Official’s discretion to modify the ICC’s valuation shall be reasonable and shall be limited to plus or minus ten percent (10%) of the ICC’s annually published regional modifier.

F. The assessed use tax is imposed and assessed at the time of the building permit issuance, and a deposit in the estimated amount of the use tax shall be paid prior to the issuance of the building permit. This use tax is the first tax imposed on construction and building materials designed for use in the Town, and no other public entity may subsequently impose any sales or use tax on the subject construction and building materials. The estimated amount of construction and building materials shall be set forth in the Town’s Fee Schedule for Value of Materials, Appendix A. The estimated amount of use tax assessed shall be calculated multiplying the figure set forth in the Town’s Fee Schedule for Value of Materials, Appendix A, by the current use tax percentage rate.

G. Any person or entity paying the use tax who disagrees with the amount of the estimated tax as calculated herein shall have the right, upon completion of the project, to dispute the use tax assessment through presenting a final itemized cost breakdown, with invoices of purchases of construction and building materials, to the Town Treasurer, and must prove that the assessed tax and amount deposited with the Town Treasurer at building permit issuance is inconsistent with the amount of use tax deposited with the Town. The decision of the Town Treasurer shall be final and appealable to a court of competent jurisdiction. Any request for the Town Treasurer to review the amount of the tax must include a final itemized cost breakdown and supporting invoices and documentation, and must be made within thirty (30) days of final inspection, or the amount assessed and deposited upon the issuance of the building permit shall be conclusively determined to be the use tax due, and the deposit shall be retained by the Town; provided, however, that nothing contained herein shall prohibit the Town from performing an audit pursuant to this chapter to determine if the amount of use tax deposited with the Town upon the issuance of the building permit is consistent with the amount of actual use tax due the Town.

H. Fraudulent misuse of the use tax certificate shall be a Class A municipal offense crime punishable in accordance with PMC 11.01.030. (Ord. 190, 1982; Amended Ord. 530 §1, 2005; Amended Ord. 685 §15, 2015; Amended Ord. 792 §3, 2021)