HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/02/2017 - ITEMS RELATING TO THE TAX CODE - POSTPONEMENT OF SAgenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY May 2, 2017
City Council
STAFF
Tiana Smith, Revenue and Project Manager
SUBJECT
Items Relating to the Tax Code.
EXECUTIVE SUMMARY
A. Postponement of Second Reading of Ordinance No. 060, 2017, Amending Article II of Chapter 25 and
Division 2 in Article IX of Chapter 26 of the Code of the City of Fort Collins Concerning the City’s Tax and
Utility Refund Programs to May 16, 2017.
B. Postponement of Second Reading of Ordinance No. 061, 2017, Amending Article III of Chapter 25 of the
Code of the City of Fort Collins Concerning the Imposition, Collection, and Enforcement of the City’s Sale
and Use Taxes to May 16, 2017.
C. Postponement of Second Reading of Ordinance No. 062, 2017, Amending Article IV of Chapter 25 of the
Code of the City of Fort Collins Concerning the City’s Lodging Tax to May 16, 2017.
Staff requests postponement of Second Reading of these Ordinances to May 16, 2017, due to additional time
needed to vet the definition for “Disabled individual” with the Commission on Disability. If these items are
pulled from the Consent Calendar, Council may choose to postpone the Ordinances or consider them
on Second Reading, in Council’s discretion.
STAFF RECOMMENDATION
Staff recommends postponement of Second Reading of these Ordinances to May 16, 2017.
ATTACHMENTS
1. First Reading Agenda Item Summary, April 18, 2017 (w/o attachments) (PDF)
2. Ordinance No. 060, 2017 (PDF)
3. Ordinance No. 061, 2017 (PDF)
4. Ordinance No. 062, 2017 (PDF)
Agenda Item 18
Item # 18 Page 1
AGENDA ITEM SUMMARY April 18, 2017
City Council
STAFF
Tiana Smith, Revenue and Project Manager
SUBJECT
Items Relating to the Sales Tax Code.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 060, 2017, Amending Article II of Chapter 25 and Division 2 in Article IX of
Chapter 26 of the Code of the City of Fort Collins Concerning the City’s Tax and Utility Refund Programs.
B. First Reading of Ordinance No. 061, 2017, Amending Article III of Chapter 25 of the Code of the City of
Fort Collins Concerning the Imposition, Collection, and Enforcement of the City’s Sale and Use Taxes.
C. First Reading of Ordinance No. 062, 2017, Amending Article IV of Chapter 25 of the Code of the City of
Fort Collins Concerning the City’s Lodging Tax.
The purpose of this item is to amend Code Chapter 25 to update definitions and align for consistency the sales
and use tax and lodging tax provisions related to the collection and enforcement of these taxes. It also makes
various amendments to the City Code provisions providing for the City’s tax and utility rebate programs
established in Code Chapters 25 and 26 (City Rebate Programs). The philosophy of the Sales Tax
department is to be business friendly in its operations and to ensure that the processes in place are user-
friendly and that taxpayers can remit taxes with ease. For the administration of the City Rebate Programs, the
intention is to help as many qualified, low-income, disabled and senior individuals in the community as
possible. In order to deliver on both of these objectives, the Sales Tax Department is recommending the
following changes to City Code:
Update definitions to allow more flexibility in the administration of the City Rebate Program resulting in the
ability to help more income-qualified individuals
Adopt definitions recommended by the Colorado Municipal League
Align threshold amounts that set taxpayer filing frequency to align with the State of Colorado
Revise the collection and enforcement provisions in the Sales and Use Tax Code to conform to the Sales
Tax Department’s current practices and to add these collection and enforcement provisions to the Lodging
Tax Code for consistency.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
Since early 2016, staff from Sales Tax and City Attorney’s Office has worked with the Colorado Municipal
League on a state-wide effort to update sales tax definitions for consistency across the state and taxing
jurisdictions. The City will adopt the majority of the recommended definitions and retain some that are relevant
to the City of Fort Collins.
The Sales Tax department administers the City Rebate Programs, programs that run from August through
ATTACHMENT 1
Agenda Item 18
Item # 18 Page 2
October each year where low-income individuals can apply for a rebate for sales taxes paid on groceries and
low-income, senior and/or disabled individuals can also apply for a rebate on property tax and a portion of the
amount paid for utilities. While administering the City Rebate program, staff determined code language
prevented the eligibility of many otherwise qualified residents due to the way income, household and applicant
were being defined. The Code changes also extend the rebate program to applicants living within the
City’sGrowth Management Area, rather than just in the city limits of Fort Collins. By clarifying these definitions,
more low-income qualified individuals will be eligible for the rebate(s) in the future.
Some of the more substantive changes being made to the Sales and Use Tax and Lodging Tax Codes include:
Revising the definition of “food” with regard to sales tax to update the references in the definition to the
applicable federal statutes (Section 25-71 Sales and Use Tax Code Ordinance)
Clarifying that the purchase and use of “software programs,” “digital products” and “software maintenance
agreements” are considered taxable “tangible personal property” under the Sales and Use Tax Code in
accordance with the City’s past and current practices (Section 25-71)
Clarifying that the sales tax does not apply to the PILOT paid by the City’s utilities to the City’s general
fund (see definition of “price or purchase price” in Section 25-71)
Aligning for consistency the collection and enforcement provisions of the Sales and Use Tax Code and the
Lodging Tax Code
Extending the City’s time-limitation in both Codes for taking an action to collect an unpaid tax to take into
consideration that tax audits often take several years to conduct and complete (Section 25-225 of Sales
and Use Tax Code and Section 25-286 of the Lodging Tax Code)
CITY FINANCIAL IMPACTS
Although the exact number is unknown, there could be financial impact to the City by more income-qualified
individuals being eligible for the City rebate. There were approximately 15 individuals from 2016 who would
have been eligible for the rebate under the changes to City Code.
BOARD / COMMISSION RECOMMENDATION
No outreach was done to boards and commissions on this item.
Staff presented this item to the Council Finance Committee in October 2016 and the Committee supported
bringing these changes forward to Council for approval.
PUBLIC OUTREACH
A letter was sent to contractors informing them of the change to project cost reports. Additionally, upon
adoption, staff will conduct a contractor training on the changes in the second quarter of 2017.
ATTACHMENTS
1. Powerpoint presentation (PDF)
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ORDINANCE NO. 060, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE II OF CHAPTER 25 AND DIVISION 2 IN ARTICLE IX
OF CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
CONCERNING THE CITY’S TAX AND UTILITY REFUND PROGRAMS
WHEREAS, Division 2 in Article II of City Code Chapter 25 Code authorizes the refund
of the City’s property tax to low-income elderly and disabled persons residing in the City (the
“Property Tax Refund Program”); and
WHEREAS, Division 3 in Article II of City Code Chapter 25 authorizes a rebate on the
City’s sales tax charged on food purchases by low-income persons residing in the City (the
“Sales Tax Rebate Program”); and
WHEREAS, Division 5 in Article II of City Code Chapter 25 authorizes the rebate of the
City’s use tax imposed on manufacturing equipment paid by certain qualifying manufacturers
(the “Manufacturing Equipment Use Tax Rebate Program”); and
WHEREAS, Division 2 in Article IX of City Code Chapter 25 authorizes the refund of a
portion of the utility charges billed to low-income elderly and disable persons residing in the
City who receive water, wastewater, stormwater or electric utility services from the City (the
“Utility Refund Program”); and
WHEREAS, the Property Tax Refund Program, Sales Tax Rebate Program and the
Utility Refund Program (collectively, the “Low-Income Rebate Programs”) serve the public
purpose of assisting certain low-income individuals in better affording the necessities of life
related to shelter, food and utility services; and
WHEREAS, the Manufacturing Equipment Use Tax Rebate Program serves the public
purpose of encouraging manufacturers to establish, continue and expand their manufacturing
activities within the City to benefit the local economy and provide manufacturing jobs within the
City; and
WHEREAS, City staff has recently reviewed these programs and is recommending
several changes to them; and
WHEREAS, regarding the Low-Income Rebate Programs, these changes include
modifying the definitions and qualifications used to determine which low-income individuals
and households are eligible for the programs and opening these programs to not just persons
residing in the City, but also to persons residing in the City’s Growth Management Area, both of
which changes are intended to have the effect of increasing the number of people who will be
benefited by the Low-Income Rebate Programs; and
WHEREAS, the changes to the Manufacturing Equipment Use Tax Rebate Program are
more minor and have no similar effect of expanding eligibility under the program, but are
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changes to clarify, update and better describe when a qualify manufacturer is eligible for a rebate
under the Manufacturing Equipment Use Tax Rebate Program; and
WHEREAS, the City Council hereby finds and determines that adoption of this
Ordinance to modify the Low-Income Rebate Programs and the Manufacturing Equipment Use
Tax Rebate Program as proposed is in the best interests of the City and its citizens and necessary
for the public’s health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Division 2 in Article II of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 2
Ad Valorem Tax Refund
Program for the Elderly and Disabled
Sec. 25-26. - Definitions.
The following words, terms and phrases, when used in this Division, shall have the meanings
ascribed to them in this Section:
Applicant shall mean a person who applies to the City for a tax rebate under this Division 2.
Disabled person shall mean a person receiving Supplemental Security Income or Social Security
Disabled Income or certified as disabled by Foothills Gateway as Larimer County’s Community
Centered Board for Disabilities.
Dwelling Unit shall have the meaning given to it by Section 5.1.2 of the City’s Land Use Code,
as amended.
Elderly person shall mean an individual who was sixty-five (65) years of age or older in the year
in which the taxes to be rebated were levied.
