TITLE 040

For the purpose of this Title, certain terms are defined as follows unless the context clearly indicates that a different meaning was intended by the City Council.

Access services means the services furnished by a local exchange company to its customers who provide telecommunications services which allow them to provide such telecommunications services.

Auction means 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 means any vehicle or device in, upon or by which any person or property is or may be transported or drawn upon a public highway, or any device used or designed for aviation or flight in the air. Automotive vehicle includes, but is not limited to, motor vehicles, trailers, semitrailers or mobile homes. Automotive vehicle shall not include devices moved by human power or used exclusively upon stationary rails or tracks.

Business means any enterprise with the object of gain, benefit or advantage, direct or indirect.

Charitable organization means any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation, and which does not participate in or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.

City means the municipality of Glenwood Springs.

City Retail Sales and Use Tax Ordinance includes the provisions of Articles 040.010 through 040.040, inclusive.

Director of Finance includes the Director of Finance as defined in the Charter and his/her duly appointed deputies or agents.

Construction materials means tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a completed structure or project, including public and private improvements. Construction materials include, but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty reinforcing mesh, road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, 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.

Fuel means gas, electricity, nuclear, steam, coal, wood, fuel oil or coke.

Gross sales means the total amount received in money, credit, property or other consideration valued in money for all sales, leases or rentals of tangible personal property or services.

License means a City business and/or sales and use tax license. (A 9-00 §1)

Lodging services means the furnishing of rooms or accommodations by any person, partnership, association, corporation, estate, representative capacity 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, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp or trailer court and park, 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 equipment means any and all equipment used in the diagnosis and treatment of patients by a medical practitioner licensed in Colorado. Such items shall include, but not be limited to, x-ray, computer programs used specifically for diagnosis, magnetic resonance imaging, stethoscopes, physical therapy equipment and similar equipment. It shall be the practitioner's burden to establish to the City's satisfaction that the respective piece of equipment is used in the treatment and diagnoses of his/her/her patients. (Ad 9-00 §1)

Medical supplies means insulin in all of its forms dispensed pursuant to the direction of a medical practitioner licensed in Colorado; glucose useable for treatment of insulin reactions; urine and blood-testing kits and materials; insulin-measuring and -injecting devices, including hypodermic syringes and needles; wheelchairs and hospital beds; drugs when furnished by a licensed medical practitioner as part of treatment provided to a patient; all sales of therapeutic devices, appliances or related accessories that are sold in accordance with a written recommendation from a medical practitioner licensed in Colorado, which are sold to correct or treat a human physical disability or surgically created abnormality; therapeutic devices, appliances or related accessories, which are sold to correct or treat a human physical disability or surgically created abnormality. (A 9-00 §1)

Municipality means any municipal corporation or similar form of local government in Colorado or another state, except counties, school districts or special districts, and the City of Glenwood Springs, including any city, town, and city and county, whether organized pursuant to charter, constitution or statute.

Newspaper means a publication printed on newsprint, intended for general circulation and published regularly at short intervals, containing information and editorials on current events and news of general interest. The term newspaper does not include: magazines, trade publications or journals, credit bulletins, advertising inserts, circulars, directories, maps, racing programs, reprints, newspaper clipping and mailing services or listings, publications that include an updating or revision service, or books or pocket editions of books.

Pay television shall include, but not be limited to, cable, microwave or other television service for which a charge is imposed.

Person means any individual, firm, partnership, joint venture, corporation, estate or trust, receiver, trustee, assignee, lessee or any person acting in the fiduciary or representative capacity, whether appointed by court or otherwise or any group or combination acting as a unit.

Prescription drugs means drugs dispensed in accordance with any order in writing, dated and signed by a practitioner, or given orally by a practitioner, and immediately reduced to writing by the pharmacist, assistant pharmacist or pharmacy intern, specifying the name and address of the person for whom the medicine or drug is offered and directions, if any, to be placed on the label.

Price or purchase price means 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:

a. Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or

b. 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.

c. Any money or other consideration paid over and above the value of the exchanged property is subject to tax.

Price or purchase price includes:

a. The amount of money received or due in cash and credits.

b. Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business.

c. 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.

d. The total price charged on credit sales, including finance charges which are not separately stated. Any amount charged as interest on the unpaid balance of the purchase price is not part of the purchase price unless the amount added to the purchase price is included in the principal amount of a promissory note; except that the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of 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.

e. Installation, delivery and wheeling-in charges included in the purchase price and as separately stated.

f. Transportation and other charges to effect delivery of tangible personal property to the purchaser if the sales agreement requires such delivery to consummate the sale. Generally, charges for transportation to the place where title is to pass are included in the purchase price and charges for transportation after title passes are not included; the determining factor is the agreement between the vendor and the purchaser. The manner of payment of the transportation charges does not control but may be evidence of the sales agreement. An actual discount given to a purchaser based on freight charges may be deducted from the gross price billed.

g. Indirect federal manufacturers' excise taxes, such as taxes on automobiles, tires and floor stock.

h. The gross purchase 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:

a. Any sales or use tax imposed by the State or by any political subdivision thereof.

b. The fair market value of property exchanged if such property is to be sold thereafter in the retailer's usual course of business.

c. 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 price in reporting gross sales.

Private communications services means telecommunications services furnished to a subscriber, which entitles the subscriber to exclusive or priority use of any communication channel or groups of channels, or to the exclusive or priority use of any interstate intercommunications system for the subscriber's stations.

Prosthetic devices means any artificial limb, part, device or appliance for human use which aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular individual; and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include but are not limited to prescribed auditory, ophthalmic, ocular, cardiac, dental or orthopedic devices or appliances, oxygen concentrators and oxygen with related accessories.

Purchase or sale means 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:

a. Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property.

b. A lease, lease-purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property or taxable services.

c. Performance of taxable services.

d. Barter or exchange for other property or services, including coupons.

The terms purchase and sale do not include:

a. A division of partnership assets among the partners according to their interests in the partnership.

b. 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.

c. The transfer of assets of shareholders in the formation or dissolution of professional corporations.

d. The dissolution and the pro rata distribution of the corporation's assets to its stockholders.

e. A transfer of a partnership interest.

f. The transfer in a reorganization qualifying under Section 368(a)(1) of the "Internal Revenue Code of 1954," as amended.

g. 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;

h. The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder.

i. The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation.

j. The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent (80%) 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.

k. 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 (k) shall constitute a sale. For the purposes of this paragraph (k), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent (80%) of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent (80%) of the total number of shares of all other classes of stock.

Rent means the consideration received, or compensation charged, for the providing of lodging services.

Retail sales means all sales except wholesale sales.

Retailer or vendor means any person selling, leasing or renting tangible personal property or services at retail. Retailer shall include any:

a. Auctioneer.

b. 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.

c. Charitable organization or governmental entity which makes sales of tangible personal property to the public, notwithstanding the fact that the merchandise sold may have been acquired by gift or donation or that the proceeds are to be used for charitable or governmental purposes.

Return means the sales and use tax reporting form used to report sales and use tax.

Sales tax means the tax to be collected and remitted by a retailer on sales taxed under this Code.

Tangible personal property means any property, other than real property, that has a physical, material existence and that can be seen, weighed, measured, felt or touched, or is in any way perceptible to the senses. (A 9-00 §1)

Tax means the use tax due from a consumer or the sales tax due from a retailer or the sum of both due from a retailer who also consumes.

Tax deficiency means any amount of tax that is not reported or not paid on or before the due date.

Taxable sales means gross sales less any exemptions and deductions specified in this Code.

Taxable services. The term taxable services means services subject to tax pursuant to this Code.

Taxpayer. The term taxpayer means any person obligated to collect and/or pay tax under the terms of this Code.

Telecommunications service means 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. Telecommunications service includes but is not limited to basic local exchange 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. Telecommunications service does not include separately stated nontransmission services which constitute computer processing applications used to act on the information to be transmitted.

Tourism means the guidance, management, promotion, encouragement or accommodation of persons who are traveling for recreation, pleasure or culture.

Use tax means the tax 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 means any outbound or inbound interstate-wide area telecommunications service or other similar service which entitles the subscriber, upon payment of a periodic charge, based upon a flat amount and/or usage, to make or receive a large volume of telephonic communications to or from persons having telephone or radio telephone stations in specified areas which are outside the telephone system area in which the subscriber's station is located.

Wholesale sales means 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 means any person selling to retailers, jobbers, dealers or other wholesalers for resale, and not for storage, use, consumption or distribution.

(Code 1971 §9-53; A & Ad 9-00 §1; R & Re 38-91 §1)

040.010.020 General exemptions from Tax Ordinance.

(a) Exemption for raw materials. Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, compounding for sale, profit or use of any article, substance or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product which is manufactured, compounded or furnished, or the container, label or the furnished shipping case thereof, shall be deemed to be wholesale and to be exempt from taxation under the Tax Ordinance. (Code 1971 §9-54)

(b) Exemption for industrial fuels, newsprints and ink. Sales and purchases of fuel for use in processing, manufacturing, mining, refining, irrigation, building construction, telecommunication services, street and railroad transportation services and all industrial uses and newsprint and printers' ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales and shall be exempt from taxation under the provisions of the Tax Ordinance.

