(a)
It
is the intent of the City Council, in exercising the home rule powers
reserved by the State Constitution, that, through this legislation
and in the manner described in this chapter, every person in the City
who purchases at retail, leases, consumes, stores or puts to any use
any tangible personal property or taxable services is exercising a
taxable privilege. All sales, leases and purchases of tangible personal
property and taxable services defined in this chapter are taxable
unless specifically exempted by this chapter. The sales tax imposed
upon tangible personal property by this chapter applies to each transfer
of ownership, possession and control of such property and may occur
more than once during the life of the property.
(b)
The
sales tax is a transaction levied upon all sales, purchases and leases
of tangible personal property and taxable services sold or leased
by persons engaged in business in the City and is collected by the
vendor or lessor and remitted to the City. The use tax is levied upon
the privilege of persons in the City to store, use, distribute or
consume tangible personal property located in the City and taxable
services purchased or leased at retail and furnished within the City,
whether purchased or leased inside or outside the City, and not subject
to the sales tax imposed by this chapter. The use tax is remitted
to the City by the persons storing, using, distributing or consuming
the tangible personal property or taxable services. The use tax is
a complement to the sales tax, and its purposes are to equalize competition
between in-City and out-of-City vendors and lessors of tangible personal
property and services and to eliminate incentives for City residents
to leave the City to purchase or lease tangible personal property
and taxable services.
(Code 1994 § 34-101; Code 1965 § 24-2)
The following words, terms and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
means a person regularly engaged in the business of using
land for the production of commercial crops or commercial livestock.
The term includes farmers, market gardeners, commercial fruit growers,
livestock breeders, dairymen, poultrymen, and other persons similarly
engaged, but does not include a person who breeds or markets animals,
birds, or fish for domestic pets nor a person who cultivates, grows,
or harvests plants or plant products exclusively for that person’s
own consumption or casual sale.
means a device that is used or intended to be used for flight
in the air.
means any tangible personal property that is intended to
be permanently affixed or attached as a component part of an aircraft.
means any tangible personal property that is originally designed
and intended to be permanently affixed or attached as a component
part of an aircraft, and which will also function when it is permanently
affixed or attached as a component part of an aircraft simulator.
means any operator who engages in the carriage by aircraft
of persons or property a common carrier for compensation or hire,
or the carriage of mail, or any aircraft operator who operates regularly
between two or more points and publishes a flight schedule. “Airline
company” shall not include operators whose aircraft are all
certified for a gross takeoff weight of 12,500 pounds or less and
who do not engage in scheduled service or mail carriage services.
means any sale where tangible personal property is sold
by an auctioneer who is either the agent or the owner of such property
or is in fact the owner thereof.
means any vehicle or device in, upon, or by which any person
or property is or may be transported or drawn upon a public highway
or right-of-way, or any device used or designed for aviation or flight
in the air. Such term includes, but is not limited to, motor vehicles,
trailers, semitrailers, or mobile homes. “Automotive vehicle”
shall not include devices moved by human power or used exclusively
upon stationary rails or tracks.
means all activities engaged in or caused to be engaged in
with the object of gain, benefit or advantage, direct or indirect.
means a preparation of sugar, honey, or other natural or
artificial sweeteners, in combination with chocolate, fruit, nuts,
or other ingredients or flavorings in the form of bars, drops, or
pieces. “Candy” does not include any preparation containing
flour, products that require refrigeration or marijuana-infused products.
means the services furnished by a local exchange company
to its customers who provide telecommunications services which allow
them to provide such telecommunications services.
means any entity which:
Has been certified as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code; and
Is an organization which exclusively, and in a manner consistent
with existing laws and for the benefit of an indefinite number of
persons or animals, freely and voluntarily ministers to the physical,
mental, or spiritual needs of persons or animals, and thereby lessens
the burden of government.
means municipality of Grand Junction.
means any device operated by coins or currency or any substitute
therefor.
means monetized bullion or other forms of money manufactured
from gold, silver, platinum, palladium or other such metals now, in
the future or heretofore designated as a medium of exchange under
the laws of this State, the United States or any foreign nation.
shall include, but are not limited to, all costs of audit,
assessment, bank fees, hearings, execution, lien filing, distraint,
litigation, locksmith fees, auction fees and costs, prosecution and
attorney fees.
means containers, labels, and/or cases that become part of
the finished product to the purchaser, used by or sold to a person
engaged in manufacturing, compounding, wholesaling, jobbing, retailing,
packaging, distributing or bottling for sale, profit or use, and is
not returnable to said person for reuse. “Commercial packaging
materials” does not include commercial shipping materials.
means materials that do not become part of the finished product
to the purchaser which are used exclusively in the shipping process.
include but are not limited to containers, labels, pallets,
banding material and fasteners, shipping cases, shrink wrap, bubble
wrap or other forms of binding, padding or protection.
means to build, construct, reconstruct, alter, expand, modify
or improve any building, dwelling or other structure, or improvement,
on or to real property.
means any equipment, including mobile machinery and mobile
equipment, which is used to erect, install, alter, demolish, repair,
remodel, or otherwise make improvements to any real property, building,
structure or infrastructure.
means tangible personal property which, when combined with
other tangible personal property, loses its identity to become an
integral and inseparable part of a completed structure or project
including public and private improvements. Construction materials
include, but are not limited to, such things as asphalt, bricks, builders’
hardware, caulking material, cement, concrete, conduit, electric wiring
and connections, fireplace inserts, electrical heating and cooling
equipment, flooring, glass, gravel, insulation, lath, lead, lime,
lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves
and pipe fittings, plaster, plumbing fixtures, putty, reinforcing
mesh, road base, roofing, sand, sanitary sewer pipe, sheet metal,
site lighting, steel, stone, stucco, tile, trees, shrubs and other
landscaping materials, wallboard, wall coping, wallpaper, weatherstripping,
wire netting and screen, water mains and meters, and wood preserver.
The above materials when used for forms or other items which do not
remain as an integral or inseparable part of a completed structure
or project are not construction materials.
means any person in the City who purchases, uses, stores,
distributes or otherwise consumes in the City tangible personal property
or taxable services purchased from sources inside or outside the City.
means a duly authorized agent designated by the taxing authority
and qualified to conduct tax audits on behalf of and pursuant to an
agreement with the municipality.
means any person who shall build, construct, reconstruct,
alter, expand, modify, or improve any building, dwelling, structure,
infrastructure, or other improvement to real property for another
party pursuant to an agreement. For purposes of this definition, “contractor”
also includes subcontractor.
means a charge paid to a club or similar entertainment establishment
which may, or may not, entitle the patron paying such charge to receive
tangible personal property, such as food and/or beverages.
means any equipment or system of equipment used in the storage,
manipulation, management, display, reception or transmission of information.
means an electronic product including, but not limited to:
(1) “digital images” which means works that include, but
are not limited to, the following that are generally recognized in
the ordinary and usual sense as “photographs,” “logos,”
“cartoons,” or “drawings,” (2) “digital
audio-visual works” which means a series of related images which,
when shown in succession, impart an impression of motion, together
with accompanying sounds, if any, (3) “digital audio works”
which means works that result from the fixation of a series of musical,
spoken, or other sounds, including ringtones. For purposes of the
definition of “digital audio works,” “ringtones”
means digitized sound files that are downloaded onto a device and
that may be used to alert the customer with respect to a communication,
and (4) “digital books” which means works that are generally
recognized in the ordinary and usual sense as “books.”
means the act of distributing any article of tangible personal
property for use or consumption, which may include, but not be limited
to, the distribution of advertising gifts, shoppers’ guides,
catalogs, directories, or other property given as prizes, premiums,
or for goodwill or in conjunction with the sales of other commodities
or services.
means all written, printed, typed, recorded or graphic matter,
photographic matter, sound reproductions, computer files, tapes, inputs
or outputs, however produced or reproduced, or all other matters from
which information may be obtained, and drafts and nonidentical copies
thereof. “Nonidentical copies” refers to reproductions,
however made, of the original document which have notations, markings,
comments or other material not appearing on the original.
means drugs dispensed in accordance with an order in writing,
dated and signed by a licensed practitioner of the healing arts, or
given orally by such a practitioner, and immediately reduced to writing
by the pharmacist, assistant pharmacist, or pharmacy intern, specifying
the name and address of the person for whom the medicine, drug or
poison is offered and directions, if any, to be placed on the label.
means those situations including, but not limited to, where
a person maintains a residence, place of business or business presence,
both within and outside the City. A person shall be deemed to have
established a legitimate residence, place of business or business
presence outside of the City for purposes of dual residency if the
person has a physical structure owned, leased or rented by such person
which is designated by street number or road location outside of the
City, has within it a telephone or telephones in the name of such
person and conducts business operations on a regular basis at such
location in a manner that includes the type of business activities
for which the business (person), as defined in this chapter, is organized.
means a building or any portion of a building designed for
occupancy as complete, independent living quarters for one or more
persons, having direct access from the outside of the building or
through a common hall and having living, sleeping, kitchen and sanitary
facilities for the exclusive use of the occupants.
means the connection between the City and a person not having
a physical nexus in the State of Colorado, which connection is established
when the person or marketplace facilitator makes retail sales into
the City, and:
In the previous calendar year, the person, which includes a
marketplace facilitator, has made retail sales into the State exceeding
the amount specified in C.R.S. § 39-26-102(3)(c), as amended; or
In the current calendar year, 90 days has passed following the
month in which the person, which includes a marketplace facilitator,
has made retail sales into the State exceeding the amount specified
in C.R.S. § 39-26-102(3)(c), as amended.
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This definition does not apply to any person who is doing business
in this State but otherwise applies to any other person.
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means performing or providing services or selling, leasing,
renting, delivering, or installing tangible personal property, products,
or services for storage, use or consumption, within the City. "Engaged
in business in the City" includes, but is not limited to, any one
of the following activities by a person:
Directly, indirectly, or by a subsidiary maintains a building,
store, office, salesroom, warehouse, or other place of business within
the taxing jurisdiction;
Sends one or more employees, agents or commissioned sales persons
into the taxing jurisdiction to solicit business or to install, assemble,
repair, service, or assist in the use of its products, or for demonstration
or other reasons;
Maintains one or more employees, agents or commissioned sales
persons on duty at a location within the taxing jurisdiction;
Owns, leases, rents or otherwise exercises control over real
or personal property within the taxing jurisdiction;
Retailer or vendor in the State of Colorado that makes more
than one delivery into the taxing jurisdiction within a 12-month period;
or
Makes retail sales sufficient to meet the definitional requirements
of economic nexus as set forth in this chapter.
means containers, labels or shipping cases sold to a person
engaged in manufacturing, compounding, wholesaling, jobbing, retailing,
packaging, distributing or bottling for sale, profit or use that meet
all of the following conditions:
Are used by the manufacturer, compounder, wholesaler, jobber,
retailer, packager, distributor or bottler to contain or label the
finished product;
Are transferred by such person along with, and as a part of,
the finished product to the purchaser; and
Are not returnable to such person for reuse.
means a manufactured home or modular home.
means full and final disposition of all tangible personal
property previously used by a farmer or rancher in farming or ranching
operations which are being abandoned.
means any farm tractor, as defined in § 42-1-102(33), C.R.S., any implement of husbandry, as defined in § 42-1-102(44), C.R.S., and irrigation equipment having a per unit purchase price
of at least $1,000. “Farm equipment” also includes, regardless
of purchase price, attachments and bailing wire, binder’s twine
and surface wrap used primarily and directly in any farm operation.
“Farm equipment” also includes, regardless of purchase
price, parts that are used in the repair or maintenance of the farm
equipment described in this definition, all shipping pallets, crates,
or aids paid for by a farm operation, and aircraft designed or adapted
to undertake agricultural applications. “Farm equipment”
also includes, regardless of purchase price, dairy equipment. Except
for shipping pallets, crates or aids used in the transfer or shipping
of agricultural products, “farm equipment” does not include:
(1) vehicles subject to the registration requirements of § 42-3-103,
C.R.S., regardless of the purpose for which such vehicles are used;
(2) machinery, equipment, materials, and supplies used in a manner
that is incidental to a farm operation; (3) maintenance and janitorial
equipment and supplies; and (4) tangible personal property used in
any activity other than farming, such as office equipment and supplies
and equipment and supplies used in the sale or distribution of farm
products, research, or transportation.
means the production of any of the following products for
profit, including, but not limited to, a business that hires out to
produce or harvest such products:
means the Finance Director of the City or such other person
designated by the municipality; “Finance Director” shall
also include such person’s designee.
means food for domestic home consumption as defined in 7 U.S.C. Section 2012(k) (2014),
as amended, for purposes of the Supplemental Nutrition Assistance
Program, or any successor program, as defined in 7 U.S.C. Section 2012(t),
as amended, except that “food” does not include carbonated
water marketed in containers; chewing gum; seeds and plants to grow
food; prepared salads and salad bars; packaged and unpackaged cold
sandwiches; delicatessen trays; and hot or cold beverages served in
unsealed containers or cups that are vended by or through machines
or non-coin-operated coin-collecting food and snack devices on behalf
of a vendor.
means the total amount received in money, credit, property
or other consideration valued in money for all sales, leases, or rentals
of tangible personal property or services.
means services that provide or enable computer access by
multiple users to the internet, but shall not include that portion
of packaged or bundled services providing phone or television cable
services when the package or bundle includes the sale of internet
access services.
means software programs, systems, data and applications available
online through rental, lease or subscription that provide information
and services including, but not limited to, data linking, data research,
data analysis, data filtering or record compiling.
means a City sales and use tax license.
means services involving provision and cleaning of linens,
including, but not limited to, rags, uniforms, coveralls and diapers.
means the furnishing of rooms or accommodations by any person
to another person who for a consideration uses, possesses, or has
the right to use or possess any room in a hotel, inn, bed and breakfast,
residence, apartment, hotel, lodginghouse, motor hotel, guesthouse,
guest ranch, trailer coach, mobile home, auto camp, or trailer court
and park, or similar establishment, for a period of less than 30 days
under any concession, permit, right of access, license to use, or
other agreement, or otherwise.
means any apparatus consisting of interrelated parts used
to produce an article of tangible personal property. The term includes
both the basic unit and any adjunct or attachment necessary for the
basic unit to accomplish its intended function.
