IN GENERAL
Colorado Code Publishing Company > Code Books > Fort Collins Municipal Code and Charter > Chapter 25
CHAPTER 25
TAXATION
Articles:
Reserved
II. Tax Refund and Rebate Program
Division 1 Generally
Reserved
Division 2 Ad Valorem Tax Refund Program for the Elderly and Disabled
Sec. 25-26 Definitions
Sec. 25-27 Purpose
Sec. 25-28 Application for refund
Sec. 25-29 Qualifications
Sec. 25-30 Amount of refund
Sec. 25-31 Refunds payable only to applicant
Sec. 25-32 Rules and regulations
Division 3 Sales Tax Rebate on Food
Sec. 25-46 Definitions
Sec. 25-47 Establishment
Sec. 25-48 Application for rebate
Sec. 25-49 Qualification
Sec. 25-50 Amount of rebate
Sec. 25-51 Payment
Sec. 25-52 Administration
Division 4 Affordable Housing Rebate
Sec. 25-55 Establishment
Sec. 25-56 Application for rebate
Sec. 25-57 Qualifications
Sec. 25-58 Amount of rebate
Sec. 25-59 Administration
Sec. 25-60 Sunset provision
Division 5 Manufacturing Equipment Use Tax Rebate
Sec. 25-63 Definitions
Sec. 25-64 Establishment
Sec. 25-65 Application for rebate
Sec. 25-66 Qualifications
Sec. 25-67 Amount of rebate
Sec. 25-68 Payment
Sec. 25-69 Administration
Division 1 General Provisions; Taxes Imposed
Sec. 25-71 Definitions
Sec. 25-72 Legislative intent
Sec. 25-73 Imposition of the sales tax
Sec. 25-74 Imposition of the use tax
Sec. 25-75 Rate of tax
Division 2 Licensing
Sec. 25-91 Sales/use tax license required
Sec. 25-92 Separate license required for each place of business
Sec. 25-93 Form of license; not transferable
Sec. 25-94 Exempt organization license; application procedure
Sec. 25-95 Revocation of license
Sec. 25-96 Appeal of revocation
Division 3 Taxpayer Responsibilities
Sec. 25-116 Collection of tax
Sec. 25-117 Tax money in possession of retailer held in trust
Sec. 25-118 Tax on credit or secured sales; bad debts
Sec. 25-119 Tax on construction materials and supplies
Sec. 25-120 Proration of use tax on certain construction equipment
Sec. 25-121 Location guide available
Sec. 25-122 Tax on automotive vehicles purchased outside City
Sec. 25-123 Remittance of sales tax collected by retailer
Sec. 25-124 Remittance of use tax
Sec. 25-125 Remittance of use tax by property owners and lessees
Sec. 25-126 Remittance of tax on other than a monthly basis
Sec. 25-127 Form of tax returns; signatures required
Sec. 25-128 Consolidation of returns
Sec. 25-129 Deferred use tax payments for large base industry
Sec. 25-130 Deferred sales and use tax payments for affordable housing projects
Division 4 Refunds
Sec. 25-146 Tax disputes
Sec. 25-147 Procedure for refund of disputed tax
Sec. 25-148 Right of refund not assignable
Sec. 25-149 Action for recovery of refund
Division 5 Administration
Sec. 25-166 Preservation of returns and other records; confidentiality
Sec. 25-167 Records and accounts to be kept
Sec. 25-168 Examination of returns; recomputation, credits, deficiencies
Sec. 25-169 Investigation of records relating to taxes
Sec. 25-170 Subpoenas and witness fees
Sec. 25-171 Attendance of witnesses and production of evidence to be compelled by District Judge
Sec. 25-172 Depositions
Sec. 25-173 Coordinated audit
Division 6 Enforcement
Sec. 25-186 Failure to make return; estimate of taxes; notices; appeal; audit
Sec. 25-187 Assessment and recurring assessment penalty
Sec. 25-188 Rate of interest; method of calculation
Sec. 25-189 Tax constitutes lien
Sec. 25-190 Lien on construction improvements
Sec. 25-191 Sale of business subject to lien
Sec. 25-192 Certificate of discharge of lien
Sec. 25-193 Jeopardy assessment
Sec. 25-194 Enforcing the collection of taxes due
Sec. 25-195 Recovery of unpaid tax by action at law
Sec. 25-196 City may be party in title actions
Sec. 25-197 Injunctive relief
Sec. 25-198 Waiver of penalties by Financial Officer
Sec. 25-199 Obligations of fiduciaries and others
Sec. 25-200 Intercity claims for recovery
Division 7 Miscellaneous
Sec. 25-216 Review of decisions of Financial Officer
Sec. 25-217 Review bond required
Sec. 25-218 Notices
Sec. 25-219 License and tax in addition to all other licenses and taxes
Sec. 25-220 Hearings to be held in City
Sec. 25-221 Administration by Financial Officer; rules and regulations
Sec. 25-222 Violations
Sec. 25-223 Penalties
Sec. 25-224 Purpose of tax; distribution of proceeds
Sec. 25-225 Limitations on actions to collect
Sec. 25-226 Notice of sales and use tax ordinance amendment
Sec. 25-227 Participation in meetings
Sec. 25-241 Definitions
Sec. 25-242 Tax levied
Sec. 25-243 Transactions exempt from tax
Sec. 25-244 Use of tax
Sec. 25-245 License required for lodging providers
Sec. 25-246 Exception to licensing requirement
Sec. 25-247 Application
Sec. 25-248 Form of license; nontransferability
Sec. 25-249 Revocation of license
Sec. 25-250 Appeal of revocation; procedure
Sec. 25-251 Engaging in business without license to be a violation
Sec. 25-252 Payment of tax
Sec. 25-253 Formulation and promulgation of rules and regulations
Sec. 25-254 Advertisement of assumption or absorption of tax prohibited
Sec. 25-255 Remittance of tax on other than monthly basis
Sec. 25-256 Consolidation of returns
Sec. 25-257 Excess collections; failure to remit collections
Sec. 25-258 Bad debts
Sec. 25-259 Disputes over exemption from tax; application for refund
Sec. 25-260 Procedure for refund of disputed tax
Sec. 25-261 Right of refund not assignable
Sec. 25-262 False statements to be a violation
Sec. 25-263 Conviction to be evidence of fraudulent intent
Sec. 25-264 Information to be confidential
Sec. 25-265 Keeping of records and accounts
Sec. 25-266 Divulging of confidential information to be a violation
Sec. 25-267 Examination of returns; recomputation; credits; deficiencies
Sec. 25-268 Penalty for deficiencies due to negligence
Sec. 25-269 Penalty for deficiencies with intent to defraud
Sec. 25-270 Investigation of tax records
Sec. 25-271 Subpoenas and witness fees
Sec. 25-272 Attendance of witnesses and production of evidence
Sec. 25-273 Depositions
Sec. 25-274 Unpaid tax a prior lien; satisfaction of liens
Sec. 25-275 Settlement of taxes after sale of business
Sec. 25-276 Purchase of business subject to tax lien
Sec. 25-277 Unpaid taxes in cases of bankruptcy or receivership
Sec. 25-278 Tax money to be held in trust
Sec. 25-279 Failure to make return; estimate of taxes; penalty; notice; appeal
Sec. 25-280 Notice of tax lien
Sec. 25-281 Release of lien
Sec. 25-282 Recovery of unpaid taxes by action at law
Sec. 25-283 City may be party in title actions
Sec. 25-284 Waiver of penalties by Financial Officer
Sec. 25-285 Petition and hearing of aggrieved taxpayer
Sec. 25-286 Decision of Financial Officer
Sec. 25-287 Review of decisions
Sec. 25-288 Review bond required
Sec. 25-289 Review procedures in District Court
Sec. 25-290 Review of District Court decisions by Supreme Court
Sec. 25-291 Notices to be sent by registered or certified mail
Sec. 25-292 Tax in addition to other taxes
Sec. 25-293 Hearings to be held in City
Sec. 25-294 Administrative officer designated
Sec. 25-295 Statute of limitations
Sec. 25-296 Violations
Division 1 Generally
Reserved
Division 2 Telephone
Sec. 25-326 Levy of tax
Sec. 25-327 Local purpose
Sec. 25-328 Payment of tax
Sec. 25-329 Failure to pay
Sec. 25-330 Prior occupation tax
Sec. 25-331 Effective date
VI. Gas Company Occupation Tax
Sec. 25-342 Short title
Sec. 25-343 Legislative intent
Sec. 25-344 Definitions
Sec. 25-345 Levy of the tax
Sec. 25-346 Time of payment of tax
Sec. 25-347 Interest on deficiency
Sec. 25-348 Failure to pay
Sec. 25-349 Inspection of records; report
Sec. 25-350 Administrative hearings
Sec. 25-351 Administration of the occupation tax
Sec. 25-352 Local purpose
Sec. 25-353 Reimbursement of costs
Sec. 25-354 Severability
Secs. 25-1—25-15. Reserved.