(Code 1971 §§9-54, 9-55; A 38-91 §2)

040.010.030 Amount of sales and use tax levied.

(a) Sales tax. There is hereby imposed upon all sales of commodities and services specified in Article 040.020 a three and seventy one-hundredths percent (3.70%) sales tax in accordance with schedules set forth in the Rules and Regulations of the Department of Revenue of the State of Colorado. There is hereby imposed an accommodations tax of two and one-half percent (2.5%) upon the rent paid or charged for accommodations as defined in Article 040.010.010 provided by a vendor to a purchaser at a taxable premises. (Code 1971 §9-79; A 5-83 §5; A 10-85 §2[B]; A 27-91 §1; A 38-91 §3; A 41-96 §1; A 29-00 §1; A 16-05 §4)

(b) Use tax. There is hereby levied and shall be collected from every entity subject to the business licensing requirements of Title 050 a tax or excise of three and seventy one-hundredths percent (3.70%) of storage or acquisition charges or costs for the privilege of storing, using or consuming in the City any articles of tangible personal property purchased at retail as specified in Article 040.030. Such tax shall be payable to and shall be collected by the Director of Finance in accordance with Schedules set forth in the Rules and Regulations of the Department or Revenue of the State of Colorado. (A 32-86 §1; A 27-91 §1; A 41-96 §1; A 9-00 §4; A 16-05 §4)

(c) Other personal property. Every entity subject to the business licensing requirements of Title 050 shall become subject to the payment of a use tax upon the storage or acquisition charges or costs for the privilege of storing, using or consuming in the City any articles of tangible personal property purchased at retail, except as set forth in this Article. Such entities shall file a return with the Department of Finance on or before the twentieth day of January following the year in which the purchase was made and shall pay to the City the full amount of such tax due thereon. Any undue delay or effort to evade the payment of such shall be a violation of this Title. (A 32-86 §2; A 9-00 §4; A 29-01 §2)

(d) (Ad 10-85 §2[C]; A 51-87 §2[A]; A 31-94 §2; R 29-00 §1)

(Code 1971 §§9-55, 9-79; A 5-83 §5; A 10-85 §2[B]; Ad 10-85 §2[C]; A 32-86 §§1, 2; A 51-87 §2[A]; A 27-91 §1; A 38-91 §§2, 3; A 31-94 §2; A 41-96 §1; A 9-00 §4; A & R 29-00 §1; A 29-01 §2)

040.010.040 Purpose of tax; use of proceeds.

(a) General sales and use tax. The City Council hereby declares that the purpose of the levy of two cents ($0.02) of the tax imposed by the Tax Ordinance is for the production of revenue in order to defray the cost of municipal government in the City; and in accordance with this purpose, the proceeds of two cents ($0.02) of such tax shall be allocated and placed in the funds and in the priority as follows:

(1) Seventy-five percent (75%) in the general fund; and

(2) Twenty-five percent (25%) in the capital project fund. (Code 1971 §9-123; A 5-83 §9; A 27-91 §1)

(b) Additional sales and use tax. The City Council hereby declares the revenue from the levy of one cent ($0.01) of the tax imposed by the Tax Ordinance shall be placed in the acquisition and improvement fund and shall be appropriated and distributed as follows:

(1) To defray the costs of replacement of the City's raw water delivery system, including all costs necessary and incidental thereto, and not exceeding five million dollars ($5,000,000.00); subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(2) To defray the costs of construction, installation and improvement of a community center, including all costs necessary and incidental thereto, and not exceeding five million five hundred thousand dollars ($5,500,000.00); subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(3) To defray the costs of construction and installation of road and utility improvements to the City's Chatfield property; relocation, reconstruction and improvement of the City's maintenance and operations facilities to the City's Chatfield property; and construction, operation and improvement of a municipal complex located on 7th Street, including all costs necessary and incidental thereto, and not exceeding eight million dollars ($8,000,000.00); subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(4) To defray the costs of acquisition, construction, installation, improvement, operation and maintenance of a river trail system, including all costs necessary and incidental thereto. The total mandatory expenditure for river trail improvements pursuant to this paragraph shall be five hundred thousand dollars ($500,000.00) per annum until the system, as adopted by the 1991 River Trails Plan, is completed; subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(5) To defray the costs of operating and maintaining the Frontier Historical Museum. The total mandatory expenditure for museum operations pursuant to this Paragraph shall be fifty thousand dollars ($50.000.00) per annum; subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(6) To defray the costs of operating and maintaining the Glenwood Springs Arts Center. The total mandatory expenditure for arts center operations pursuant to this Paragraph shall be thirty-five thousand dollars ($35,000.00) per annum; subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(7) To defray the costs of operating and maintaining human services program and special events in the City. The total mandatory expenditure for human services programs and special events shall be fifty thousand dollars ($50,000.00) per annum; subject, however, to supplemental appropriations at the discretion of the City Council pursuant to the provisions of this Section or from any other revenue source of the City.

(8) To defray the costs of capital improvements of every kind and nature which the City is, from time to time, authorized to undertake, including, without limiting the generality of the foregoing, maintenance and operation of a community center and municipal complex; acquisition of land, easements and rights-of-way; and acquisition, construction and installation of buildings, public works and necessary appurtenances; provided, however, that such improvements shall not include improvements to the City's water system (other than those specified hereinabove), wastewater system, electrical system or improvements related to debris flow, excluding normal storm drainage improvements. Prior to making an appropriation for any improvements pursuant to this Paragraph, the City Council shall conduct a public hearing and consider public comments on such improvements.

(9) Expenditures authorized pursuant to this Section may include the principal of, premium, if any, and interest on securities issued or other forms of indebtedness incurred for the purpose of providing the improvements enumerated herein. Revenues described in this Section shall be segregated and applied by the Director of Finance in accordance with this Section or the provisions of any ordinance pursuant to which securities are issued or other forms of indebtedness are incurred and are payable from such revenues. (Ad 5-83 §9; A 27-91 §1; A 33-98 §1)

(1) Receipts; disposition. All accommodations tax monies collected or remitted shall be credited to the separate Tourism Promotion Fund (as described in Paragraph 2 below), and shall be kept separate and distinct from the General Fund or any other separate funds maintained by the City.

(2) Tourism Promotion Fund; creation, nature, purpose.

a. There is hereby created a special separate fund to be known as the Glenwood Springs Tourism Promotion Fund. Said Fund shall be separate and distinct from any other funds or accounts used or maintained by the City for any other purposes. The monies of said fund shall be expended only for the purposes set forth herein and no other, and shall be expended as provided for herein.

b. The Fund shall consist of:

1. All monies deposited or transferred thereto in accordance with Paragraph (1) above;

2. Contributions of money, property or services received for use in carrying out the purposes of the Fund from any state, state agency, county, municipality, federal agency, person, corporation or association; and

3. All monies otherwise made available to the Fund from whatever source.

c. Any monies not appropriated shall remain in the Fund and shall not be transferred to or revert to the General Fund of the City at the end of any fiscal year. Any interest earned on the investment or deposit of monies of the Fund shall also remain in the Fund and shall not be credited to the General Fund of the City.

d. All appropriation of monies of the fund shall be made by the City Council. (A 19-89 §4)

e. The monies of the Fund may be budgeted, appropriated and expended only for the following purposes:

1. Planning and implementing the advertisement, promotion and development of tourism in the City;

2. Tourism advertising, written and graphic materials and cooperative and matching promotional programs;

3. Gathering and disseminating information on the tourist industries and attractions of the City;

4. Purchasing such equipment, materials and supplies as shall be necessary to be used solely for tourist promotion;

5. Contracting for those services and materials as may be incidental, necessary and appropriate to the accomplishment of the purposes of the Fund, including but not limited to administrative, secretarial, clerical or professional services deemed necessary;

6. Attracting conferences, conventions and meetings of a commercial, cultural, educational or social nature to the Glenwood Springs area; and

7. Defraying administrative and clerical costs of collecting and administering the tax. (Ad 10-85 §2[D])

(d) Street Maintenance and Construction Tax. The City Council hereby levies a one-half cent ($0.005) sales and use tax, which shall expire at midnight on December 31, 2026. The City Council hereby declares the revenue from the levy of such tax shall be placed in a special Street Maintenance and Construction Tax Fund and shall be used for street operations, maintenance, construction traffic efficiencies and related debt service. (A 16-05 §5)

(e) Local bus service tax. The City Council hereby levies a two-tenths percent (0.2%) sales and use tax. The City Council hereby declares the revenue from the levy of such tax imposed by the Tax Ordinance shall be placed in a special Local Bus Service Tax Fund and shall be distributed solely for the operation, maintenance and purchase of buses and other bus-related facilities. Such operation includes, but is not limited to: contracting for local bus services, hiring of bus employees., purchase of additional or replacement buses, repairing the buses and purchasing property and/or constructing bus-related improvements. (Ad 28-00 §1)

(Code 1971 §9-123; A & Ad 5-83 §9; Ad 10-85 §2[D]; A 19-89 §4; A 27-91 §1; Ad 37-95 §1; A 33-98 §1; Ad 28-00 §1; A 16-05 §5)

040.010.050 Period of limitations.

(a) Three-year limitation. The taxes for any period, together with interest thereon and penalties with respect thereto, imposed by the Tax Ordinance shall not be assessed or distraint warrant issued or suit for collection be instituted or any other action to collect the same be commenced more than three (3) years after the date on which the tax was due or payable; nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such liens shall continue only for one (1) year after the filing of notice thereof.