includes print and electronic versions of publications that
appear at stated intervals at least four times per year, and contains
news or information of general interest to the public or to some particular
organization or group of people. “Magazine” does not include
books published or issued at stated intervals, advertising pamphlets,
circulars, fliers, guides or handbooks, catalogs, programs, scorecards,
maps, real estate brokers’ listings, price or order books, printed
sales messages, shopping guides, corporate reports issued to stockholders,
media advertising or direct mail advertising services. Magazines that
sell for more than the original selling price are considered collectible
items and are subject to sales tax. For example, a first edition of
a comic book, sold for more than the original price, would be subject
to sales tax as a collectible.
means any preconstructed building unit or combination of
preconstructed building units, without motive power, where such unit
or units are manufactured in a factory or at a location other than
the residential site of the completed home, which are designed and
commonly used for occupancy by persons for residential purposes, in
either temporary or permanent locations, and which unit or units are
not licensed as a vehicle.
means the operation or performance of an integrated series
of operations which places a product, article, substance, commodity,
or other tangible personal property in a form, composition or character
different from that in which it was acquired whether for sale or for
use by a manufacturer. The change in form, composition or character
must result in a different product having a distinctive name, character
or use from the raw or prepared materials.
means machinery or machine tools used directly and exclusively
in manufacturing by a person engaged in manufacturing, compounding
for sale, profit or use any article, substance or commodity.
means a physical or electronic forum, including, but not
limited to, a store, a booth, an internet website, a catalog, or a
dedicated sales software application, where tangible personal property,
taxable products, or taxable services are offered for sale.
means a person who:
Contracts with a marketplace seller or multichannel seller to
facilitate for consideration, regardless of whether or not the consideration
is deducted as fees from the transaction, the sale of the marketplace
seller’s tangible personal property, products, or services through
the person’s marketplace;
Engages directly or indirectly, through one or more affiliated
persons, in transmitting or otherwise communicating the offer or acceptance
between a purchaser and the marketplace seller or multichannel seller;
or
Either directly or indirectly, through agreements or arrangements
with third parties, collects payment from the purchaser on behalf
of the seller.
does not include a person that exclusively provides internet
advertising services or lists products for sale, and that does not
otherwise meet this definition.
means:
A marketplace facilitator engaged in business in the City is
required to collect and remit sales tax on all taxable sales made
by the marketplace facilitator or facilitated by it for marketplace
sellers or multichannel sellers to customers in the City, whether
or not the marketplace seller for whom sales are facilitated would
have been required to collect sales tax had the sale not been facilitated
by the marketplace facilitator.
A marketplace facilitator shall assume all the duties, responsibilities,
and liabilities of a retailer under this section.
Marketplace facilitators shall be liable for the taxes collected
from marketplace sellers or multichannel sellers. The City may recover
any unpaid taxes, penalties, and interest from the marketplace facilitator
that is responsible for collecting on behalf of marketplace sellers
or multichannel sellers.
The liabilities, obligations, and rights set forth under this
chapter are in addition to any duties and responsibilities the marketplace
facilitator has under this chapter if it also offers for sale tangible
personal property, products, or services through other means.
A marketplace seller, with respect to sales of tangible personal
property, products, or services made in or through a marketplace facilitator’s
marketplace, does not have the liabilities, obligations, or rights
of a retailer under this chapter if the marketplace seller can show
that such sale was facilitated by a marketplace facilitator:
With whom the marketplace seller has a contract that explicitly
provides that the marketplace facilitator will collect and remit sales
tax on all sales subject to tax under this chapter; or
From whom the marketplace seller requested and received in good
faith a certification that the marketplace facilitator is registered
to collect sales tax and will collect sales tax on all sales subject
to tax under this chapter made in or through the marketplace facilitator’s
marketplace.
If a marketplace seller makes a sale that is not facilitated
by a licensed marketplace facilitator in a marketplace, the marketplace
seller is subject to all of the same licensing, collection, remittance,
filing and recordkeeping requirements as any other retailer.
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With respect to any sale, the City shall solely audit the marketplace
facilitator for sales made by marketplace sellers or multichannel
sellers but facilitated by the marketplace. The City will not audit
or otherwise assess tax against marketplace sellers or multichannel
sellers for sales facilitated by a marketplace seller.
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No obligation to collect the sales and use tax required by this
chapter may be applied retroactively. Responsibilities, duties, and
liabilities described in this section of a marketplace facilitator,
marketplace seller, or multichannel seller begin upon the earlier
of when they became licensed to collect the city’s sales tax
or when they became legally obligated to collect the city’s
sales tax under this chapter.
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means a person, regardless of whether or not the person is
engaged in business in the city, which has an agreement with a marketplace
facilitator and offers for sale tangible personal property, products,
or services through a marketplace owned, operated, or controlled by
a marketplace facilitator.
means marijuana acquired, possessed, cultivated, manufactured,
delivered, transported, supplied, sold, or dispensed to a person who
qualifies as a patient with a debilitating medical condition(s) under
Article XVIII, Section 14, of the Colorado Constitution, and which person holds
a valid “registry identification card” issued by the State
of Colorado pursuant to Colorado Constitution Article XVIII, Section 14.
means drugs dispensed in accordance with a prescription;
insulin in all its forms dispensed pursuant to the direction of a
licensed physician; glucose usable for treatment of insulin reactions;
urine- and blood-testing kits and materials; insulin measuring and
injecting devices, including hypodermic syringes and needles; prosthetic
devices; wheelchairs and hospital beds; drugs or materials when furnished
by a practitioner of the healing arts as part of professional services
provided to an individual; and corrective eyeglasses, contact lenses,
or hearing aids.
means those vehicles, self-propelled or otherwise, which
are not designed primarily for the transportation of persons or cargo
over the public highways; and those motor vehicles which may have
originally been designed for the transportation of persons or cargo
over the public highways, and those motor vehicles which may have
originally been designed for the transportation of persons or cargo
but which have been redesigned or modified by the mounting thereon
of special equipment or machinery, and which may be only incidentally
operated or moved over the public highways; and includes, but is not
limited to, wheeled vehicles commonly used in the construction, maintenance,
and repair of roadways, the drilling of wells, or the digging of ditches.
means any structure that consists of multiple sections fabricated,
formed or assembled in manufacturing facilities for installation and
assembly at the building site, and is constructed to the building
codes adopted by the State Division of Housing, created in § 24-32-706, C.R.S., and is designed to be installed on a permanent foundation.
means gasoline, casing head or natural gasoline, benzol,
benzene and naphtha, gasohol and any other liquid prepared, advertised,
offered for sale, sold for use or used or commercially usable in internal
combustion engines for the generation of power for the propulsion
of motor vehicles upon the public highways. The term does not include
fuel used for the propulsion or drawing of aircraft or railroad cars
or railroad locomotives.
means a retailer that offers for sale tangible personal property,
commodities, or services through a marketplace owned, operated, or
controlled by a marketplace facilitator, and through other means.
means a publication, printed on newsprint, intended for general
circulation, and published regularly at short intervals, containing
information and editorials on current events and news of general interest.
The term “newspaper” does not include magazines, trade
publications or journals, credit bulletins, advertising inserts, circulars,
directories, maps, racing programs, reprints, newspaper clipping and
mailing services or listings, publications that include an updating
or revision service, or books or pocket editions of books.
includes paper money, such as bank notes, coin-like metals
and items used in place of currency and securities and/or stocks,
bonds and certificates when the same are held, sold or transferred
as collectibles.
means retail sales by charitable organizations for fundraising
purposes, which funds are retained by the organization to be used
in the course of that organization’s charitable service to the
community, provided the following occur:
means sales of tangible personal property, except automotive
vehicles, occurring online, where the property to be sold was originally
purchased for use by the seller or members of the seller’s household.
means a parent of a student.
means any individual, firm, partnership, joint venture, corporation,
limited liability company, estate or trust, receiver, trustee, assignee,
lessee, or any person acting in a fiduciary or representative capacity,
whether appointed by court or otherwise, or any group or combination
acting as a unit.
means a power system designed to supply usable solar power
by means of photovoltaics, a method of converting solar energy into
direct current electricity using semiconducting materials that create
voltage or electric current in a material upon exposure to light.
It consists of an arrangement of several components, including solar
panels to absorb and convert sunlight into electricity, a solar inverter
to change the electric current from DC to AC, as well as mounting,
cabling, metering systems and other electrical accessories to set
up a working system.
means any precious metal, including, but not limited to,
gold, silver, platinum, palladium, that has been put through a process
of refining and is in such a state or condition that its value depends
upon its precious metal content and not its form.
means all materials used by those in the printing industry,
including, but not limited to, airbrush color photos, color keys,
dies, engravings, light-sensitive film, light-sensitive paper, masking
materials, Mylar, plates, proofing materials, tape, transparencies,
and veloxes, which are used by printers in the preparation of customer
specific layouts or in plates used to fill customers’ printing
orders, which are eventually sold to a customer, either in their original
purchase form or in an altered form, and for which a sales or use
tax is demonstrably collected from the printer’s customer, if
applicable, either separately from the printed materials or as part
of the inclusive price therefor. Materials sold to a printer which
are used by the printer for the printer’s own purposes, and
are not sold, either directly or in an altered form, to a customer,
are not included within this definition.
means inserts, attachments, or supplements circulated in
newspapers that:
means a drug which, prior to being dispensed or delivered,
is required by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. Section 301 et seq.,
as amended, to state at a minimum the symbol “Rx Only,”
and is dispensed in accordance with any order in writing, dated and
signed by a licensed veterinarian specifying the animal for which
the medicine or drug is offered and directions, if any, to be placed
on the label.
means a drug which, prior to being dispensed or delivered,
is required by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. Section 301 et seq.,
as amended, to state at a minimum the symbol “Rx Only,”
and is dispensed in accordance with any written or electronic order
dated and signed by a licensed practitioner of the healing arts, or
given orally by a practitioner and immediately reduced to writing
by the pharmacist, assistant pharmacist, or pharmacy intern, specifying
the name and any required information of the patient for whom the
medicine, drug or poison is offered and directions, if any, to be
placed on the label.
means the aggregate value measured in currency paid or delivered
or promised to be paid or delivered in consummation of a sale, without
any discount from the price on account of the cost of materials used,
labor or service cost, and exclusive of any direct tax imposed by
the federal government or by this chapter, and, in the case of all
retail sales involving the exchange of property, also exclusive of
the fair market value of the property exchanged at the same time and
place of the exchange, if:
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(1)
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Such exchanged property is to be sold thereafter in the usual
course of the retailer’s business; or
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(2)
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Such exchanged property is a vehicle and is exchanged for another
vehicle and both vehicles are subject to licensing, registration,
or certification under the laws of this State, including, but not
limited to, vehicles operating upon public highways, off-highway recreational
vehicles, watercraft, and aircraft. Any money or other consideration
paid over and above the value of the exchanged property is subject
to tax.
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Price or purchase price includes:
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(1)
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The amount of money received or due in cash and credits;
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(2)
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Property at fair market value taken in exchange but not for
resale in the usual course of the retailer’s business;
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(3)
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Any consideration valued in money, such as trading stamps or
coupons whereby the manufacturer or any other person reimburses the
retailer for part of the purchase price and other media of exchange;
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(4)
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The total price charged on credit sales, including finance charges
which are not separately stated. An amount charged as interest on
the unpaid balance of the purchase price is not part of the purchase
price unless the amount added to the purchase price is included in
the principal amount of a promissory note; except that the interest
or carrying charge set out separately from the unpaid balance of the
purchase price on the face of a note or other written evidence of
debt is not part of the purchase price. An amount charged for insurance
on the property sold and separately stated is not part of the purchase
price;
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(5)
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Installation, delivery and wheeling-in charges included in the
purchase price and not separately stated;
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(6)
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Transportation and other charges to effect delivery of tangible
personal property to the purchaser;
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(7)
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Indirect federal manufacturers’ excise taxes, such as
taxes on automobiles, tires and floor stock; and
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(8)
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The gross purchase price of articles sold after manufacturing
or after having been made to order, including the gross value of all
materials used, labor and service performed and the profit thereon.
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Price or purchase price shall
not include:
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(1)
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Any sales or use tax imposed by the State or by any political
subdivision thereof;
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(2)
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The fair market value of property exchanged if such property
is to be sold thereafter in the retailer’s usual course of business.
This is not limited to exchanges in the State. Out-of-State trade-ins
are not included in the purchase price;
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(3)
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Discounts from the original price if such discount and the corresponding
decrease in sales tax due is actually passed on to the purchaser.
An anticipated discount to be allowed for payment on or before a given
date is included in the purchase price.
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means telecommunications services furnished to a subscriber,
which entitles the subscriber to exclusive or priority use of any
communication channel or groups of channels, or to the exclusive or
priority use of any interstate intercommunications system for the
subscriber’s stations.
means any artificial limb, part, device or appliance for
animal use which replaces a body part or aids or replaces a bodily
function; is designed, manufactured, altered or adjusted to fit a
particular patient; and is prescribed by a licensed veterinarian.
“Prosthetic devices” include, but are not limited to,
prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic
devices or appliances, and oxygen concentrators with related accessories.
means any artificial limb, part, device or appliance for
human use which aids or replaces a bodily function; is designed, manufactured,
altered or adjusted to fit a particular individual; and is prescribed
by a licensed practitioner of the healing arts. The term “prosthetic
devices” includes, but is not limited to, prescribed auditory,
ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances,
oxygen concentrators, and oxygen with related accessories.
means the acquisition, for any consideration by any person,
of tangible personal property, other taxable products or taxable services
that are purchased, leased, rented, or sold. These terms include capital
leases, installment and credit sales, and property and services acquired
by:
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(1)
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Transfer, either conditionally or absolutely, of title or possession
or both to tangible personal property, other taxable products, or
taxable services;
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(2)
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A lease, lease-purchase agreement, rental or grant of a license,
including royalty agreements, to use tangible personal property, other
taxable products, or taxable services. The utilization of coin-operated
devices, except coin-operated telephones, which do not vend articles
of tangible personal property shall be considered short-term rentals
of tangible personal property;
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(3)
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Performance of taxable services; or
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(4)
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Barter or exchange for other tangible personal property, other
taxable products, or services.