Household shall mean collectively the applicant, applicant’s spouse, and applicant’s children by
birth or adoption, step children, foster children and children under legal guardianship who reside
with the applicant in the taxed dwelling unit and any other person who the applicant may claim
as a dependent on his or her federal income tax return. Household shall also mean the applicant
and persons not related as above described, provided the applicant and such persons shall live at
the same address and pool resources for the purpose of paying living expenses, such as rent, food
and utilities. The Financial Officer’s determination shall be final with regard to eligibility as a
household.
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Income shall mean: (1) total income of an individual as shown on the individual’s federal
income tax form on the line noted for the applicable form, as set forth in the chart below, or if the
individual is not required to file any of these tax forms with the Internal Revenue Service, the
amount that would be so reported in the most applicable form if the individual was required to
file; and (2) plus any nontaxable income including, without limitation, individual retirement
account distributions (not including rollovers), pensions and annuities, social security benefits,
disability benefits, worker’s compensation benefits and any other nontaxable income:
I.R.S. Form 1040 Line 22 "Total Income"
I.R.S. Form
1040A
Line 15 “Total Income”
I.R.S. Form
1040EZ
Line 4 "Adjusted Gross Income"
I.R.S. Form
1040NR
Line 23 "Total Effectively Connected
Income"
Own shall mean having fee title or other beneficial ownership to real property.
Sec. 25-27. - Purpose.
There is hereby enacted a tax refund program to provide relief from property taxes for low-
income elderly persons and disabled persons residing in the City. It is the purpose of this tax
refund program to refund to low-income elderly persons and disabled persons, the City's portion
of property taxes for the preceding year which such persons have paid. This program is intended
to apply to applicants who either own or lease, and reside within, the dwelling unit for which
such taxes have been paid.
Sec. 25-28. - Application for refund.
Refunds under this program shall be made to persons qualified for such refunds upon written
application made to the Financial Officer on forms to be provided by the Financial Officer. Such
applications shall be filed with the City between August 1 and October 31 in each year, and shall
be for the refund of the taxes levied in the prior year.
Sec. 25-29. - Qualifications.
In order to be entitled to a refund under this program, the applicant for such refund must meet all
of the following applicable requirements:
(1) The applicant or other member of the applicant’s household must be an elderly or
disabled person.
(2) The applicant, or the applicant’s household member who is the qualifying elderly
or disabled person, must have been a resident of the City during the entire preceding year
when the property tax to be refunded was levied against the dwelling unit.
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(3) The applicant or a member of the applicant’s household must have either: (a) paid
property taxes levied in the previous year on a dwelling unit that was owned by the
applicant and in which the applicant resided; or (b) must have paid rent in the previous
year when the taxes were levied on the dwelling unit or portion thereof in which the
applicant resided.
(4) The applicant’s income in the year the tax to be refunded was levied, together
with the income for that year of all individuals in the applicant’s household, shall not
exceed fifty (50) percent of the area median income for the applicable household size in
the Fort Collins-Loveland metropolitan statistical area, up to a maximum household
income of fifty (50) percent of the area median income for a household of eight (8), as
most recently published by the United States Department of Housing and Urban
Development as of December 31 of the year in which the tax to be refunded was levied.
. . .
Sec. 25-30. - Amount of refund.
(a) If the applicant meets the requirements of this Division, the City shall refund to the
applicant an amount based upon the following:
(1) In the case of an applicant who is the owner of the dwelling unit in which the
applicant resided, that portion of the total property tax actually paid on the property
which was levied by the City for the preceding year;
(2) In the case of a person renting the dwelling unit on which City property taxes
were levied in the preceding year, an amount equal to one and forty-four one-hundredths
(1.44) percent of the total rental payments made by such applicant during the preceding
year;
. . .
(b) An applicant may be entitled to a refund based on the foregoing provisions for such
qualifying dwelling unit in which the applicant lived at different times during such year, but in
no event shall the applicant be entitled to a refund representing more than one (1) dwelling unit
for the same time period.
(c) Notwithstanding the foregoing provisions of this section, the City shall not be obligated
to refund to multiple applicants for the same dwelling unit in a total amount in excess of the total
City property taxes levied and paid for that dwelling unit in the applicable year.
Sec. 25-31. - Refunds payable only to applicant.
The City shall make tax refunds pursuant to this Division only directly to the applicant who
qualifies therefor and, except as provided in Subsection (b) below, refunds shall not be paid to
anyone other than the applicant. If an applicant dies prior to receiving or cashing a refund
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pursuant hereto, any check representing such refund shall be null and void, and such refund shall
not become an asset of the decedent's estate. If the decedent is survived by a spouse who would
be qualified as an applicant for such refund, the City will honor an application for a refund by
such surviving spouse, even though the application is not timely made in accordance with the
provisions of this Division.
Sec. 25-32. - Administration.
The Financial Officer shall administer the program established by this Division and may prepare
a refund application form, adopt rules and regulations consistent with the provisions of this
Division and audit and verify the applications submitted pursuant to this Division. Any refund
application form shall require the claimant to verify and sign the application under oath. The
burden of proving entitlement to a refund under this Division is on the applicant. The Financial
Officer may require other reasonable information to support the refund application.
Section 3. That Division 3 in Article II of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 3
Sales Tax Rebate on Food
Sec. 25-46. - Definitions.
The following words, terms and phrases, when used in this Division, shall have the meanings
ascribed to them in this Section:
Applicant means a person who applies to the City for a tax rebate under this Division 3.
Household shall mean collectively the applicant, applicant’s spouse, and applicant’s children by
birth or adoption, step children, foster children and children under legal guardianship who reside
with the applicant and any other person who the applicant may claim as a dependent on his or her
federal income tax return. Household shall also mean the applicant and persons not related as
above described, provided the applicant and such persons shall live at the same address and pool
resources for the purpose of paying living expenses, such as rent, food and utilities. The City’s
determination shall be final with regard to eligibility as a household.
Income shall mean: (1) total income of an individual as shown on the individual’s federal
income tax form on the line noted for the applicable form, as set forth in the chart below, or if the
individual is not required to file any of these tax forms with the Internal Revenue Service, the
amount that would be so reported in the most applicable form if the individual was required to
file; and (2) plus any nontaxable income including, without limitation, individual retirement
account distributions (not including rollovers), pensions and annuities, social security benefits,
disability benefits, worker’s compensation benefits and any other nontaxable income:
I.R.S. Form 1040 Line 22 "Total Income"
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I.R.S. Form
1040A
Line 15 “Total Income”
I.R.S. Form
1040EZ
Line 4 "Adjusted Gross Income"
I.R.S. Form
1040NR
Line 23 "Total Effectively Connected
Income"
Sec. 25-47. - Establishment.
There is hereby established a sales tax rebate program to provide relief from City sales tax
charged on food purchased by low-income persons residing in the City and its Growth
Management Area, as defined in § 1-2 and as amended.
Sec. 25-48. - Application for rebate.
Application for the sales tax rebate on food shall be made on forms to be provided by the City. In
order to qualify for such rebate, the application must be filed with the City between August 1 and
October 31 of each year, and shall be for the rebate of the taxes imposed and paid in the prior
year. Only one (1) application shall be filed per household. If any member of the household for
which the application has been filed has filed a federal income tax return for the applicable year,
a copy of such income tax return must be attached to the application.
Sec. 25-49. - Qualifications.
In order to qualify for the sales tax rebate, all members of the applicant’s household must have
resided within the City or the City’s Growth Management Area, as defined in § 1-2 and as
amended, during the rebate year for which the application is made. The applicant’s household
shall have a total annual income that does not exceed fifty (50) percent of the area median
income for the applicable household size in the Fort Collins-Loveland metropolitan statistical
area, up to a maximum household income of fifty (50) percent of the area median income for a
household of eight (8), as most recently published by the United States Department of Housing
and Urban Development as of August 1 of the year in which the tax to be rebated was imposed.
Sec. 25-50. - Amount of rebate.
The rebate amount for the 2016 tax year will be sixty dollars ($60.) per calendar year for each
person in the qualified household not to exceed eight (8) household members. This amount of the
rebate will be increased annually according to the Denver-Boulder-Greeley Consumer Price
Index for Urban Consumers, as published by the Bureau of Labor Statistics.
Sec. 25-51. - Payment.
The City shall make a single rebate payment to each qualified household for which an
application has been properly filed by joint payment to adult members of the household and to
parents or guardians on behalf of all children of the household.
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Sec. 25-52. - Administration.
The Financial Officer shall administer the program established by this Division and may prepare
a rebate application form, adopt rules and regulations consistent with the provisions of this
Division and audit and verify the applications submitted pursuant to this Division. Any rebate
application form shall require the applicant to verify and sign the application under oath. The
burden of proving entitlement to a rebate under this Division is on the applicant. The Financial
Officer may require other reasonable information to support the rebate application.
Section 4. That Division 5 in Article II of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 5
Manufacturing equipment use tax rebate
Sec. 25-63. - Definitions.
(a) The following words, terms and phrases, when used in this Division, shall have the
meanings ascribed to them in this Section:
Manufacturing equipment shall mean manufacturing equipment to be used in the City
directly and exclusively in the manufacture of tangible personal property for sale or
profit.
Qualifying manufacturer shall mean an industrial manufacturer who, in an industrial
setting, produces a new product, article, substance or commodity that is different from
and has a distinctive name, character or use from the raw or prepared materials used to
manufacture the product.
(b) Any words, terms and phrases used in this Division not defined in Subsection (a) of this
section shall have the meaning given to them in § 25-71.
Sec. 25-64. - Establishment.
(unchanged)
Sec. 25-65. - Application for rebate.
(unchanged)
Sec. 25-66. - Qualifications.
In order to qualify for a rebate under the provisions of this Division, the following requirements
must be met:
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(1) The qualifying manufacturer must have a sales and use tax licensed from the City and be
classified as a "manufacturer" under the North American Industry Classification System
(NAICS), as amended.
. . .