ARTICLE II.
TAX REFUND AND REBATE PROGRAM*
Secs. 25-16—25-25. Reserved.
DIVISION 2. AD VALOREM
TAX REFUND PROGRAM FOR THE ELDERLY AND DISABLED
The following words, terms and phrases, when used in this Division, shall have the meanings ascribed to them in this Section:
Disabled individual shall mean any person who has a physical impairment from a physiological or neurological condition or a disability attributable to mental retardation, cerebral palsy or epilepsy which prevents the exercise of normal physical function.
Household shall mean two (2) or more persons related by blood or marriage living together under one (1) roof. Any person who pays property taxes or rent on a home or dwelling unit shall not be considered to be a part of any household other than that person's own dwelling unit.
Income shall mean total income, including but not limited to salaries, scholarships, grants and loans, wages, tips, employee compensation, interest, dividends, business or farm income, rents, royalties, social security benefits, public and private pension payments, annuities, support money, cash public assistance and relief, veterans benefits (except Medicare and service-connected disability payments) workers' compensation and unemployment compensation benefits and all other forms of revenue.
Owned shall mean possessed of the legal incidents of ownership irrespective of whether the applicant's name appears on the recorded deed for the property.
(Code 1972, § 106-6; Ord. No. 60, 1994, § 1, 5-3-94)
Cross-reference—Definitions and rules of construction generally, § 1-2.
There is hereby enacted a tax refund program to provide relief from property taxes for low-income elderly residents and disabled residents of the City. It is the purpose of this tax refund program to refund to low-income elderly residents and disabled residents, as defined in this Division, the City's portion of property taxes for the preceding year which such persons have paid. This program is intended to apply to both the owner of property who has paid such property taxes and to the lessee of the property on which such tax has been paid.
(Code 1972, § 106-1)
Sec. 25-28. Application
for refund.
Refunds under this program shall be made to persons qualified for such refunds upon written application made to the Financial Officer on forms to be provided by the Financial Officer. Such applications shall be made between August 1 and December 31, inclusive, of each year for which a refund is to be made.
(Code 1972, § 106-2)
In order to be entitled to a refund under this program, the applicant for such refund must meet all of the following applicable requirements:
(1) The applicant or spouse, if living together, must be sixty-five (65) years of age or older by August 1 of the year in which the application is submitted or be a disabled individual as defined in this Division. No more than one (1) application shall be submitted or acted upon in connection with any single property in the City.
(2) The applicant must be a resident of the City as of August 1 of the year in which the application is submitted and must have been a resident of the City during the preceding year when the property tax was assessed.
(3) The applicant must have paid property taxes assessed in the previous year on a dwelling which was owned by the applicant and in which the applicant lived or the applicant, in the alternative, must have paid rent in the previous year when the taxes were assessed for the dwelling unit or portion thereof in which the applicant lived.
(4) The applicant household shall have an annual income which shall not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, rounded to the nearest two-hundred-fifty-dollar increment, up to a maximum household income of thirty (30) percent of the area median income for a household of four (4), as most recently published by the United States Department of Housing and Urban Development as of August 1 of the rebate year.
(5) Any applying household or member thereof shall be in full compliance with all provisions of the City Code and shall not be in default of the terms of any obligation, contract or other agreement with the City.
(Code 1972, § 106-3; Ord. No. 106, 1989, § 2, 8-1-89; Ord. No. 60, 1994, § 2, 5-3-94; Ord. No. 96, 1997, § 1, 7-15-97; Ord. No. 122, 1998, § 1, 7-21-98)
(a) If the applicant meets the requirements of this Division, the City shall refund to the applicant an amount based upon the following:
(1) In the case of an owner of a dwelling unit, that portion of the total property tax actually paid on the property which was levied by the City for the preceding year;
(2) In the case of a person renting property on which City property taxes were paid in the preceding year, an amount equal to one and forty-four one-hundredths (1.44) percent of the rental payments made by such applicant during the preceding year;
(3) In the event an applicant owns the dwelling unit and pays taxes thereon for only a portion of a year, the refund shall be only for the pro rata amount of such City taxes representing the portion of such year during which the applicant owned the dwelling unit and paid taxes thereon as compared to the entire such year.
(b) An applicant may be entitled to a refund based on the foregoing provisions for such qualifying dwelling unit in which the applicant lived at different times during such year, but in no event shall the applicant be entitled to a refund representing more than one (1) dwelling unit for a particular time period.
(Code 1972, § 106-4)
Sec. 25-31. Refunds payable
only to applicant.
(a) The City shall make tax refunds pursuant to this Division only directly to the applicant who qualifies therefor and, except as provided in Subsection (b) below, refunds shall not be paid to anyone other than the applicant. If an applicant dies prior to receiving or cashing a refund pursuant hereto, any check representing such refund shall be null and void, and such refund shall not become an asset of the decedent's estate. If the decedent is survived by a spouse who would be qualified as an applicant for such refund, the City will honor an application for a refund by such surviving spouse, even though the application is not timely made in accordance with the provisions of this Division.
(b) If any application for a refund is approved under the provisions of this Division, and the applicant for such refund subsequently becomes delinquent in the payment of any utility bill(s) owed to the City, the refund otherwise due the applicant may be applied by the City in whole or in part toward the payment of the delinquent bill(s).
(Code 1972, § 106-5; Ord. No. 60, 1994, § 2, 5-3-94)
Sec. 25-32. Rules and
regulations.
The Financial Officer with the approval of the City Manager shall have the power to formulate and promulgate rules and regulations for the administration of this tax refund program not inconsistent with the provisions of this Division.
(Code 1972, § 106-7)
Secs. 25-33—25-45. Reserved.
DIVISION 3. SALES
TAX REBATE ON FOOD
The following words, terms and phrases, when used in this Division, shall have the meanings ascribed to them in this Section:
Household shall mean spouses and their children by birth or adoption, and including foster children and children placed in legal guardianship, herein referred to as family household. Household shall mean no more than three (3) persons not related as above described, herein referred to as nonfamily household. In either event such persons shall live at the same address and pool resources for the purpose of paying shared living expenses, such as rent, food and utilities. The City's determination shall be final with regard to eligibility as a household.
Income shall mean total income, including but not limited to salaries, scholarships, grants and loans, wages, tips, employee compensation, interest, dividends, business or farm income, rents, royalties, social security benefits, public and private pension payments, annuities, support money, cash public assistance and relief, veterans benefits (except Medicare and service connected disability payments) workers' compensation and unemployment compensation benefits and all other forms of revenue.
(Code 1972, § 107-2; Ord. No. 60, 1994, § 3, 5-3-94)
Cross-reference—Definitions and rules of construction generally, § 1-2.
There is hereby established a sales tax rebate program to provide relief from sales taxes charged on food purchases by low-income residents.
(Code 1972, § 107-1)
Sec. 25-48. Application
for rebate.
Application for the sales tax rebate on food shall be made on forms to be provided by the City. In order to qualify for such rebate, the application must be filed between August 1 and December 31, inclusive, of each year for which a rebate is requested. Only one (1) application shall be filed per household. If any member of the household filing an application has filed a federal income tax return for the applicable year, a copy of such income tax return must be attached to the application.
(Code 1972, § 107-3)
In order to qualify for the rebate, the following requirements must be met:
(1) All members of an applicant household must have resided within the City prior to the commencement of the calendar year for which application is made and at the time the application is made. The applicant household shall have an annual income which shall not exceed fifty (50) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, rounded to the nearest fifty-dollar increment, up to a maximum household income of fifty (50) percent of the area median income for a household of eight (8), as most recently published by the United States Department of Housing and Urban Development as of August 1 of the rebate year.