(b) Fraudulent returns and failure to file return. In case of a false or fraudulent return with intent to evade tax, or the failure to file a return, the tax, together with interest and penalties thereon, may be assessed or proceedings for the collection of such taxes may begin at any time.

(c) Extension of limitation period. Before the expiration of such period of limitations, the taxpayer and Director of Finance may agree in writing to an extension of such period.

(Code 1971 §9-124; A 56-85 §7)

040.010.060 Confidential nature of information.

(a) Confidentiality of information. Except in accordance with judicial order or as otherwise herein provided, employees shall not divulge any information gained from any returns filed under the provisions of the Tax Ordinance.

(b) Information cannot be compelled; limitations. The officials charged with the custody of such returns shall not be required to produce any of them, or evidence of anything contained in them, in any action or proceedings in any court, except on behalf of the City or its employees in an action under the provisions of the Tax Ordinance to which it or they are a party, or on behalf of any party to an action or proceeding under the provisions of the Tax Ordinance, or to punish a violator thereof when the reported facts shown by such report are directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit in evidence, so much of such returns or of the facts shown thereby, as are pertinent to the action or proceedings and no more.

(c) Returns open to taxpayer; use of general information. Nothing contained in this Section shall be construed to prohibit the delivery to a person, or his/her duly authorized representative, a copy of any return or report filed in connection with his/her tax, nor to prohibit the publication of statistics so classified as to prevent the identification of a particular report or return and the items thereof, nor to prohibit the inspection by the City Attorney, or any other legal representative of the City, of the report or return of any person who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding is contemplated or has been instituted under the Tax Ordinance.

(Code 1971 §9-95)

040.010.070 Wrongfully divulging information.

Any city officer or employee who shall divulge any information classified herein as confidential in any manner, except in accordance with proper judicial order or as otherwise provided by law, shall be guilty of a violation of this Title. (Code 1971 §9-98)

040.010.080 Preservation of reports, returns.

Reports and returns by the Tax Ordinance shall be preserved for three (3) years and thereafter, until the Director of Finance, with the approval of the City Manager, orders them destroyed. (Code 1971 §9-96)

040.010.090 Duty to keep books and records; availability for examination.

(a) It shall be the duty of every person engaged or continuing in business in the City subject to the provisions of the Tax Ordinance to keep and preserve suitable records of all sales made by him/her and such books and accounts as may be necessary to determine the amount of tax for the collection or payment of which such person is liable under the provisions of the Tax Ordinance.

(b) It shall be the duty of every such person to keep and preserve for a period of three (3) years all invoices of goods and merchandise purchased for resale and all other books, invoices and other records necessary to determine the amount of tax for the collection or payment of which such person is liable under the provision of the Tax Ordinance; and all such books, invoices and other records shall be open for examination at any time by the Director of Finance.

(Code 1971 §9-96)

040.010.100 Violations.

It shall be a violation of this Title for any retailer or vendor to refuse to make any return provided to be made in the Tax Ordinance; to make any false or fraudulent return or any false statement in any return; to fail or refuse to make payment to the Director of Finance of any taxes collected or due the City; in any manner to evade the collection and payment of any tax, including use tax, or any part thereof, imposed by the Tax Ordinance; for any person or purchaser to fail or refuse to pay such tax or evade the payment thereof; or to aid or abet another in any attempt to evade the payment of any tax imposed by the Tax Ordinance. (Code 1971 §9-127)

040.010.110 Penalty.

Any person who shall violate any of the provisions of this Title shall be guilty of a misdemeanor and, upon conviction of the same, shall be punished in accordance with the provisions of Section 010.020.080. (Code 1971 §9-128)

ARTICLE 040.020

Sales Tax

040.020.010 Property and transactions taxed.

There is hereby levied and there shall be collected and paid a tax in the amount stated in Subsection 040.010.030(a) upon the following:

(1) On the purchase price paid or charged upon all sales and purchases of tangible personal property at retail in the City.

(2) Upon the price paid for all telecommunication services, including access services, WATS/800 services and private communications services.

(3) Upon the price paid for any pay television services.

(4) Upon the price paid for gas and electric service, whether furnished by municipal, public or private corporations or enterprises, for gas and electricity sold for nonresidential consumption and not for resale. (A 27-91 §2)

(5) Upon the price paid for lodging services.

(Code 1971 §9-76; A 5-83 §2; A 10-85 §3; A 27-91 §2; R & Re 38-91 §4)

040.020.020 Exempt items and transactions.

The following classes of tangible personal property and the following sales transactions are exempt from taxation under this Article:

(1) Automotive vehicles, trailers, mobile homes and semitrailers registered or to be registered outside of the City.

(2) Farm implements, parts and accessories for the same.

(3) Neat cattle, horses, sheep, lambs, swine, goats, mares and stallions.

(4) Feed for livestock or poultry.

(5) Orchard trees.

(6) Sales of tangible personal property in which both of the following conditions are met:

a. The sale to a person who is doing business or is a resident outside of the City, and

b. The tangible personal property purchased is to be delivered to the purchaser outside the City by common carrier or by the conveyance of the seller or by mail.

(7) Fuel used for operation of internal combustion engines.

(8) Sales of tangible personal property for which all of the following conditions are met:

a. The sale is made to a purchaser engaged in manufacturing, processing, mining, construction or railroading;

b. The tangible personal property sold is to be used by the purchaser in the conduct of his/her manufacturing business outside the City; and

c. Delivery of the tangible personal property sold is to be made to the purchaser at a point outside the City, to the railroad in case the railroad is the purchaser, or to a truck or vehicle of the manufacturing, processing, mining or construction company in case of a sale to such purchasers.

(9) Cigarettes.

(10) Prescription drugs, prosthetic devices and medical supplies and equipment used in the diagnosis and treatment of patients. (A 9-00 §3)

(11) Sales to the United States, to the State, its departments and institutions and the political subdivisions thereof in their governmental capacities only, and all sales to the City in any department thereof.

(12) Sales to charitable organizations.

(13) Sales which the City is prohibited from taxing under the constitution or laws or the United States or the State.

(14) Sales of lodging services to a consumer who enters into or has entered into a written agreement for lodging services for a period of at least thirty (30) consecutive days. (A 27-91 §1; A 38-91 §5)

(15) The sale of fuel for the purpose of operating residential fixtures and appliances which provide light, heat and power for such residences and not for resale. (A 27-91 §2)

(16) The sale of construction materials if, at the time of sale, the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the City evidencing that a local use tax has been paid or is required to be paid.

(17) Newspapers.

(18) All occasional sales by a charitable organization. For purposes of this Article, occasional sales means retail sales of tangible personal property, including concessions, for fundraising purposes:

a. The sales of tangible personal property or concessions by the charitable organization takes place no more than twelve (12) days, whether consecutive or not, during any one (1) calendar year;

b. The funds raised by the charitable organization through these sales do not exceed twenty-five thousand dollars ($25,000) during any one (1) calendar year; and

c. The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable service.

(Code 1971 §9-77; A 5-83 §§3, 11; A 27-91 §§1, 2; A 38-91 §5; R & Re 38-91 §5; Ad 17-96 §1; A 9-00 §3)

040.020.021 Credit for sales or use taxes previously paid to another municipality.

The City's sales tax shall not apply to the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality. (Ad 56-85 §3; A 27-91 §1; A 41-96 §2; A 9-00 §2)

040.020.030 Payment of tax by retailer.

(a) Retailer or vendor responsible for collection; returns filed. Every retailer or vendor shall be liable and responsible for the payment of an amount equivalent to three and seven one-hundredths percent (3.7%) of all sales made by him/her of commodities or services specified in Section 040.020.010. Vendors of accommodations shall be liable and responsible for payment of an additional amount equivalent to two and one-half percent (2.5%) of the rent collected for accommodations. The retailer or vendor shall, before the twentieth (20^th) day of each month following the applicable reporting period whether monthly, quarterly or annually, make a return to the Director of Finance for the preceding reporting period and remit an amount as required in this Subsection. (A 10-85 §4; A 27-91 §1; A 41-96 §3; A 23-03 §1; A 28-05, §2; A 22-09 §2; (A. 27-09, §2))

(1) Return; content, form, etc. Such returns of the taxpayer, or his/her duly authorized agent, shall contain such information and be made in such manner and upon such forms as the Director of Finance may prescribe, and the Director of Finance may extend the time for making and paying the taxes due under such reasonable rules and regulations as he/she may prescribe, but no such extension shall be for a greater period than is provided in Section 040.020.080.