(5) The qualifying manufacturer must have paid the appropriate use tax when due and not as
a consequence of a tax audit conducted by the City.
Sec. 25-67. - Amount of rebate.
The amount of rebate payable shall be in the sum set forth in a rebate schedule to be adopted by
the Financial Officer consistent with rules and regulations promulgated pursuant to § 25-69.
Sec. 25-68. - Payment.
For each qualifying manufacturer, the City shall only be required to make a single annual rebate
payment. Any additional payments shall be in the Financial Officer’s sole discretion.
Sec. 25-69. - Administration.
The Financial Officer shall administer the program established by this Division and may prepare
a rebate application form, adopt rules and regulations consistent with the provisions of this
Division, and audit and verify the applications submitted pursuant to this Division. Any rebate
application form shall require the applicant to verify and sign the application under oath. The
burden of proving entitlement to a rebate under this Division is on the applicant. The Financial
Officer may require other reasonable information to support the rebate application.
Section 5. That Division 2 in Article IX of Chapter 26 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 2
Water, Wastewater, Stormwater,
Electric Utilities Refund Program
Sec. 26-611. - Declaration of purpose.
(unchanged)
Sec. 26-612. - Requirements for qualification.
In order to qualify for the refund hereunder, the applicant must satisfy the qualifications required
in § 25-29 and the property occupied by the applicant must receive water, wastewater,
stormwater or electric utility service from the City.
Sec. 26-613. - Application for refund.
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The application for a utility bill refund shall be the same application as that used to apply for an
ad valorem tax refund under the provisions of Division 2 in Article II of Code Chapter 25. In
order to qualify for such refund, the application must be filed within the time limits prescribed in
said Division 2.
Sec. 26-614. - Amount of refund.
(a) The annual amount of refund payable hereunder shall be based on the average monthly
consumption of water, wastewater, stormwater and electric services by a residential unit in the
City, determined pursuant to the administrative rules and regulations of this Division. An
applicant shall be entitled to a refund only for those utility services received.
(b) Any refund payable hereunder shall be made at the same time as the ad valorem tax
refund is made pursuant Division 2 in Article II of Code Chapter 25.
Sec. 26-615. - Refund payable from general fund.
(unchanged)
Sec. 26-616. - Payment of refund to applicant.
Refunds paid pursuant to this Division shall be paid as provided in § 25-31.
Sec. 26-617. - Rules and regulations.
(unchanged)
Introduced, considered favorably on first reading, and ordered published this 18th day of
April, A.D. 2017, and to be presented for final passage on the 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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Passed and adopted on final reading on this 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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ORDINANCE NO. 061, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY
OF FORT COLLINS CONCERNING THE IMPOSITION, COLLECTION,
AND ENFORCEMENT OF THE CITY’S SALES AND USE TAXES
WHEREAS, the City of Fort Collins, as home rule municipality, is granted in Article
XX, § 6.g. of the Colorado Constitution all powers necessary to levy and collect taxes for
municipal purposes, subject to any limitations in the Colorado Constitution; and
WHEREAS, on November 16, 1967, the City Council, in the exercise of its home rule
taxing powers, adopted Ordinance No. 58, 1967, to levy, collect and enforce beginning on
January 1, 1968, a sales and use tax on the purchase price of tangible personal property sold at
retail in the City and on certain taxable services provided in the City (the “Sales and Use Tax
Code”);
WHEREAS, the Sales and Use Tax Code is currently found in Article III of City Code
Chapter 25 and it has been significantly amended many times since its adoption in 1967; and
WHEREAS, since early 2016, City staff has worked with the Colorado Municipal League
(“CML”) on a statewide effort to update and make more consistent the definitions that
municipalities around state use for the imposition and collection of their respective sales and use
taxes; and
WHEREAS, in connection with this effort, City staff has also reviewed the other
provisions of the Sales and Use Tax Code to update and revise these provisions as needed for
clarification and consistency with the current practices and regulations that the Financial Officer
and the City’s Sales Tax Department follow in administering the Sales and Use Tax Code; and
WHEREAS, this Ordinance not only amends the definitions in the Sales and Use Tax
Code generally consistent with CML’s proposed definitions, but it also amends the City’s
administrative processes for the collection and enforcement of the City’s sales and use taxes as
proposed by City staff; and
WHEREAS, the City Council hereby finds that amending the Sales and Use Tax Code as
proposed in this Ordinance is in the City’s and its taxpayers’ best interests and necessary for the
publics’ health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
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Section 2. That Article III Division 1 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
ARTICLE III. - SALES AND USE TAX
Division 1
General Provisions; Taxes Imposed
Sec. 25-71. - Definitions.
The following words, terms and phrases, as used in this Article, shall have the following
meanings:
. . .
Carrier access services shall mean the services furnished by a local exchange company to its
customers, which customers use those services to provide telecommunication services to their
customers.
. . .
Coin operated device shall mean any device operated by coins or currency or any substitute
therefor.
Collection costs shall mean all of the City’s costs incurred to enforce the provisions of this
Article, which shall include, without limitation, all costs of audit, assessment, hearings,
execution, lien filings, distraint actions, litigation, locksmith fees, auction costs, bank fees,
prosecution costs and related attorney fees.
Commercial packaging materials shall mean containers, labels and/or cases, that become part of
the finished product to the purchaser, used by or sold to a person engaged in manufacturing,
compounding, wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit
or use, and is not returnable to said person for reuse. Commercial packaging materials do not
include commercial shipping materials.
Commercial shipping materials shall mean materials that do not become part of the finished
product to the purchaser and are used exclusively in the shipping process. Commercial shipping
materials include, but are not limited to, containers, labels, pallets, banding material and
fasteners, shipping cases, shrink wrap, bubble wrap and other forms of binding, padding or
protection. Commercial shipping materials shall not include returnable kegs and similar large
containers used to sell any beverage.
Construction equipment shall mean any equipment, including mobile machinery and mobile
equipment, that is used to erect, install, alter, demolish, repair, remodel or otherwise make
improvements to any real property, building, structure or infrastructure.
. . .
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Consumer shall mean any person in the City who uses stores, distributes or otherwise consumes
in the City tangible personal property or taxable services purchased from sources inside or
outside the City.
Digital product shall mean an electronic product including, but not limited to: (1) “digital
images,” including, but not limited to, works that are generally recognized in the ordinary and
usual sense as “photographs,” “logos,” “cartoons” or “drawings”; (2) “digital audio-visual
works,” meaning a series of related images that, when shown in succession, impart an impression
of motion, together with accompanying sounds, if any; and (3) “digital audio works,” meaning
works that result from the fixation of a series of musical, spoken, or other sounds, including
ringtones (for purposes of the definition of “digital audio works,” “ringtones” means digitized
sound files that are downloaded onto a device and that may be used to alert the customer with
respect to a communication) and (4) “digital books,” meaning works that are generally
recognized in the ordinary and usual sense as “books”.
Distribution shall mean the act of distributing any article of tangible personal property for use or
consumption, which may include, but not be limited to, the distribution of advertising gifts,
shoppers guides, catalogs, directories or other property given as prizes, premiums or for goodwill
or in conjunction with the sales of other commodities or services.
District court shall mean the Larimer County District Court in the Eighth Judicial District of the
State of Colorado.
. . .
Dwelling unit shall mean a building or any portion of a building designed for occupancy as a
complete, independent living quarters for one (1) or more persons, having direct access from the
outside of the building or through a common hall and having living, sleeping, kitchen and
sanitary facilities for the exclusive use of the occupants.
Engaged in business in the City shall mean performing or providing services or selling, leasing,
renting, delivering or installing tangible personal property for storage, use or consumption within
the City. Engaged in business in the City includes, but is not limited to, any one (1) of the
following activities by a person:
. . .
(5) Makes more than one (1) delivery into the taxing jurisdiction within a twelve-
month period by any means other than a common carrier.
. . .
Farm close-out sale shall mean full and final disposition of all tangible personal property
previously used by a person in the operations that are being abandoned.
-4-
Farm operations shall mean the agricultural, ranching and vitacultural production of any of the
following products for profit, including, without limitation, a business that hires out to produce
or harvest such products: (1) livestock; (2) milk; (3) honey; (4) poultry and eggs; (5) fruits,
vegetables and grains; (6) wool and plant fibers; and (7) similar products produced in
agricultural, ranching and vitacultural operations. However, farm operations shall not include
the growing, cultivation or production of marijuana in any form or for any purpose.
Financial Officer shall mean the Financial Officer of the City of Fort Collins or such other
individual person designated by the Financial Officer.
Food shall mean: food for domestic home consumption as defined in 7 U.S.C. § 2012(k) as
amended, for purposes of the supplemental nutrition assistance program, or any successor
program, as defined in 7 U.S.C. § 2012(t), as amended; except that food does not include
prepared food or food for immediate consumption; carbonated water marketed in containers;
chewing gum; seeds and plants to grow food; prepared salads and salad bars; packaged and
unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers
or cups that are vended by or through machines or non-coin-operated coin-collecting food and
snack devices on behalf of a vendor.
. . .
Gross sales shall mean the total amount received in money, credit, property or other
consideration valued in money for all sales, leases or rentals of tangible personal property and for
the purchase of taxable services.
License shall mean a City of Fort Collins sales and use tax license issued under this Article.
. . .
Lodging services shall mean the furnishing of a room or other accommodations by any person to
another person who for consideration uses, possesses or has the right to use or possess that room
or accommodation in a hotel, motel, inn, bed and breakfast residence, apartment hotel, lodging
house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto camp, trailer court
or park, dwelling unit, or any similar establishment or accommodation, for a period of less than
thirty (30) consecutive days under any lease, rental, concession, permit, right of access, license to
use or other agreement.
. . .