(2) Any applying household or member thereof shall be in full compliance with all provisions of the City Code and shall not be in default of the terms of any obligation, contract or other agreement with the City. If any application for a rebate is approved under the provisions of this Division, and the applicant for such refund subsequently becomes delinquent in the payment of any utility bill(s) owed to the City, the rebate otherwise due said applicant may be applied by the City in whole or in part toward the payment of the delinquent bill(s).
(Code 1972, § 107-5; Ord. No. 60, 1994, § 4, 5-3-94; Ord. No. 96, 1997, § 2, 7-15-97; Ord. No. 122, 1998, § 2, 7-21-98; Ord. No. 22, 2005, § 1, 2-15-05)
The amount of rebate payable hereunder shall be in the sum of forty dollars ($40.) per person per calendar year in any eligible household.
(Code 1972, § 107-4; Ord. No. 122, 1998, § 3, 7-21-98)
The City shall make rebate payments to family households by joint payment to adult members of the household and to parents on behalf of all children of the household. The City shall make rebate payments to nonfamily households by joint payment to all members of the household.
(Code 1972, § 107-6)
The Financial Officer shall administer the program established by this Division and may prepare a rebate application form, adopt rules and regulations consistent with the provisions of this Division and audit and verify the applications submitted pursuant to this Division. Any rebate application form shall require the claimant to verify and sign the application under oath. The burden of proving entitlement to a rebate under this Division is on the claimant. The Financial Officer may require reasonable information to support the rebate application.
(Code 1972, § 107-7)
Secs. 25-53—25-54. Reserved.
DIVISION 4. AFFORDABLE
HOUSING REBATE
There is hereby established a sales and use tax rebate program to provide relief from sales and use taxes charged on purchases of materials used in the construction of affordable housing units as that term is defined in § 26-631.
(Ord. No. 191, 1999, § 1, 1-4-00)
Sec. 25-56. Application
for rebate.
Application for the sales and use tax rebate for affordable housing units shall be made on forms to be provided by the City.
(Ord. No. 191, 1999, § 1, 1-4-00)
In order to qualify for the rebate, the following requirements must be met:
(1) The applicant must demonstrate to the satisfaction of the City that the materials upon which the sales and use taxes have been paid have been used in the construction of an affordable housing unit as defined in § 26-631 and that the applicant requesting the rebate is the same as the payor of the taxes, or, if not the same, has presented to the City the written permission of the payor to request and receive the rebate;
(2) The applicant shall be in full compliance with all provisions of the Code and shall not be in default of the terms of any obligation, contract or other agreement with the City. If any application for a rebate is approved under the provisions of this Division, and the applicant for such rebate subsequently becomes delinquent in the payment of any tax, fee, charge or utility bill owed to the City, the rebate otherwise due said applicant may be applied by the City in whole or in part toward the payment of the delinquent tax, fee, charge or bill.
(Ord. No. 191, 1999, § 1, 1-4-00)
The amount of the rebate payable hereunder shall be the full amount of sales and use taxes paid for materials used in the construction of the affordable housing unit. The rebates provided for under this Division are subject to the appropriation of necessary funds, and the provisions of this Division shall not be construed as establishing any right or entitlement to a rebate on the part of any applicant.
(Ord. No. 191, 1999, § 1, 1-4-00)
The Financial Officer shall administer the program established by this Division and may prepare a rebate application form, adopt rules and regulations consistent with the provisions of this Division and audit and verify the applications submitted pursuant to this Division. Any rebate application form shall require the claimant to verify and sign the application under oath. The burden of proving eligibility for a rebate under this Division is on the claimant. The Financial Officer may require reasonable information to support the rebate application.
(Ord. No. 191, 1999, § 1, 1-4-00)
The sales and use tax rebate provisions established in this Division shall terminate and be of no further force and effect on December 1, 2001, and no rebate shall be paid after said date except for affordable housing projects for which building permits have theretofore been issued, unless this sunset provision is repealed or modified by the City Council.
(Ord. No. 191, 1999, § 1, 1-4-00)
Secs. 25-61—25-62. Reserved.
DIVISION 5. MANUFACTURING EQUIPMENT USE TAX REBATE
The following words, terms and phrases, as used in this Article, shall have the following meanings ascribed to them in this Section:
Manufacturing equipment shall mean manufacturing equipment to be used in the City directly and exclusively in the manufacture of tangible personal property for sale or profit.
Qualifying manufacturer shall mean an industrial manufacturer who, in an industrial setting, produces a new product, article, substance or commodity that is different from and has a distinctive name, character or use from the raw or prepared materials used to manufacture the product.
(Ord. No. 040, 2007, 3-20-07)
There is hereby established a manufacturing use tax rebate program to provide relief from use taxes imposed upon a qualifying manufacturer.
(Ord. No. 040, 2007, 3-20-07)
Sec. 25-65. Application for rebate.
Application for the manufacturing equipment use tax rebate on qualifying manufacturing equipment shall be made on forms to be provided by the City. In order to qualify for such rebate, the application must be filed between August 1 and December 31, inclusive, of each year for which a rebate is requested. Only one (1) application shall be filed per qualifying manufacturer.
(Ord. No. 040, 2007, 3-20-07)
In order to qualify for a rebate under the provisions of this Division, the following requirements must be met:
(1) The qualifying manufacturer must be licensed with the City and classified as a "manufacturer" under the Standard Industrial Code.
(2) The qualifying manufacturer must certify compliance with all federal, state and local laws and regulations applicable to a manufacturing facility located within the City limits.
(3) The qualifying manufacturer must be current in all payments to the City and in compliance with any contractual agreements with the City.
(4) Machinery and equipment must be tangible personal property when purchased; be necessary for, and used directly in, the manufacturing of tangible personal property to be sold; not be used in any activity other than the actual manufacturing process; not be merely useful or incidental to the manufacturing operation; and be purchased in the year the rebate is being applied for.
(5) The qualifying manufacturer must have paid the appropriate use tax.
(Ord. No. 040, 2007, 3-20-07)
The amount of rebate payable shall be in the sum set forth in a rebate schedule to be adopted by the City’s Finance Department consistent with rules and regulations promulgated pursuant to § 25-69.
(Ord. No. 040, 2007, 3-20-07)
The City shall make all rebate payments to each qualifying manufacturer by a single check.
(Ord. No. 040, 2007, 3-20-07)
The Financial Officer shall administer the program established by this Division and may prepare a rebate application form, adopt rules and regulations consistent with the provisions of this Division, and audit and verify the applications submitted pursuant to this Division. Any rebate application form shall require the claimant to verify and sign the application under oath. The burden of proving entitlement to a rebate under this Division is on the claimant. The Financial Officer may require reasonable information to support the rebate application.
(Ord. No. 040, 2007, 3-20-07)
Sec. 25-70. Reserved.
ARTICLE III.
SALES AND USE TAX*
DIVISION 1. GENERAL
PROVISIONS; TAXES IMPOSED
The following words, terms and phrases, as used in this Article, shall have the following meanings:
Access services shall mean the services furnished by a local exchange company to its customers who provide telecommunications services which allow them to provide such telecommunication services.
Auction shall mean any sale where tangible personal property is sold by an auctioneer who is either the agent for the owner of such property or is in fact the owner thereof.
Automotive vehicle shall mean 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 any device used or designed for aviation or flight in the air. Automotive vehicle includes, but is not limited to, motor vehicles, trailers, semi-trailers or mobile homes. Automotive vehicle shall not include devices moved by human power or used exclusively upon stationary rails or tracks.
Business shall mean all activities engaged in or caused to be engaged in with the object of gain, benefit or advantage, direct or indirect.
Charitable organization shall mean any entity which: (i) has been certified as a not-for-profit organization under Section 501(c)(3) of the Internal Revenue Code; and (ii) is a religious or charitable organization. As used in this definition, a "charitable organization" is an organization which exclusively, and in a manner consistent with existing laws and for the benefit of an indefinite number of persons, freely and voluntarily ministers to the physical, mental or spiritual needs of persons, and which thereby lessens the burdens of government.