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The terms purchase and sale do not include:
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(1)
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A division of partnership assets among the partners according
to their interests in the partnership;
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(2)
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The transfer of assets of shareholders in the formation or dissolution
of professional corporations, if no consideration including, but not
limited to, the assumption of a liability is paid for the transfer
of assets;
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(3)
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The dissolution and the pro rata distribution of the corporation’s
assets to its stockholders, if no consideration including, but not
limited to, the assumption of a liability is paid for the transfer
of assets;
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(4)
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A transfer of a partnership or limited liability company interest;
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(5)
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The transfer of assets to a commencing or existing partnership
or limited liability company, if no consideration including, but not
limited to, the assumption of a liability is paid for the transfer
of assets;
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(6)
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The repossession of personal property by a chattel mortgage
holder or foreclosure by a lienholder;
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(7)
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The transfer of assets from a parent company to a subsidiary
company or companies which are owned at least 80 percent by the parent
company, which transfer is solely in exchange for stock or securities
of the subsidiary company;
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(8)
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The transfer of assets from a subsidiary company or companies
which are owned at least 80 percent by the parent company to a parent
company or to another subsidiary which is owned at least 80 percent
by the parent company, which transfer is solely in exchange for stock
or securities of the parent corporation or the subsidiary which received
the assets;
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(9)
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The transfer of assets between parent and closely held subsidiary companies, or between subsidiary companies closely held by the same parent company, or between companies which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share-by-share basis, when a tax imposed by this chapter was paid by the transferor company at the time it acquired such assets, except to the extent that there is an increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor company. To such an extent any transfer referred to in this subsection (9) shall constitute a sale. For the purposes of this subsection (9), a closely held subsidiary corporation is one in which the parent company owns stock possessing or membership interest at least 80 percent of the total combined voting power of all classes of stock entitled to vote and owns at least 80 percent of the total number of shares of all other classes of stock.
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means any tangible personal property that is originally designed
and intended to be permanently affixed or attached as a component
part of a locomotive or rail car used by a rail carrier.
means all services relating to athletic or entertainment
participation events and/or activities including but not limited to
pool, golf, billiards, skating, tennis, bowling, health/athletic club
memberships, coin-operated amusement devices, video games and video
club memberships.
means any energy resource that is naturally regenerated over
a short time scale and derived directly from the sun (such as thermal,
photochemical, and photoelectric), indirectly from the sun (such as
wind, hydropower, and photosynthetic energy stored in biomass), or
from other natural movements and mechanisms of the environment (such
as geothermal and tidal energy). “Renewable energy” does
not include energy resources derived from fossil fuels, waste products
from fossil sources, or waste products from inorganic sources.
means a person who resides or maintains one or more places
of business within the City, regardless of whether that person also
resides or maintains a place of business outside of the City.
is an entity licensed to purchase cannabis from cannabis
cultivation facilities and to sell cannabis and cannabis products
to consumers and retail cannabis testing facilities that are licensed
to analyze and certify the safety and potency of cannabis.
mean all sales except wholesale sales.
means any person selling, leasing, renting or granting a
license to use tangible personal property or services at retail. The
term “retailer” or “vendor” shall include,
but is (are) not limited to, any:
Auctioneer;
Salesperson, representative, peddler or canvasser who makes
sales as direct or indirect agent of, or obtains such property or
services sold from, a dealer, distributor, supervisor or employer;
Charitable organization or governmental entity which makes sales
of tangible personal property to the public, notwithstanding the fact
that the merchandise sold may have been acquired by gift or donation
or that consideration received is to be used for charitable or governmental
purposes;
Retailer-contractor, when acting in the capacity of a seller
of building supplies, construction materials, and other tangible personal
property; and
Marketplace facilitator, marketplace seller or multichannel
seller.
means a contractor who is also a retailer of building supplies,
construction materials, or other tangible personal property, and purchases,
manufactures, or fabricates such property for sale (which may include
installation), repair work, time and materials, jobs, and/or lump
sum contracts.
means any form prescribed by the City/town administration
for computing and reporting a total tax liability.
means a sale of a commodity or service from which all proceeds
of the sale, less only the actual cost of the commodity or service
to a person or entity as described in this code, are donated to a
school or a school-approved student organization.
means the tax to be collected and remitted by a retailer
on sales taxed pursuant to this chapter.
means a public or nonpublic school for students in kindergarten
through twelfth grade or any portion thereof.
means electronic security system services. Such term does
not include nonelectronic security services such as consulting or
human or guard dog patrol services.
means a nonalcoholic beverage that contains natural or artificial
sweeteners. “Soft drink” does not include beverages that
contain milk or milk products, soy, rice, or similar milk substitutes,
or greater than 50 percent of vegetable or fruit juice by volume.
means software that is rented, leased or subscribed to from
a provider and used at the consumer’s location, including but
not limited to applications, systems or programs.
means a fee charged for the right to use, access, or maintain
software programs.
means an agreement, typically with a software provider, that
may include:
means a sequence of instructions that can be measured, interpreted
and executed by an electronic device (e.g., a computer, tablets, smart
phones) regardless of the means by which it is accessed or the medium
of conveyance. Software program includes:
Custom software program, which is a software program prepared
to the special order or specifications of a single customer;
Pre-written software program, which is a software program prepared
for sale or license to multiple users, and not to the special order
or specifications of a single customer. Pre-written software is commonly
referred to as “canned,” “off-the-shelf (“COTS”),”
“mass produced” or “standardized”;
Modified software, which means pre-written software that is
altered or enhanced by someone other than the purchaser to create
a program for a particular user; and
The generic terms “software,” “software application,”
as well as “updates,” “upgrades,” “patches,”
“user exits,” and any items which add or extend functionality
to existing software programs.
means a system whose primary purpose is to use energy from
the sun to produce heat or cold for: (1) heating or cooling a residential
or commercial building; (2) heating or cooling water; or (3) any industrial,
commercial, or manufacturing process.
means the provision of broadcast or prerecorded audio programming
to a building or portion thereof. “Sound system service”
does not include installation of sound systems where the entire system
becomes the property of the building owner or the sound system service
is for presentation of live performances.
means kerosene oil, kerosene distillate, diesel fuel, all
liquefied petroleum gases, and all combustible gases and liquids for
use in the generation of power for propulsion of motor vehicles upon
the public highways. The term does not include fuel used for the propulsion
or drawing of aircraft, rail cars or railroad locomotives.
means any sales event which includes more than three vendors
taking place at a single location for a limited period of time not
to exceed seven consecutive days.
means any keeping or retention of, or exercise dominion or
control over, or possession of, for any length of time, tangible personal
property not while in transit but on a stand-still basis for future
use when leased, rented or purchased at retail from sources either
within or without the City from any person or vendor.
means any person enrolled in a school.
means personal property that can be one or more of the following:
seen, weighed, measured, felt, touched, stored, transported, exchanged,
or that is in any other manner perceptible to the senses.
means the use tax due from a consumer or the sales tax due
from a retailer or the sum of both due from a retailer who also consumes.
means any amount of tax, penalty, interest, or other fee
that is not reported and paid on or before the due date that any return
or payment of the tax is required under the terms of this chapter.
means gross sales less any exemptions and deductions specified
in this chapter.
means services subject to tax pursuant to this chapter.
means any person obligated to collect and/or pay tax under
the terms of this chapter.
means the service of which the object is the transmission
of any two-way interactive electromagnetic communications, including
but not limited to voice, image, data and any other information, by
the use of any means including, but not limited to, wire, cable, fiber
optical cable, microwave, radio wave, voice over internet protocol
(VoIP), or any combinations of such media including any form of mobile
two-way communication. “Telecommunications service” does
not include separately stated nontransmission services which constitute
computer processing applications used to act on the information to
be transmitted.
means audio or visual content that can be transmitted electronically
by any means, for which a charge is imposed.
means devices, appliances or related accessories that are
sold to correct or treat a human physical disability or surgically
created abnormality.
means a telecommunications service that allows a caller to
dial a number without incurring an additional charge for the call.
means the total of all tax, penalties and/or interest owed
by a taxpayer and shall include sales tax collected in excess of such
tax computed on total sales.
means a sale by any person who engages in a temporary business
of selling and delivering goods within the City for a period of no
more than seven consecutive days.
means any person who engages in the business of transient/temporary
sales.
means the exercise for any length of time by any person within
the City of any right, power or dominion over tangible personal property
or services when rented, leased or purchased at retail from sources
either within or without the City from any person or vendor or used
in the performance of a contract in the City whether such tangible
personal property is owned or not owned by the taxpayer. “Use”
also includes the withdrawal of items from inventory for consumption.
means the tax paid or required to be paid by a consumer for
using, storing, distributing or otherwise consuming tangible personal
property or taxable services inside the City.
means any outbound or inbound interstate-wide area telecommunications
service or other similar service which entitles the subscriber, upon
payment of a periodic charge, based upon a flat amount and/or usage,
to make or receive a large volume of telephonic communications to
or from persons having telephone or radio telephone stations in specified
areas which are outside the telephone system area in which the subscriber’s
station is located.
means a sale by a wholesaler to retailers, jobbers, dealers
or other wholesalers for resale and does not include a sale by wholesalers
to users or consumers not for resale; latter types of sales shall
be deemed to be retail sales and shall be subject to the provisions
of this chapter. Wholesale sales of retail marijuana are subject to
an excise tax under the provisions of this chapter.
means any person doing an organized wholesale or jobbing
business and selling to retailers, jobbers, dealers or other wholesalers
for resale, and not for storage, use, consumption or distribution.
means the retail sale of tangible personal property by an individual who resides on the real estate on which the retail sale occurs for which sales occur no more than four calendar days, whether consecutive or not, in any 12-month period, and which the gross sales do not exceed $5,000 in any 12-month period, so long as such individual is not authorized to operate a home occupation, pursuant to GJMC § 21.02.040, from out of the residence at which the retail sale occurs. This term includes, but is not limited to, garage sales, estate sales, and block sales.
(Ord. No. 5195, 1/3/2024; Ord. 5118, 1-4-23; Ord. 5065, 4-6-22; Ord. 4892, 12-4-19; Ord. 4729, 12-7-16; Ord. 4576, 4-3-13; Ord. 4449, 1-5-11. Code 1994 § 34-102; Code 1965 § 24-3)
(a)
Sales Tax.
There is hereby levied a tax or excise upon all sales of tangible personal property and services specified in GJMC § 3.12.050. The rate levied shall be 3.39 percent of the purchase price.
(b)
Use Tax.
There is hereby imposed and shall be collected
from every person in the City a use tax for the privilege of storing,
using, distributing, or consuming in the City any articles of tangible
personal property or taxable services purchased for which no City
sales tax has been paid. The rate levied shall be 3.39 percent of
the purchase price.
(c)
In addition to the general sales and use tax of 3.39 percent levied in subsection (a) of this section, there is hereby levied a special sales and use tax of six percent on the full purchase price paid or charged for tangible personal property and taxable services purchased or sold at retail by any retail marijuana store exercising a taxable privilege in the City by the sale of such property or services. Each retail marijuana store shall collect tax on every sale or transfer of retail marijuana product(s). The 9.39 percent sales and use tax shall be collected by the vendor and remitted to the City.
All revenue derived through the general sales tax of 3.39 percent
on retail marijuana sales shall be used for general municipal purposes
and/or as restricted by previous voter action.
All revenue derived through the special sales and use tax of
six percent on retail marijuana sales shall be used for the enforcement
of regulations on the regulated marijuana industry and other costs
related to the regulation of regulated marijuana and lawful utilization
of marijuana, the building, operating and maintenance of the highest
priorities of the adopted Parks and Recreation Open Space Plan which
includes indoor and outdoor recreating and park facilities, capital
improvements and enhancements to the City’s parks, trails and
open space, public safety, enforcement and administrative purposes
and for comprehensive substance abuse programs including, without
limitation, prevention, treatment, education, responsible use, intervention,
and monitoring of unlawful consumption of marijuana all as approved
by voters in April 2019 with the passage of Ballot Measure 2A.
(d)
The
voter approved tax of 0.14 percent, which is an exception to the revenue
and spending limits of Article X, Section 20 of the Colorado
Constitution, shall be imposed, collected, and spent to finance the
costs of debt service, construction, equipping, and furnishing, and
if available, operating and maintaining, an indoor community recreation
center (CRC) at Matchett Park. The CRC is described in the adopted
2022 CRC Plan, and as approved by voters in April 2023 with the passage
of Ballot Measure 1A. With the increased sales and use tax the City
will issue debt to provide financing for the costs of construction
of the CRC with the debt being payable from the tax increase or any
other general revenue of the City.
(Ord. 5141, 5-3-23; Ord. 5065, 4-6-22; Ord. 4887, 11-6-19. Code 1994 § 34-103; Code 1965 § 24-4)
The taxes levied by this chapter are imposed upon, and are to
be paid by, the purchaser. Each seller engaged in business in the
City shall collect such tax and remit it to the City pursuant to the
schedules or systems approved and specified by the City Manager.
(a)
The
tax imposed in this chapter shall continue to be levied and collected
until specifically amended or repealed by ordinance.
(b)
The
tax imposed in this chapter shall be in addition to all other taxes
imposed by law.
(Code 1994 § 34-104; Code 1965 § 24-5)
The sales tax levied by GJMC § 3.12.030(a) shall apply to the purchase price of the following:
(a)
Tangible
personal property that is sold, leased or rented, whether or not such
property has been included in a previous taxable transaction.
(b)
Telecommunications
services for all international, interstate and intrastate telecommunications
service originating from or received on telecommunications equipment
in the City if the charge for the service is billed to an apparatus,
telephone, or account in this City, without regard to where the bill
for such services is actually received, except:
(1)
Carrier access services; and
(2)
Interstate or international private communications service.
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If a taxpayer presents to the City Manager written proof of
a sales tax paid to another municipal taxing entity of such telecommunications
services, the City Manager shall credit against the tax accruing under
this chapter the amount of tax actually paid by the taxpayer to another
municipal taxing entity. If the tax accruing under this chapter exceeds
the amount of the tax actually paid by the taxpayer to another municipal
taxing entity, the taxpayer shall pay the difference to the City.
The credit provided for in this section shall not be allowed if the
tax actually paid by the taxpayer to another municipal taxing entity
was not by law required to be paid.
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(c)
Telecommunications
services sold for resale to other persons for purposes of providing
telecommunications services to the final end user will not be subject
to the sales tax.
(d)
Installation
in the City of equipment which is used to receive or transmit telecommunications
service.