Mobile machinery and self-propelled construction equipment shall mean those vehicles, self-
propelled or otherwise, that are not designed primarily for the transportation of persons or cargo
over the public highways, and those motor vehicles that may have originally been designed for
the transportation of persons or cargo over the public highways, but that have been redesigned or
modified by the mounting thereon of special equipment or machinery, and that may be only
incidentally operated or moved over the public highways. This definition includes but is not
-5-
limited to wheeled vehicles commonly used in the construction, maintenance and repair of
roadways, the drilling of wells and the digging of ditches.
. . .
Person shall mean an individual, firm, partnership, joint venture, corporation, limited liability
company, other business entity, association, estate, trust, receiver, trustee, assignee, lessee or any
person acting in a fiduciary or representative capacity, whether appointed by a court or
otherwise, or any group or combination acting as a unit.
. . .
Price or purchase price shall mean the aggregate value measured in currency paid or delivered
or promised to be paid or delivered in consummation of a sale, without any discount from the
price on account of the cost of materials used, labor or service cost, but exclusive of any direct
tax imposed by the federal government or by this Article, or imposed as a payment in lieu of
taxes and/or franchise fee in Code Chapter 26 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:
. . .
Price or purchase price includes:
. . .
(5) Installation, delivery, wheeling and all other charges included in the purchase
price and not separately stated.
. . .
Price or purchase price shall not include:
. . .
(2) The fair market value of property exchanged if such property is to be sold
thereafter in the retailer’s usual course of business. This is not limited to exchanges in
Colorado. Out-of-state trade-ins are an allowable adjustment to the purchase price.
(3) Discounts from the original price if such discount and the corresponding decrease
in sales tax due is actually passed on to the purchaser, and the seller is not reimbursed for
the discount by the manufacturer or someone else. An anticipated discount to be allowed
for payment on or before a given date is not an allowable adjustment to the purchase
price in reporting gross sales.
. . .
-6-
Prosthetic devices shall mean any artificial limb, part, device or appliance for human use that
replaces a body part or aids or replaces a bodily function; is designed, manufactured, altered or
adjusted to fit a particular individual; and is prescribed by a licensed practitioner of the healing
arts. Prosthetic devices include but are not limited to prescribed auditory, ophthalmic or ocular,
cardiac, dental or orthopedic devices or appliances, oxygen concentrators, and related
accessories.
Purchase or sale shall mean the acquisition for any consideration by any person of tangible
personal property or taxable services that are purchased, leased, rented, sold, used, stored,
distributed or consumed, but excludes a bona fide gift of property or services. These terms
include capital leases, installment and credit sales, and property and services acquired by any of
the following:
(1) Transfer, either conditionally or absolutely, of title or possession or both to
tangible personal property or taxable services;
. . .
(4) Barter or exchange for other tangible personal property or services.
The terms purchase and sale do not include the following:
. . .
(2) The formation of a corporation by the owners of a business and the transfer of
their business assets to the corporation in exchange for all of the corporation’s
outstanding stock, except qualifying shares, in proportion to the assets contributed;
. . .
(10) The transfer of assets from a subsidiary corporation or corporations that are
owned at least eighty (80) percent by the parent corporation to a parent corporation or to
another subsidiary that is owned at least eighty (80) percent by the parent corporation,
which transfer is solely in exchange for stock or securities of the parent corporation or the
subsidiary which received the assets; or
. . .
Retailer shall mean any person selling, leasing, renting, or granting a license to use tangible
personal property or services at retail. Retailer shall include, but is not limited to, any:
. . .
(2) Salesperson, representative, peddler or canvasser, who makes sales as a direct or
indirect agent of or obtains such property or services sold from a dealer, distributor,
supervisor or employer; and
-7-
. . .
Return shall mean any form prescribed by the Financial Officer for computing and reporting a
tax liability under this Article.
Sales tax shall mean the tax that is collected or required to be collected and remitted by a retailer
on sales taxed under this Article.
School shall mean a public or private school for students in kindergarten through twelfth grade or
any portion of these school grades and shall not include preschools, trade schools and post-
secondary schools.
Software program shall mean a sequence of instructions that can be measured, interpreted and
executed by an electronic device (e.g., a computer, tablet, smart phone) regardless of the means
by which it is accessed or the medium of conveyance. Software program includes pre-written
software program, which is a software program prepared for sale or license to multiple users, and
not to the special order or specifications of a single customer. Pre-written software is commonly
referred to as “canned,” “off-the-shelf “mass produced” or “standardized.” The generic term
“software,” “software application,” as well as “updates,” “upgrades,” “patches,” “user exits,” and
any items that add or extend functionality to existing software programs shall be considered a
software program. However, software program shall not include a custom software program,
which is a software program prepared to the special order or specifications of a single customer.
It shall also not include modifying software, which means software that is created by someone
other than the purchaser to alter or enhance pre-written software to create a custom program for
the purchaser. However, the pre-written software that is so modified is still considered a
software program.
Software maintenance agreement means an agreement, typically with a software provider, that
requires the purchaser of the software product to pay an additional fee for future products and/or
services in order to be allowed to use the software product. Such future products and services
may include, without limitation (1) software upgrades, including code updates, version updates,
code fix modifications, enhancements, and added or new functional capabilities loaded into
existing software, and (2) technical support. Those software maintenance agreements that are
not required to be purchased in order to use the software product and provide for only technical
support shall not be considered a software maintenance agreement for purposes of this Article.
However, those software maintenance agreements that are not required to be purchased for use
of the software, but will provide code and version updates, shall be considered a software
maintenance agreement for purposes of this Article.
Sound system services shall mean the provision of broadcast or prerecorded audio programming
to a building or portion thereof. Such term does not include installation of sound systems where
the entire system becomes the property of the building owner or the sound system service is for
presentation of live performances.
Storage or storing shall mean any keeping or retention of, or exercise of dominion or control
over, tangible personal property within the City.
-8-
Tangible personal property shall mean corporeal personal property that can be one or more of
the following: seen, weighed, measured, felt or touched, stored, transported, or exchanged, or
that is in any other manner perceptible to the senses. Tangible personal property shall also
include, without limitation, digital products, software programs and software maintenance
agreements.
. . .
Tax deficiency shall mean the total amount of tax, penalties, interest, collection costs and other
amounts owed under this Article that is not reported or not paid on or before the date that the
filing of any return for that amount or payment of that amount is required under this Article.
Taxable sales shall mean gross sales less any exemptions and deductions specified in this
Article.
Taxable services shall mean services subject to tax pursuant to this Article.
Taxpayer shall mean any person obligated to collect and/or pay tax under the terms of this
Article.
Telecommunication service shall mean the service the object of which is the transmission of any
two-way interactive electronic or electromagnetic communications, including, but not limited to,
voice, image, data and any other information by the use of any means, including, but not limited
to, wire, cable, fiber optical cable, microwave, radio wave, Voice over Internet Protocol (VoIP)
or any combinations of such media, including any form of mobile two-way communication.
Telecommunication service does not include separately stated non-transmission services which
constitute computer processing applications used to act on the information to be transmitted.
Television and entertainment services shall mean audio or visual content that can be transmitted
electronically by any means, for which a charge is imposed.
Total tax liability shall mean the total of all tax, penalties, interest, collection costs and any other
amounts owed by a taxpayer under this Article and shall include, without limitation, sales tax
collected in excess of such tax computed on total sales.
Use shall mean the exercise for any length of time by any person within the City of any right,
power or dominion over tangible personal property or taxable services when rented, leased or
when purchased at retail from sources either within or without the City, from any person or
vendor or used in the performance of a contract in the City whether such tangible personal
property is owned or not owned by the taxpayer. Use also includes the withdrawal of items from
inventory for consumption.
Use tax shall mean the tax paid or required to be paid by a consumer for using, storing,
distributing or otherwise consuming tangible personal property or taxable services inside the City
under this Article.
-9-
. . .
Wholesale sale shall mean a sale by any person to a licensed retailer, jobber, dealer or wholesaler
for resale and does not include a sale by a person to a user or consumer not for resale; this latter
type of sales shall be deemed to be a retail sale and shall be subject to the provisions under this
Article.
Wholesaler shall mean any person who engages in wholesale sales.
Sec. 25-72. - Legislative intent.
. . .
(b) The sales tax is a transaction tax levied upon all sales and purchases of tangible personal
property and taxable services sold or purchased by persons in the City and is collected by the
retailer and remitted to the City. The use tax is levied upon the privilege of persons in the City to
store, use, distribute or consume tangible personal property located in the City and taxable
services purchased or sold at retail and furnished within the City, whether purchased or sold
inside or outside the City, and not subject to the sales tax imposed by this Article. The use tax is
remitted to the City by the persons storing, using, distributing or consuming the tangible personal
property or taxable services. The use tax is a complement to the sales tax, and its purposes are to
equalize competition between in-City and out-of-City retailers of tangible personal property and
taxable services and to eliminate incentives for City residents to leave the City to purchase
tangible personal property and taxable services.
Sec. 25-73. - Imposition of the sales tax and exemptions.
. . .
(b) Taxable transactions and items. The sales tax shall apply, without limitation, as follows:
. . .
(4) Upon telecommunication services, including carrier access services, whether
furnished by public or private corporations or enterprises, for all intrastate
telecommunication services originating from or received on telecommunication
equipment in the City if the charge for the service is billed to a person in the City or
billed to an affiliate or division of such person in the City on behalf of a person in the
City;
(5) Upon carrier access services, whether furnished by public or private corporations
or enterprises, for all interstate telecommunication services originating from or received
on telecommunication equipment in the City if the charge for the service is billed to a
person in the City or billed to an affiliate or division of such person in the City on behalf
of a person in the City;
. . .
-10-
(8) Upon the amount paid for all prepared food or food for immediate consumption;
. . .
(10) Upon television and entertainment services;
(11) Upon all sales of preprinted newspaper supplements; and
(12) Upon the purchase price paid for food, but only at the tax rate of two and twenty-
five hundredths (2.25) percent of the purchase price.
