Skip to content

   advanced search

Site Navigation

Colorado Code Books Home

Boulder Revised Code Home

1. Charter
2. Title 1 General Administration
3. Title 2 Government Organization
4. Title 3 Revenue and Taxation
1. Chapter 3-1 Definitions
2. Chapter 3-2 Sales and Use Tax
3. Chapter 3-3 Public Accommodations Tax
4. Chapter 3-4 Admissions Tax
5. Chapter 3-5 Tax Refund Program
6. Chapter 3-6 Occupation Tax on Local Exchange Telephone Service Suppliers
7. Chapter 3-7 Occupation Tax
8. Chapter 3-8 Development Excise Tax
9. Chapter 3-9 Housing Excise Tax
10. Chapter 3-10 Trash Tax
11. Chapter 3-11 Education Excise Tax (Repealed)
12. Chapter 3-12 Climate Action Plan Excise Tax
13. »Chapter 3-13 Utility Occupation Tax
5. Title 4 Licenses and Permits
6. Title 5 General Offenses
7. Title 6 Health, Safety and Sanitation
8. Title 7 Regulation of Vehicles, Pedestrians, and Parking
9. Title 8 Parks, Open Space, Streets, and Public Ways
10. Title 9 Land Use Regulation
11. Title 10 Structures
12. Title 11 Utilities and Airport
13. Title 12 Human Rights
14. Title 13 Elections and Campaign Disclosures and Activities
15. Title 14 Arts
16. Index
17. Ordinances Pending Codification

Page Contents

• 3-13-1 Legislative Purpose, Findings, and Intent
• 3-13-2 Imposition of Occupation Tax
• 3-13-3 Adjustments
• 3-13-4 Payment of Tax
• 3-13-5 Designation of Tax
• 3-13-6 Enforcement of Tax Liability
• 3-13-7 Duties and Powers of City Manager
• 3-13-8 Tax not on Interstate Commerce; not a Franchise
• 3-13-9 Dedicated Revenues

Chapter 3-13: Utility Occupation Tax⁴⁰

3-13-1 Legislative Purpose, Findings, and Intent.

(a) Purpose. It is the purpose of this chapter to implement the City's utility occupation tax.

(1) Passed by the voters on November 2, 2010, as a replacement for a fee paid under franchise agreement with a utility provider;

(2) Amended by the voters on November 1, 2011, to increase the amount of the tax and extend the tax to December 31, 2017.

(b) Findings. The city council finds that:

(1) The occupation of delivering electricity and natural gas within the City is the exercise of a taxable privilege;

(2) The levy of the taxes imposed by this chapter is to replace a franchise fee and therefore should not be assessed against any public utility obligated to pay a franchise fee; and

(3) The revenue collected should be limited to amounts reasonably expected to be collected under a franchise, and to collect additional revenue for the purpose of funding the costs of further exploration and planning for the creation of a municipal utility and acquisition of an existing electric distribution system.

(c) Intent. The city council intends to use the funds collected pursuant to this tax for general fund purposes during the time when the City explore a clean energy future with more stable energy rates and to implement such plans, and for the purpose of funding the costs of further exploration and planning for the creation of a municipal utility and acquisition of an existing electric distribution system. The city council intends to give full effect to the ballot measures approved by the voters.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-2 Imposition of Occupation Tax.

(a) Payment of Tax Required. No utility delivering electricity and gas to residential, commercial or industrial customers shall fail to pay to the city manager the utility occupation tax, prescribed by subsection (c) of this section, unless such person is obligated to pay a comparable fee under a franchise agreement or other license or permit agreement with the City.

(b) Original Tax Effective Date and Expiration Date. The utility occupation tax of $4,100,000 was effective January 1, 2011.

(c) Extension and Increase Dates. The increase in the amount of the utility occupation tax shall be effective January 1, 2012, and expire on the earlier of: (1) December 31, 2017, (2) when the City decides not to create a municipal utility, or (3) when the City commences delivery of municipal electric utility services.

(d) Tax Rate. The utility occupation tax effective January 1, 2012, shall be $6,000,000, adjusted annually as provided in section 3-13-3 of this title.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-3 Adjustments.

(a) Limitations on Tax Increases. Beginning January 1, 2012, the maximum annual tax rate increase shall be the lesser of three percent or the average amount of rate increases made by public utility companies delivering natural gas or electricity in the City in the previous year as calculated pursuant to subsections (b) through (d) of this section.