(e)
Meals
sold to employees, except that meals which are sold to employees at
a reduced charge and which are reported to the Internal Revenue Service
as part of the employee’s salary, wages or income shall be exempt
from taxation under this section.
(f)
Natural
gas, manufactured gas, liquefied gas, electricity, steam, coal, wood,
fuel oil, coke, or nuclear energy furnished for commercial consumption,
whether furnished by municipal, public, or private corporations or
enterprises or any other person.
(g)
Warranty
or maintenance services relating to tangible personal property, whether
included in the cost of the tangible personal property relating thereto
or sold separately.
(h)
Lodging
services.
(i)
Coin-operated
services that dispense tangible personal property.
(j)
Food
or drink served or furnished in or by restaurants, cafes, lunchcounters,
cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets,
resorts, snackbars, caterers, carryout shops, and other like places
of business at which prepared food or drink is regularly sold, including
sales from pushcarts, motor vehicles, and other mobile facilities.
Cover charges shall be included as part of the amount paid for such
food or drink.
(Ord. 4903, 2-5-20. Code 1994 § 34-105; Code 1965 § 24-6)
(a)
Notwithstanding any other provision of this chapter, and in
order to implement the provisions of the PI Funding Agreement, dated
as of the Effective Date thereof (as amended or supplemented from
time to time, the "PI Funding IGA"), by and among the City of Grand
Junction, the Western Slope Metropolitan District and CV NG, LLC,
there shall be granted to each person or entity obligated to pay,
collect or remit sales tax on the sale of tangible personal property
at retail or the furnishing of services, which are subject to City
sales tax occurring within the PIF Property, as defined in the PIF
Covenant, and incorporated herein by this reference, a tax credit
against collection of the sales tax as hereinafter set forth. Such
sales tax credit shall be granted in form of a reduction in the applicable
sales tax rate in an amount equivalent to 2.00%, the rate of the Credit
PIF, and shall attach to a particular transaction only to the extent
that the PIF Revenues are received by the PIF Collecting Agent for
such transaction. The sales tax credit shall be automatic and shall
take effect immediately upon the occurrence of a Taxable Sales Transaction
as defined in this Code and the PI Funding IGA within the PIF Property
but shall be subject to the applicable retailer's remittance
to and receipt by the PIF Collecting Agent of the Credit PIF Revenues
in accordance with the PIF Covenant and the PI Funding IGA. The Sales
Tax Credit shall be granted during the Credit PIF Period and shall
automatically terminate when the Credit PIF Period terminates.
(b)
All capitalized terms used in this section and not otherwise
defined herein shall have the meanings set forth in the PI Funding
IGA.
(Ord. No. 5167, 8/16/2023)
The use tax levied by GJMC § 3.12.030(b) shall apply to the purchase price of the following:
(a)
Tangible
personal property purchased for use in the City without previous payment
of the sales or use tax and used, stored, or consumed in the City
in conjunction with the rendering of a service.
(b)
Tangible
personal property purchased at wholesale or component parts purchased
for manufacture which are subsequently used by the taxpayer, either
personally or in the business.
(c)
Taxable
services purchased without previous payment of the sales tax.
(d)
Automotive
vehicles required to be registered at an address inside the City on
which a municipal sales tax has not been paid. The County Clerk or
the City’s authorized agent is authorized to collect such tax
for the City prior to or at the time of registration.
(1)
The determination of vehicle registration requirements for individuals
shall be the same as for the determination of residency for voter
registration purposes.
(2)
The determination of vehicle registration requirements for a vehicle
which is owned by any person and operated primarily for business purposes
shall be based on the address from which such motor vehicles are principally
operated or maintained.
(e)
Construction or building materials which are used or consumed within the City and upon which a sales or use tax equal to or greater than the rate set in GJMC § 3.12.030(a) has not been paid.
(Code 1994 § 34-106; Code 1965 § 27-7)
The tax levied by GJMC § 3.12.030(a) shall not apply to the following:
(a)
Vehicles purchased by nonresidents of the City for registration outside the City, except business vehicles pursuant to GJMC § 3.12.060(d)(2).
(b)
Sale
of tangible personal property when both of the following conditions
exist:
(c)
Sale
of construction materials and fixtures to licensed building contractors
purchased within the City for use outside the City when compliance
with all three of the following conditions exists:
(1)
That such licensed building contractor shall certify to the vendor
that the construction materials and fixtures so purchased are to be
used outside the City;
(2)
That construction materials and fixtures are delivered to the licensed
building contractor outside the City by common carrier, by the conveyance
of the seller, or by the motor vehicle of the licensed building contractor;
(3)
That such exemption shall not apply to tools, machinery or parts
for repair of such tools and machinery used by such licensed building
contractor in his trade or occupation. Such certification to the vendor
by the licensed building contractor shall be made on forms furnished
by the Finance Director, and any sale so made without proper certification
shall be subject to the sales tax provided in this chapter.
(d)
Sale
of tangible personal property for use outside the City to persons
engaged in manufacturing, processing, mining, or to an irrigation
company when compliance with all of the following conditions exist:
(1)
That such purchaser shall certify to the vendor that the tangible
personal property is to be used outside the City;
(2)
That such purchase of tangible personal property is delivered to
the purchaser outside the City by common carrier, or by conveyance
of seller, or by the motor vehicle of such purchaser;
(3)
That such exemption shall not apply to tools, machinery or parts
for repairs of such tools and machinery used by such purchaser in
his trade or occupation. Such certification to the vendor by the purchaser
shall be made on forms furnished by the Finance Director, and any
sale so made without proper certification shall be subject to the
sales tax provided in this chapter.
(e)
The
sale and purchase of medical supplies.
(f)
An
occasional sale.
(g)
A
yard sale.
(h)
Sale
of prosthetic devices.
(i)
Sale
of a drug dispensed in accordance with a prescription.
(j)
Cigarettes.
(k)
A
direct sale to a charitable organization in the conduct of its charitable
functions and activities, when billed to and paid for by the charitable
organization.
(l)
All
sales of construction and building materials to contractors and subcontractors
for use in the building, erection, alteration or repair of structures,
highways, roads, streets and other public works owned or used by charitable
organizations in the conduct of their regular charitable functions
and activities.
(m)
All
direct sales to the United States government, the State, its departments
or institutions, and the political subdivisions thereof in their governmental
capacities only, when billed to and paid for by the governmental entity.
(n)
All
sales of construction and building materials to contractors and subcontractors
for use in the building, erection, alteration or repair of structures,
highways, roads, streets and other public works owned or used by the
United States government, the State, its departments and institutions,
or the political subdivisions thereof, in their governmental capacities
only.
(o)
All
sales which the City is prohibited from taxing under the Constitution
or laws of the United States, or the Constitution of the State.
(p)
Sale
of tangible personal property sold to a public utility company or
railroad doing business both inside and outside the City, for use
in its business operations outside the City, even though delivery
thereof is made inside the City.
(q)
All
commodities which are taxed under the provisions of Title 39, Article
27, C.R.S. and all commodities which are taxed under such provisions
and for which the tax is refunded, and the sale of special fuel, as
defined in § 39-27-201(8), C.R.S., used for the operation of farm vehicles when such vehicles
are being used on farms and ranches. Notwithstanding provisions to
the contrary, aviation and special fuel, whether used in turbo-propeller
or jet engine aircraft, shall not be exempt, except that aviation
and special fuel used as fuel for the propulsion of aircraft of “air
carriers” engaged in interstate, intrastate and foreign air
transportation, as those terms are defined in 49 U.S.C. Section 1301, are exempt.
(r)
Neat
cattle, sheep, lambs, fish for stock purposes, swine and goats; mares
and stallions for breeding purposes.
(s)
Sale
of feed for livestock, poultry or horses.
(t)
Sale
of seed and orchard trees.
(u)
All
wholesale sales.
(v)
Sale
of exempt commercial packaging materials.
(w)
Sale
of tangible personal property to a person engaged in the business
of manufacturing or compounding for use, profit or sale, which tangible
personal property meets all of the following conditions:
(1)
Is transformed by the process of manufacturing;
(2)
Becomes, by the manufacturing process, a necessary and recognizable
ingredient, component and constituent part of the finished product;
(3)
Its physical presence in the finished product is essential to the
use thereof in the hands of the ultimate consumer and, when not sold
for resale, shall be deemed wholesale sales and shall be exempt from
taxation in this section.
(x)
Sale
of electricity, coal, coke, fuel oil, nuclear energy or gas if used
in processing, manufacturing, mining, refining, irrigation, telegraph
and telephone and radio communication, street and railroad transportation
services and all industrial uses.
(y)
Sale
of electricity, coal, wood, gas, fuel oil or coke sold, but not for
resale, to occupants of residences, whether owned, leased or rented
by such occupants, for the purpose of operating residential fixtures
and appliances which provide light, heat and power for such residences.
For the purpose of this subsection, “gas” includes natural,
manufactured and liquefied petroleum gas.
(z)
Tangible
personal property sold for rental or leasing inventory, including
but not limited to coin-operated devices; provided, that such property
is not otherwise used except for customer demonstration or display.
The rental or leasing of such tangible personal property is subject
to sales tax.
(aa)
Labor sold with tangible personal property, but only if such labor
is stated separately on the invoice from the tangible personal property
sold; except that labor used in or necessary in manufacturing, fabricating
or processing is not exempt.
(bb)
Construction materials, if the purchaser of such materials presents
to the retailer a building permit, or other documentation acceptable
to the City Manager, which evidences that a use tax on such materials
has been paid to the City or a municipality.
(cc)
Tangible personal property sold through coin-operated devices for
a price of $0.15 or less.
(dd)
All sales of food as defined in this chapter.
(ee)
All sales of aircraft used or purchased for use in interstate commerce
by a commercial airline.
(ff)
Forty-eight percent of the purchase price of factory-built housing,
as such housing is defined in § 24-32-703(3), C.R.S., shall be exempt from taxation under this chapter.
(gg)
The entire purchase price in any subsequent sale of a mobile home,
as such vehicle is defined in § 42-1-102(106)(b), C.R.S., after sales tax pursuant to GJMC § 3.12.030(a) has been paid on such mobile home.
(hh)
Farm close-out sales.
(ii)
Farm implements, and parts and accessories for farm implements.
(jj)
Newspapers.
(kk)
Newsprint and printer’s ink for use by publishers, newspapers,
and commercial printers.
(ll)
The sale of tangible personal property that is to be permanently
affixed or attached by the seller, as a component part of an aircraft.
Parts sold to and to be permanently affixed or attached by the purchaser
or someone on behalf of the purchaser other than the original seller
are not exempt from tax.
The exemption includes but is not limited to parts for the aircraft’s
engine(s), fuselage, landing gear, instrumentation, interior (seats,
interior fixtures, finishes and trim) and paint.
(mm)
The sale of coins and precious metal bullion, as defined by § 39-26-102(2.6), C.R.S., and of other numismatic collectibles.
(nn)
The sale, storage and use of wood and timber products made from Colorado
trees killed by spruce beetles or mountain pine beetles.*
(oo)
Expired.
(pp)
The sale of manufacturing equipment.
(qq)
Sales made by schools, school activity booster organizations, and
student classes or organizations if all proceeds of the sale are for
the benefit of a school or school-approved student organization.
(rr)
All sales and purchases of food as defined in GJMC § 3.12.020 by and through coin- or other money- (bills or cards) operated machines.
|
The list of exemptions shall not be increased by implication
or similarity. It is the intent of this chapter to exempt only those
items or transactions which are specifically set forth in this section.
|
(Ord. 4903, 2-5-20; Ord. 4748, 5-3-17; Ord. 4729, 12-7-16; Ord. 4728, 12-7-16; Ord. 4596, 8-21-13; Ord. 4577, 4-3-13; Ord. 4576, 4-3-13; Ord. 4547, 7-18-12; Ord. 4449, 1-5-11; Ord. 4430, 7-19-10. Code 1994 § 34-107; Code 1965 § 24-8)
[1]
Editor's Note: Ordinance 4547, adding subsection (nn) to this
section, provides, “Sunset Clause. Within sixty days of the
eighth anniversary of the adoption of this ordinance the City Council
shall consider the effectiveness of the ordinance at achieving its
stated purposes. Without further action by the City Council, the terms
and provisions of this ordinance shall expire on the eighth anniversary
of the effective date hereof.”
The tax levied by GJMC § 3.12.030(b) shall not apply to the following:
(b)
The
storage, use or consumption of any tangible personal property the
sale of which is subject to the sales tax imposed by the City.
(c)
Tangible
personal property which is first used or consumed inside the City
more than three years after its purchase, if such property has been
significantly used for the principal purpose for which it was purchased
outside the City.
(d)
Automotive
vehicles if the owner is, at the time of registration, a nonresident
of the City who purchased the vehicle for use outside the City.
(e)
The
storage of tangible personal property purchased from a nonresident
vendor by a common carrier, public utility company or construction
company which is a resident of the City or is doing business in the
City, provided such tangible personal property is stored but not used
or consumed in the City.
(f)
Manufacturing
equipment.
(g)
Tangible
personal property used and consumed exclusively and directly in the
manufacturing process when such tangible personal property does not
become a necessary and recognizable ingredient, component and constituent
part of the finished product.
(h)
The
sale, storage and use of wood and timber products made from Colorado
trees killed by spruce beetles or mountain pine beetles.*
|
The list of exemptions shall not be increased by implication
or similarity. It is the intent of this chapter to exempt only those
items or transactions which are specifically set forth in this section.
|
(Ord. 4575, 4-3-13; Ord. 4547, 7-18-12; Ord. 2810, 2-15-95. Code 1994 § 34-108; Code 1965 § 24-9)
[1]
Editor's Note: Ordinance 4547, adding subsection (h) to this
section, provides, “Sunset Clause. Within sixty days of the
eighth anniversary of the adoption of this ordinance the City Council
shall consider the effectiveness of the ordinance at achieving its
stated purposes. Without further action by the City Council, the terms
and provisions of this ordinance shall expire on the eighth anniversary
of the effective date hereof.”
(a)
The
burden of proving that any retailer is exempt from collecting or paying
sales tax shall be on the retailer under such reasonable requirements
of proof as the City Manager may prescribe.
(b)
The
burden of proving that any consumer is exempt from paying the use
tax shall be on such consumer under such reasonable requirements of
proof as the City Manager may prescribe.