(c) Transactions and items exempt from the sales tax. The following shall be exempt from
the sales tax:
. . .
(2) All sales of tangible personal property if all of the following conditions exist:
. . .
b. The articles purchased are to be delivered to the purchaser outside the City
by common carrier or by the conveyance of the retailer or by mail; and
c. The articles purchased and delivered are used outside the City.
. . .
(5) All sales to the United States or the State, or departments, institutions or political
subdivisions thereof, and all sales to the City and any department thereof, provided that
such purchases are supported by official government purchase orders or charged to the
governmental entity's credit card account and are paid for by draft or warrant drawn on
the governmental entity's bank account or such purchases are made pursuant to a written
agreement with the governmental entity in which the purchaser is to make such purchases
on behalf of the governmental entity;
(6) All sales to charitable organizations of tangible personal property or taxable
services to be used in the conduct of the organization's regular activities to foster its
religious or other expressed charitable purpose, provided that the organization obtains
from the City an exempt organization license pursuant to § 25-94 and presents the license
to the vendor at the time of the sale;
(7) All sales which the City is prohibited from taxing under the Constitution or laws
of the United States or the Colorado Constitution;
. . .
-11-
(9) All sales of drugs dispensed in accordance with a prescription, all sales of
prescription drugs for animals (except prescription pet food), all sales of prosthetic
devices and all sales of medical supplies;
. . .
(11) All charges for lodging services pursuant to a written lease for a period of at least
thirty (30) consecutive days or more;
. . .
(13) All sales of tangible personal property through a coin-operated device; provided,
however, that the owner of such device shall pay a tax in the amount stated in § 25-75 on
the value of the tangible personal property sold in excess of ten cents ($0.10) per item so
vended in the coin-operated device unless the sale shall be otherwise exempt as provided
in this Article;
(14) All sales of farm machinery for use in farming operations and all sales of farm
machinery parts for use in farming operations; provided, however, that this exemption for
farm machinery parts shall not apply in the case of repairs performed or parts installed on
farm machinery in the City. Trucks having a manufacturer's rated capacity of one (1) ton
or less shall not be considered farm machinery for the purposes of this Section. Nothing
herein contained shall be construed to limit any other exemption contained in this Article;
(15) All sales of feed and feed supplements and drugs for livestock or poultry and all
sales and purchases of seeds, plants and fertilizers when such sales are made for farm
operations;
(16) All sales of construction materials if such materials are picked up by the
purchaser and if the purchaser of such materials presents to the vendor a building permit
or other documentation acceptable to the City evidencing that a local sales or use tax has
been paid or is required to be paid;
(17) All sales of tangible personal property or taxable services which transaction was
previously subjected to a sales or use tax lawfully imposed on the purchaser or user by
another municipality in the State at a rate equal to or greater than the rate stated in § 25-
75 and such tax was collected. If the rate of the sales tax paid to such municipality is less
than the rate stated in § 25-75, the difference between the tax due under this Article and
the tax paid previously shall be remitted to the Financial Officer;
(18) All occasional sales by charitable organizations and schools made for fund-raising
purposes. For purposes of this Subsection, occasional sales is defined as either of the
following:
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a. Sales which occur for no more than thirty (30) days in one (1) calendar
year. A sale is deemed to occur when consideration is received by the
organization for the item sold; or
b. Sales which gross less than fifty thousand dollars ($50,000.) in one (1)
calendar year.
(19) All sales of commercial packaging materials, and commercial shipping materials;
(20) All sales of newsprint and printers' ink used to print newspapers and all sales and
purchases of newspapers;
(21) All sales of tangible personal property purchased in order to be sold at retail in the
City either in its original form or as an ingredient of a manufactured or compounded
product, in the regular course of business;
(22) All sales of tangible personal property to a person engaged in the business of
manufacturing or compounding for sale, profit or use of any product, which tangible
personal property becomes an ingredient or component part of the product which is
manufactured or compounded;
(23) All sales of fuel for use in a continuing activity of producing tangible personal
property or taxable services, including, but not limited to, processing, manufacturing,
mining, refining, irrigation, telecommunication services and street and railroad
transportation services; and
(24) All sales of automotive vehicles and parts and accessories therefor when used or
engaged in interstate commerce.
(d) The sale of food is exempt from taxation under this Article as provided below:
(1) No sales or use tax shall apply to the sale of food purchased with food stamps
issued under the supplemental nutrition assistance program as defined in 7 U.S.C. §
2012(t), as amended; and
(2) No sales or use tax shall apply to the sale of food purchased with funds provided
by the special supplemental food program for women, infants and children under 42
U.S.C. § 1786, as amended. For the purposes of this subparagraph (2), food shall have the
same meaning as provided in 42 U.S.C. § 1786, as amended.
Sec. 25-74. - Imposition of the use tax and exemptions.
(a) There is hereby levied and there shall be paid a use tax on the full purchase price paid for
or acquisition costs of tangible personal property and taxable services brought into the City for
the purpose of using, storing, distributing or consuming such property and services within the
City. The use tax is levied upon the privilege of using, storing, distributing, or consuming in the
-13-
City, personally or in connection with the operation of a business, tangible personal property or
taxable services and is paid by either the retailer or the consumer.
(b) Transactions and items exempt from the use tax. The use, storage, distribution or
consumption in the City of the following are hereby exempted from the use tax:
. . .
(5) Tangible personal property used, stored, distributed or consumed by the United
States or the State or departments, institutions or political subdivisions thereof and the
City and any department thereof;
. . .
(8) Fuel for use in a continuing activity of producing tangible personal property or
taxable services, including, but not limited to, processing, manufacturing, mining,
refining, irrigation, telecommunication services and street and railroad transportation
services;
. . .
(12) Tangible personal property or services which the City is prohibited from taxing
under the Constitution or laws of the United States or the Colorado Constitution;
(13) Drugs dispensed in accordance with a prescription, prescription drugs for animals
(excluding prescription pet food), prosthetic devices, and medical supplies;
(14) The storage of construction materials and construction materials picked up by the
purchaser if the purchaser of such materials presents to the vendor a building permit or
other documentation acceptable to the City evidencing that a local sales or use tax has
been paid or is required to be paid;
(15) Automotive vehicles properly titled and registered to an address outside the City;
(16) Goods manufactured in the City and sold by the manufacturer thereof directly to
the ultimate consumer when delivery of such goods is made by common, contract or
commercial carrier or by conveyance of the vendor or the purchaser to a point outside the
City for use outside the City;
(17) Cigarettes;
(18) Farm machinery and farm machinery parts for use in farming operations;
provided, however, that this exemption for farm machinery parts shall not apply to parts
installed on farm machinery in the City. Trucks having a manufacturer's rated capacity of
one (1) ton or less shall not be considered farm machinery for the purposes of this
Section;
-14-
(19) Feed and feed supplements and drugs for livestock or poultry and seeds, plants
and fertilizers when used for farm operations;
(20) Commercial packaging materials and commercial shipping materials;
(21) Newsprint and printers' ink used to print newspapers and newspapers; and
(22) All other tangible personal property and taxable services that are exempt, as
provided in Sections 25-73(c) and 25-73(d), from the sales tax imposed in this Article.
Sec. 25-75. - Rate of tax.
(a) The amount of tax hereby levied is three and eight-five hundredths (3.85) percent of the
purchase price of tangible personal property or taxable services except that the amount of use tax
levied on manufacturing equipment is three (3) percent of the purchase price. Twenty-five one-
hundredths (0.25) percent of such amount is a tax which shall expire at midnight on December
31, 2030, the proceeds of which shall be used for the purposes of acquiring, operating and
maintaining open spaces, community separators, natural areas, wildlife habitat, riparian areas,
wetlands and valued agricultural lands, and to provide for the appropriate use and enjoyment of
these areas by the citizenry, pursuant to the provisions of the Citizen-Initiated Ordinance No. 1,
2002. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight
on December 31, 2025, the proceeds of which shall be used for the purpose of paying the costs of
planning, design, right-of-way acquisition, incidental upgrades and other costs associated with
the repair and renovation of City streets, including, but not limited to, curbs, gutters, bridges,
sidewalks, parkways, shoulders and medians. Another twenty-five one-hundredths (0.25) percent
is a tax which shall expire at midnight on December 31, 2025, the proceeds of which shall be
used for the purpose of paying the costs of planning, design, real property acquisition, and
construction, the capital projects specified in the “Community Capital Improvement Program"
and five (5) years of operation and maintenance for those capital projects specified in Ordinance
No. 013, 2015, all of which shall be subject to the terms and conditions of Ordinance No. 013,
2015. Another eighty-five one-hundredths (0.85) percent is a tax which shall expire at midnight
on December 31, 2020, the proceeds of which shall be used in accordance with the terms and
conditions of Ordinance No. 126, 2010.
. . .
Section 3. That Article III Division 2 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 2
Licensing
Sec. 25-91. - Sales/use tax license required.
(a) No person shall engage in the business of selling at retail tangible personal property and
taxable services subject to the tax imposed by this Article without first having obtained a license
-15-
therefor, which license shall be granted and issued by the Financial Officer and shall be in full
force and effect until revoked.
(b) No person shall use, store, distribute or consume any tangible personal property or
taxable services subject to the tax imposed by this Article without first having obtained a license
therefor, which license shall be granted and issued by the Financial Officer and shall be in full
force and effect until revoked.
. . .
Sec. 25-92. – Separate license required for each place of business.
(unchanged)
Sec. 25-93. – Form of license; not transferable.
(unchanged)
Sec. 25-94. – Exempt organization license; application procedure.
(unchanged)
Sec. 25-95. – Revocation of license.
(unchanged)
Sec. 25-96. – Appeal of revocation.
