BUILDING USE TAX REVENUE

Source: Contractors, developers, Parker businesses and residents

Collection: Building use tax is assessed at 4% (3% is Town of Parker and 1% is collected and remitted to Douglas County) on 50% of the estimated value of a construction project. Construction labor is typically not subject to use tax, and the Town of Parker estimates that 50% of the building permit value is related to taxable items such as materials, equipment and appliances. Building use tax is estimated and collected by the Building Department at the time a building permit is obtained.

Trend:

• Building use tax fluctuates based on the number of residential and commercial permits issued and the valuation associated with permits, primarily commercial.

• Permit history is as follows:

• Revenues in 2021 and 2022 included building use tax for large new residential developments. Growth is expected to taper off in 2023 since those developments have already obtained permits.