Use Tax

The Town of Mead imposes a use tax of 3.0% on use or consumption in the Town of any construction and building materials purchased at retail or for the privilege of storing, using, or consuming in the Town any motor or other vehicles, purchased at retail on which registration is required.

Construction Use Tax

Permitted Projects 

Construction materials that are part of a permitted project in the Town of Mead are subject to the Town of Mead’s construction use tax per the Town’s Municipal Code. When a permit is pulled for a project in the Town of Mead, construction use tax is pre-paid on an estimated basis. The use tax rate of 3.0% is applied to 50% of the project value. The Contractor is responsible for maintaining documentation and ensuring that the appropriate tax is ultimately remitted to the Town.

NOTE: If a contractor requires permission to work in the Town right of way (ROW) including roads, bridges, paving, curb and gutter, a separate ROW permit is required. ROW permits require their own valuations apart from the building permit, and use tax is also prepaid on these permits in the same manner as building permits. Please contact the Engineering Department to obtain a ROW permit. (click to email Engineering)

Reconciliation of the Construction Use Tax Due

If a contractor believes the taxable costs of the project are less than the 50% valuation used to determine the pre-payment, a reconciliation of final project costs may be submitted to request a refund of any excess use taxes paid. The Reconciliation Form must be completed and submitted to the Town Finance Department within 90 days of completing the project. The request is subject to an application fee, deposit and expenses.  

Use Tax on Motor Vehicles

Any motor or other vehicles purchased at retail on which registration is required are subject to a 3% use tax when stored, garaged, and maintained at a location within the Town of Mead.  Use tax is collected through the Department of Motor Vehicle at the time of registration if sales tax has not been paid upon the bill of sale.