(unchanged)
Section 4. That Article III Division 3 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 3
Taxpayer Responsibilities
Sec. 25-116. – Collection of Tax.
(unchanged)
Sec. 25-117. – Tax money in possession of retailer held in trust.
(unchanged)
Sec. 25-118. - Tax on credit or secured sales; bad debts.
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(a) Whenever tangible personal property is sold under a conditional sales contract or lease-
purchase agreement whereby the retailer retains title as security for all or part of the purchase
price or whenever the retailer takes a purchase money security interest on such tangible personal
property to secure all or part of the purchase price, the tax shall be imposed on each individual
payment made by the purchaser on the purchase price owed under the terms of the conditional
sales contract or lease-purchase agreement. This tax shall be charged and collected by the
retailer. No refund or credit shall be allowed to either party to the transaction in case of
repossession.
. . .
Sec. 25-119. - Tax on construction materials and supplies.
. . .
(b) The owner and/or contractor shall keep and preserve all invoices, receipts and statements
showing such purchases of construction materials and supplies and tangible personal property for
a period of three (3) years after completion of construction. The City may, within that three-year
period, conduct an audit of such records of the owner and/or contractor and any other relevant
information to verify the actual cost of the construction materials and tangible personal property
used therein to determine the actual tax due. If the actual tax due is more than that paid by the
taxpayer, the Financial Officer shall serve a notice of determination, assessment and demand for
payment on the taxpayer notifying him or her of the deficiency including penalty and interest.
Service of such notice and payment of the assessed amount shall be made in accordance with §
25-186.
Sec. 25-120. - Proration of use tax on certain construction equipment.
. . .
(c) In order to avail himself or herself of the provisions of (b) above, the taxpayer shall
substantially comply with the following procedures:
. . .
(2) The taxpayer shall file with the City an amended equipment declaration reflecting
any changes in the information contained in any previous equipment declaration no less
than once every ninety (90) days after the equipment is brought into the City or, for
equipment which is brought into the City for a project of less than ninety (90) days'
duration, no later than ten (10) days after substantial completion of the project; and
. . .
(d) If the equipment declaration is given as provided in Subsection (c) above, then as to any
item of construction equipment for which the purchase price was under two thousand five
hundred dollars ($2,500.) that was brought into the City temporarily for use on a construction
project, it shall be presumed that the item was purchased in a jurisdiction having a local sales or
-17-
use tax as high as the rate stated in § 25-75 and that such local sales or use tax was previously
paid. In such case, the burden of proof in any proceeding before the City, the Financial Officer or
a court shall be on the City to prove such local sales or use tax was not paid.
Sec. 25-121. - Location guide available.
(unchanged)
Sec. 25-122. - Tax on automotive vehicles purchased outside City.
(unchanged)
Sec. 25-123. - Remittance of sales tax collected by retailer.
(unchanged)
Sec. 25-124. - Remittance of use tax.
(unchanged)
Sec. 25-125. - Remittance of use tax by property owners and lessees.
(unchanged)
Sec. 25-126. - Remittance of tax on other than a monthly basis.
. . .
(b) The Financial Officer may require a bond or other financial guarantee to secure payment
of the tax on such less frequent basis and may revoke permission to pay the tax on such basis if
payment of the tax due becomes delinquent.
(c) Unless otherwise approved by the Financial Officer, taxpayers must file returns and pay
taxes as follows:
(1) A taxpayer whose monthly tax due is less than twenty-five dollars ($25.) may file
returns and pay tax, annually, quarterly or monthly;
(2) A taxpayer whose monthly tax due is less than three hundred dollars ($300.) may
file returns and pay tax, quarterly or monthly;
(3) A taxpayer whose monthly tax due is three hundred dollars ($300.) or more shall
file and pay tax monthly;
(4) The reporting period for a final return shall end on the date of the transfer of
ownership of a business;
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(5) The reporting period for an initial use tax return shall be the calendar month of the
date of sale of the business if the business was purchased or opening day of business if
the business is new; and
. . .
Sec. 25-127. - Form of tax returns; signatures required.
(unchanged)
Sec. 25-128. - Consolidation of returns.
(unchanged)
Sec. 25-129. - Deferred use tax payments for large base industry.
(unchanged)
Sec. 25-130. - Deferred sales and use tax payments for affordable housing projects.
All sales and use taxes for materials purchased and used in the construction of an affordable
housing project as this term is defined in Code § 26-631 shall, upon the request of the applicant,
be deferred until the date of issuance of the certificate of occupancy (whether temporary or
permanent) for such affordable housing project, or portion thereof, or until the first day of
December of the year in which the deferral was obtained, whichever first occurs. At the time of
application for any such deferral, the applicant shall pay to the City a fee in the amount of fifty
dollars ($50.) to partially defray the cost of administration. No person shall knowingly make any
false or misleading statement of fact in order to obtain any deferral of taxes under this Section.
Section 5. That Article III Division 4 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 4
Refunds
Sec. 25-146. - Tax disputes.
(unchanged)
Sec. 25-147. - Procedure for refund of disputed tax.
A refund shall be made or credit allowed for the tax paid under dispute by any person who
claims that the transaction or item was not taxable or claims an exemption as provided in this
Article. Such refund shall be made by the Financial Officer after compliance with the following:
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(1) Application. An application for a refund of sales or use tax paid under dispute or
paid in error by a purchaser or user who claims an exemption under Subsection 25-73(c)
or Subsection 25-74(b) shall be made within three (3) years after the date of purchase,
storage, use or consumption of the goods or services whereon an exemption is claimed.
Such applications must be accompanied by the original paid invoice or sales receipt and
must be made upon such forms as shall be prescribed and furnished by the Financial
Officer;
(2) Burden of proof. The burden of proving that any transaction or item is not taxable
or is exempt from the tax shall be upon the person asserting such claim under such
reasonable requirements of proof as the Financial Officer may prescribe;
(3) Decisions. Upon receipt of an application, the Financial Officer shall promptly
examine the same and shall give written notice to the applicant of his or her decision
thereon;
. . .
Sec. 25-148. - Right of refund not assignable.
(unchanged)
Sec. 25-149. - Action for recovery of refund.
(unchanged)
Section 6. That Article III Division 5 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 5
Administration
Sec. 25-166. - Preservation of returns and other records; confidentiality.
. . .
(e) Notwithstanding the provisions of this Section, the Financial Officer may furnish to the
taxing officials of the State or its political subdivisions, any other state or its political
subdivisions or the United States any information contained in any application, report, return or
any other document if the recipient jurisdiction agrees with the Financial Officer to grant similar
privileges to the City and if such information is to be used by the jurisdiction only for tax-related
purposes, except as provided in § 25-173(e).
Sec. 25-167. - Records and accounts to be kept.
It is the duty of every person engaged in business in the City for the transaction of which a
license is required by this Article to keep and preserve suitable records of all sales, purchases and
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leases made by such person, and such other books or accounts as may be necessary to determine
the amount of tax for the collection or payment of which such person is liable hereunder. It is the
duty of every such person to keep and preserve all such books, invoices and other records for a
period of three (3) years after the later of: (a) the date that the return for the tax owed under this
Article is filed; or (b) the last date on which such return was required to be filed under this
Article. These records shall be open for examination in the City at any time by the Financial
Officer.
Sec. 25-168. - Examination of returns; recomputation, credits, deficiencies.
As soon as practicable after a return is filed, the Financial Officer shall examine it. If it appears
that the correct amount of tax to be remitted may be greater or less than that shown in the return,
the tax shall be recomputed by the Financial Officer. If the amount paid exceeds that which is
due, the excess shall be refunded or credited against any subsequent remittance from the
taxpayer. If the amount paid is less than the amount due and any part of the deficiency is due to
negligence or intentional disregard of the provisions of this Article or of authorized rules and
regulations of the City with knowledge thereof but without intent to defraud, the amount of the
deficiency together with a penalty of ten (10) percent of the amount of the deficiency plus
interest on both the deficiency and the penalty at the rate imposed under § 25-188 from the date
the return and the tax was due shall be due and payable by the taxpayer within twenty-one (21)
days after written notice of determination, assessment and demand for payment is mailed to the
taxpayer by the Financial Officer as provided in § 25-186(b). If any part of the deficiency is due
to fraud with the intent to evade the tax, then there shall be added a penalty of one hundred (100)
percent of the deficiency and in such case, the amount of the deficiency, the penalty and interest
calculated as stated above shall be due and payable by the taxpayer within twenty-one (21) days
after written notice of determination, assessment and demand for payment is mailed to the
taxpayer by the Financial Officer and an additional amount of three (3) percent per month on
such amount shall be added from the date the return and tax was due until paid. The taxpayer
may protest the notice of determination, assessment and demand for payment issued under this
section as provided in § 25-186.
Sec. 25-169. - Investigation of records relating to taxes.
For the purpose of ascertaining the correctness of a return, or for the purpose of determining the
amount of tax due from any person, whether licensed under this Article or not, the Financial
Officer may hold investigations, including audits, and hearings concerning any matters covered
by this Article, and may examine any relevant books, papers, records or memoranda of any such
person and may require by subpoena the attendance of such person, or any officer or employee
of such person, or of any person having knowledge of transactions involved, and may take
testimony and proof of the information. The Financial Officer shall have the power to administer
oaths to such persons.
Sec. 25-170. - Subpoenas and witness fees.
(unchanged)
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Sec. 25-171. - Attendance of witnesses and production of evidence to be compelled by
District Judge.
(unchanged)
Sec. 25-172. - Depositions.
(unchanged)
Sec. 25-173. - Coordinated audit.
. . .
(g) The coordinated audit procedure set forth in this Section shall not apply:
. . .
(3) When a taxpayer refuses to promptly sign a waiver of thirty-six (36) months; or
. . .