(2) Exemption; burden of proof. The burden of proof that any retailer is exempt from collecting a tax upon any goods sold and paying the same to the Director of Finance or from making such returns shall be on the retailer under such reasonable requirements of proof as the Director of Finance may prescribe.

(b) (R 22-09 §2)

(Code 1971 §9-78; A 10-85 §4; A 51-87 §2[B]; A 27-91 §1; A 31-94 §2; A 41-96 §3; A 28-05, §2; A 22-09 §2)

040.020.040 Repealed. (Code 1971 §9-126; R 47-89 §3)

040.020.050 Tax added to sales price.

(a) Retailers or vendors to add tax to sales price. Retailers or vendors shall add the tax imposed by Subsection 040.010.030(a), or the average equivalent thereof, to the sale price, charge or rent, showing such tax as a separate and distinct item. When thus added, such tax shall constitute a part of such price, charge or rent, shall be a debt from the consumer or purchaser to the retailer or vendor until paid and shall be recoverable at law in the same manner as other debts. The retailer or vendor shall be entitled, as collecting agent of the City, to apply any credit tax sums payable to him/her against amounts to be paid by the retailer or vendor to the City under the provisions of Subsection 040.010.030(a) remitting said sums payable to the Director of Finance as said sums are actually collected by the retailer or vendor. (A 5-83 §6; A 10-85 §5; A 22-09 §2)

(b) Retailer of malt, vinous and spirituous liquors by drink may include tax in sales price. Nothing in this Section shall be deemed to prohibit any retailer selling fermented malt beverages or malt, vinous or spirituous liquors by the drink from including in his/her sales price any tax levied by Subsection 040.010.030(a); however, no retailer selling fermented malt beverages or malt, vinous or spirituous liquors by the drink shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not considered as an element in the sales price to the consumer.

(Code 1971 §9-80; A 5-83 §6; A 10-85 §5)

040.020.060 Rules governing adding tax to price authorized.

To provide uniform methods of adding the tax, or the average equivalent thereof, to the selling price, it shall be the duty of the Director of Finance, with the approval of the City Manager, to formulate and promulgate, after hearing, appropriate rules and regulations to effectuate the purpose of this Article. (Code 1971 §9-81)

040.020.070 Assuming or absorbing tax prohibition.

It shall be unlawful for any retailer to advertise, hold out or state to the public or to any customer, directly or indirectly, that the tax, or any part thereof, imposed by Subsection 040.010.030(a) shall be assumed or absorbed by the retailer, that it will not be added to the selling price of the property sold or, if added, that it, or any part thereof, shall be refunded. Any person violating any provision of this Section shall be deemed guilty of a misdemeanor and, upon conviction of the same, shall be punished in accordance with the provisions of Section 010.020.080. (Code 1971 §9-82)

040.020.080 Special accounting basis for remittance of tax.

If the accounting methods employed by the vendor in the transaction of his/her business or other conditions are such that reports of sales made on the calendar month basis will impose unnecessary hardship, the Director of Finance may, upon request of the vendor, accept reports of such sales at such intervals as will, in his/her opinion, better suit the convenience of the taxpayer, and will not jeopardize the collection of the tax; however, the Director of Finance may, by rule, permit a taxpayer whose monthly tax collections are less than twenty dollars ($20.00) to make returns and pay taxes at intervals not greater than three (3) months. (Code 1971 §9-83)

040.020.090 Consolidation of returns.

A retailer doing business in two (2) or more places or locations taxable hereunder may file one (1) return covering all such business activities in the City. (Code 1971 §9-84)

040.020.100 Tax on credit sales.

Whenever an article is sold under a conditional sales contract, or under other forms of sale where the payment of the principal sum thereunder is extended over a period longer than sixty (60) days from the date of sale thereof, there shall be paid upon each payment upon the account of the purchase price that portion of the total tax which the amount paid bears to the total purchase price; however, the retailer may report and pay the entire tax at the time of the sale without regard to any deferred payment. This tax shall be charged and collected by the seller and no refund or credit shall be allowed to either party to the on in case of repossession. (Code 1971 §9-85)

040.020.110 Duty to remit excess collections.

If any vendor shall, during any reporting period, collect as a tax an amount in excess of the tax required by Subsection 040.010.030(a), he/she shall remit to the Director of Finance the full net amount of said tax and also such excess. The retention by the retailer of any excess tax collections or the intentional failure to remit punctually to the Director of Finance the full amount required to be remitted by the provisions of the Tax Ordinance is hereby declared to be a violation of this Title. (Code 1971 §9-86; A 5-83 §7; A 10-85 §6)

040.020.120 Trust status of tax in possession of retailer.

All sums of money paid by the purchaser to the retailer as taxes imposed by this Article shall be and remain public money, the property of the City, in the hands of such retailer, and he/she shall hold the same in trust for the sole use and benefit of the City until paid to the Director of Finance as herein provided, A failure so to pay to the Director of Finance shall be a violation of this Title. (Code 1971 §9-110)

040.020.130 Unpaid tax declared prior lien.

The tax imposed by this Article shall be a lien upon the goods and business fixtures of or used by any retailer under lease, title retaining contract or other contract arrangement, excepting stock of goods sold or held for sale in the ordinary course of business. (Code 1971 §9-107)

040.020.140 Sale or discontinuance of business.

Any retailer who shall sell out his/her business or stock of goods or shall quit business shall be required to make out a return as provided in this Article within ten (10) days after the date of cessation of business or selling of stock of goods, and his/her successor in business shall be required to withhold sufficient of the purchase money to cover the amount of said tax due and unpaid until such time as the former owner shall produce a receipt from the Director of Finance showing that the taxes have been paid, or a certificate that no taxes are due. (Code 1971 §9-108)

040.020.150 Purchaser of business subject to tax lien.

If the purchaser of business or stock of goods shall fail to withhold the purchase money as above provided, the tax shall be due and payable after the ten-day period allowed, and he/she shall be personally liable for the payment of the taxes unpaid by the former owner. Likewise, anyone who takes stock of goods or business fixtures of or used by any retailer under lease, title-retaining contract or other contract arrangement, by purchase, foreclosure sale or otherwise, takes the same subject to the lien of any delinquent taxes owed by such retailer, and shall be liable for the payment of all delinquent sales taxes of such prior owner not, however, exceeding the value of property so taken or acquired. (Code 1971 §9-109)

040.020.160 Sales and use tax rebate.

(a) Tax rebate. There is hereby granted to all persons who meet the criteria in Subsection (b) hereof a tax rebate for sales tax, which rebate shall be granted in conformity with Subsection (c) hereof.

(b) Persons eligible. Any person sixty-five (65) years of age or older residing in the City and who has been a resident of the City for at least one (1) full year next preceding the year in which the rebate is sought and whose adjusted gross income as shown on Colorado Individual Income Tax Return Form 104 or 104A, or whose total income (minus Social Security benefits) as shown on the Income Schedule on Form 104PTC, for the year a rebate is sought does not exceed ten thousand dollars ($10,000.00) is eligible for a rebate in the amount set forth in Subsection (c) hereof. Only one (1) rebate per household may be granted. For purposes of this Section, the adjusted gross income or total income shall be the adjusted gross income or total income of all persons who are members of the household for which the rebate is sought. (A 5-88 §1)

	Rebate
Annual Income	One Person	Two Persons
Under $5,000.00	$50.00	$ 75.00
$5,000.00 to $5,999.00	55.00	82.50
$6,000.00 to $6,999.00	60.00	90.00
$7,000.00 to $7,999.00	65.00	97.50
$8,000.00 to $8,999.00	70.00	105.00
$9,000.00 to $10,000.00	75.00	112.50

(d) Application for rebate. All persons who qualify for such sales tax rebates shall apply for the same by making application to the Director of Finance upon forms to be provided by him/her and by delivery to the Director of Finance a copy of the applicant's Colorado Individual Tax Return Form 104 or 104A, or a copy of the applicant's Colorado Property Tax/Rent/Heat Rebate Form 104PTC for the year for which the rebate is sought. (A 5-88 §2)

(e) Application deadline. All applications for sales tax rebate shall be made to the Director of Finance on or before July 15 of the year following the year for which the tax rebate is sought.

