The Sales Use Tax Exemption Wildfire Disaster Construction Act (HB23-1240) created a refundable exemption for the state sales tax paid for construction and building materials used directly in rebuilding or repairing a qualified homeowner’s qualified residential structure due to a declared wildfire disaster between Jan. 1, 2020 and Dec. 31, 2022. The state has released Form DR 0992: Application for Wildfire Rebuild Exemption Certificate and updated their FAQ page regarding this refund.
To qualify for the refund, you must meet the following criteria:
- You owned a home when it was destroyed or damaged in a declared wildfire disaster in 2020, 2021 or 2022;
- You are rebuilding or repairing that home, or you have hired a contractor to rebuild or repair that home; and
- The replacement/repair costs exceed your homeowner’s insurance coverage under any policy associated with the home.
For residents of unincorporated Boulder County with a home damaged or destroyed by the Marshall (2021), Calwood (2020), or Lefthand (2020) Fires, homeowners can submit Form DR 0992 to Community Planning and Permitting after receiving their building permit to receive a Wildfire Rebuild Exemption Certificate. For questions regarding this process, please contact Kathy Gissel, Permit & License Operations Manager, at kgissel@bouldercounty.gov.
Since launching the program, the Department of Revenue has provided clarity on the following items:
- The Department of Revenue State Sales Tax Refund for Rebuilding after a Declared Wildfire Disaster processing time is approximately 6 weeks from receipt to check issuance. This time can vary if DOR receives a large influx at one time, but statutorily, these refunds are processed prior to other types of refunds.
- Refunds will only be issued by a paper check mailed to the mailing address listed under “Homeowner Information” on the DR 0993 form submitted to DOR.
- For different ownership structures, the tax ID number may be used in place of the SSN. The property still needs to be for residential use.
- The refund is 4% of the cost amount used by the local government to collect estimated use tax in connection with the issuance of a building permit – refund amounts will not be updated based on actual material costs of the property. Property owners can submit DR 0992 to the permitting jurisdiction to receive DR 0993 for submission to DOR immediately after receiving a building permit.
Residents in Superior should contact Superior staff at marshallfire@superiorcolorado.gov or visit the Town of Superior Tax and Fee Reimbursements webpage.
Residents in Louisville should contact the Louisville Planning & Building Safety Department at building@louisvilleco.gov or visit the City of Louisville Wildfire Rebuild Tax Exemption page.
Once a permit and exemption certificate are obtained, homeowners can submit a Wildfire Refund Claim to the Colorado Department of Revenue using their Revenue Online account or by mailing the Wildfire Rebuild Exemption Certificate and building permit to:
Colorado Department of Revenue, Business Tax Accounting
PO Box 17087
Denver, CO 80217-0087.
Wildfire Refund Claims must be submitted to the Colorado Department of Revenue by June 30, 2028.