HomepageWorkLicensing & TaxBuilding Use Tax Anyone who performs construction work that requires a City of Golden building permit must pay City building use tax on the cost of construction materials used. Construction materials are estimated to be 1/2 of the cost, and the City building use tax is paid on that amount when the permit is issued. No City sales tax is charged when the materials are actually purchased if the permit is presented to the seller. The actual material cost is computed at the end of the project and the difference is paid to the City or refunded to the permit holder. This may be done by a contractor at the end of a project or when the City reviews the records during an audit. Contractors must keep all invoices and statements from all general contractors, subcontractors and suppliers of construction materials, along with a summary sheet showing such purchases for three (3) years from the date of issuance of the certificate of occupancy. The cost of a building permit is an estimated prepayment of use tax. For more information on obtaining a building permit, please visit our Permits & Fees page.