(Code 1971 §9-130; A 5-88 §§1, 2)

040.020.170 Economic incentives; sales tax rebate.

(a) Qualified businesses may apply for a Tier one or Tier two City sales tax rebate for up to five (5) consecutive years provided that:

(1) The amount of the annual Tier one rebate shall not exceed 20% of their annual City sales tax remittance in any one year; and

(2) The amount of the annual Tier two rebate shall not exceed eighty percent (80%) of their annual City sales tax remittance in any one year, as further detailed in Subsection (c)(5) below; and

(2) The total amount of all rebates received shall not exceed the total amount of fees and costs identified in Paragraph (b) below.

(b) The City sales tax rebate may be applied against the following City-imposed fees, costs and tax:

(1) Water and sewer system improvement fees may be available for Tier one and Tier two rebates.

(2) Fire and emergency services impact fees may be available for Tier one and Tier two rebates.

(3) Cost incurred pursuant to the City Electric Department’s Line Extension Policy may be available for Tier one and Tier two rebates.

(4) Building fees may be available for Tier two rebates only.

(5) The costs of City required public improvements at fifty percent (50%) of the installation costs to a maximum of Two Hundred Thousand Dollars ($200,000.00) may be available for Tier two rebates only.

(1) If applicable, the applicant has collected and remitted on time to the City all applicable sales, use or accommodation taxes; and

(2) The applicant is not currently in violation of any development permit or building permit conditions; and

(3) The applicant is not in default under any agreement with the City; and

(4) The applicant has paid all other applicable City-imposed fees including those for which the rebate is being applied; and

(5) Tier two applicants shall use either (a) local contractors and suppliers or (b) local contractors, as defined in Subsection 010.050.080(b) of the Municipal Code, for construction of the project. At issuance of the certificate of occupancy the applicant shall provide documentation of the amounts paid to local contractors and suppliers or local contractors as a percentage of the total costs of the project excluding land. Projects using either (a) local contractors and suppliers or (b) local contractors for less than fifty percent (50%) but more than twenty-five percent (25%) of the total costs of the project, excluding land, will be eligible for a forty percent (40%) Tier two rebate. Projects using either (a) local contractors and suppliers or (b) local contractors for fifty percent (50%) or more of the total costs of the project, excluding land, will be eligible for an eighty percent (80%) Tier two rebate. Tier two applicants must provide detailed calculation documentation upon request by the City.

(d) Application for rebate.

(1) All businesses which qualify for such City sales tax rebates shall apply for the same by making application to the Director of Finance upon forms to be provided by him/her.

(2) All applications for City sales tax rebate shall be made to the Director of Finance on or before July 15 of the year following the year for which the tax rebate is sought.

(e) Effective date. This section shall apply to all City-imposed fees after the effective date of Ordinance No. 27, Series of 2005.

(f) Tier two applicants will only be accepted from May 22, 2009 until July 15, 2010. To apply for a Tier two rebate, an applicant must have a building permit issued on or before July 15, 2010. The amendments contained in Ordinance No. 8, Series of 2009 shall be repealed, effective July 15, 2010, unless otherwise extended by further action of City Council.

(Ad 4-04 §2; A 27-05, §2; A 8-09, §2)

ARTICLE 040.030

Use Tax.

040.030.010 Application of use tax.

The following provisions shall apply to the payment and collection of use tax as imposed by Subsection 040.010.030(b) on the storage, consumption and use of tangible personal property:

(1) Automotive vehicles and trailers. Any resident person who shall purchase any automotive vehicle, trailer, mobile home or semitrailer, whether new or used, outside the corporate limits of the City for use within the City shall immediately and prior to registering and obtaining a license therefor, make a return showing such transaction to the Director of Finance or the Garfield County Clerk and Recorder pursuant to the provisions of Subsection 040.040.010(d) and thereupon pay to the Director of Finance or to the Garfield County Clerk and Recorder the use tax applicable to said automotive vehicle, trailer, mobile home or semitrailer as provided in Subsection 040.010.030(b) herein; and failure to do so, when shown to be an attempt to evade the payment of such tax, shall constitute a violation of this Title. (Ad 1-83 §1; A 38-91 §6)

(2) Construction materials.

a. Use tax levied. Any person who shall build, construct or improve any building, dwelling or other structure or make any improvement to realty whatsoever within the City shall file a return with the Director of Finance and pay a use tax upon all construction materials used in the improvements. (A 38-91 §7)

b. Duty to keep and produce records. Any person required to pay use tax by Paragraph 040.030.010(b)(1) shall keep and preserve all invoices and statements showing all purchases, made both inside and outside the corporate limits of the City, for necessary lumber, fixtures, materials or any other supplies. It shall be the duty of any such person and his/her contractors and subcontractors hired to construct such improvements to furnish the Director of Finance such information as the Director of Finance may require as to such purchases of lumber, fixtures, materials and supplies for such improvements. The Director of Finance may request the Building Inspector to assist the Director of Finance in determining the amount of use tax due.

c. Lien on real property. The full amount of use tax due pursuant to the provisions of this Subsection (2) shall be, until paid, a lien upon the real property benefited by such improvement; and the Director of Finance is hereby authorized to file, when appropriate, a notice of such lien with the Garfield County Clerk and Recorder and collect the same in the manner provided for the collection of taxes by the City.

d. Tax paid before certificate of occupancy. No certificate of occupancy shall be issued for any building erected or altered until evidence of payment of all use taxes due and owing is supplied to the Building Inspector. Such evidence shall be supplied at or before application for a certificate of occupancy. For purposes of this Paragraph, evidence of payment of use tax shall mean a receipt from the Director of Finance reflecting payment in full of all use taxes due and owing for the building or structure for which a certificate of occupancy is sought.

e. (R 56-85 §1[B])

(3) Other personal property. Each entity that purchases or establishes a business inside the City shall file an initial use tax return.

a. Every entity subject to the business licensing requirements of Title 050 of this Code shall be subject to the payment of a use tax for the privilege of storing, using or consuming within the City any articles of tangible personal property purchased at retail, shall file a return with the Director of Finance on or before the twentieth day of January of the year in which the purchase was made, and shall pay therewith the full amount of the tax due. Any undue delay or effort to evade the payment of such tax shall be a violation of this Title. (A 9-00 §5; A 29-01 §3)

b. Existing businesses. Use tax shall be due on tangible personal property, except inventory held for lease, rental or resale, which is acquired with the purchase of a business. The tax rate shall be multiplied times the value as evidenced by the bill of sale or agreement which is a part of the total transaction at the time of the sale or transfer; provided that the value is not less than the fair market value of such property. Where the transfer of ownership provides for a lump sum transaction, which does not allocate the price of tangible personal property, the use tax shall be due on the book value established by the purchaser for federal income tax depreciation purposes, or fair market value if no determination has been made. When a business is sold in exchange for the assumption of outstanding indebtedness, the tax shall be paid on the fair market value of all taxable tangible personal property acquired by the purchaser. Such tax shall be reported on an initial use tax return. The due date for such return shall be the twentieth of the month following the calendar month in which the sale of the business was finalized. (Ad 29-01 §3)

c. New businesses. Use tax shall be paid on the price of all tangible personal property, except inventory held for lease, rental or resale, which is purchased for use inside the City. Such tax shall be reported on the initial use tax return. The due date for such return shall be the twentieth of the month following the calendar month in which the business opens. (Ad 29-01 §3)

(Code 1971 §9-89; Ad 1-83 §1; R 56-85 §1[B]; A 38-91 §§6, 7; A 9-00 §5; A 29-01 §3; Ad 29-01 §3)

040.030.020 Items, transactions exempt from use tax.

The use tax on the storage, consumption and use of tangible personal property is hereby declared to be supplementary to the City tax on retail sales as provided in this Tax Ordinance and shall not apply to the following:

(1) To the storage, use or consumption of any tangible personal property, the sale of which is subject to the City retail sales tax as provided in this Tax Ordinance.

(2) To the storage, use or consumption of any tangible personal property purchased for resale in this City, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business.

(3) To the storage, use or consumption of motor fuel upon which there has accrued or has been paid the motor fuel tax prescribed by the Colorado Motor Fuel Tax Law of 1933, and amendments thereto, and which is subject to refund.

(4) To the storage, use or consumption of tangible personal property brought into the City by a nonresident thereof for his/her own storage, use or consumption while temporarily within the City, nor to the personal property of a resident, if such personal property was purchased prior to becoming a resident of the City.

(5) To the storage, use or consumption of tangible personal property of the United States or the State or its institutions or its political subdivisions, in their governmental capacities only, or by religious, charitable or eleemosynary corporations in the conduct of their regular religious, charitable or eleemosynary functions.

(6) To the storage, use or consumption of cigarettes. (A 38-91 §8; A 9-00 §6)

(7) To the storage, use or consumption of tangible personal property for use in the business of manufacturing, compounding for sale, profit or use any article, substance or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the finished product and the container, label or the furnished shipping case thereof.

