Get Dr 0172 Colorado Form
Table of Contents
The DR 0172 form, officially known as the Contractor Application for Exemption Certificate, plays a crucial role in the Colorado construction industry. Designed for contractors seeking tax exemptions on specific projects, this form is essential for ensuring compliance with state regulations. It allows contractors to purchase construction materials without incurring sales tax, provided that these materials are intended for an exempt project. However, it is important to note that this exemption does not extend to equipment or supplies that do not become part of the final structure. Each contract requires a separate application, and prime contractors must issue exemption certificates to their subcontractors. The form requires detailed information, including the contractor’s business details, the exempt organization’s information, and specifics about the project, such as the estimated start and completion dates. Failure to complete the form accurately can lead to denial of the application, emphasizing the importance of careful preparation. Additionally, recent changes in procedure mean that subcontractors will no longer receive individual certificates; instead, prime contractors are responsible for managing the exemption process. This shift aims to streamline the application process and ensure better compliance with state laws.
Key takeaways
When filling out the DR 0172 Colorado form, keep these key takeaways in mind:
- Purpose of the Form: This form is specifically for contractors applying for an exemption certificate to purchase construction and building materials for exempt projects.
- Separate Certificates Required: Each contract requires its own exemption certificate. This means you cannot use one certificate for multiple projects.
- Subcontractors' Responsibilities: Subcontractors will not receive their own exemption certificates. It is the prime contractor's duty to issue copies to each subcontractor involved in the project.
- Accurate Completion is Crucial: Ensure all boxes are filled out accurately. Incomplete applications will be denied, causing delays in your project.
- Document Retention: Keep copies of all certificates issued to subcontractors at your business for at least three years. This is essential in case of an audit.
- Permanent Contractor Number: Once assigned a contractor number, use it consistently for future applications. This helps streamline the process and avoids confusion.
By following these guidelines, you can help ensure a smooth application process and maintain compliance with Colorado's regulations.
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Dos and Don'ts
When filling out the DR 0172 Colorado form, there are several important guidelines to follow. Here is a list of things you should and shouldn't do:
- Do ensure all required fields are completed accurately.
- Do attach copies of the contract or agreement page.
- Do include the bid amount for your contract.
- Do provide the physical location of the project site.
- Do keep copies of all Certificates issued to subcontractors for at least three years.
- Don't leave the contractor/account number blank if you have filed before.
- Don't use the exemption certificate for anything other than construction and building materials.
- Don't forget to sign and date the application.
- Don't enter your own sequence number for the contractor number.
- Don't submit incomplete forms, as this will lead to denial of your application.
File Specs
| Fact Name | Fact Description |
|---|---|
| Form Title | DR 0172 is the Contractor Application for Exemption Certificate. |
| Governing Law | The form is governed by Colorado Revised Statutes § 39-26.708(1),(2),&(3). |
| Purpose of the Form | This form is used to apply for an exemption certificate to purchase construction materials for exempt projects. |
| Unauthorized Use | Using the exemption certificate for unauthorized purposes may lead to revocation and penalties. |
| Separate Certificates | A separate exemption certificate is required for each contract. |
| Subcontractor Policy | Subcontractors cannot obtain exemption certificates directly from the Department of Revenue. |
| Documentation Required | Copies of the contract or agreement must be attached to the application. |
| Application Submission | Completed forms should be sent to the Colorado Department of Revenue in Denver. |
| Retention of Records | Prime contractors must retain copies of issued certificates for at least three years for audit purposes. |