Section 7. That Article III Division 6 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 6
Enforcement
Sec. 25-186. - Failure to make return; estimate of taxes; notices; appeal; audit.
(a) If any person fails, neglects or refuses to collect tax or to file a return and pay the tax as
required by this Article, the Financial Officer shall make an estimate of the tax due based on
available information and shall add thereto interest on such delinquent taxes at the rate imposed
by § 25-188 plus one-half (0.5) percent per month from the date the return and tax was due.
(b) The Financial Officer shall serve upon the delinquent taxpayer personally or by first-class
mail or certified mail directed to the last address of the taxpayer on file with the City written
notice of such estimated taxes, penalty and interest. Such notice shall constitute a notice of
determination, assessment and demand for payment and, which payment shall be due and
payable within twenty-one (21) days from the date the notice is mailed.
(c) The Financial Officer may at any time within three (3) years of the date a tax is due,
serve upon any taxpayer personally or by first-class mail or certified mail directed to the last
address of the taxpayer on file with the City, a written notice of audit notifying the taxpayer that
the Financial Officer will be conducting an audit of the taxpayer’s books and records to
determine the exact amount of any tax, penalty, interest, collection costs and other charges due.
Within thirty (30) days of that notice or within such longer time period as permitted by the
Financial Officer, the taxpayer shall make available to Financial Officer all of the taxpayer’s
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relevant books and records requested by the Financial Officer for the audit. If as a result of the
audit the Financial Officer determines the taxpayer owes the City any additional tax, penalties,
interest, collection costs or other charges under this Article, the Financial Officer shall serve
upon the taxpayer a notice of determination, assessment and demand for payment for such tax
deficiency as provided in paragraph (b) above and payment shall be due and payable twenty-one
(21) days from the date such notice is mailed.
(d) A taxpayer may protest of a notice of determination, assessment and demand for payment
issued to a taxpayer for failure to file a return, tax deficiency owed or as a result of an audit by
submitting the protest in writing to the Financial Officer within twenty-one (21) days from the
date the notice of determination, assessment and demand for payment is mailed to the taxpayer.
Any such written protest shall identify the amount of tax disputed, the basis for the protest and be
given under oath by the taxpayer or the taxpayer’s authorized representative. Such protest may
include a request for a hearing. It shall also include a physical, post office box or email address
to which the taxpayer wishes the Financial Officer’s written order issued in paragraph (e) below
to be sent when issued.
(e) In response to the written protest, if a hearing was requested, the Financial Officer shall
notify the taxpayer in writing of the time and place of the hearing. After such hearing, or after a
consideration of the facts and figures contained in the protest if no hearing is requested, the
Financial Officer shall make such written order in the matter as he or she deems just and proper
and shall furnish a copy of that order to the taxpayer by first class or certified mail or by email as
directed in the protest filed by the taxpayer.
Sec. 25-187. - Recurring assessment charge and collection costs.
If any taxpayer has failed, neglected or refused to pay the tax imposed by this Article within the
time specified for payment, the Financial Officer may assess a twenty five dollar ($25.) charge
upon the issuance of each notice of determination, assessment and demand for payment in
addition to the taxes, penalties and interest provided for elsewhere in this Article. This charge is
imposed to compensate the City for its administrative costs to issue the notice. In addition, the
City may include in any assessment against the taxpayer the collection costs the City incurs in
collecting the taxes, penalties, interest and other charges owed under this Article, including,
without limitation, the City’s attorney fees.
Sec. 25-188. - Rate of interest; method of calculation.
When interest is required or permitted to be charged under any provision of this Article, that
interest shall be calculated as follows:
(1) Interest at a rate of one (1) percent per month shall be calculated for each month
or portion of a month from the due date that a tax deficiency remains unpaid; or
. . .
Sec. 25-189. - Tax constitutes lien.
-23-
(a) The sales and use tax imposed by this Article, together with all penalties, interest,
collection costs and other charges pertaining thereto, is a first and prior lien upon the goods,
stock-in-trade and business fixtures in which the retailer has an ownership interest except for
goods that have been purchased in the ordinary course of business by retail purchasers and such
lien takes priority over other liens or claims of whatsoever kind or nature on such property.
(b) The sales and use tax imposed by this Article, together with all penalties, interest, charges
and costs of collection pertaining thereto, is a first and prior lien on the real and personal
property of the taxpayer other than the goods, stock-in-trade and business fixtures in which the
taxpayer has an ownership interest, except as to preexisting liens or claims of a bona fide
mortgagee, pledgee, judgment creditor or purchaser whose rights have attached prior to the filing
of the notice of lien provided for in paragraph (d) below, on the property of the taxpayer.
(c) Whenever the business or property of any taxpayer is placed in receivership, bankruptcy,
seized under distraint for nonpayment of property taxes or an assignment is made for the benefit
of creditors, all taxes, penalties, interest, collection costs and other charges imposed by this
Article and for which the taxpayer is in any way liable under this Article are a prior and preferred
claim against all the property of the taxpayer, except as to preexisting claims or liens of a bona
fide mortgagee, pledgee, judgment creditor or purchaser whose rights have attached prior to the
filing of the notice of lien provided for in (d) below, on the property of the taxpayer, other than
the goods, stock-in-trade and business fixtures of such taxpayer. No sheriff, receiver, assignee or
other officer shall sell the property of any taxpayer subject to the provisions of this Article under
process or order of any court without first ascertaining from the Financial Officer the amount of
tax deficiency due and payable under this Article. If there is any such tax deficiency owing or
unpaid, it is the duty of such officer to first pay that amount out of the proceeds of such sale
before paying any monies to judgment creditors or other claimants, except that the officer may
pay costs of the proceedings and other preexisting liens or claims as provided in this Subsection.
(d) If any tax deficiency due by returns filed by the taxpayer or by assessments made by the
City as provided in this Article is not paid within five (5) days after it is due, the Financial
Officer may issue a notice, setting forth the name of the taxpayer, the amount of the tax,
penalties, interest, collection costs and other charges, the date of its accrual, and the fact that the
City claims a first and prior lien therefor on the real and personal property of the taxpayer, except
as to preexisting liens or claims of a bona fide mortgagee, pledgee, judgment creditor or
purchaser whose rights have attached prior to the filing of the notice on the property of the
taxpayer, other than the goods, stock-in-trade and business fixtures in which the taxpayer has an
ownership interest. A similar notice may also be issued by the Financial Officer for the lien on
goods, stock-in-trade and business fixtures authorized in paragraph (a) above. The notice of lien
shall be made on forms prescribed by the Financial Officer and verified by the Financial Officer
and may be filed in the office of the clerk and recorder of any county in the state in which the
taxpayer owns real or personal property or with any person in possession of any personal
property or rights to property belonging to the taxpayer.
-24-
(e) The Financial Officer shall release any lien as shown on the records of the county clerk
and recorder as herein provided, upon payment of all taxes, penalties, interest, collection costs
and other charges covered thereby, in the same manner as mortgages and judgments are released.
(f) In addition to any other remedies authorized under this Article and the law, the liens
authorized by this Section may be foreclosed and executed upon by the City in the district court
of the county in which the encumbered property is located in the same manner as security
agreements, mortgages and judgment liens are so foreclosed and executed upon under state law.
Sec. 25-190. - Lien on construction improvements.
(a) The full amount of unpaid taxes arising from and required to be reported pursuant to the
provisions of §§ 25-119 and 25-125, together with interest, penalties, collection costs and other
charges as herein provided, are a first and prior lien on the property of the taxpayer and take
priority over all other liens of whatsoever kind and nature, except for liens for general taxes
created by state law and preexisting liens or claims of a bona fide mortgagee, pledgee, judgment
creditor or purchaser whose rights have attached prior to the filing of the notice of lien provided
for in § 25-189. This lien may be foreclosed and executed upon in accordance with the
provisions of § 25-189.
. . .
Sec. 25-191. - Sale of business subject to lien.
(a) Any person who sells a business or stock of goods or closes a business shall complete and
file the returns required under this Article and pay any tax deficiency due within twenty-one (21)
days of the date on which such person sold the business or stock of goods or closed the business
and indicate that it is a final return, that the business is sold or closed, and the name and address
of the purchaser of the business, if any.
(b) A purchaser of a business who has acquired the furniture, fixtures and/or equipment of
the business shall withhold sufficient funds from the purchase money to cover the amount of the
tax deficiency, imposed by this Article due and unpaid until the seller provides a receipt from the
Financial Officer showing that such tax deficiency has been paid. If a tax deficiency imposed by
this Article is due and unpaid after the twenty-one (21) day period herein provided, such
purchaser of the business is personally liable for the payment of that tax deficiency to the City to
the same extent as the seller of the business or stock of goods.
Sec. 25-192. - Certificate of discharge of lien.
(a) If any real or personal property is subject to a lien for payment of a tax deficiency due to
the City under this Article, the Financial Officer may issue a certificate of discharge of any part
of the property subject to the lien if the Financial Officer finds that the fair market value of that
part of such property remaining subject to the lien is at least twice the amount of the unsatisfied
tax deficiency plus the value of any liens on the property that have priority over the City's lien.
-25-
(b) If any real or personal property is subject to a lien for payment of a tax deficiency due to
the City under this Article, the Financial Officer may issue a certificate of discharge of any part
of the property subject to the lien if the Financial Officer is paid in partial satisfaction of the tax
deficiency in an amount determined by the Financial Officer to be not less than the value of the
City's interest in the part of the property so discharged. In determining the value of the part of the
property to be discharged, the Financial Officer shall consider the fair market value of the
property and the value of any liens on the property that have priority over the City's lien.
. . .
Sec. 25-193. - Jeopardy assessment.
(a) If the Financial Officer finds that collection of the tax will be jeopardized for any reason,
the Financial Officer may declare the taxable period immediately terminated, determine the tax
deficiency and issue a notice of determination, assessment and demand for payment.
