What reconciliation options are available for permits issued between June 30, 2009 and June 30, 2010?
Reconciliation of permits issued between June 30, 2009 and June 30, 2010 is optional. Two Construction Use Tax reconciliation methods, as described below, are available to contractors doing work for a contracted price – The 50/50 Short Method and the Actual Method. When homeowners pull a permit to work on their own home and there is no contract price, the actual method is required. In both methods, the total taxable cost of construction must be determined. Once the total taxable cost is determined, the city and county combined tax rate of 4.06% is applied to determine total tax due. Then, this amount is compared to the total city and county tax prepaid as an estimate on the permit to determine if there was an under or over payment of taxes. Total taxable cost of construction is determined as follows: 1) The Short Method is a simplified project reconciliation available when there is a final contract price. The final contract price, including all change orders, is multiplied by 50 percen