(Code 1994 § 34-109; Code 1965 § 24-10)
(a)
Deductions from Gross Sales.
If included in reported
gross sales, the following are deductible from gross sales:
(1)
Refunds.
The price of tangible personal property or
taxable services returned by a purchaser when the price and the sales
tax collected are refunded in cash or by credit.
(2)
Bad Debts Charged Off.
Taxable sales which are represented
by accounts not secured by a conditional sales contract, rental purchase
contract or security interest and which are found to be worthless
and are actually and properly charged off as bad debts for the purpose
of the income tax imposed by the laws of the State; provided, however,
that if such amounts are thereafter collected by the taxpayers, a
tax shall be paid on the amount so collected.
(3)
Interest and Finance Charges.
The amount of interest
or finance charges on credit extended in connection with any sale,
if the interest or finance charges are separately stated from the
price on the invoice.
(b)
Credits from Total Tax Liability.
(1)
Vendor’s Fee.
A retailer's collection and remittance
expense equal to three and one-third percent of the sum of the sales
tax collected and any excess tax collected may be taken as a credit
against sales tax paid on or before the due date. The credit shall
not exceed $500 per filing for each taxpayer/sales tax account. However,
no such credit shall be allowed for any sales tax that is not timely
reported and paid by the due date. Forfeiture of the vendor's fee
shall be prima facie evidence that the taxpayer was in violation of
this chapter. However, no such credit shall be allowed for any sales
tax that is not timely reported and paid by the due date. Forfeiture
of the vendor's fee shall be prima facie evidence that the taxpayer
was in violation of this chapter.
(2)
Amounts previously paid pursuant to a tax levied by a municipality
may be credited against the tax due on transactions but only as follows:
(i)
When the present owner or user has previously paid a legally imposed municipal sales or use tax on the transaction or item; except that the amount of such credit shall not exceed the amount of tax on such transaction or item computed at the rate established by GJMC § 3.12.030(a).
(ii)
When the present owner or user of construction equipment has
not previously paid a legally imposed sales or use tax attributable
to any one municipality on the full price of such equipment, the credit
shall be the aggregate value of all such taxes paid on such equipment
up to the amount of tax due to the City on such equipment.
(Ord. No. 5210, 4/3/2024; Ord.
No. 5195, 1/3/2024; Ord. 4749, 5-3-17. Code 1994 § 34-110; Code
1965 § 24-11)
Whenever an article is sold to a person who thereby is obligated
to the vendor on an account, chattel paper, contract right, general
intangible, or a writing which supports a right to the payment of
a purchase price, or any part thereof, the tax shall be based on the
total purchase price and shall become immediately due and payable.
No refund or credit shall be allowed to either party to a transaction
in case of repossession by the vendor of collateral securing the purchase
price or any part of the purchase price.
(Code 1994 § 34-111; Code 1965 § 24-12)
The full contract price of tangible personal property and services
sold in connection with the maintenance or service of tangible personal
property shall be subject to the tax. Application may be made to the
City Manager for permission to use a percentage basis of reporting
the tangible personal property sold and the services supplied under
such contract. The City Manager is hereby authorized, but not required,
to determine a percentage based on the ratio that the price of the
tangible personal property bears to the total price under such contract.
(Code 1994 § 34-112; Code 1965 § 24-13)
(a)
Estimated Percentage Basis.
Any person who shall build,
construct, reconstruct, alter, expand, modify or improve any building,
dwelling or other structure or improvement on or to real property
in the City and who shall purchase or acquire construction materials
used therefor from sources within or without the City, upon approval
of the City Manager, may elect to be subject to the estimated percentage
basis. Prior to the issuance of a building permit, the estimated cost
of construction materials shall be calculated by multiplying the estimated
value of this construction project, entered on the building permit
by the City Building Official, or by general or mechanical contract
cost if available, by 50 percent. The resulting product will be multiplied
by the current sales/use tax rate in effect. Upon payment of such
deposit amount, the City shall issue a deposit tax receipt identifying
the address for which the purchase is being made and the City building
permit number. Deposit receipt will be issued to each contractor and
subcontractor engaged in construction activity under the permit and
will be evidence to retailers and suppliers that City sales tax has
been paid on construction materials and fixtures. For estimated values
or contract costs exceeding $500,000, the deposit amount will only
be required on the first $500,000 value. Estimated payments on the
values exceeding $500,000 will be made in monthly installments based
on percentage of contract completed. Payment of deposit will relieve
contractors from filing monthly use tax returns for each permit issued.
In any case, the general contractor and/or the owner shall pay such
taxes and shall be jointly and severally liable for all taxes due
on such materials.
(b)
Those
persons not electing the estimated percentage basis shall make payment
and remit tax on the actual cost of construction materials used. The
actual cost of construction materials shall be reported and tax paid
on monthly returns for which tax will be due, pursuant to such rules
and regulations as the City Manager may adopt.
(c)
Each
owner and each contractor shall keep and preserve all invoices, receipts
and statements showing such purchases of construction materials and
tangible personal property for a period of three years after final
inspection by the Building Official or issuance of certificate of
occupancy, whichever is later. The City may, prior to the expiration
of such three-year period, conduct an audit of such records of the
owner and contractor and any other relevant information to establish
or to verify the total tax liability on the construction materials
and tangible personal property used therein. If the total tax liability
is more than the deposit paid or tax paid on monthly returns, the
City Manager shall serve a notice of determination, assessment and
demand for payment on the taxpayer notifying him of the deficiency,
including penalty and interest. Interest on any tax deficiency related
to construction materials shall accrue from the date that the certificate
of occupancy or temporary certificate of occupancy or final inspection
occurred or should have occurred, whichever is later, until the tax
is paid in full. The amount of any use tax due and not paid constitutes
a lien, which shall be first and prior to all other liens and encumbrances,
upon the real property benefited by the use of such materials.
If the City Manager determines that the deposit or tax paid
on monthly returns is sufficient to pay for the total tax liability,
then the deposit or tax paid on monthly tax returns shall be credited
against the total tax liability, and any excess amount shall be timely
mailed to the person who made the deposit.
(d)
No
final inspection shall be made by the City Building Official and no
certificate of occupancy shall be issued if the City Manager determines
that all tax due on construction materials for the project for which
the building permit was issued has not been paid or arrangement therefor
made with the City Manager.
(Code 1994 § 34-113; Code 1965 § 24-14)
In addition to the use tax on construction materials, use tax
shall be due on construction equipment used, owned, operated or stored
inside the City. No person shall use, store, operate or own construction
equipment in the City without having paid the applicable use tax pursuant
to this chapter.
(a)
The
taxpayer shall identify construction equipment used inside the City,
as follows:
(1)
Prior to or on the date the equipment is located inside or brought
into the City, the taxpayer shall file with the City Manager an equipment
declaration on a form approved by the City Manager. Such declaration
shall be made under oath or affirmation; state the dates on which
the taxpayer anticipates the equipment will be located inside and
removed from the boundaries of the City; describe each such anticipated
piece of equipment; state the purchase price of each such piece of
equipment; and shall include such other information as reasonably
deemed necessary by the City Manager.
(2)
The taxpayer shall file with the City Manager an amended equipment
declaration reflecting any changes in the information contained in
any previous equipment declaration no less than once every 90 days
after the equipment is brought inside the City. For equipment which
is brought inside the City for fewer than 90 days, such amended declaration
shall be filed no later than 10 days after substantial completion
of the project or within 10 days from the time the equipment is removed
from the City, whichever occurs first. Amended declarations for all
other projects shall be filed at least once every 90 days after the
equipment is brought inside the City.
(3)
The taxpayer need not declare any equipment for which the purchase price was less than $2,500. Such equipment shall be presumed to have been purchased in a municipality having a sales or use tax at a rate at least equal to the rate established pursuant to GJMC § 3.12.030(a) and such tax shall be presumed to have been paid to that municipality.
(b)
Construction equipment located inside the City for 30 consecutive days or less, for which a declaration is properly filed, shall be subject to the tax in an amount equal to one-twelfth of the purchase price of the equipment at the time it was purchased multiplied by the rate established by GJMC § 3.12.030(b).
(c)
Construction equipment located inside the City for 30 consecutive days, or equipment for which a declaration has not been properly filed, shall be subject to the tax in an amount equal to the purchase price of the equipment multiplied by the rate established by GJMC § 3.12.030(b).
(d)
In
no event will tax be imposed in an amount greater than 100 percent
of the full use tax rate on the purchase price of any piece of equipment.
(Code 1994 § 34-114; Code 1965 § 24-15)
(a)
Upon
receipt of a written request from a person in the construction business
who uses, stores, operates, or owns construction equipment in the
City, the City Manager is hereby authorized to establish an alternative
tax calculation which shall apply to the purchase or use of construction
equipment.
(b)
The
alternative sales and use tax calculation will be calculated as follows:
The taxpayer’s gross revenue from construction activities during the prior year (gross revenue reported on the taxpayer’s last fiscal year federal tax return or other annual period as approved by the City Manager) shall be the denominator. The taxpayer’s revenues generated from construction activities within the City limits during the prior year shall be the numerator. The ratio of such numerator and denominator shall be converted to a percentage. Such percentage calculated shall be compared to 25 percent and the greater of the two percentages shall be multiplied by the sales/use tax rate in effect in GJMC § 3.12.030(a). The resulting product is the alternative rate to be applied to the purchase price of construction equipment sold or used inside the City limits. If a taxpayer has not been in existence for at least 365 days prior to the request, the City Manager may establish an alternative tax calculation based on verified information supplied by the taxpayer; the City Manager may refuse to determine an applicable alternative tax calculation for a taxpayer who has not been in existence for the requisite 365 days if the City Manager determines that the information available to him is insufficient to make an accurate estimate.
(c)
The credit pursuant to GJMC § 3.12.100(b)(2) shall apply with respect to construction equipment on which the taxpayer has paid a legally imposed municipal sales or use tax. Such construction equipment would not be allowed or included in the alternative tax calculation as provided above.
(d)
If
a taxpayer has more than one place or location of business, revenues
generated from the business located inside the City or the place of
business closest to the City will be used in the calculation of the
numerator.
(e)
The
alternative tax calculation established in this section will be effective
for only 24 months from the date of approval of the City Manager on
new purchases, leases and acquisitions. A taxpayer must make written
application to the City Manager on forms provided by the City Manager
in order to be entitled to this calculation.
(f)
The
City Manager may, at any time but not to exceed once each calendar
year unless for good cause, inspect, interview and audit the taxpayer
and the employees of the taxpayer and any and all of the taxpayer’s
books, documents, or other records as may be necessary to determine
total tax liability. If the City Manager determines an underpayment
of tax of five percent or more with respect to any reporting period
has occurred, the City Manager shall impose, and the taxpayer shall
pay, in addition to amounts otherwise due pursuant to this chapter,
a penalty of 20 percent of the underpaid amount in addition to the
costs incurred by the City (including but not limited to accounting
fees, the value of accountants or other professionals engaged in such
audit, inspection or interview) in making such determination.
(Code 1994 § 34-115; Code 1965 § 24-16)
(a)
Acquisition of an Existing Business.
(1)
Seller’s Duties.
Each person engaged in business
in the City who sells such business shall file a final return. The
reporting period for such return shall end on the date of the transfer
of ownership of the business.
(2)
Purchaser’s Duties.
(i)
Each person who purchases an existing business shall determine the
total tax liability of that business and shall withhold from proceeds
available on an amount sufficient to pay the total tax liability to
the City, unless the seller produces a receipt signed by the City
Manager showing that the total tax liability has been paid or a certificate
signed by the City Manager that there is no tax due.
(ii)
Any amount so withheld shall be paid to the City within 10 days
of the date of the sale of the business.
(iii)
Each purchaser who fails to withhold such tax due or fails to
pay to the City the amount so withheld within the 10-day period allowed
shall be jointly and severally liable, along with the seller, for
any unpaid tax due.
(b)
Inception of Business – Initial Use Tax.
Each person who purchases or establishes a business inside the City
shall file an initial use tax return.
(1)
Existing Businesses.
Use tax shall be due on tangible
personal property, except inventory held for lease, rental or resale,
which is acquired with the purchase of a business. The tax rate shall
be multiplied times the value as evidenced by the bill of sale or
agreement which is a part of the total transaction at the time of
the sale or transfer; provided the value is not less than the fair
market value of such property. Where the transfer of ownership provides
for a lump sum transaction, which does not allocate the price of tangible
personal property, the use tax shall be due on the book value established
by the purchaser for federal income tax depreciation purposes, or
fair market value if no determination has been made. When a business
is sold in exchange for the assumption of outstanding indebtedness,
the tax shall be paid on the fair market value of all taxable tangible
personal property acquired by the purchaser. Such tax shall be reported
on an initial use tax return. The reporting period for such return
shall be the calendar month of the date of sale.
(2)
New Businesses.
Use tax shall be paid on the price of
all tangible personal property, except inventory held for lease, rental
or resale, which is purchased for use inside the City. Such tax shall
be reported on the initial use tax return. The reporting period for
such return shall be the calendar month of the opening day of business.
(c)
Cessation of Business.
Each person engaged in business
in the City who quits doing business in the City shall file a final
return. The reporting period for such return shall end on the last
day of business in the City.
(Code 1994 § 34-116; Code 1965 § 24-17)
Each retailer engaged in business in the City shall be liable for and shall pay an amount equal to the total purchase price multiplied by the rate established by GJMC § 3.12.030(a).
(a)
Tax Added to Price.
Retailers shall add the tax imposed
to the price, showing such tax as a separate and distinct item. Except
as provided in this subsection, no retailer shall advertise or hold
out or state to the public or to any consumer, directly or indirectly,
that the sales tax or any part thereof shall be assumed or absorbed
by the retailer, or that it will not be added to the price, or if
added, that it or any part thereof shall be refunded.
(1)
Nothing contained in this subsection shall be deemed to prohibit any retailer selling malt, vinous or spirituous liquors by the drink from electing to include in the purchase price any tax levied under GJMC § 3.12.030(a). Once having made the election, such retailer shall continue to impose and collect the tax in the manner elected unless granted authorization to change by the City Manager. Any excess taxes collected shall be remitted to the City in accordance with this chapter.
(2)
Sales tax may be included in the price of items sold from coin-operated
devices or the price of utilizing such devices.
(b)
Tax Constitutes Debt.