City shall mean the municipality of Fort Collins, Colorado.
City Manager shall mean the City Manager of the City of Fort Collins, Colorado.
Construction equipment shall mean all pieces of portable machinery, vehicles and other types of equipment used to demolish, build, erect or otherwise demolish or construct buildings, roads, bridges or any other improvements.
Construction materials shall mean tangible personal property which, when combined with other tangible personal property, loses its identity and becomes 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, wall board, wall coping, wall paper, weather stripping, 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.
Consumer shall mean any individual person in the City who uses stores, distributes or otherwise consumes in the City tangible personal property or taxable services purchased from sources inside or outside the City.
Drugs dispensed in accordance with a prescription shall mean drugs dispensed in accordance with any order in writing, dated and signed by a licensed practitioner of the healing arts, or given orally by such practitioner, and immediately reduced to writing, 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.
Engaged in business in the City shall mean performing or providing services or selling, leasing, renting, delivering or installing tangible personal property for storage, use or consumption within the City. Engaged in business in the City includes, but is not limited to, any one (1) of the following activities by a person:
(1) Directly, indirectly or by a subsidiary maintains a building, store, office, salesroom, warehouse or other place of business within the taxing jurisdiction;
(2) Sends one (1) 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;
(3) Maintains one (1) or more employees, agents or commissioned sales persons on duty at a location within the taxing jurisdiction;
(4) Owns, leases, rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or
(5) Makes more than one (1) delivery into the taxing jurisdiction within a twelve-month period.
Exempt commercial packaging materials shall mean containers, labels and shipping cases sold to a person engaged in manufacturing, compounding, wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit or use that meets all of the following conditions:
(1) Is used by the manufacturer, compounder, wholesaler, jobber, retailer, packager, distributor or bottler to contain or label the finished product;
(2) Is transferred by said person along with and as a part of the finished product to the purchaser; and
(3) Is not returnable to said person for reuse.
Exempt organization license shall mean a license issued to a charitable organization, as defined in this Article, which entitles the organization to make tax-free purchases of tangible personal property or taxable services in the City.
Farm close-out sale shall mean 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.
Financial officer shall mean the Financial Officer of the City of Fort Collins or such other person designated by the municipality; "Financial Officer" shall also include such person's designee.
Food shall mean: food for domestic home consumption as defined in 7 U.S.C. § 2012(g) as amended, for purposes of the federal food stamp program as defined in 7 U.S.C. § 2012(h), as amended, except that "food" does not include prepared food or food for immediate consumption; carbonated water marketed in containers; chewing gum; seeds and plants to grow food; prepared salads and salad bars; cold sandwiches; deli trays; and food or drink vended by or through machines or non-coin-operated coin-collecting food and snack devices on behalf of a vendor.
Fuel shall mean gas, electricity, nuclear, steam, coal, wood, fuel oil or coke.
Gross sales shall mean 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.
License shall mean a City of Fort Collins sales and use tax license.
Linen services shall mean services involving provision and cleaning of linens, including but not limited to rags, uniforms, coveralls and diapers.
Local exchange company shall mean any person which provides public telephone or telecommunication exchange access lines, mobile telecommunication or channels necessary to effect the transfer of two-way voice or data grade information between the final user and the local telecommunication network.
Lodging services shall mean the furnishing of rooms or accommodations by any person, partnership, association, corporation, estate or any other combination of individuals by whatever name known to a 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, lodging house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto camp or trailer court, park or similar establishment, for a period of less than thirty (30) days under any concession, permit, right of access, license to use or other agreement or otherwise.
Medical supplies shall mean drugs, prosthetic medical and dental appliances and special beds for patients with neuromuscular or similar debilitating ailments, when sold for the direct, personal use of a specific individual in accordance with a prescription or other written directive issued by a licensed practitioner of medicine, dentistry or podiatry; corrective eyeglass lenses (including eyeglass frames) and corrective contact lenses, when sold for the direct, personal use of a specific individual in accordance with a prescription or other written directive issued by a licensed practitioner of medicine or optometry; wheelchairs, and crutches, when sold for the direct, personal use of a specific individual; oxygen and hemodialysis products for use by a medical patient, hearing aids, hearing aid batteries, insulin, insulin measuring and injecting devices, glucose to be used for treatment of insulin reactions, and human whole blood, plasma, blood products and derivatives. This exemption excludes items purchased for use by medical and dental practitioners or medical facilities in providing their services, even though certain of those items may be packaged for single use by individual patients after which the item would be discarded.
Mobile machinery and self-propelled construction equipment shall mean 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 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. This definition includes but is not limited to wheeled vehicles commonly used in the construction, maintenance and repair of roadways, the drilling of wells and the digging of ditches.
Newspaper shall mean 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.
Pay television shall include, but not be limited to, cable, microwave or other television service for which a charge is imposed.
Person shall mean an individual, firm, partnership, joint venture, corporation, estate, estate or trust, receiver, trustee, assignee, lessee or any person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, or any group or combination acting as a unit.
Prepared food or food for immediate consumption shall mean food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, drug stores, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops and other places of business at which prepared food or drink, prepared salads in salad bars, cold sandwiches or deli trays are regularly sold, including sales from grocery stores and delicatessens, from pushcarts, motor vehicles and other mobile facilities and vending machines.
Preprinted newspaper supplements shall mean inserts, attachments or supplements circulated in newspapers that: (i) are primarily devoted to advertising; and (ii) the distribution, insertion or attachment of which is commonly paid for by the advertiser.
Prescription drugs for animals shall mean drugs dispensed in accordance with any order in writing, dated and signed by a licensed practitioner of the healing arts for animals, or given orally by a practitioner, specifying the animal for which the medicine or drug is offered and directions, if any, to be placed on the label.
Price or purchase price shall mean the price to the consumer, exclusive of any direct tax imposed by the federal government or by this Article, 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:
(1) Such exchanged property is to be sold thereafter in the usual course of the retailer's business, or
(2) 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 recreation vehicles, watercraft and aircraft. Any money or other consideration paid over and above the value of the exchanged property is subject to tax.
Price or purchase price includes:
(1) The amount of money received or due in cash and credits.
(2) Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business.
(3) Any consideration valued in money, such as trading stamps or coupons whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other media of exchange.
(4) 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 the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of the note 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.
(5) Installation, delivery and wheeling-in charges included in the purchase price and not separately stated.
(6) Transportation and other charges to effect delivery of tangible personal property to the purchaser.
(7) Indirect federal manufacturers' excise taxes, such as taxes on automobiles, tires and floor stock.
(8) The gross purchased price of articles sold after manufacturing or after having been made to order, including the gross value of all the materials used, labor and service performed and the profit thereon.
Price or purchase price shall not include:
(1) Any sales or use tax imposed by the State of Colorado or by any political subdivision thereof,
(2) The fair market value of property exchanged if such property is to be sold thereafter in the retailers usual course of business. This is not limited to exchanges in Colorado. Out-of-state trade-ins are an allowable adjustment to the purchase price.
(3) 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 not an allowable adjustment to the purchase price in reporting gross sales.
Private communication services shall mean 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 inter-communications system of the subscriber's stations.
Prosthetic devices shall mean 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. Prosthetic devices include but are not limited to prescribed auditory, ophthalmic or ocular, cardiac, dental or orthopedic devices or appliances, oxygen concentrators and oxygen and related accessories.
Purchase or sale shall mean the acquisition for any consideration by any person of tangible personal property or taxable services that are purchased, leased, rented, sold, used, stored, distributed or consumed, but excludes a bona fide gift of property or services. These terms include capital leases, installment and credit sales, and property and services acquired by any of the following:
(1) Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property;
(2) A lease, lease-purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property or taxable services;
(3) Performance of taxable services; or
(4) Barter or exchange for other property or services including coupons.