(8) To the storage, use or consumption of fuels for use in processing, manufacturing, mining, refining, irrigation, telecommunications, street and railroad transportation services, and all industrial uses. (A 38-91 §8)

(9) To the storage and use of tangible personal property purchased from a nonresident retailer by a common carrier, public utility company or construction company being a resident of the City or doing business in the City, which is stored in the City but not used or consumed in the City.

(10) To the storage of construction materials. (Ad 56-85 §2; A 38-91 §8)

(11) On and after January 1, 1986, to the use or consumption of tangible personal property within the City which occurs more than three (3) years after the most recent sale of the property if, within the three (3) years following such sale, the property has been significantly used within the State for the principal purpose for which it was purchased. (Ad 56-85 §5)

(12) To prescription drugs, medical supplies and equipment used in the diagnosis and treatment of patients, or prosthetic devices. (Ad 9-00 §6)

(Code 1971 § 9-88; Ad 56-85 §§2, 5; A 38-91 §8; A 9-00 §6)

040.030.021 Credit for sales or use taxes previously paid to another municipality.

For transactions consummated on or after May 6, 2000, the City's use tax shall not apply to the storage, use or consumption of any article of tangible personal property the sale or use of which has already been subject to a sales or use tax of another statutory or home rule municipality legally imposed on the purchaser or user and can be substantiated by the purchaser or user in writing. (Ad 56-85 §4; A 27-91 §1; A 9-00 §7)

ARTICLE 040.040

Collection and Enforcement of Tax Ordinance

040.040.010 Administration of Tax Ordinance.

(a) Administration vested in Director of Finance. The administration of the provisions of the Tax Ordinance is hereby vested in and shall be exercised by the Director of Finance who shall prescribe reasonable rules and regulations in conformity with the Tax Ordinance for the making of returns, for the ascertainment, assessment and collection of the taxes imposed under the Tax Ordinance and for the proper administration and enforcement hereof. (Code 1971 §9-122; A 47-89 §1)

(b) Collection of sales tax. The City Council may contract with the Department of Revenue for the State and the Director of Revenue for the State for the collection of the sales taxes levied under the provisions of Article 040.020. Otherwise, such sales taxes shall be collected by the Director of Finance in accordance with the provisions of the Tax Ordinance. (Code 1971 §9-129)

(c) Collection of use tax. Except as otherwise provided in this Section, the Director of Finance shall collect the use tax as levied pursuant to the provisions of Article 040.030 in accordance with the provisions of the Tax Ordinance.

(d) Collection of automotive vehicle and trailer sales and use tax. The City Council may contract with the Garfield County Clerk and Recorder for the collection of sales and use tax for automotive vehicles and trailers at the time of registration. (Ad 1-83 §1; A 38-91 §9)

(e) Map of municipal boundaries. The City Clerk shall make available to any requesting vendor a map showing the boundaries of the City. For transactions consummated on or after January 1, 1986, the requesting vendor may rely on such map and any update thereof available to such vendor in determining whether to collect a use tax. No penalty shall be imposed or action for deficiency maintained against such a vendor who in good faith complies with the most recent map available to it. (A 56-85 §11)

(f) Standard reporting form. The City shall use the standard municipal sales and use tax reporting form and any subsequent revisions thereto adopted by the Executive Director of the Colorado Department of Revenue by the first full month commencing one hundred twenty (120) days after the effective date of the regulation adopted or revising such standard form. (Ad 47-89 §2)

(Code 1971 §§9-122, 9-129; Ad 1-83 §1; A 56-85 §11; A & Ad 47-89 §§1, 2; A 38-91; §9)

040.040.020 Procedure for determination of exemption disputes.

(a) Claim of exemption. It is the duty of the purchaser to claim an exemption from the taxes imposed by this Tax Ordinance at the time and place of the purchase. If the purchaser does not claim an exemption at the time and place of purchase, the exemption for that purchase shall be waived.

(b) Preservation of a disputed exemption. Should a dispute arise between the purchaser and seller as to whether or not any sale, commodity or service is exempt from taxation under this Tax Ordinance, nevertheless, the seller shall collect and the purchaser shall pay such tax. The seller shall also issue to the purchaser a receipt and certificate, on a form prescribed by the Director of Finance, showing the names of the seller and purchaser, the items purchased, the date, price and amount of tax paid, and a brief statement of the claim of exemption. (Code 1971 §§9-56, 9-90)

(c) Application for sales tax refund. Applications for refund of a tax paid pursuant to Subsection (b) above must be made within thirty (30) days after the purchase of the goods on which the exemption is claimed, must be supported by the affidavit of the purchaser, accompanied by the original paid invoice or sales receipt and a certificate issued by the seller, and must be made upon such forms as shall be prescribed and furnished by the Director of Finance, which forms shall contain such information as the Director of Finance shall determine is necessary to determine the dispute.

(d) Application for use tax refund. For transactions consummated on or after January 1, 1986, an application for a refund of use tax paid under dispute by a purchaser or user who claims an exemption pursuant to this Section shall be made within sixty (60) days after the storage, use or consumption of the goods or services whereon an exemption is claimed. An application for a refund of tax monies paid in error or by mistake shall be made within three (3) years after the date of storage, use or consumption of the goods for which the refund is claimed. (Ad 56-85 §8)

(e) Decision of Director. Within ten (10) business days of the receipt of the application for refund, the Director of Finance shall issue a written decision in accordance with the requirements of Subsection 040.040.040(a).

(f) General provisions.

(1) Violation to fail to collect or pay disputed tax. It shall be a violation of this Title for any seller to fail to collect or any purchaser to fail to pay a tax levied by this Tax Ordinance on sales on which an exemption is disputed. (Code 1971 §9-56)

(2) Refunds not assignable. The right of any person to a refund under this Section shall not be assignable, and application for refund must be made by the same person who purchased the goods and paid the tax thereon as shown in the invoice for the goods. (Code 1971 §9-92)

(3) False claims for refunds. Any applicant for refund under the provisions set forth in this Section, or any person having made any false statements in connection with an application for a refund of any tax, shall be deemed guilty of a violation of this Title. (Code 1971 §9-93)

(4) Burden of proving right to refund. The burden of proof that sales, commodities or services on which tax refunds are claimed as exempt from taxation under the provisions of this Tax Ordinance shall be on the person making such claim, which burden shall be by clear and convincing evidence.

(Code 1971 §§9-56, 9-90, 9-92—9-94; Ad 56-85 §8)

040.040.021 Intercity claims for recovery.

(a) The intent of this Section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipality. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to correctly pay, collect and remit sales and use taxes to the City.

(b) As used herein, Claim for Recovery means a claim for reimbursement of sales and use taxes paid to the wrong taxing jurisdiction.

(c) When it is determined by the Director of Finance that sales and use tax owed to the City has been reported and paid to another municipality, the City shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances.

(d) The City may make a written Claim for Recovery directly to the municipality that received tax and/or penalty interest owed to the City or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a Claim for Recovery lies in the sole discretion of the City. Any Claim for Recovery shall include a properly executed release of claim from the taxpayer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the Claim, and a request that the municipality approve or deny, in whole or in part, the claim within ninety (90) days of its receipt. The municipality to which the City submits a Claim for Recovery may, for good cause, request an extension of time to investigate the Claim, and approval of such extension by the City shall not be unreasonably withheld.

(e) Within ninety (90) days after receipt of a Claim for Recovery, the City shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received, and shall notify the municipality submitting the Claim in writing that the Claim is either approved or denied in whole or in part, including the reasons for the decision. If the Claim is approved in whole or in part, the City shall remit the undisputed amount to the municipality submitting the Claim within thirty (30) days of approval. If a Claim is submitted jointly by a municipality and a vendor or taxpayer, the check shall be made to the parties jointly. Denial of a Claim for Recovery may only be made for good cause.

(f) The City may deny a Claim on the grounds that it has previously paid a Claim for Recovery arising out of an audit of the same taxpayer.

(g) The period subject to a Claim for Recovery shall be limited to the thirty-six-month period prior to the date the municipality that was wrongly paid the tax receives the Claim for Recovery.

(Ad 38-91 §11)

040.040.030 Determination and assessment of tax.

(a) Purpose. The Director of Finance may determine the accuracy or make an assessment of the amount of sales and use tax paid or due to the City in accordance with the provisions of this Section; however, nothing in this Section shall prohibit the determination, assessment and collection of use tax as set forth in Article 040.030.

(b) Procedure when return filed and tax paid.

(1) Examination of return; amount paid. For returns filed in the City, the Director of Finance shall examine such return as soon as is possible. For returns filed with the State pursuant to Subsection 040.040.010(b), or for returns filed with the County Clerk and Recorder pursuant to Subsection 040.040.010(d), the Director of Finance shall review, as soon as practicable, the amount paid and such other information as the Director of Finance deems necessary.