Any tax added to the price, or included in the price pursuant to subsection (a) of this section, by a retailer shall constitute a debt from the purchaser to the retailer and from the retailer to the City until paid and shall be recoverable in the same manner as other debts.
(c)
Excess Tax.
No retailer shall retain any sales tax collected
in excess of the tax computed, but shall report such excess collections
on the return for the period in which it was collected, include it
in the calculation of tax due, and pay it to the City.
(d)
Disputed Tax.
When a dispute arises between a retailer
and a purchaser who claims that the sale is exempt from tax, the retailer
shall collect and the purchaser shall pay such tax. The purchaser
shall submit a claim for refund to the City Manager within 60 days
of the date of purchase or thereafter be barred. Any such tax refunded
by the City will be paid directly to the purchaser.
(Code 1994 § 34-117; Code 1965 § 24-18)
All sales tax and use tax collected by or paid to any retailer
shall be the property of the City and shall remain public money while
in the possession of such retailer, who shall hold such money in trust
for the sole use and benefit of the City until paid to the City.
(Code 1994 § 34-118; Code 1965 § 24-19)
Each person who has not paid the sales tax to a retailer shall, unless the credit established in GJMC § 3.12.100(b)(2) applies, complete the use tax schedule of a return and pay the tax due to the City.
(b)
The
due date for all other taxpayers shall be 20 days from the end of
the reporting period in which the taxable transaction occurred.
(Code 1994 § 34-119; Code 1965 § 24-20)
(a)
Every
taxpayer shall file a return, whether or not tax is due, and remit
any tax due the City on or before the twentieth day of the month following
the reporting period.
(b)
A
retailer engaged in business in the City at two or more locations,
whether inside or outside the City, who is obligated to collect sales
tax, may file one return for all such locations, when accompanied
by a supplemental schedule showing the gross sales and net taxable
sales for each location.
(c)
Any
person reporting use tax due from two or more locations may file one
return for all such locations.
(d)
For
good cause shown and upon written request of a taxpayer, the City
Manager may extend the time for making a return and paying tax due.
(e)
No
person shall make any false statement nor provide false information
in connection with a return.
(Code 1994 § 34-120; Code 1965 § 24-21)
(a)
Unless
otherwise approved by the City Manager, each taxpayer shall file a
return and pay tax based on the filing frequency periodically prescribed
by resolution of the City Council.
(b)
The
reporting period for a final return shall end on the date of the transfer
of ownership of business.
(c)
The
reporting period for an initial use tax return shall be the calendar
month of the date of sale if a business was purchased or the opening
day of business if a business is new.
(d)
The
reporting period for a vendor selling tangible personal property at
a special event inside the City who is not required to obtain a license
shall end on the day the special event concludes.
(e)
If
the accounting methods employed by the taxpayer, or other conditions,
are such that returns made on a calendar month basis will impose unnecessary
hardship, the City Manager may, upon written request of the taxpayer,
accept returns at such intervals as will, in the opinion of the City
Manager, better suit the convenience of the taxpayer, but not jeopardize
the collection of the tax.
(f)
If
any taxpayer who has been granted permission to file returns and pay
tax on other than a monthly basis becomes delinquent, authorization
for such alternate method of reporting may be revoked by the City
Manager. Thereafter following notice of such revocation, the taxpayer
shall file returns and pay tax on a monthly basis.
(Ord. 2887, 1-17-96. Code 1994 § 34-121; Code 1965 § 24-22)
(a)
Each
person engaged in business in the City shall keep and preserve, for
at least three years after the date of the taxable transaction, suitable
records which will allow the accurate determination of the tax due.
The date of such taxable transactions for construction projects inside
the City shall be the date the final certificate of occupancy is issued
or final inspection, whichever is later.
(b)
Each
person who uses construction equipment inside the City shall keep
and preserve, for at least three years after the final certificate
of occupancy or final inspection, whichever is later, records of the
time, dates and location each piece of construction equipment was
located inside the City and any sales or use tax paid on such construction
equipment.
(c)
Each
person shall provide all records required by this section for audit
by the City Manager during normal business hours.
(Code 1994 § 34-122; Code 1965 § 24-23)
(a)
No
person shall engage in business in the City without first obtaining
a license.
(1)
No license shall be required of any charitable organization which
is exempt from the sales and use tax under this chapter.
(2)
No license shall be required for a retailer selling tangible personal
property at a special event inside the City for periods of seven consecutive
days or less, not exceeding a total of 21 days per calendar year.
The reporting period for such special event shall end on the day the
special event concludes.
(b)
When
business is transacted by one person at two or more separate locations
inside the City, a separate license for each place of business shall
be required.
(Code 1994 § 34-123; Code 1965 § 24-24)
(a)
Each
person who is required to obtain a license shall deliver to the Finance
Department an application stating: the name and address of the person
requesting such license; the name of the business being licensed and
the character thereof; the location, including the street number of
such business; and such other information as may be required by the
City Manager.
(b)
A
nonrefundable application fee as established by resolution of the
City Council and on file in the City Clerk’s office shall be
paid before any license will be processed and issued.
(c)
For
each tax license issued for a period of 30 days or less, the fee shall
be as established by resolution of the City Council and on file in
the City Clerk’s office. Each application shall be accompanied
by the prepayment of anticipated tax receipts or $50.00, whichever
is greater.
(d)
Each
annual license shall be in effect through December 31st of the year
of issuance and fees thereon will not be prorated. Each annual license
shall be automatically renewed if the taxpayer has timely complied
with all provisions of this chapter.
(e)
Each
license shall be numbered and shall show the name, location and mailing
address posted in a conspicuous place at the business location for
which it is issued.
(f)
No
license shall be transferable. After any sale of a business, the new
owner shall apply for a new license.
(Code 1994 § 34-124; Code 1965 § 24-25)
(a)
Cancellation.
The City Manager may cancel any license:
(1)
Upon receipt of a written notice that the taxpayer is no longer engaged
in business in the City;
(2)
Upon the taxpayer’s failure to respond to three consecutive
notices of delinquency.
The City Manager shall give notice
to the taxpayer that the license has been canceled at the taxpayer’s
last known address on file with the Finance Department.
(b)
Revocation.
The City Manager may, after a reasonable
notice and after an opportunity for a hearing, issue a finding and
order to revoke the license of any person found to have violated any
provision of this chapter.
(c)
Appeal.
Any licensee may appeal a finding, order or
determination of the City Manager revoking their license in district
court, pursuant to the process set forth in § 29-2-106.1, C.R.S.
(d)
Reissuance.
Before a sales tax license may be issued
to a person whose license has been canceled or revoked, the licensee
shall have complied with all provisions of this chapter and shall
post a cash bond in an amount equal to the licensee’s estimated
sales tax payment for a two-month period. If the licensee timely complies
with the provisions of this chapter for 12 months after the issuance
of the sales tax license, the bond shall be refunded to the licensee
upon request by the licensee.
(e)
Engaging in Business After Revocation.
No person shall
engage in business in the City after such person’s license has
been cancelled or revoked.
(Code 1994 § 34-125; Code 1965 § 24-26)
The power to administer this chapter is hereby vested in the
City Manager.
(a)
Forms and Procedures.
The City Manager shall prescribe
forms and administrative procedures for the ascertainment, assessment
and collection of the tax levied by this chapter.
(b)
Regulations.
The City Manager may promulgate, after
hearing, regulations to effectuate the purposes of this chapter.
(c)
Additional Information.
The City Manager may require
any person to make additional returns, render statements, furnish
records, or make informational reports to determine whether or not
such person is liable for payment and/or collection of tax.
(d)
Subpoenas.
The City Manager may issue a subpoena to
command a person to attend and give testimony and/or to produce books,
accounts and records.
(1)
Any subpoena issued under the terms of this chapter shall be served
as set forth in the Colorado Rules of Civil Procedure, including the
payment of witness fees. When the witness is subpoenaed by the City,
such fees shall be paid by the City. When a witness is subpoenaed
at the request of a taxpayer, the City Manager shall require that
the cost of service of the subpoena and the fee be paid by the taxpayer.
The City Manager shall require a deposit to cover the costs of the
service of subpoena and witness fees.
(2)
If a subpoena issued by the City Manager is duly served and the respondent
fails to attend, give testimony or to produce books, accounts and
records as commanded, the City Manager may apply to, with the assistance
of the City Attorney, the Municipal Court of the City for an order
enforcing the subpoena. The Municipal Court shall have jurisdiction
to enforce such a subpoena through appropriate proceedings including
contempt.
(e)
Oaths.
The City Manager is authorized to administer
oaths and take testimony at the hearing.
(f)
Agents.
The City Manager may designate one or more agents
to perform any of the duties, powers and responsibilities set forth
in this chapter.
(g)
Partial Payments.
The City Manager may accept any partial
payment made and apply such payments towards the tax due. Acceptance
of such payments shall not in any way limit the power to collect any
total tax liability.
(h)
Registration of Vehicles.
If the City Manager determines
that a person has registered or caused to be registered a motor vehicle
outside the City and that such motor vehicle should have been registered
at an address in the City, the City Manager is authorized to assess
a civil penalty of $500.00 against such person in addition to the
total tax liability. A written notice of the civil penalty shall be
issued, paid and protested in the same manner as a notice of assessment.
The City Manager may enforce collection of such civil penalty in the
same manner as provided in this chapter for the collection of tax
due. Assessment and collection of such penalty shall not preclude
the collection of any tax due or fee or the imposition of other civil
or criminal penalty provided by law.
(i)
Notices.
Notices required by this chapter shall be in
writing and delivered in person or sent, postpaid by first class mail,
to the last known address of the taxpayer on file with the Finance
Department.
(Code 1994 § 34-126; Code 1965 § 24-27)
(a)
For
the purpose of ascertaining the correct amount of tax due from any
person engaged in business in the City, the City Manager may conduct
an audit by examining any relevant books, accounts and records of
such person and by interviewing a taxpayer and the taxpayer’s
officers, agents and employees.
(b)
The
City Manager may make, permit, or cause to be made the examination,
inspection, and audit or interviews of books, accounts and records
of any taxpayer at a location inside the City limits during regular
business hours. The taxpayer may elect to make available such books,
accounts and records at a location outside the City provided the taxpayer
has agreed in writing with the City Manager to reimburse the City
for all costs and expenses incurred in order to perform such examination,
inspection, or audit made outside the City. If any taxpayer refuses
to provide any of the foregoing information when requested, the City
Manager may issue a subpoena to require that the taxpayer or an agent
or employee of the taxpayer attend a hearing and produce any such
books, accounts and records for examination and copying.
(c)
When
the taxpayer does not make available suitable records, the City Manager
may determine total tax liability based upon generally accepted accounting
principles, expert testimony or any other method deemed reasonable
by the City Manager.
(d)
If
a taxpayer provides records which, in the judgment of the City Manager,
are so voluminous that excessive and undue time would be required
to review and examine each and every record, the City Manager may
use a test period or other appropriate sampling technique to determine
and compute the total tax liability.
(e)
Any
charitable entity claiming exemption under the provisions of this
chapter is subject to audit in the same manner as any other person
engaged in business in the City.
(Code 1994 § 34-127; Code 1965 § 24-28)
(a)
Any
taxpayer licensed by the City pursuant to this chapter and holding
a similar sales tax license in at least four other municipalities
in the State that administer their own sales tax collection may request
a coordinated audit as provided in this section.
(b)
Within
14 days of receipt of notice of an intended audit by any municipality
that administers its own sales tax collection, the taxpayer may provide
to the City Manager of this City, by certified mail, return receipt
requested, a written request for a coordinated audit indicating the
municipality from which the notice of intended audit was received
and the name of the official who issued such notice. Such request
shall include a list of those municipalities of the State utilizing
local collection of their sales tax in which the taxpayer holds a
current sales tax license and a declaration that the taxpayer will
sign a waiver of any passage-of-time based limitation upon this City’s
right to recover tax owed by the taxpayer for the audit period.
(c)
Except as provided in subsection (g) of this section, any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of the statute of limitations may be audited by this City during the 12 months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.
(d)
If this City desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to subsection (c) of this section, the City Manager shall so notify the finance director of the municipality whose notice of an audit prompted the taxpayer’s request within 10 days after the receipt of the taxpayer’s request for a coordinated audit. The City Manager shall cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of the coordinated audit.
(e)
If
the taxpayer’s request for a coordinated audit was in response
to a notice of audit issued by this City, this City’s City Manager
shall facilitate arrangements between this City and other municipalities
participating in the coordinated audit unless and until an official
from some other participating municipality agrees to assume this responsibility.
The City Manager shall cooperate with other participating municipalities
to, whenever practicable, minimize the number of auditors that will
be present on the taxpayer’s premises to conduct the coordinated
audit on behalf of the participating municipalities. Information obtained
by or on behalf of those municipalities participating in the coordinated
audit may be shared only among such participating municipalities.
(f)
If
the taxpayer’s request for a coordinated audit was in response
to a notice of audit issued by this City, this City’s City Manager
shall, once arrangements for the coordinated audit between the City
and other participating municipalities are completed, provide written
notice to the taxpayer of which municipalities will be participating,
the period to be audited and the records most likely to be required
by participating municipalities for completion of the coordinated
audit. The City Manager shall also propose a schedule for the coordinated
audit.
(g)
The
coordinated audit procedure set forth in this section shall not apply:
(Code 1994 § 34-128; Code 1965 § 24-29)
All specific information gained under the provisions of this
chapter which is used to determine the tax due from a taxpayer, whether
furnished by the taxpayer or obtained through audit, shall be treated
by the City and its officers, employees or legal representatives as
confidential.
(a)
Except
in accordance with judicial order or as otherwise provided by law,
the City Manager and his employees shall not divulge or make known
in any way any information disclosed in any document, report, or return
filed under this chapter, except such information as is displayed
on the tax license. The officials charged with the custody of documents,
reports, and returns shall not be required to produce any of them
or evidence of anything contained in them in any action or proceeding
in any court, except on behalf of the City Manager in an action or
proceeding under the provisions of this chapter when the report of
a fact shown thereby is directly involved in such action or proceeding,
in either of which events the court may require the production of,
and may admit into evidence, so much of such reports or of the facts
shown thereby as are pertinent to the action or proceeding, and no
more.