The terms purchase and sale do not include the following:
(1) A division of partnership assets among the partners according to their interests in the partnership;
(2) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed;
(3) The transfer of assets of shareholders in the formation or dissolution of professional corporations;
(4) The dissolution and the pro rata distribution of the corporation's assets to its stockholders;
(5) A transfer of a partnership interest;
(6) The transfer in a reorganization qualifying under Section 368(a)(1) of the Internal Revenue Code of 1954, as amended;
(7) The formation of a partnership by the transfer of assets to the partnership or transfers to a partnership in exchange for proportionate interests in the partnership;
(8) The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder;
(9) The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty (80) percent by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;
(10) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty (80) percent by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty (80) percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets;
(11) The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, or between corporations 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 Article was paid by the transferor corporation 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 corporation. To such an extent any transfer referred to in this Paragraph (11) shall constitute a sale. For the purpose of this Paragraph (11), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty (80) percent of the total combined voting power of all classes of stock entitled to vote and owns at least eighty (80) percent of the total number of shares of all other classes of stock.
Purchaser shall mean any person to whom a taxable service has been rendered or who has leased or purchased at retail tangible personal property which is used, stored, distributed or consumed in the City upon which a tax is imposed by this Article.
Recreation services shall mean all services relating to athletic or entertainment participation events, 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.
Retail sales shall mean all sales except wholesale sales.
Retailer shall mean any person selling, leasing or renting tangible personal property or services at retail. Retailer shall include any of the following:
(1) Auctioneer;
(2) Salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer;
(3) Charitable organization or governmental entity which makes sales of tangible personal property to the public, notwithstanding the fact that the merchandise may have been acquired by gift or donation or that the proceeds are to be used for charitable or governmental purposes.
Return shall mean the sales and use tax reporting form used to report sales and use tax.
Sales tax shall mean the tax to be collected and remitted by a retailer on sales taxed under this Code.
Security system services shall mean electronic security system services. Such term does not include nonelectronic security services such as consulting or human or guard dog patrol services.
Sound system services shall mean sound system services involving provision of broadcast or prerecorded audio programming to a building or portion thereof. Such term 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.
Storage shall mean any keeping or retention of, or exercise of dominion or control over, tangible personal property within the City.
Tangible personal property shall mean corporeal personal property.
Tax shall mean 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.
Tax deficiency shall mean any amount of tax that is not reported or not paid on or before the due date.
Taxable sales shall mean gross sales less any exemptions and deductions specified in this Code.
Taxable services shall mean services subject to tax pursuant to this Code.
Taxpayer shall mean any person obligated to collect and/or pay tax under the terms of this Code.
Telecommunication service shall mean 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 but not limited to wire, cable, fiber optical cable, microwave, radio wave or any combinations of such media. Telecommunication service includes but is not limited to basic local telephone service, toll telephone service and teletypewriter service, including but not limited to residential and business service, directory assistance, cellular mobile telephone or telecommunication service, specialized mobile radio and two-way pagers and paging service, including any form of mobile two-way communication. Telecommunication service does not include separately stated nontransmission services which constitute computer processing applications used to act on the information to be transmitted.
Total tax liability shall mean the total of all tax, penalties or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales.
Use shall mean the exercise for any length of time by any person within the City of any right, power or dominion over tangible personal property under a lease or when purchased at retail, either within or without the City, from a vendor or any other person.
Use tax shall mean 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.
WATS/800 service shall mean 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 communication 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.
Wholesale sales shall mean sales to licensed retailers, jobbers, dealers or wholesalers for resale. Sales by wholesalers to consumers are not wholesale sales. Sales by wholesalers to nonlicensed retailers are not wholesale sales.
Wholesaler shall mean any person selling to retailers, jobbers, dealers or other wholesalers, for resale, and not for storage, use, consumption or distribution.
(Code 1972, § 104-1; Ord. No. 192, 1987, § 1, 1-5-88; Ord. No. 60, 1988, 5-3-88; Ord. No. 132, 1991, § 1, 11-19-91)
Cross-reference—Definitions and rules of construction generally, § 1-2.
Sec. 25-72. Legislative
intent.
(a) It is the intent of the City Council, in exercising the home rule powers provided by the State Constitution, that through this legislation and in the manner described herein, 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 Article are taxable unless specifically exempted in this Article. The sales tax imposed upon tangible personal property by this Article 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 tax levied upon all sales and purchases of tangible personal property and taxable services sold or purchased by persons in the City and is collected by the retailer 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 sold at retail and furnished within the City, whether purchased or sold inside or outside the City, and not subject to the sales tax imposed by this Article. 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 retailers of tangible personal property and service and to eliminate incentives for City residents to leave the City to purchase tangible personal property and taxable services.
(Code 1972, § 104-2; Ord. No. 132, 1991, §§ 2, 4, 11-19-91)
Sec. 25-73. Imposition
of the sales tax.
(a) There is hereby levied and there shall be collected and paid a sales tax on the full purchase price paid or charged for tangible personal property and taxable services sold or purchased at retail by every person exercising a taxable privilege in the City by the sale or purchase of such property and services. The sales tax is levied on all sales and purchases of tangible personal property or taxable services except those specifically exempted and is collected by the retailer and remitted to the City.
(b) Taxable transactions and items. The sales tax shall apply as follows:
(1) On the purchase price paid or charged for all sales and purchases of tangible personal property at retail, regardless of whether such property has been included in a previous taxable transaction;
(2) On the total amount due under a lease or contract when the right to possession or use of tangible personal property is granted therein and such transfer of possession would be taxable under this Article if an outright sale were made;
(3) In the case of retail sales involving the exchange of property, on the purchase price paid or charged, including the fair market value of the property exchanged at the time and place of the exchange, excluding, however, from the consideration or purchase price, the fair market value of the exchanged property, provided that such exchanged property is to be sold in the usual course of the vendor's business;
(4) Upon telecommunication services, including access services, whether furnished by public or private corporations or enterprises, for all intrastate telecommunication services originating from or received on telecommunication equipment in the City if the charge for the service is billed to a person in the City or billed to an affiliate or division of such person in the City on behalf of a person in the City;
(5) Upon access services, whether furnished by public or private corporations or enterprises, for all interstate telecommunication services originating from or received on telecommunication equipment in the City if the charge for the service is billed to a person in the City or billed to an affiliate or division of such person in the City on behalf of a person in the City;
(6) Upon gas and electric service, whether furnished by municipal, public or private corporations or enterprises, for gas and electricity furnished and sold for domestic and commercial consumption and not for resale and upon steam when consumed or used by the purchaser and not resold in original form, whether furnished or sold by public or private corporations or enterprises;
(7) Upon the entire amount charged to any person or persons for lodging services;
(8) Upon the amount paid for all prepared food or food for immediate consumption, including cover charges, as defined in this Article;
(9) Upon the purchase price paid for any automotive vehicle, whether new or used, purchased inside or outside the City by a resident of the City or for a business located in the City for use or storage in the City. The tax shall be paid prior to or at the time the title and registration for the vehicle are issued by the County Clerk, whichever occurs first;
(10) Upon pay, cable or subscription television and sound system services, as defined in this Article; and
(11) Upon all sales of preprinted newspaper supplements, as defined in this Article.
(c) Transactions and items exempt from the sales tax. The following shall be exempt from the sales tax:
(1) All sales of automotive vehicles properly titled and registered to an address outside the City;
(2) All sales of tangible personal property if all of the following conditions exist:
a. The sales are to those who reside or do business outside the City;
b. The articles purchased are to be delivered to the purchaser outside the City by common carrier or by the conveyance of the retailer or by mail;
c. The articles purchased and delivered are used outside the City.
