The DR 0172 Colorado form is a Contractor Application for Exemption Certificate, allowing contractors to purchase construction and building materials for specific exempt projects. This form is essential for ensuring compliance with Colorado tax regulations while facilitating the procurement of necessary materials. To get started on your application, click the button below.
The DR 0172 Colorado form serves as a crucial tool for contractors seeking an exemption certificate for specific construction projects. This form is designed to streamline the process of obtaining exemptions for the purchase of building materials directly related to exempt projects. It is important to note that this exemption does not extend to equipment or supplies that do not become part of the final structure or public works. Each contractor must submit a separate application for every contract, ensuring that all necessary details are accurately filled out to avoid denial. The responsibility for issuing certificates to subcontractors lies solely with the prime contractor, as the Colorado Department of Revenue no longer provides individual certificates to subcontractors. Additionally, contractors are required to attach relevant documentation, such as contracts and agreements, to substantiate their claims. The form also mandates that contractors keep copies of all issued certificates for a minimum of three years, ready for potential audits. Understanding these requirements is essential for compliance and successful project execution.
Departmental Use Only
DR 0172 (08/30/13)
ColorAdo dEpArtmEnt oF rEvEnuE
Denver CO 80261 - 0009
(303) 238-SERV (7378)
Contractor Application for Exemption Certiicate
Pursuant to Statute
*130172==19999*
§ 39-26.708(1),(2),&(3)
The exemption certiicate for which you are applying must
Any unauthorized use of the exemption certiicate will result
be used only for the purpose of purchasing construction and
in revocation of your exemption certiicate and other penalties
building materials for the exempt project described below. This
provided by law.
exemption does not include or apply to the purchase or rental of
equipment, supplies, and materials which are purchased, rented,
A separate certiicate is required for each contract.
or consumed by the contractor and which do not become a part
of the structure, highway, road, street, or other public works
Subcontractors will not be issued Certiicates of Exemption by
owned and used by the exempt organization.
the Department of Revenue. It is the responsibility of the prime
contractor to issue certiicates to each of the subcontractors.
(See reverse side.)
Send completed forms to: Colorado Department of Revenue, Denver, CO 80261 - 0009
Failure to accurately complete all boxes will cause the application to be denied.
Contractor/Account No. (Leave blank if iling for the irst time)
89-
Period (MM/YY-MM/YY)
_
Contractor Information
Trade name/DBA
Owner, partner or corporate last name
First Name
Middle Initial
Mailing Address
City
State
Zip
E-Mail Address
FEIN
Bid amount for your contract
$
Fax number
Business Phone number
Colorado withholding tax account number
(
)
Exemption Information
Copies
of contract or agreement page, identifying the contracting parties, bid amount,
type of work, and signatures of contracting parties must be attached
Name of exempt organization (as show on contract)
Exempt organization's number
98
Address of exempt organization
Principal contact at exempt organization-Last Name
Physical location of project site (give actual address when applicable
and Cities and/or County (ies) where project is located)
Principal contact's telephone number
Scheduled construction start date (MM/DD/YY)
Estimated completion date (MM/DD/YY)
I declare under penalty of perjury in the second degree that the statements made in this application are true and complete to the best of my knowledge.
Signature of the business owner, partner or corporate oficer
Title of corporate oficer
Date (MM/DD/YY)
(DO NOT WRITE BELOW THIS LINE)
Special notice
Contractors who have completed this application in the past, please note the following changes in procedure:
The Department will no longer issue individual Certiicates
of exemption to subcontractors. Only prime contractors will receive a Contractor's Exemption Certiicate on exempt projects.
Upon receipt of the Certiicate, the prime contractor should make a copy for each subcontractor involved in the project and complete it by illing in the subcontractor's name and address and signing it.
The original Certiicate should always be retained by the prime contractor. Copies of all Certiicates that the prime
contractor issued to subcontractors should be kept at the prime contractor's place of business for a minimum of three years and be available for inspection in the event of an
audit.
Once an 89# has been assigned to you, please use the next ive numbers following it for any applications submitted for future projects. This should be your permanent number. For instance, if you were assigned 89-12345-0001, every application submitted thereafter should contain 89-12345 on the application. The succeeding numbers will be issued by the Department of Revenue. do not enter what you believe to be the next in sequence as this may delay processing of your application.
Filling out the DR 0172 form is an important step for contractors seeking an exemption certificate in Colorado. This form requires specific information about the contractor, the exempt organization, and the project details. Ensure that all information is accurate and complete to avoid delays or denials.
After completing the form, send it to the Colorado Department of Revenue. Remember to keep a copy of the exemption certificate for your records and for any subcontractors involved in the project. It’s essential to maintain these records for at least three years for potential audits.