(b)
Nothing
in this section shall be construed to prohibit the delivery to a person
or a duly authorized representative thereof of a copy of any return
or report filed in connection with such person’s tax. Copies
of such records may be certified by the City Manager or an agent thereof
and when so certified shall be evidence equaling with the originals
and may be received as evidence of their contents.
(c)
Nothing
in this section shall be construed to prohibit the publication of
statistics classified so as to reasonably prevent the identification
of particular reports or returns and the items thereof or the inspection
of returns by the City Attorney or other authorized representatives
of the City.
(d)
Notwithstanding
the provisions of this section, the City Manager may furnish to the
taxing officials of the State, its political subdivisions, any other
state or political subdivisions, any Colorado municipality, or the
United States, any information contained in tax returns and related
documents filed pursuant to this chapter or in the report of an audit
or investigation made with respect to a return, if the recipient jurisdiction
agrees with the City Manager to grant similar privileges to the City
and if such information is to be used by the jurisdiction only for
tax related purposes.
(e)
Any
City officer or employee or any member of the office of, or officer,
or employee of the City Manager who shall divulge any information
classified in this chapter as confidential, in any manner, except
in accordance with proper judicial order, or as otherwise provided
by law, shall be guilty of a violation of this chapter.
(Code 1994 § 34-129; Code 1965 § 24-30)
(a)
Timely
payment shall be evidenced by the postmark date if mailed; otherwise
timely payment shall be evidenced by the City cashier validation date.
(b)
Any
due date, payment date, or deadline for paying tax due, providing
information or taking other action which falls on a Saturday, Sunday
or legal holiday recognized by either the federal government or the
State shall be extended to the first business day following such weekend
or holiday.
(Code 1994 § 34-130; Code 1965 § 24-31)
(a)
In
order to initiate a central register of sales and use tax ordinances
for municipalities that administer local sales tax collection, the
City Manager shall file in a central repository prior to the effective
date of this section a copy of the City sales and use tax ordinance
reflecting all provisions in effect on the effective date of this
section.
(b)
In
order to keep current the central register of sales and use tax ordinances
for municipalities that administer local sales tax collection, the
City Manager shall file in a central repository prior to the effective
date of an amendment a copy of each sales and use tax ordinance amendment
enacted by the City.
(c)
Failure
of the City to file such ordinance or ordinance amendment pursuant
to this section shall not invalidate any provision of the sales and
use tax ordinance or any amendment thereto.
(Code 1994 § 34-131; Code 1965 § 24-32)
The City Manager shall cooperate with and participate on an
as needed basis with a permanent Statewide sales and use tax committee
convened by the State Municipal League, which is composed of State
and municipal sales and use tax officials and business officials.
Such committee will meet for the purpose of discussing and seeking
resolution to sales and use tax collection and administration problems
which may arise.
(Code 1994 § 34-132; Code 1965 § 24-33)
The intent of this section is to streamline and standardize
procedures related to situations where tax has been remitted to the
incorrect municipality. It is not intended to reduce or eliminate
the responsibilities of the taxpayer or vendor to correctly pay, collect,
and remit sales and use taxes to the City.
(a)
As
used in this section, “claim for recovery” means a claim
for reimbursement of sales and use taxes paid to the wrong taxing
jurisdiction.
(b)
When
it is determined by the City Manager that sales and use tax owed to
the City has been reported and paid to another municipality, the City
Manager shall promptly notify the vendor that taxes are being improperly
collected and remitted, and that as of the date of the notice the
vendor must cease improper tax collections and remittances.
(c)
The
City Manager may make a written claim for recovery directly to the
municipality that received tax and/or penalty and interest owed to
the City, or, in the alternative, may institute procedures for collection
of the tax from the taxpayer or vendor. The decision to make a claim
for a recovery lies in the sole discretion of the City. Any claim
for recovery shall include a properly executed release of claim from
the taxpayer and/or vendor releasing its claim to the taxes paid to
the wrong municipality, evidence to substantiate the claim, and a
request that the municipality approve or deny, in whole or in part,
the claim within 90 days of its receipt. The municipality to which
the City submits a claim for recovery may, for good cause, request
an extension of time to investigate the claim, and approval of such
extension by the City shall not be unreasonably withheld.
(d)
Within
90 days after receipt of a claim for recovery, the City shall verify
to its satisfaction whether or not all or a portion of the tax claimed
was improperly received, and shall notify the municipality submitting
the claim in writing that the claim is either approved or denied,
in whole or in part, including the reasons for the decision. If the
claim is approved in whole or in part, the City shall remit the undisputed
amount to the municipality submitting the claim within 30 days of
approval. If a claim is submitted jointly by a municipality and a
vendor or taxpayer, the check shall be made to the parties jointly.
Denial of a claim for recovery may only be made for good cause.
(e)
The
City may deny a claim on the grounds that it has previously paid a
claim for recovery rising out of an audit of the same taxpayer.
(f)
The
period subject to a claim for recovery shall be limited to the 36-month
period prior to the date the municipality that was wrongly paid the
tax receives the claim for recovery.
(Code 1994 § 34-133; Code 1965 § 24-34)
If the amount remitted with the return is more than the tax due as computed from information in such return, the taxpayer shall be notified. Unless requested otherwise by the taxpayer, all overpayment shall be credited to the tax due for the next reporting period. Upon request by a taxpayer, a taxpayer may submit a claim for refund along with an amended return and other documentation as may be required by the City Manager. Interest shall not be allowed and paid upon any overpayment in respect of any sales or use tax. At the City Manager’s discretion, any portion of sales or use tax, or any interest, assessable penalty, additional amount, or addition to tax, which has been erroneously refunded, shall bear interest at the rate established in GJMC § 3.12.420(a) from the date of the payment of the refund.
(Code 1994 § 34-134; Code 1965 § 24-35)
If the City ascertains, through an audit of a taxpayer’s
records, that the tax due is less than the full amount paid, a notice
of overpayment shall be issued. Such notice will serve as documentation
for a claim for refund, if such claim is signed and submitted by the
taxpayer within 30 days of the date of the notice of overpayment.
(Code 1994 § 34-135; Code 1965 § 24-36)
Refunds of tax paid to a retailer by a purchaser who claims
that the sale is exempt from the tax may be requested by such purchaser
by signing and submitting claim for refund on or before 60 days from
the date of such purchase.
(Code 1994 § 34-136; Code 1965 § 24-37)
No tax overpayment shall be refunded unless a claim for refund
is signed and submitted to the City by the taxpayer.
(b)
Decision.
The City Manager shall examine the claim for
refund and give written notice to the taxpayer of the amount to be
refunded or denied.
(c)
Refunds Not Assignable.
The right of any person to obtain
a refund pursuant to this chapter shall not be assignable.
(d)
False Claims.
No person shall make any false statement
in connection with a claim for refund.
(Code 1994 § 34-137; Code 1965 § 24-38)
If the amount remitted with a return is less than the tax computed
from information in such return, the taxpayer shall be notified.
(a)
If
the underpayment is at least $15.00, a notice of assessment may be
issued.
(b)
If
the underpayment is less than $15.00, it shall be added to the tax
due for the next reporting period.
(Code 1994 § 34-138; Code 1965 § 24-39)
(a)
If
any taxpayer neglects or refuses to obtain a license, the amount of
tax due shall be estimated based upon such information as may be available,
and a notice of assessment shall be issued.
(b)
If
any taxpayer neglects or refuses to file a return by the due date,
the tax due shall be estimated based upon such information as may
be available, and a notice of assessment shall be issued.
(c)
Estimated
tax due shall be adjusted if a return reporting actual tax due is
filed on or before the payment date of the notice of assessment.
(Code 1994 § 34-139; Code 1965 § 24-40)
If the City ascertains, through an audit of the taxpayer’s
records, that the tax due has not been fully reported or paid by the
applicable due date, a notice of assessment shall be issued.
(Code 1994 § 34-140; Code 1965 § 24-41)
(a)
Penalty for Late Payment.
A penalty shall be levied
on any tax deficiency. Such penalty shall be $15.00 or 10 percent
of the tax deficiency, whichever is greater.
(b)
Penalty for Fraud.
If any tax deficiency is due to fraud
or the intent to evade the tax, the penalty shall be 100 percent of
the total tax deficiency.
(c)
Penalty for Repeated Enforcement.
If three notices of
assessment have been issued to the same taxpayer within any 36 consecutive
months, a special penalty of $100.00 or 25 percent of the tax due,
whichever is greater, shall be levied.
(d)
Penalty for Returned Checks.
If a taxpayer pays for
any tax imposed pursuant to this chapter by check for which there
are insufficient funds to cover such check or on a closed account,
then the City Manager may assess a penalty against such taxpayer as
follows:
(e)
Abatement of Penalty.
Any penalty assessed in this section
may be abated by the City Manager if the taxpayer submits a written
request for such abatement on or before the payment date of the applicable
notice of assessment, and if the City Manager finds good cause therefor.
(Code 1994 § 34-141; Code 1965 § 24-42)
Interest shall be levied on any tax deficiency.
(a)
Interest
shall be calculated for each month or portion of a month from the
due date that a tax deficiency remains unpaid. The monthly interest
rate shall be one and one-half percent per month.
(b)
When
a timely protest is made to a notice of assessment, no additional
interest shall be assessed on any tax upheld by the City Manager for
the period between the interest date of such assessment and the payment
date established in an informal meeting or 30 days after the date
of a findings of fact, conclusion and decision issued after a hearing.
(c)
The
City Manager, at his discretion and for good cause shown, may abate
interest assessed on any tax deficiency.
(Code 1994 § 34-142; Code 1965 § 24-43)
The City Manager shall issue a notice of assessment for any
total tax liability.
(a)
Notices
of assessment shall be in writing and delivered in person or sent,
postpaid by first class mail, to the last known address of the taxpayer
on file with the Finance Department.
(b)
The
payment due date for the tax due pursuant to a notice of assessment
shall be as stated in the notice of assessment.
(Code 1994 § 34-143; Code 1965 § 24-44)
The City Manager, at his discretion and with good cause therefor
and for the purpose of facilitating settlement, may agree to an amount
of taxes due which may be less than the actual total tax liability.
Payment in accordance with such agreement between the taxpayer and
the City Manager fully satisfies the tax liability for the periods
and terms set forth in such agreement, unless the taxpayer has committed
fraud or malfeasance or misrepresented a material fact regarding the
tax or liability thereof.
(Code 1994 § 34-144; Code 1965 § 24-45)
(a)
Any
notice of assessment for failure to file a return, underpayment of
tax owed or as a result of an audit may be protested by the taxpayer
or vendor to whom it is issued.
(1)
Such protests must be submitted in writing to the City Manager within
20 calendar days from the date of the notice of assessment, and must
identify the amount of total tax liability disputed and the basis
for the contention that the tax is not due. The time period set forth
in this section may, in the absolute discretion of the City Manager,
be waived for good cause on written application of a vendor or taxpayer.
(2)
When a timely protest is made, no further enforcement action will
be instituted by the City for the portion of the assessment being
protested unless the taxpayer fails to pursue the protest in a timely
manner.
(b)
Protest of Denial of Refund.
Any denial of a claim for
refund may be protested by the taxpayer who submitted the claim. Such
protest must be submitted in writing to the City Manager within 20
calendar days from the date of the denial of the refund and shall
identify the amount of the denial contested and the basis for the
contention that the refund is due. The time period set forth in this
section may, in the absolute discretion of the City Manager, be waived
for good cause on written application of a vendor or taxpayer.
(c)
Any
timely protest entitles a taxpayer to a hearing under the provisions
of this chapter.
(1)
If, in the opinion of the City Manager, the issues involved in such
protest are not a matter of interpretation or may be resolved administratively,
the City Manager may recommend an informal meeting with the taxpayer.
(2)
Participation in such an informal meeting does not prevent either
the taxpayer or the City from holding a hearing if the dispute cannot
be resolved by such meeting.
(Code 1994 § 34-145; Code 1965 § 24-46)
(a)
The
City shall commence a hearing within 90 days after the City’s
receipt of the taxpayer’s written protest; except the City may
extend such period if the delay is requested by the taxpayer. The
City Manager shall notify the taxpayer in writing of the time and
place of such hearing.
(b)
Every
hearing shall be held in the City before the City Manager.
(c)
The
taxpayer may assert any facts, make any arguments and file any briefs
and affidavits which, in the opinion of the taxpayer, are pertinent
to the protest. The filing of briefs shall not be required.
(d)
Based
on the evidence presented at the hearing, the City Manager shall issue
findings of fact, conclusions, and a decision which may modify or
abate in full the tax, penalties and interest protested at the hearing,
approve a refund, or uphold the assessment.
(e)
After
such hearing, the taxpayer shall not be entitled to a second hearing
on the same notice of assessment or denial of refund.
(f)
An
appeal of a final decision of the City Manager shall be commenced
within 30 days of mailing of the City Manager’s written decision
pursuant to the process set forth in § 29-2-106.1, C.R.S.
(g)
Unless
the decision of the City Manager is appealed as provided in this chapter,
the remaining tax due, if any, shall be paid on or before 30 days
after the date of the findings of fact, conclusions and decision.
(Code 1994 § 34-146; Code 1965 § 24-47)
(a)
If
the petitioner or if an applicant for a refund is aggrieved by the
final decision of the City Manager, then he may appeal to the district
court of the County. The procedure shall be in accordance with § 29-2-106.1, C.R.S.
(b)
Within 15 days after filing a notice of appeal as provided in subsection (c) of this section, the taxpayer shall file with the district court a surety bond in twice the amount of the taxes, interest, and other charges stated in the final decision by the City Manager that are contested on appeal. The taxpayer may, at his option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a State or national bank or by a State or federal savings and loan association, in accordance with the provisions of § 11-35-101(1), C.R.S., equal to twice the amount of the taxes,
interest, and other charges stated in the final decision by the City
Manager. The taxpayer may, at his option, deposit the disputed amount
with the City Manager in lieu of posting a surety bond. If such amount
is so deposited, no further interest shall accrue on the deficiency
contested during the pendency of the action. At the conclusion of
the action, after appeal to the supreme court or the court of appeals
or after the time for such appeal has expired, the funds deposited
shall be, at the direction of the district court, either retained
by the City Manager and applied against the deficiency or returned
in whole or in part to the taxpayer. No claim for refund of amounts
deposited with the City Manager need be made by the taxpayer in order
for such amounts to be repaid in accordance with the direction of
the district court.