(3) All sales of gasoline or motor fuel which are taxed under the provisions of Title 39, Article 27, C.R.S.;
(4) All sales of goods manufactured in the City and sold by the manufacturer thereof directly to the ultimate consumer when delivery of such goods is made by common, contract or commercial carrier or by conveyance of the vendor or the purchaser to a point outside the City for use outside the City;
(5) All sales to the United States or the State, or departments, institutions or political subdivisions thereof, and all sales to the City and any department thereof when made in the exercise of their governmental functions, provided that such purchases are supported by official government purchase orders or charged to the governmental entity's credit card account and are paid for by draft or warrant drawn on the governmental entity's bank account or such purchases are made pursuant to a written agreement with the governmental entity in which the purchaser is to make such purchases on behalf of the governmental entity;
(6) All sales to charitable organizations of tangible personal property or services to be used in the conduct of the organization's regular activities to foster its religious or other expressed charitable purpose, provided that the organization obtains from the City an exempt organization license pursuant to § 25-94 and presents the license to the vendor at the time of the sale;
(7) All sales which the City is prohibited from taxing under the Constitution or laws of the United States or the State;
(8) All sales and purchases of neat cattle, sheep, lambs, swine and goats; all sales and purchases of mares and stallions for breeding purposes; and all farm close-out sales;
(9) All sales of drugs dispensed in accordance with a prescription, all sales of prescription drugs for animals (except prescription pet food), all sales of prosthetic devices and all sales of medical supplies, as defined in this Article;
(10) All sales of cigarettes;
(11) All charges for lodging services pursuant to a written lease for a period of at least thirty (30) consecutive days;
(12) All sales of tangible personal property to a public utility doing business both within and without the City, for use in such business operations outside the City, even though delivery is made in the City;
(13) All sales of tangible personal property through coin-operated vending machines; provided, however, that the owner of such vending machines shall pay a tax in the amount stated in § 25-75 on the value of the tangible personal property sold in excess of ten cents ($0.10) per item so vended in the coin-operated machines unless the sale shall be otherwise exempt as provided in this Article;
(14) All sales of farm machinery for use on property outside the City and all sales of farm machinery parts for use on property outside the City; provided, however, that this exemption for farm machinery parts shall not apply in the case of repairs performed or parts installed on equipment in the City. Trucks having a manufacturer's rated capacity of one (1) ton or less shall not be considered farm machinery for the purposes of this Section. Nothing herein contained shall be construed to limit any other exemption contained in this Article;
(15) All sales of feed and feed supplements and drugs for livestock or poultry and all sales and purchases of seeds, plants and fertilizers when such sales are made for commercial farming or ranching purposes;
(16) All sales of construction materials, as defined in this Article, if such materials are picked up by the purchaser and if the purchaser of such materials presents to the vendor a building permit or other documentation acceptable to the City evidencing that a local sales or use tax has been paid or is required to be paid;
(17) All sales of tangible personal property or taxable services which transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by other statutory or home rule municipality in the State at a rate equal to or greater than the rate stated in § 25-75 and such tax was collected. If the rate of the sales tax paid to such municipalities is less than the rate stated in § 25-75, the difference between the tax due under this Article and the tax paid previously shall be remitted to the Financial Officer;
(18) All occasional sales by charitable organizations made for fund-raising purposes. For purposes of this Subsection, occasional sales is defined as either of the following:
a. Sales which occur for no more than thirty (30) days in one (1) calendar year. A sale is deemed to occur when consideration is received by the organization for the item sold;
b. Sales which gross less than fifty thousand dollars ($50,000.) in one (1) calendar year.
(19) All sales of exempt commercial packaging materials, as defined in this Article;
(20) All sales of newsprint and printers' ink used to print newspapers and all sales and purchases of newspapers, as defined in this Article.
(d) The sale of food, as defined in this Article, is exempt from taxation under this Article in the manner provided below:
(1) Except as provided in Paragraphs (2) and (3) below, the sale of food, as defined in this Article, is exempt from taxation in any amount in excess of two and twenty-five one-hundredths (2.25) percent of the amount of the purchase price of such food.
(2) No sales or use tax shall apply to the sale of food purchased with food stamps. For the purposes of this Paragraph (2), food shall have the same meaning as provided in 7 U.S.C. § 2012(g) and as amended.
(3) No sales or use tax shall apply to the sale of food purchased with funds provided by the special supplemental food program for women, infants and children, 42 U.S.C., § 1786. For the purposes of this Paragraph (3), food shall have the same meaning as provided in 42 U.S.C. § 1786, and as amended.
(Code 1972, § 104-3; Ord. No. 192, 1987, § 2, 1-5-88; Ord. No. 8, 1988, 2-2-88; Ord. No. 132, 1991, §§ 2, 5—8, 11-19-91)
Sec. 25-74. Imposition
of the use tax.
(a) There is hereby levied and there shall be paid a use tax on the full purchase price paid for or acquisition costs of tangible personal property and taxable services brought into the City for the purpose of using, storing, distributing or consuming such property and services. The use tax is levied upon the privilege of storing, distributing, consuming or using in the City, personally or in connection with the operation of a business, tangible personal property or taxable services and is paid by either the retailer or the consumer.
(b) Transactions and items exempt from the use tax. The use, storage, distribution or consumption in the City of the following is hereby exempted from the use tax:
(1) Tangible personal property, the sale or use of which was previously subjected to a sales or use tax lawfully imposed on the purchaser or consumer by another statutory or home rule municipality in the State at a rate equal to or greater than the rate stated in § 25-75 and such tax was collected. If the rate of the sales or use tax paid to such municipality is less than the rate stated in § 25-75, the difference between the tax due under this Article and the tax paid previously shall be remitted to the Financial Officer;
(2) Tangible personal property purchased in order to be sold at retail in the City either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of business;
(3) Gasoline or motor fuel upon which has accrued or has been paid the tax prescribed by Title 39, Article 27, C.R.S.;
(4) Tangible personal property brought into the City by a nonresident for that person's own use, storage, distribution or consumption while temporarily in the City, and the tangible personal property of a resident if such property was purchased prior to becoming a resident of the City;
(5) Tangible personal property used, stored, distributed or consumed by the United States or the State or departments, institutions or political subdivisions thereof and the City and any department thereof, in their governmental capacities only;
(6) Tangible personal property purchased from a nonresident retailer by a resident common carrier, resident public utility or resident construction company which tangible personal property is stored in the City but not used or consumed in the City;
(7) Tangible personal property of a person engaged in the business of manufacturing or compounding for sale, profit or use any product, which tangible personal property becomes an ingredient or component part of the product which is manufactured or compounded;
(8) Fuel, as defined in this Article, for use in a continuing activity of producing tangible personal property or taxable services, including but not limited to processing, manufacturing, mining, refining, irrigation, telecommunication services and street and railroad transportation services;
(9) Tangible personal property used, stored, distributed or consumed by charitable organizations in the conduct of the organization's regular activities to foster its religious or other express charitable purpose, provided that the organization obtains from the City an exempt organization license pursuant to § 25-94 and presents the license as required;
(10) Neat cattle, sheep, lambs, swine and goats; and mares and stallions used for breeding purposes;
(11) Automotive vehicles and parts and accessories therefor when used or engaged in interstate commerce;
(12) Tangible personal property or services which the City is prohibited from taxing under the Constitution or laws of the United States or the State;
(13) Drugs dispensed in accordance with a prescription, prescription drugs for animals (excluding prescription pet food), prosthetic devices, and medical supplies, as defined in this Article;
(14) The storage of construction materials.
(Code 1972, § 104-4; Ord. No. 192, 1987, § 3, 1-5-88; Ord. No. 132, 1991, § 9, 11-19-91)
(a) The amount of tax hereby levied is three (3) percent of the purchase price of tangible personal property or taxable services. Twenty-five one-hundredths (0.25) percent of such amount is a tax which shall expire at midnight on December 31, 2030, the proceeds of which shall be used for the purposes of acquiring, operating and maintaining open spaces, community separators, natural areas, wildlife habitat, riparian areas, wetlands and valued agricultural lands, and to provide for the appropriate use and enjoyment of these areas by the citizenry, pursuant to the provisions of the Citizen-Initiated Ordinance No. 1, 2002. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2015, the proceeds of which shall be used for the purpose of paying the costs of planning, design, right-of-way acquisition, incidental upgrades and other costs associated with the repair and renovation of City streets, including but not limited to curbs, gutters, bridges, sidewalks, parkway shoulders and medians. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2015, the proceeds of which shall be used for the purpose of paying the costs of planning, design, right-of-way acquisition, construction and at least seven (7) years of operation and maintenance of certain capital projects specified in the "Building on Basics" capital project program, subject to the terms and conditions of Ordinance No. 92, 2005.
(b) Notwithstanding the above, in order to avoid fractions of pennies, the tax payable by the purchaser or consumer to the retailer shall be computed in accordance with schedules or systems approved by the Financial Officer. The schedules or systems shall be designed so that no tax levied by this Article is charged on any purchase of seventeen cents ($0.17) or less. However, the use of the schedules in collecting taxes from purchasers shall not relieve the retailer from liability for payment of the full amount of the tax levied in (a) above on all of the taxable sales or services.