(2) Redetermination of amount. If it appears that the correct amount of tax to be remitted is greater or less than that shown in the return, the tax shall be recomputed.

(3) Refund of excess tax paid. If the amount paid exceeds that which is due, the excess shall be refunded or, at the option of the City, credited against any subsequent remittance from the same taxpayer. Notice of any refund to be credited against subsequent remittances shall be given to the taxpayer.

(4) Payment of tax due. If the amount paid is less than the amount due, the difference, together with interest as provided in Subsection 040.040.050(a), shall be paid by the retailer within ten (10) days after service of written notice and demand. (Code 1971 §9-99)

(1) Estimate of taxes due. If any person neglects or refuses to make a return or pay the taxes as required by this Tax Ordinance, the Director of Finance shall make an estimate, based upon such information as may be available, of the amount of the taxes due for which the taxpayer is delinquent; and, upon the basis of such estimated amount, compute and assess in addition to such tax a penalty together with interest, both as provided in Section 040.040.050.

(2) Notice of estimated taxes and demand for payment. The Director of Finance shall give the delinquent taxpayer written notice of such estimated taxes, penalty and interest, and such estimate shall thereupon become an assessment which shall be final and due and payable from the taxpayer to the Director of Finance ten (10) days from the date of service of the notice.

(3) Application for review. The delinquent taxpayer may, within such ten-day period, make an application to the Director of Finance for a revision or modification of such assessment of taxes, penalties or interest. Such application shall be in writing and be given under oath of the taxpayer and shall include such facts, figures and documentation as is necessary to show the correct amount of such taxes. Failure to make an application for review shall waive the taxpayer's right to contest the amount of such taxes, penalties and interest. (Code 1971 §9-115)

(4) Decision of Director. Within ten (10) business days of the receipt of the application for review, the Director of Finance shall issue a written decision in accordance with the requirements of Subsection 040.040.040(a). (Code 1971 §9-111)

(d) Investigatory powers of Director.

(1) In general. For the purpose of ascertaining the correctness of a return or for the purpose of determining the amount of tax due from any person, the Director of Finance may hold investigations and hearings concerning any matters covered by the Tax Ordinance and may examine any relevant books, papers, letters or memoranda of any such person and may require the attendance of such person, or any officer or employee of such person, or any person having knowledge of such sales and may take testimony under oath and otherwise require proof. The Director of Finance shall have power to administer oaths to such persons.

(2) Compelling attendance and testimony. The Municipal Judge, upon application of the Director of Finance, may compel the attendance of papers, records or memoranda and the giving of testimony before the Director of Finance in the same manner as production of evidence and testimony may be compelled before the Municipal Court. (Code 1971 §9-105)

(3) Depositions. The Director of Finance or any party in an investigation or hearing before the Director of Finance may cause the deposition of witnesses to be taken in the manner prescribed by law for depositions in civil actions in courts of this State. (Code 1971 §9-106)

(4) Subpoenas and witness fees. All subpoenas issued under the terms of this Section may be served in the same manner as provided in the Colorado Rules for Civil Procedure. The fees of witnesses for attendance and trial shall be as set forth in Section 030.030.070. Such fees shall be paid when the witness is subpoenaed at the instance of the Director of Finance and, when a witness is subpoenaed at the instance of any other party, the Director of Finance shall require that the cost of service of the subpoena and the fee of the witness be borne by the party at whose instance the witness is summoned. In such case, the Director of Finance, in his/her discretion, may require a deposit to cover the cost of such service and witness fees. (Code 1971 §9-103)

(e) Coordinated audit.

(1) Any vendor licensed in the City pursuant to this Article, and holding a similar sales tax license in at least four (4) other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein.

(2) Within fourteen (14) days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the vendor may provide to the Director of Finance of the City, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those Colorado municipalities utilizing local collection of their sales tax in which the vendor holds a current sales tax license and a declaration that the vendor will sign a waiver of any passage-of-time-based limitation upon the City's right to recover tax owed by the vendor for the audit period.

(3) Except as provided in Paragraph (7), any vendor that submits a complete request for a coordinated audit may be audited by the City during the calendar year in which such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.

(4) If the City desires to participate in the audit of a vendor that submits a complete request for a coordinated audit pursuant to Paragraph (3), the Director of Finance shall so notify the finance director of the municipality whose notice of audit prompted the vendor's request within ten (10) days after receipt of the vendor's request for a coordinated audit. The Director of Finance shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the vendor of those records most likely to be required for completion of the coordinated audit.

(5) If the vendor's request for a coordinated audit was in response to a notice of audit issued by the City, the City's Director of Finance shall facilitate arrangements between the City and other municipalities participating in the coordinated audit unless and until an official from some other participating municipality agrees to assume this responsibility. The Director of Finance shall cooperate with other participating municipalities to, whenever practicable, minimize the number of auditors that will be present on the vendor's premises to conduct the coordinated audit on behalf of the participating municipalities.

(6) If the vendor's request for a coordinated audit was in response to a notice of audit issued by the City, the City's Director of Finance shall, once arrangements for the coordinated audit between the City and other participating municipalities are completed, provide written notice to the vendor of which municipalities will be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit. The Director of Finance shall also propose a schedule for the coordinated audit.

(7) The coordinated audit procedure set forth in this Section shall not apply:

a. When the proposed audit is a jeopardy audit; or

b. To audits for which a notice of audit was given prior to the effective date of this Section.

(Code 1971 §§9-99, 9-103, 9-105, 9-106, 9-111, 9-115; Ad 38-91 §10)

040.040.040 Administrative procedures.

(a) Decision of Director. Every decision of the Director of Finance required by this Article shall be in writing and shall contain the findings of the Director of Finance. A copy of such decision shall be mailed to the applicant. All such decisions shall become final upon the expiration of ten (10) days after the date of service of the decision, unless proceedings are begun within such time for review thereof as provided in Subsection (b) below. (Code 1971 §9-116)

(b) Appeal of decision of Director. An appeal of a notice of assessment issued to a vendor or taxpayer for failure to file a return, for underpayment of tax owed or as a result of an audit, or an appeal of a denial of a refund, shall be submitted in writing to the City Council within twenty (20) calendar days from the date of the decision of the Director of Finance. Any such appeal shall identify the amount of tax disputed or refund requested and the basis for the appeal. The time period set forth in this Subsection may, in the absolute discretion of the City Council, be waived for good cause on written application of a vendor or taxpayer. (A 38-91 §12)

(c) Decision of City Council. The City Council shall, within one (1) month at a regularly scheduled meeting, review the decision of the Director of Finance. At such hearing, the applicant shall present his/her case and the Director of Finance shall be given an opportunity to respond. After this presentation, the City Council shall decide to uphold or overrule the decision of the Director of Finance. Such decision shall be final from which an appeal may be brought in accordance with the laws of the State.

(d) Exhaustion of remedies. No appeal may be taken to Court unless the applicant has exhausted all his/her administrative remedies as provided in this Article. The failure of the applicant to process such remedies in accordance with the provisions of this Article shall forfeit all rights of the applicant.

(e) Appeals bonds.

(1) Within fifteen (15) days after filing a notice of appeal to the District Court as provided in Subsection (c) above, the taxpayer shall file with the District Court a surety bond in twice the amount of the taxes, interest and other charges stated in the final decision by the City Council which are contested on appeal. The taxpayer, at his/her option, may satisfy the surety bond requirement by a savings account or deposit in, or a certificate of deposit issued by, a state or national bank or by a state or federal savings and loan association, in accordance with the provisions of Section 11-35-101(1), C.R.S., as amended, equal to twice the amount of the taxes, interest and other charges stated in the final decision by the City Council.

(2) The taxpayer may, at his/her option, deposit the disputed amount with the Director of Finance in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the deficiency contested during the pendency of the action. At the conclusion of the action, after appeal to the Supreme Court or the Court of Appeals or after the time for such appeal has expired, the funds deposited shall be, at the direction of the Court, either retained by the Director of Finance and applied against the deficiency or returned in whole or in part to the taxpayer with interest at the rate imposed pursuant to Subsection 040.040.050(e). No claim for refund of amounts deposited with the Director of Finance need be made by the taxpayer in order for such amounts to be repaid in accordance with the direction of the Court. (Code 1971 §9-118; R & Re 56-85 §10)

(f) General provisions.