(c)
Any
appeal pursuant to § 29-2-106.1, C.R.S. shall, to the extent allowed by law, be filed on the district
court of the County upon a verified petition of the taxpayer filed
within 20 days after notice of the decision of the City Manager in
any such matter.
(Code 1994 § 34-147; Code 1965 § 24-48)
(a)
Subsequent
to a hearing, the taxpayer may appeal the decision of the City Manager
in district court pursuant to the process in § 29-2-106.1, C.R.S..
(b)
Upon
appeal to the district court, the taxpayer shall either file with
the City Manager a bond for twice the unpaid amount or deposit the
unpaid amount with the City Manager.
(Code 1994 § 34-148; Code 1965 § 24-49)
(a)
Issuance.
If any tax due is not paid by the payment
date of a notice of assessment, the City Manager may issue a notice
of lien on the real and personal property of the taxpayer. Such lien
shall specify the name of the taxpayer, the tax due, the date of the
accrual thereof, and the location of the property if known, and shall
be certified by the City Manager.
(b)
Filing.
The notice of lien may be filed in the office
of the clerk and recorder of any county in the State. Such filing
shall provide additional notice of such a lien.
(c)
Priority.
The attachment and priority of such a lien
shall be as follows:
(1)
Such lien shall be a first and prior lien upon the goods and business
fixtures owned or used by any taxpayer, including those used under
lease, installment sale or other contract agreement, and shall take
precedence on all such property over all other liens or claims of
whatsoever kind or nature.
(2)
Such lien on the real and tangible personal property of the taxpayer
that is not goods, stock in trade, and business fixtures shall be
a first and prior lien except as to preexisting claims or liens of
a bona fide mortgagee, pledgee, judgment creditor or purchaser whose
rights have attached and been perfected prior to the filing of the
notice of lien.
(3)
The personal property of an owner who has made a bona fide lease
to a taxpayer shall be exempt from the lien created in this subsection
if such property can reasonably be identified from the lease description
and if the lessee is given no right to become the owner of the property
leased. This exemption shall be effective from the date of the execution
of the lease if the lease is recorded with the county clerk and recorder
of the county where the property is located or based.
(4)
Motor vehicles which are properly registered in this State, showing
the lessor as owner thereof, shall be exempt from such lien except
that such lien shall apply to the extent that the lessee has an earned
reserve, allowance for depreciation not to exceed fair market value,
or similar interest which is or may be credited to the lessee.
(5)
Where a lessor and lessee are blood relatives or relatives by law
or have 25 percent or more common ownership, a lease between such
lessee and such lessor shall not be considered as bona fide for purposes
of this section.
(d)
Enforcement Against Real Property.
If a notice of lien
is filed against real property, the City Manager may request the City
Attorney to file a civil action to enforce such lien. The court may
determine the interest in the property of each party, decree a sale
of the real property, and distribute the proceeds according to such
findings. Procedure for the action and the manner of sale, the period
for and manner of redemption from the sale and the execution of deed
of conveyance shall be in accordance with the law and practice relating
to foreclosures of mortgages upon real property. In any such action,
the court may appoint a receiver of the real property involved in
such action if equity so requires.
(Code 1994 § 34-149; Code 1965 § 24-50)
(a)
Any
lien for tax due shall continue until a release of lien is filed by
the City Manager.
(b)
Any
person who purchases or repossesses real or personal property upon
which a lien has been filed by the City Manager for tax due shall
be liable for the payment of such tax due up to the value of the property
taken or acquired.
(Code 1994 § 34-150; Code 1965 § 24-51)
Upon payment of the tax due or enforcement of the lien, the
City Manager shall file a release of lien with the county clerk and
recorder of the county in which the lien was filed.
(Code 1994 § 34-151; Code 1965 § 24-52)
(a)
Any
unpaid tax due shall constitute a debt of the taxpayer to the City
and the City Manager may request the City Attorney to file a civil
action to collect such tax due.
(b)
The
return filed by a taxpayer or the notice of assessment issued by the
City Manager shall be prima facie proof of the tax due.
(c)
If
a judgment is obtained by the City, collection of the tax due may
be made by attachment, garnishment or other means established by law.
When attachment is sought, no bond shall be required of the City Manager,
nor shall any sheriff require of the City Manager an indemnity bond
for executing the writ of attachment or writ of execution upon any
judgment.
(Code 1994 § 34-152; Code 1965 § 24-53)
(a)
Issuance.
If the collection of any tax due from a taxpayer,
whether or not previously assessed, may be jeopardized by delay, the
City Manager may declare the taxable period immediately terminated,
determine the tax, and issue a jeopardy assessment and demand for
payment. Any tax so assessed shall be due and payable immediately.
(b)
Security for Payment.
Enforcement of a jeopardy assessment
and demand for payment may be stayed if the taxpayer gives security
for payment which is satisfactory to the City Manager.
(c)
Dispute of a Jeopardy Assessment.
If, in the opinion
of the taxpayer, the jeopardy assessment is not for the correct amount
of tax due, the taxpayer shall pay the tax due as assessed and submit
a claim for refund to the City.
(Code 1994 § 34-153; Code 1965 § 24-54)
(a)
Warrant Commanding Distraint.
Unless such property is
exempt by State statute from distraint, sale, levy or garnishment
the City Manager may sign and issue a warrant directed to any employee
or agent of the City or any sheriff of any county in the State, commanding
him or her to levy upon, seize and sell or convert sufficient of the
real and personal property of the taxpayer for the payment of the
amount due, together with interest, penalties and costs as may be
provided by law, subject to valid preexisting claims or lien.
(b)
Who May Act on Warrant.
Such employee, agent of the
City or sheriff of any county in the State shall forthwith levy upon
sufficient of the property of the taxpayer, including account(s) and/or
property used by the taxpayer in conducting his retail business, except
property made exempt from lien by State statute. The tangible property
so levied upon shall be sold in all respects with like effect and
in the same manner as is prescribed by law in respect to executions
against property upon judgment of a court of record. The remedies
of garnishment shall apply to the taxpayer’s account(s) and
money.
(c)
Application for Warrant.
If the taxpayer does not volunteer
entry to the premises, the City Manager may apply to the Municipal
Court of the City for a warrant authorizing any employee or agent
of the City to search for and distrain property located inside the
City to enforce the collection of tax due.
(1)
The City Manager shall demonstrate to the Court that the premises
to which entry is sought contains property that is subject to distraint
and sale for tax due.
(2)
If a jeopardy assessment and demand for payment has been issued,
the City Manager shall specify to the Court why collection of the
tax will be jeopardized.
(3)
The procedures to be followed in issuing and executing a warrant
pursuant to this subsection shall comply with Rule 241 of the Colorado
Municipal Court Rules of Procedure.
(d)
Disposal of Distrained Property.
(1)
A signed inventory of the property distrained shall be made by the
City or its agent. Prior to the sale the owner or possessor shall
be served with a copy of such inventory, a notice of the sum of the
tax due and related expenses incurred to date, and the time and place
of sale.
(2)
A notice of the time and place of the sale, together with a description
of the property to be sold, shall be published in a newspaper of general
circulation within the county where distraint is made or, in lieu
thereof and in the discretion of the City Manager, the notice shall
be posted at the courthouse of the county where distraint is made,
and in at least two other places within such county.
(3)
The time fixed for the sale shall not be less than 10 days nor more
than 60 days from the date of distraint. The sale may be postponed
by the City or agent for no more than 90 days from the date originally
fixed for the sale.
(4)
If the property is not sold, such property may be disposed of in
the same manner as other City property, such as an annual auction,
and the lien thereon shall be reduced by the amount of the net proceeds
received.
(5)
The property may be offered first by bulk bid, then subsequently
for bid singularly or by lots, and the City or its agent may accept
the higher bid.
(6)
The property offered for sale may be redeemed if the owner or possessor
or other person holding a security interest pays the total tax liability
and all collection costs not less than 24 hours before the sale.
(7)
The City Manager shall issue to each purchaser a certificate of sale
which shall be prima facie evidence of its right to make the sale
and transfer to the purchaser all right, title, and interest of the
taxpayer in and to the property sold.
(i)
When the property sold consists of certificates of stock, the certificate
of sale shall be notice to any corporation, company, or association
to record the transfer on its books and records.
(ii)
When the property sold consists of securities or other evidences
of debt, the certificate of sale shall be good and valid evidence
of title.
(8)
Any surplus remaining after satisfaction of the tax due plus any
costs of making the distraint and advertising the sale may be distributed
by the City first to other jurisdictions which have filed liens or
claims of sales and use or personal property ad valorem taxes, and
second to the owner, or such other person having a legal right thereto.
(e)
Property Subject to Distraint.
Property of the taxpayer subject to distraint shall include the personal property of the taxpayer and the personal property of corporate officers deemed to be in a fiduciary position of such sales and use tax, and the goods, stock in trade and business fixtures owned or used by any taxpayer, including those used under lease, installment sale, or other contract arrangement. Property exempt from distraint and sale shall include the personal property described as such in GJMC § 3.12.490(c)(3).
(f)
Return of the Property.
The taxpayer or any person who
claims an ownership interest or right of possession in the distrained
property may petition the City Manager, or the Municipal Court if
the property was seized pursuant to a warrant issued by the Court,
for the return of the property.
(1)
The grounds for return of the property shall be that the person has
a perfected interest in such property which is superior to the City’s
interest or that the property is exempt from the City’s lien.
(2)
The fact finder shall receive evidence on any issue of fact necessary
to the decision of the petition. If the fact finder determines by
a preponderance of the evidence in favor of the taxpayer or other
petitioner, the property shall be returned.
(Ord. 3626, 5-4-04. Code 1994 § 34-154; Code 1965 § 24-55)
Whenever the business or property of any taxpayer is subject
to receivership, bankruptcy or assignment for the benefit of creditors,
or is under distraint for property taxes, total tax liability shall
be a prior and preferred lien against all the property of the taxpayer.
No sheriff, receiver, assignee or other officer shall sell the property
of any such taxpayer under process or order of any court, without
first ascertaining from the City Manager the amount of the total tax
liability payable under this chapter. Such officer shall pay any total
tax liability to the City before making payment to any judgment creditor
or other claimants.
(Code 1994 § 34-155; Code 1965 § 24-56)
(a)
It
shall be a violation of this chapter to fail to perform any applicable
affirmative duty specified in this chapter, including, but not limited
to:
(1)
The failure of any person engaged in business in the City to obtain
a license.
(2)
The failure of any taxpayer to file a timely return or to make timely
payment of any tax due.
(3)
The failure of any person to comply with the registration requirements
for automotive vehicles.
(4)
The making of any false or fraudulent statement, whether orally or
in writing, by any person in any return, claim for refund, application
for a license, hearing or as a part of any audit.
(5)
The evasion of collection of any sales tax by any person or the aiding
or abetting of any other person in an attempt to evade the timely
payment of tax due.
(b)
The
City Manager may request that the City Attorney issue a complaint
and summons to appear before the Municipal Court of the City to any
person who may be in violation of this chapter or of the rules and
regulations promulgated by the City Manager to enforce this chapter.
(Code 1994 § 34-156; Code 1965 § 24-57)
Unless the limitation period has been extended as provided in
this section, the statute of limitations for provisions contained
in this chapter shall be as follows:
(a)
Refunds.
(1)
Any claim for refund for disputed tax shall be submitted to the City
on or before 60 days from the date of such purchase.
(2)
Any claim for refund resulting from a notice of overpayment shall
be submitted to the City on or before 30 days after the date of such
notice of overpayment.
(3)
Any other claim for refund shall be filed on or before three years
after the date such overpayment was paid to the City.
(b)
Assessments.
Except as otherwise provided in this chapter,
no notice of assessment shall be issued more than three years after
the due date of such tax due, or for a construction project which
requires a City building permit, the date the final certificate of
occupancy was issued for such project or final inspection, whichever
is later.
(c)
Liens.
Except as otherwise provided in this chapter,
no notice of lien shall be issued more than three years after the
due date of the tax due. If the limitation period is extended, a notice
of lien may be filed on or before 30 days from the date of the notice
of assessment issued for such extended period.
(d)
Returns.
(e)
Protests.
No protest of a notice of assessment or denial
of a claim for refund shall be valid unless submitted to the City
Manager in written form within the period allowed in this chapter.
(f)
Extension.
The period of limitation may be extended
before its expiration.
(1)
The taxpayer and the City Manager may agree in writing to extend
the period.
(2)
If the City provides written notice to the taxpayer prior to the
expiration of the period of limitation that the latter’s records
will be audited pursuant to this chapter, such period of limitation
shall be extended for the audit period until 30 days after the date
of the notice of assessment or notice of overpayment issued as a result
of such audit. “Audit period” is the 36-month reporting
period preceding the date of the notice of audit, or if a City building
permit is required, the period between the issuance of such building
permit and the issuance of a final certificate of occupancy, or final
inspection.
(g)
Audits.
Performance of an audit does not constitute
a statute of limitations or preclude additional audits of the same
period within the parameters of this section.
(Code 1994 § 34-157; Code 1965 § 24-58)
(a)
The
City’s enforcement policies and practices relative to sales
tax as outlined in this chapter are hereby confirmed and approved
for continuation in the day-to-day administration of the City’s
sales tax.
(b)
The
following enforcement policies and practices are hereby approved in
addition to those contained in this chapter:
(1)
Automatic administrative remedies including notice of tax assessments
from our sales tax system, loss of vendors fee, penalties and interest.
(2)
Telephone and/or physical visit by customer service staff to location
of local vendors to obtain compliance.
(3)
Payment arrangements to eliminate delinquency, while keeping current
on all required filings and remittances.
(c)
If
the above procedures fail to achieve compliance more aggressive action
will be taken including: turning the account over to the City Attorney
for contact, Municipal Court complaint, bank account garnishment,
and seizure and sale of assets at public auction.
(d)
While
proceeding through the above processes, every attempt will be made
to coordinate and evaluate conditions of delinquency with the State
of Colorado enforcement personnel.
(e)
No
open and ongoing business will be allowed to continue in operation
beyond nine months of delinquency without the seizure and sale of
assets being activated; unless a payment arrangement being complied
with goes beyond this period. Also failure to comply with a payment
arrangement on an account over nine months delinquent will result
in immediate seizure of bank accounts and/or business assets.
(Res. 45-04, 5-5-04)