(b) Annual Utility Rate Study. The city manager shall review the rate tariffs filed by all investor-owned public utility companies delivering gas or electricity in the City.

(1) The city manager shall list all electrical rates in the electrical tariff expressed in terms of cents per kilowatt hour from lowest to highest and select from that list the median electric rate. If there is more than one investor-owned electric utility company delivering electricity in the City, the city manager shall ascertain the median electrical rate for each such company and then produce an average median rate charge for electricity in the City.

(2) The city manager shall ascertain the standard rate per decatherm charged by each public utility company delivering gas in the City. If there is more than one investor-owned gas utility company delivering gas in the City, the city manager will average the standard rate per decatherm for each such company to produce an average standard rate per decatherm charged for delivering gas in the City.

(c) Annually, the city manager shall calculate an average increase by comparing the rates determined in subsection (b) above with comparable rates charged in the previous calendar year to produce a percentage average increase for each such rate. The city manager shall then average those rate increases and compare that average to determine whether it is greater than or less than three percent. The utility occupation tax shall then be increased by the lesser of the two percentages. The city manager will recommend any such tax increase, subject to the limitations of this section, to the city council concurrent with the annual budget process.

(d) Tax Increase Date. The effective amount of tax due shall be increased as of January 1 of each year.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-4 Payment of Tax.

Utility occupation tax payments shall be remitted to the city manager in equal monthly installments not more than thirty days following the end of each month. The first payment following the increase effective January 1, 2012, shall be due February 29, 2012. Initial and final payments shall be prorated for the portions of the months at the beginning and end of the term of this utility occupation tax.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-5 Designation of Tax.

Persons taxed under the provisions of this chapter are hereby authorized to reflect this tax under the title of "Utility Occupation Tax."

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-6 Enforcement of Tax Liability.

(a) Tax Constitutes a First Lien. The utility occupation tax imposed by this chapter is a first and prior lien on tangible personal property in which the person responsible to remit the tax has an ownership interest, subject only to valid mortgages or other liens of record at the time of and prior to the recording of notice of tax lien as provided in subsection 3-2-27(c), B.R.C. 1981.

(b) Enforcement. The provisions of sections 3-2-22, "Penalties for Failure to File Tax Return or Pay Tax (Applies to Entire Title)," 3-2-27, "Tax Constitutes Lien," 3-2-29, "Sale of Business Subject to Lien," 3-2-30, "Certificate of Discharge of Lien," 3-2-31, "Jeopardy Assessment," 3-2-32, "Enforcing the Collection of Taxes Due (Applies to Entire Title)," 3-2-33, "Recovery of Unpaid Tax by Action at Law," 3-2-34, "City May Be a Party Defendant," 3-2-35, "Injunctive Relief," 3-2-36, "Obligations of Fiduciaries and Others," and 3-2-38, "Limitations," B.R.C. 1981, providing for enforcement of collection of taxes due, govern the authority of the city manager to collect the utility occupation tax imposed under this chapter.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-7 Duties and Powers of City Manager.

The city manager is authorized to administer, including through the adoption of administrative policies and guidelines, the provisions of this chapter and has all other duties and powers prescribed by section 3-2-17, "Duties and Powers of City Manager," B.R.C. 1981. In addition, the city manager is authorized to enter into an agreement with persons authorized to tax under this chapter to establish procedures for tax collection, payment to the City and the reasonable setup and collection charges that will be owed to such person.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-8 Tax not on Interstate Commerce; not a Franchise.

The tax provided in this chapter is upon occupations and businesses in the performance of local functions and is not a tax upon functions relating to interstate commerce. None of the terms of this chapter mean that the City has granted any provider a franchise.

Ordinance Nos. 7769 (2010); 7825 (2011)

3-13-9 Dedicated Revenues.⁴¹

(a) General Fund Revenue. The amount of the occupation tax revenue attributable to the ballot measure passed by the voters in 2010 (Ord. No. 7751) and extended in time by the voters in 2011 (Ord. No. 7804) shall be used for general revenue needs of the City.

(b) Revenue for Electric Utility Exploration and Planning for Creation. The amount of the increase in the occupation tax revenue attributable to the ballot measure passed by the voters in 2011 shall be used for the purpose of funding the costs of further exploration of and planning for both the creation of a municipal electric utility and acquiring an existing electric distribution system.

Ordinance No. 7825 (2011)

---

⁴⁰ Adopted by Ordinance No. 7769.

⁴¹ Added by Ordinance No. 7825, effective commencing January 1, 2012.

Top of Page