The DR 0172 form, known as the Contractor Application for Exemption Certificate, is used to apply for an exemption certificate in Colorado. This certificate allows contractors to purchase construction and building materials for specific exempt projects without paying sales tax. It is important to note that this exemption does not apply to the rental or purchase of equipment and supplies that do not become part of the final structure or public works.
Only prime contractors can apply for the DR 0172 form. Subcontractors are not issued exemption certificates directly by the Department of Revenue. Instead, it is the responsibility of the prime contractor to issue certificates to each subcontractor involved in the project. This ensures that the tax exemption applies correctly throughout the entire project.
To complete the DR 0172 form, the following information is required:
Additionally, copies of the contract or agreement page must be attached, which should identify the contracting parties, bid amount, type of work, and signatures.
If the DR 0172 form is not completed accurately, the application will be denied. It is crucial to ensure that all boxes are filled out correctly and that all required documentation is attached. Inaccuracies or missing information can lead to delays in processing or the rejection of the application. Therefore, careful attention to detail is essential when submitting this form.
Failing to provide complete contractor information. Ensure that all fields, such as trade name, owner's name, and contact details, are filled out accurately. Missing information can lead to delays or denials.
Not attaching required documentation. Copies of the contract or agreement page must be included. This documentation should identify the contracting parties, bid amount, type of work, and signatures. Omitting these documents will result in rejection.
Using an incorrect exemption organization number. Verify that the number provided matches the one on the contract. An incorrect number can invalidate your application.
Neglecting to sign the application. The signature of the business owner, partner, or corporate officer is mandatory. Without a signature, the application will not be processed.
Misunderstanding the role of subcontractors. Remember that subcontractors cannot apply for exemption certificates directly. Only prime contractors can issue certificates to their subcontractors. Ensure compliance with this rule to avoid complications.
The DR 0172 form is a crucial document used in Colorado for contractors seeking exemption certificates for specific construction projects. Along with this form, several other documents are often required to ensure compliance with state regulations. Below is a list of related forms and documents that may accompany the DR 0172 form.
These documents work together with the DR 0172 form to facilitate a smooth application process for contractors seeking exemption from sales tax on construction materials. Understanding the purpose of each document can help ensure compliance and avoid potential issues during audits or inspections.
The DR 0172 Colorado form is similar to the IRS Form W-9, which is used to request the Taxpayer Identification Number (TIN) and certification of a contractor or vendor. Both forms require detailed information about the individual or business applying for tax-related exemptions or benefits. The W-9 form is crucial for reporting income to the IRS, while the DR 0172 is essential for obtaining an exemption certificate for purchasing construction materials. Each form emphasizes the importance of accurate information, as errors can lead to denial or revocation of benefits.
Another comparable document is the IRS Form 1099-MISC, which reports payments made to independent contractors. Like the DR 0172, the 1099-MISC involves the collection of specific information about the contractor, including their name, address, and taxpayer identification number. Both forms serve to ensure compliance with tax regulations, but while the DR 0172 focuses on obtaining an exemption for materials, the 1099-MISC is used for reporting payments made for services rendered. Accuracy is paramount in both cases to avoid penalties.
The Certificate of Exemption (Form ST-2) used in various states also shares similarities with the DR 0172. This document allows certain purchasers to buy goods without paying sales tax, provided they meet specific criteria. Both forms require the applicant to provide information about the project or purpose for which the exemption is requested. The ST-2 form, however, may be used for a wider range of purchases beyond construction materials, whereas the DR 0172 is specifically tailored for construction-related exemptions.
Lastly, the Colorado Sales Tax Exemption Certificate (Form DR 0563) is another document akin to the DR 0172. This form allows organizations to purchase items without incurring sales tax if they qualify as exempt entities. Both forms necessitate the inclusion of identifying information about the exempt organization and details about the project or purchase. The DR 0172 is more focused on construction projects, while the DR 0563 can apply to various types of purchases. Compliance with the requirements of both forms is critical to ensure that the exemptions are valid and recognized by the state.
When filling out the DR 0172 Colorado form, it’s important to follow specific guidelines to ensure your application is processed smoothly. Here are some do's and don'ts to keep in mind:
There are several misconceptions surrounding the DR 0172 Colorado form. Understanding these can help ensure compliance and streamline the application process. Here are six common misunderstandings:
By clarifying these misconceptions, contractors can navigate the exemption process more effectively and avoid potential pitfalls.
When filling out and using the DR 0172 Colorado form, there are several important points to consider:
Following these guidelines will help ensure a smoother process when applying for and using the exemption certificate.