(1) Notices. All notices required to be given under the provisions of this Article shall be in writing and, if mailed, shall be mailed postage prepaid, by certified or registered mail, return receipt requested, to the last known address. Such notices shall be deemed served on the date delivered, if by hand delivery, or at the time received as shown on the return receipt or five (5) days from the date of mailing, whichever is earlier. (Code 1971 §9-120)

(2) Hearings to be held in City. Every hearing before the Director of Finance or City Council shall be held in the City. (Code 1971 §9-121)

(g) Alternative procedures for use tax disputes. For transactions consummated on or after January 1, 1986, the taxpayer may elect a state hearing on the Director of Finance's final decision on a use tax deficiency notice or claim for refund within one (1) month after the mailing of such final decision pursuant to the procedures set forth in Section 29-2-106.1, C.R.S., as amended. (Ad 56-85 §12)

(Code 1971 §§9-116, 9-118, 9-120, 9-121; R & Re 56-85 §10; Ad 56-85 §12; A 38-91 §12)

040.040.050 Interest and penalties.

(a) Interest on underpayment, nonpayment or extensions of time for payment of tax.

(1) If any amount of tax is not paid on or before the last date prescribed for payment, interest on such amount at the rate imposed under Subsection (e) below shall be paid for the period from such last date to the date paid. The last date prescribed for payment shall be determined without regard to any extension for time for payment and shall be determined without regard to any notice and demand for payment issued, by reason of jeopardy, prior to the last date otherwise prescribed for such payment. In the case of a tax in which the last date for payment is not otherwise prescribed, the last date for payment shall be deemed to be the date the liability for the tax arises, and in no event shall it be later than the date notice and demand for the tax is made by the Director of Finance.

(2) Interest prescribed under Subsections (a) through (d) of this Section shall be paid upon notice and demand and shall be assessed, collected and paid in the same manner as the tax to which it is applicable.

(3) If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this Section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowed with respect to such overpayment.

(4) Interest prescribed under Subsections (a) through (d) of this Section on any tax may be assessed and collected at any time during the period within which the tax to which such interest relates may be assessed and collected.

(b) Deficiency due to negligence or fraud. If any part of the deficiency in payment of the tax is due to negligence or intentional disregard of the ordinances or of authorized rules and regulations of the City with knowledge thereof, but without intent to defraud, there shall be added ten percent (10%) of the total amount of the deficiency, and interest in such case shall be collected at the rate imposed under Subsection (e) of this Section, in addition to the interest provided for by Subsection (a) of this Section, on the amount of such deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable ten (10) days after written notice and demand to him/her by the Director of Finance. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added one hundred percent (100%) of the total amount of the deficiency and, in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable ten (10) days after written notice and demand by the Director of Finance. An additional three percent (3%) per month on said amount shall be added from the date the return was due until paid. (Code 1971 §§9-100, 9-101)

(c) Neglect or refusal to make return or to pay. If a person neglects or refuses to make a return in payment of a tax or to pay any tax as required, the Director of Finance shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to ten percent (10%) thereof and interest on such delinquent taxes at the rate imposed under Subsection (e) of this Section, plus one-half of one percent (0.5%) per month from the date when due.

(d) Penalty interest on unpaid taxes. Any tax due and unpaid shall be debt to the City, and shall draw interest at the rate imposed under Subsection (e) of this Section, in addition to the interest provided by Subsection (a) of this Section, from the time when due until paid.

(e) Rate of interest. When interest is required or permitted to be charged under any provision of Subsections (a) through (d) of this Section, the annual rate of interest shall be that established by the State Commissioner of Banking pursuant to Section 39-21-110.5, C.R.S., as amended.

(f) Other remedies. Nothing in this Section shall preclude the City from utilizing any other applicable penalties or remedies for the collection or enforcement of taxes.

(g) Waiver of penalty by Director of Finance. The Director of Finance is hereby authorized to waive, for good cause shown, any penalty assessed in this Section, and any interest imposed in excess of eight percent (8%) per annum shall be deemed a penalty. (Code 1971 §9-114)

(Code 1971 §§9-100, 9-101, 9-114; R & Re 56-85 §9)

040.040.060 Enforcement and collection of unpaid taxes.

(a) Seizure and sale of property for unpaid taxes, penalties or interest.

(1) Warrant. If any taxes, penalty or interest imposed by the Tax Ordinance are not paid when the same are due, the Director of Finance may issue a warrant under the City's official seal directed to the Chief of Police, commanding him/her to levy upon, seize and sell sufficient of the personal property of the taxpayer found within the City for the payment of the amount due, together with interest, penalties and costs, subject to valid pre-existing liens. (Code 1971 §9-112)

(2) Seizure and sale. The Chief of Police shall forthwith levy upon sufficient of the property of the taxpayer and sell the same in all respects and with like effect and in the same manner as is prescribed by state law in respect to execution against property upon judgment of a court of record. (Code 1971 §9-112)

(b) Recovery by action at law.

(1) Debt. The Director of Finance may also treat any such taxes, penalties and interest due and unpaid as a debt due the City from the retailer and recover the same in the county or district courts of the State which have jurisdiction of the amount sought to be collected and venue over the person from whom the amount is sought.

(2) City Attorney to assist. It shall be the duty of the City Attorney, upon request of the Director of Finance, to commence an action pursuant to the provisions of this Subsection.

(3) Return and assessment are prima facie proof. The return of the taxpayer or the assessment made by the Director of Finance, as provided in this Article, shall be prima facie proof of the amount due. (Code 1971 §9-113)

(Code 1971 §§9-112, 9-113)

ARTICLE 040.050

Miscellaneous Taxes

040.050.010 Telephone exchange occupation tax.

All public utility businesses and occupations which maintain a telephone exchange and lines connected therewith in the City which supply local exchange service to inhabitants of the City and which use the public streets, rights-of-way and other public places and areas in the City in connection with such service and for the installation of poles or lines in connection with such service shall pay an occupation tax in the sum of nine hundred dollars ($900.00) per month to the City for each month or part thereof during which such public utility conducts the operations described in this Section. This fee shall be due and payable on or before December 31, ending each year during all or any part of which such public utility conducts the operations described in this Section. (Code 1962 §17.2; Code 1971 §9-6)

040.050.020 Telephone pole charge.

There shall be charged to Mountain States Telephone and Telegraph Company, pursuant to an agreement dated January 1, 1970, between the City and Mountain States Telephone and Telegraph Company, a pole charge of ten dollars and thirty cents ($10.30) per pole for the deficit in pole ownership as determined in accordance with the terms of said agreement, which payment shall be made within sixty (60) days of December 31 of each year for the poles for the prior year. This pole rental may be amended in accordance with the terms of the agreement.

040.050.030 Rocky Mountain Gas occupancy and license tax.

Pursuant to a franchise agreement entered into by and between the City and Rocky Mountain Natural Gas Company (RMNG), there is hereby imposed in lieu of all occupancy and license taxes and all other special taxes, assessments or excises upon the pipes, mains, meters or other property of RMNG or any other levies that might be imposed, either as a franchise tax, occupancy tax, license tax, permit charge or for inspection of pipes, mains, meters or other property of the RMNG, or otherwise, a tax of two percent (2%) of the annual gross revenue of RMNG derived from the sale of gas within the corporate limits of the City excluding the revenue received from the sale of industrial gas and excluding the amount received from the City itself from gas service furnished it and after adjustment for net write-off on uncollectible accounts and corrections of bills theretofore rendered; however, the City may, after construction of the initial distribution system, require a payment of a reasonable permit charge for the opening of streets, alleys or other public ways and places and a reasonable fee for the inspection of repairs thereto. Payments of this franchise tax should be made on or before the first day of March of each year for the previous calendar year. For the purpose of ascertaining or auditing the correct amount to be paid under the provisions of this Section, the City Clerk and/or any committee appointed by the City Council shall have access to the books of said company for the purpose of checking the gross income received from operations within the City. (A 1-61 §16)

040.050.040 CATV occupation tax.

Pursuant to an agreement entered into between the City and Western Colorado Television Company dated June 1, 1966, which agreement has been duly assigned to the Community Tele-Communications, Inc. (CTI), CTI shall pay to the City a sum equal to two and one-half percent (2.5%) of its annual gross revenues derived from the monthly recurrent service charges to customers within the corporate limits of the City. Payment of this sum shall be made on or before the first day of March each year for the preceding calendar year. For the purpose of ascertaining or auditing the correct amount to be paid under the provisions of this Section, CTI shall submit to the City on or before the fifteenth day of each month a report showing the number of and classification of its subscribers, and the City shall also have access to such portion of the books of CTI as accurately reflects such figures, together with the revenues derived from each subscriber.

040.050.050 CATV pole rental.

Pursuant to an agreement entered into between the City and Western Colorado Television Company dated June 1, 1966, which agreement has been duly assigned to the Community Tele-Communications, Inc. (CTI), CTI shall pay to the City a rental charge of two dollars and fifty cents ($2.50) per pole per annum; however, the City may increase or the pole rental charge set forth in this Section upon ninety (90) days' written notice to the company. The pole rental charge is payable semiannually in advance on the first day of January and the first day of July of each year during the term of the agreement. Semi-annual rental payments shall be based upon the number of poles to which attachments are being maintained on the first day of June and the first day of December respectively.