(Code 1972, § 104-5; Ord. No. 8, 1989, § 1, 3-7-89; Ord. No. 9, 1989, § 1, 3-7-89; Ord. No. 132, 1991, § 2, 11-19-91; Ord. No. 125, 1992, 12-15-92; Ord. No. 29, 1997, § 1, passed by voters 4-8-97; Ord. 30, 1997, § 1, passed by voters 4-8-97; Ord. 31, 1997, § 1, passed by voters 4-8-97; Ord. No. 163, 2005, 12-20-05)
Secs. 25-76—25-90. Reserved.
Sec. 25-91. Sales/use
tax license required.
(a) No person shall engage in the business of selling at retail tangible personal property and services subject to the tax imposed by this Article without first having obtained a license therefor, which license shall be granted and issued by the Financial Officer and shall be in full force and effect until revoked.
(b) No person shall use, store, distribute or consume any tangible personal property or services subject to the tax imposed by this Article without first having obtained a license therefor, which license shall be granted and issued by the Financial Officer and shall be in full force and effect until revoked.
(c) Such license shall be granted only upon application stating the name and address of the person desiring such license, the name and character of the business, the location, including the street number, of such business, and such other facts as may be reasonably required by the Financial Officer.
(d) If an application for a license is submitted by an individual or business which previously held a license, the Financial Officer may require that any taxes, penalties and interest due under the previous license be paid and a bond posted in an amount set by the Financial Officer to ensure payment of taxes under the new license prior to the issuance of such new license.
(Code 1972, § 104-6)
Sec. 25-92. Separate license
required for each place of business.
In case business is transacted at two (2) or more separate places by one (1) person, a separate license for each place of business shall be required.
(Code 1972, § 104-7)
Sec. 25-93. Form of license;
not transferable.
Each license shall be numbered and shall show the name, mailing address and place of business of the licensee and shall be posted in a conspicuous place in the place of business for which it is issued. No license shall be transferable.
(Code 1972, § 104-8)
Sec. 25-94. Exempt organization
license; application procedure.
(a) No charitable organization shall purchase tax free in the City or use in the City tangible personal property or taxable services without payment of the tax imposed by this Article unless the organization first obtains an exempt organization license from the Financial Officer and presents its license to the vendor before making a purchase, lease or use of the property or services.
(b) The application for an exempt organization license shall include the organization's certificate of incorporation and a copy of the institution's federal tax exemption letter, bylaws and financial statements showing source of funds and expenditures.
(c) Upon receipt of an application, the Financial Officer shall examine the same and shall give written notice to the applicant of his or her decision thereon. An applicant whose application has been denied may, within twenty (20) days after such decision is mailed, petition the Financial Officer for a hearing on the claim. The Financial Officer shall notify the applicant in writing of the time and place of the hearing. After such hearing, the Financial Officer shall make such order in the matter as he or she deems just and proper and shall furnish a copy of such final order to the applicant.
(d) By obtaining an exempt organization license, the institution agrees to make regular and complete reports of all purchases, both those that are not taxable and those that are taxable, including, without limitation, purchases of property and services resold to members and others and those used for other than the exempt purpose of the institution.
(e) An exempt organization license shall expire on the expiration date stated on such license or at such earlier time as the nature of the organization or its activities change so that it no longer qualifies as a charitable organization. The Financial Officer shall be entitled to review the status of any such organization at any time. If the Financial Officer determines that the exempt status is no longer appropriate, the Financial Officer shall notify the organization of the same and the organization shall promptly return the exempt organization license to the Financial Officer.
(Code 1972, § 104-9; Ord. No. 192, 1987, § 4, 1-5-88; Ord. No. 132, 1991, § 10, 11-19-91)
Sec. 25-95. Revocation
of license.
The Financial Officer may, after giving reasonable notice and opportunity for a full hearing, revoke any license issued under this Article of any person found by the Financial Officer to have violated any provision of this Article.
(Code 1972, § 104-10; Ord. No. 192, 1987, § 5, 1-5-88)
Sec. 25-96. Appeal of
revocation.
Any finding and order of the Financial Officer revoking the license of any person shall be subject to review by the Larimer County District Court. The procedure for the review shall be in accordance with Rule 106 of the Colorado Rules of Civil Procedure.
(Code 1972, § 104-11; Ord. No. 132, 1991, § 11, 11-19-91)
Secs. 25-97—25-115. Reserved.
DIVISION 3. TAXPAYER
RESPONSIBILITIES
Sec. 25-116. Collection
of tax.
(a) Except as provided in (b) below, the tax to be collected as required by this Article shall be stated and charged separately from the purchase price and shown separately from the purchase price on any record thereof at the time the sale is made or at the time when evidence of the sale is issued or employed by the retailer, provided that when added, such tax shall constitute a part of such price or charge and shall be a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts. The tax shall be paid by the purchaser to the retailer, as trustee for and on account of the City, and the retailer shall be liable for the collection thereof for and on account of the City.
(b) Nothing herein contained shall be deemed to prohibit any retailer from selling malt, vinous or spirituous liquors by the drink from including in the purchase price for such drinks any tax levied under this Article. The brackets and tax amounts designated in § 25-75 shall be used by such retailers in determining amounts to be included in such prices as provided herein. No such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that the tax levied by this Article is not considered as an element in the purchase price of such drinks to the consumer.
(Code 1972, § 104-12; Ord. No. 132, 1991, § 2, 11-19-91)
Sec. 25-117. Tax money
in possession of retailer held in trust.
All sums of money paid by a purchaser to a retailer as taxes imposed by this Article shall be and remain public monies that are the property of the City. The retailer, as trustee, shall hold such monies in trust for the sole use and benefit of the City until paid to the Financial Officer as herein provided.
(Code 1972, § 104-13; Ord. No. 132, 1991, §§ 2, 13, 11-19-91)
Sec. 25-118. Tax on
credit or secured sales; bad debts.
(a) Whenever tangible personal property is sold under a conditional sales contract or lease-purchase agreement whereby the retailer retains title as security for all or part of the purchase price or whenever the retailer takes a purchase money security interest on such tangible personal property to secure all or part of the purchase price, the total tax based on the total purchase price shall become immediately due and payable. This tax shall be charged and collected by the retailer. No refund or credit shall be allowed to either party to the transaction in case of repossession.
(b) Taxes paid on sales which are represented by accounts not secured by conditional sales contracts, lease-purchase agreements or purchase money security interests and which are found to be worthless and are actually and properly charged off as bad debts for the purpose of income tax imposed by the laws of the State may be credited upon a subsequent payment of the tax provided in this Article; but, if any such accounts are thereafter collected by the retailer, a tax shall be paid upon the amounts collected.
(Code 1972, § 104-14; Ord. No. 132, 1991, § 2, 11-19-91)
Sec. 25-119. Tax on
construction materials and supplies.
(a) Any person who shall build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the City and who shall purchase or acquire fixtures, minerals or any other construction materials and supplies used therefor or any tangible personal property used therein from sources within or without the City and the owner of the real property shall be jointly and severally responsible for paying the tax set out in this Article. Prior to the issuance of a building permit, an amount of tax to be held on deposit shall be estimated by determining the building value for permit purposes and multiplying that value by a percentage prescribed by the Financial Officer, which amount shall be collected by the City through the owner or contractor. Upon payment of such sales or use tax deposit, the City shall issue a sales or use tax receipt identifying the address for which the purchase is being made and the City building permit number. It shall be the duty of the owner and/or contractor and subcontractors who are hired to do the above stated work or any portion thereof to submit a project cost report to the Financial Officer, on forms authorized by the Financial Officer, stating the actual amounts of any purchases of fixtures, minerals or any other construction materials and supplies or tangible personal property for such work and to remit any tax due in excess of the sales or use tax deposit. In any case, the general contractor and/or owner will be held liable for the payment of all taxes for such materials.
(b) The owner and/or contractor shall keep and preserve all invoices, receipts and statements showing such purchases of construction materials and supplies and tangible personal property for a period of three (3) years after completion of construction. The City may, within that three-year period, conduct an audit of such records of the owner and/or contractor and any other relevant information to verify the actual cost of the construction materials and supplies and tangible personal property used therein to determine the actual tax due. If the actual tax due is more than that paid by the taxpayer, the Financial Officer shall serve a notice of determination, assessment and demand for payment on the taxpayer notifying him or her of the deficiency including penalty and interest. Service of such notice and payment of the assessed amount shall be made in accordance with § 25-186.
(Code 1972, § 104-15; Ord. No. 192, 1987, § 6, 1-5-88; Ord. No. 132, 1991, §§ 14, 15, 11-19-91)
Sec. 25-120. Proration
of use tax on certain construction equipment.
(a) Construction equipment which is located within the boundaries of the City for a period of more than thirty (30) consecutive days shall be subject to the full use tax of the City.
(b) With respect to transactions consummated on or after January 1, 1986, construction equipment which is located in the City for a period of thirty (30) consecutive days or less shall be subjected to the City's use tax in an amount calculated as follows: the purchase price of the equipment shall be multiplied by a fraction, the numerator of which is one (1) and the denominator of which is twelve (12), and the result shall be multiplied by the rate stated in § 25-75.
(c) In order to avail himself or herself of the provisions of (b) above, the taxpayer shall substantially comply with the following procedures:
(1) At the time that the taxpayer files an application for a building permit, the applicant shall file with the Financial Officer an equipment declaration on a form provided by the City. Such declaration shall state the dates on which the taxpayer anticipates the equipment will be located within and removed from the City, shall include a description of each such piece of equipment, shall state the actual or anticipated purchase price of each such piece of equipment, and shall include such other information as reasonably deemed necessary by the City;
(2) The taxpayer shall file with the City an amended equipment declaration reflecting any changes in the information contained in any previous equipment declaration no less than once every ninety (90) days after the equipment is brought into the City or, for equipment which is brought into the City for a project of less than ninety (90) days' duration, no later than ten (10) days after substantial completion of the project;
(3) The taxpayers need not report on any equipment declaration any equipment for which the purchase price was under two thousand five hundred dollars ($2,500.).
(d) If the equipment declaration is given as provided in (c) above, then as to any item of construction equipment for which the purchase price was under two thousand five hundred dollars ($2,500.) which was brought into the City temporarily for use on a construction project, it shall be presumed that the item was purchased in a jurisdiction having a local sales or use tax as high as the rate stated in § 25-75 and that such local sales or use tax was previously paid. In such case, the burden of proof in any proceeding before the City, the Financial Officer or the District Court shall be on the City to prove such local sales or use tax was not paid.
(Code 1972, § 104-17; Ord. No. 132, 1991, § 16, 11-19-91)
Sec. 25-121. Location
guide available.
The Financial Officer shall make available to any requesting retailer a location guide showing the boundaries of the City. For transactions consummated on or after January 1, 1986, the requested retailer may rely on such location guide and any update available to such vendor in determining whether to collect a sales or use tax. No penalty shall be imposed or action for deficiency maintained against such a retailer who in good faith complies with the most recent location guide available.
(Code 1972, § 104-17; Ord. No. 132, 1991, § 2, 11-19-91)
Sec. 25-122. Tax on
automotive vehicles purchased outside City.
No automotive vehicle purchased or acquired at retail outside the City by a resident of the City for use in the City shall be registered in the county, nor shall title thereto be transferred within the County, nor shall a license or registration for the use thereof in the State be issued by the County Clerk if the tax imposed by this Article has not been paid to the Financial Officer.
(Code 1972, § 104-18)
Sec. 25-123. Remittance
of sales tax collected by retailer.
(a) Retailers shall remit to the City taxes collected pursuant to this Article. 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 Financial Officer may prescribe.
(b) The Financial Officer may authorize a retailer to remit the sales tax on a basis other than an accrual basis pursuant to the written request of the retailer.
(c) Every retailer shall file a tax return each month with the Financial Officer on or before the twentieth day of each month for the preceding month and remit the tax due to the Financial Officer simultaneously therewith. Every retailer may deduct one (1) percent of the first four thousand five hundred dollars ($4,500.) of the amount of the sales tax to be remitted by him or her under this Article for the collection and remittance of the sales tax. However, if the remission of the sales tax by the retailer is delinquent, the retailer may not retain any amounts for collecting and remitting the sales tax unless the retailer demonstrates reasonable grounds for the delinquency acceptable to the Financial Officer.
(d) If any retailer shall, during any reporting period, collect as a sales tax an amount in excess of the rate stated in § 25-75, the retailer shall remit to the Financial Officer the full amount of the sales tax imposed and such excess.
(e) If any amount of sales tax is not remitted on or before the date due, penalties and interest as set forth in Subsection 25-186(a) shall be paid by the retailer for the period from the date due to the date paid.
(Code 1972, § 104-19; Ord. No. 192, 1987, § 7, 1-5-88; Ord. No. 118, 1989, § 1, 9-19-89; Ord. No. 132, 1991, §§ 2, 17, 18, 11-19-91; Ord. 046, 2004, § 1, 3-16-04; Ord. No. 130, 2007, § 1, 11-20-07)
Sec. 25-124. Remittance
of use tax.
(a) Every person who operates or maintains a business in the City, and who purchases or leases tangible personal property for use, storage, distribution or consumption in the City in connection with the business and taxable hereunder, and who has not paid the tax imposed by this Article to a retailer required or authorized to collect the same, shall make a return and pay the tax due to the Financial Officer, on or before the twentieth day of each calendar month following the month in which such purchase or lease was consummated or such later date as is approved by the Financial Officer. The burden of proving that any person is exempt from paying the use tax shall be on such person under such reasonable requirements of proof as the Financial Officer may prescribe.
(b) Every resident of the City who purchases or leases tangible personal property for use, storage, distribution or consumption in the City and taxable hereunder, and who has not paid the tax imposed thereon by this Article to a retailer required or authorized to collect the same, shall make a return and pay the tax due to the Financial Officer within thirty (30) days from the purchase or lease of such tangible personal property unless a reporting period greater than thirty (30) days is approved by the Financial Officer.
(c) If any amount of use tax is not remitted on or before the date due, penalties and interest as set forth in Subsection 25-186(a) shall be paid by the taxpayer for the period from the date due to the date paid.
(Code 1972, § 104-20; Ord. No. 192, 1987, § 8, 1-5-88; Ord. No. 132, 1991, § 2, 19, 11-19-91)
Sec. 25-125. Remittance
of use tax by property owners and lessees.
Every owner or lessee of real property in the City and of improvements and structures located upon real property in the City upon which tangible personal property acquired from sources outside the City is attached or affixed who has not paid the tax imposed by this Article thereon to a retailer required or authorized to collect the same, shall make a return and pay the tax due to the Financial Officer within thirty (30) days from the purchase or lease of such tangible personal property.
(Code 1972, § 104-21; Ord. No. 132, 1991, § 2, 11-19-91)
Sec. 25-126. Remittance
of tax on other than a monthly basis.
(a) If the accounting method regularly employed by the taxpayer in the transaction of his or her business or other conditions are such that reports of sales and/or use tax made on a calendar month basis will impose unnecessary hardship on the taxpayer, the Financial Officer may, upon written request of the taxpayer, accept returns at such intervals as will, in the Financial Officer's opinion, better suit the convenience of the taxpayer and will not jeopardize the collection of the tax.
(b) The Financial Officer may require a bond or other financial guarantee to secure payment of the tax on such less frequent basis and may revoke permission to pay the tax on such basis if payment of the tax due become delinquent.
(c) Unless otherwise approved by the Financial Officer, taxpayers must file returns and pay taxes as follows:
(1) A taxpayer whose monthly tax due is less than twenty-five dollars ($25.) may file returns and pay tax, annually, quarterly or monthly.
(2) A taxpayer whose monthly tax due is less than fifty dollars ($50.) may file returns and pay tax, quarterly or monthly.
(3) A taxpayer whose monthly tax due is fifty dollars ($50.) or more shall file and pay tax monthly.
(4) The reporting period for a final return shall end on the date of the transfer of ownership of a business.
(5) The reporting period for an initial use tax return shall be the calendar month of the date of sale of the business if the business was purchased or opening day of business if the business is new.
(6) The reporting period for a retailer selling tangible personal property at a temporary location or a special event inside the City shall end on the day the temporary location closes or the special event concludes.
(Code 1972, § 104-22; Ord. No. 132, 1991, § 20, 11-19-91)