Notwithstanding the provisions of § 25-186, the tax shall then be due and payable forthwith, and
the Financial Officer may proceed to collect the tax deficiency as provided in § 25-194, or
pursue such other remedies as authorized under this Article or by law.
. . .
Sec. 25-194. - Enforcing the collection of taxes due.
(a) The Financial Officer may issue a warrant directed to any employee, agent or
representative of the City or any sheriff of any county of the State, commanding such person to
distrain, seize and sell any personal property in which the taxpayer has an ownership interest,
except such property as is exempt from the execution and sale by any statute of the State, for the
payment of tax due together with interest, penalties, collection costs and other charges thereon in
the following circumstances:
(1) When any assessed tax deficiency is not paid within twenty-one (21) days from
the date of mailing of the notice of determination, assessment and demand for payment
and no hearing or extension has been requested in a timely manner;
(2) When any assessed tax deficiency is not paid within twenty-one (21) days from
the date of the notice of determination, assessment and demand for payment and no
appeal from such notice has been docketed within twenty-eight (28) days after such
notice in a court having jurisdiction, except that if the Financial Officer finds that
collection of the tax deficiency will be jeopardized during such period, the Financial
Officer may immediately issue a distraint warrant;
(3) When any assessed tax deficiency is not paid within the time prescribed in
judgment and order of court on any appeal to a court having jurisdiction;
. . .
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(5) After or concurrently with the filing of a notice of lien as provided in § 25-189(d).
(b) The Financial Officer may apply to the Judge of the City’s Municipal Court for a warrant
authorizing the Financial Officer to search for and seize property located within the City limits
for the purpose of enforcing the collection of any tax deficiency owed under this Article. The
Municipal Judge shall issue such warrant after the Financial Officer demonstrates that:
. . .
(f) In all cases of sale, the agent or sheriff making the sale shall issue a certificate of sale to
each purchaser, and such certificate is prima facie evidence of the right of the agent or sheriff to
make such sale and conclusive evidence of the regularity of the proceedings in making the sale;
it transfers to the purchaser all right, title and interest of the delinquent taxpayer in and to the
property sold. Where such property consists of certificates of securities or other evidence of
indebtedness in the possession of the agent or sheriff, the taxpayer shall endorse such certificates
to the purchaser thereof and supply the purchaser with proof of the taxpayer's authority to
transfer the same or with any other requisite that may be necessary to obtain registration of the
transfer of the certificate. Any surplus remaining above first the City's taxes, penalties, interest,
collection costs, and expenses of making the seizure and of advertising the sale and then the
amounts distributed pro rata to other jurisdictions under recorded sales and use or personal
property ad valorem tax liens shall be returned to the property owner or such person having a
legal right to the property; and, on demand, the Financial Officer shall render an accounting in
writing of the sale.
(g) In the case where a taxpayer has refused or neglected to pay any tax deficiency due to the
City under this Article and a lien has been filed as provided in § 25-189(d), the Financial Officer
may, in addition to pursuing other collection remedies, certify the amount of the tax deficiency,
together with ten (10) percent of the delinquent amount for costs of county collection, to the
County Treasurer to be levied against the person's property for collection by the County in the
same manner as delinquent general taxes upon such property are collected. Before certifying
such amounts to the County for collection, the Financial Officer shall provide to the property
owner an opportunity for a hearing to contest the authority of the City to impose and collect the
tax deficiency, or the amount thereof. The Financial Officer shall mail the notice to the property
owner by first class mail addressed to the last known owner of the property on the records of the
County Assessor. If the Financial Officer's decision after a hearing affirms the imposition of
charges, the decision shall include notice that the charges are due and payable within fourteen
(14) days of the date of the decision and that, if not paid when due, they will be certified to the
County Treasurer for collection, along with ten (10) percent of the charges for the cost of county
collection. Whenever the Financial Officer certifies any such amounts to the County Treasurer
for collection, the Financial Officer shall record notice of such certification with the county
Clerk and Recorder.
Sec. 25-195. - Recovery of unpaid tax by action at law.
(a) In addition to other remedies provided in this Article, the Financial Officer may treat any
such taxes, penalties, interest, collection costs and other charges due and unpaid under this
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Article as a debt due to the City from the taxpayer. If a taxpayer fails to pay the tax, or any
portion thereof, or any penalty, interest, collection costs or other charges thereon, when due, the
Financial Officer may recover at law the amount of such taxes, penalties, interest, collection
costs and other charges in any court having jurisdiction. The return filed by the taxpayer or the
notice of determination, assessment and demand for payment issued by the Financial Officer is
prima facie proof of the amount due.
. . .
(c) Such actions may be actions in attachment and writs of attachment may be issued to the
sheriff. In any such proceedings, no bonds shall be required of the City nor shall any sheriff
require of the Financial Officer any indemnifying bond for executing the writ of attachment or
writ of execution upon any judgment entered in such proceedings. The City may also prosecute
appeals or writs of error in such cases without the necessity of providing bond therefor.
(d) In any case in which a taxpayer has refused or neglected to pay any tax, penalty, interest,
collection costs and other charges due to the City under this Article and a lien has been filed
upon any real or personal property as provided in this Article or by other law, City Attorney, at
the request of the Financial Officer may cause a civil action to be filed on behalf of the City in
any court having jurisdiction over such property to enforce the lien and to subject such real or
personal property, or any right, title or interest thereto, to the payment of the amount due. The
court shall decree a sale of such real property and distribute the proceeds of such sale, according
to the court's findings concerning the interest of the parties and of the City. The proceedings in
such action, the manner of sale, the period for and manner of redemption from such sale, and the
execution of deed of conveyance shall be in accordance with the law of foreclosures of
mortgages upon real property. In any such action, the court may appoint a receiver of the
property involved in such action if equity so requires.
Sec. 25-196. - City may be party in title actions.
(unchanged)
Sec. 25-197. - Injunctive relief.
(unchanged)
Sec. 25-198. - Compromise and settlement by Financial Officer.
(a) The Financial Officer may for good cause compromise and settle any actually assessed
or potential claim to taxes, penalties, interest, collection costs and other charges due to the City
under this Article. Such good cause may include, without limitation, legal and factual
considerations, considerations of fairness and justice, and the financial inability of the taxpayer
to pay a greater amount.
(b) The Financial Officer shall prepare and retain in the files of Financial Services for each
settlement a written opinion explaining the good cause for the settlement. The opinion shall
-28-
also include a statement of: (i) the amount of the tax, penalties, interest, collection costs and
other charges that were assessed or that could potentially be assessed; and (ii) the amount paid
by the taxpayer in accordance with the terms of the settlement agreement. In a circumstance
where the amount of the tax, penalties, interest, collection costs and other charges that could
potentially be assessed cannot be reasonably determined, the Financial Officer shall state in the
written opinion the reason why these amounts cannot be reasonably determined.
. . .
(d) Notwithstanding the foregoing, the Financial Officer may not compromise and settle a
claim that waives more than one hundred thousand dollars ($100,000.) of assessed tax,
penalties, interest, collection costs and other charges or that waives an amount of tax, penalties,
interest, collection costs and other charges that could potentially be assessed but the amount of
that assessment cannot be reasonably determined, unless the City Manager approves the
Financial Officer's written opinion.
. . .
Sec. 25-199. - Obligations of fiduciaries and others.
(a) For purposes of this Section, an entity shall mean any estate, trust, receivership,
corporation, partnership, joint venture, association, limited liability company or any other legal
entity.
(b) For the purpose of facilitating the settlement and distribution of the assets of an entity in
the process of or having completed the process of closing, dissolving or otherwise terminating of
the entity, the Financial Officer may determine and agree with any fiduciary, shareholder,
director, officer, member or other principal of the entity as to an amount of taxes due from the
entity for any of the periods of tax liability under this Article. Payment in accordance with such
agreement fully satisfies the tax liability for the periods that the agreement covers, unless the
entity taxpayer or any of its fiduciaries or other said surviving principals have committed fraud
or malfeasance or misrepresented a material fact regarding the tax or liability therefor.
(c) Except as provided in (e) below, any fiduciary, shareholder, director, officer, member or
other principal of an entity in the process of or having completed the process of closing,
dissolving or otherwise terminating the entity who distributes the money, property or other assets
of the entity under such person's control without having first paid any taxes covered by this
Article due from such entity and that may be assessed within the periods authorized by this
Article, is personally liable to the extent of the money, property or other assets distributed by
such person for any unpaid taxes of the entity imposed by or due under this Article and assessed
within the periods authorized by this Article.
(d) The distributee of any money, property or other assets from any closed, dissolved or
otherwise terminated entity is liable under this Article to the same extent that the entity is liable
under this Article, but in an amount not to exceed the value of the money, property or other
assets so received by the distributee.
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(e) If a tax under this Article is due from an entity in the process of or has completed the
process of closing, dissolving or otherwise terminating the entity the personal liability of the
entity’s distributees, fiduciaries, shareholders, directors, officers, members and other principals
as provided in this Section remains in effect only if a determination of the tax due is made and
notice and demand issued within eighteen (18) months after the entity files with the Financial
Officer a written request for such determination and the entity has filed the entity’s return or
returns as required in this Article, but only if the request states that the closing, dissolution or
other termination of the entity was begun in good faith before the expiration of the eighteen-
month period and the closing, dissolution or other termination is completed. A request for
determination under this Subsection does not extend the otherwise applicable period of
limitation.
Sec. 25-200. - Intercity claims for recovery.
(unchanged)
Section 8. That Article III Division 7 of Chapter 25 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Division 7
Miscellaneous
Sec. 25-216. - Review of decisions of Financial Officer.
The taxpayer may apply for a review of the decision of the Financial Officer in a hearing held
pursuant to § 25-169. Such review shall be in the district court or the City’s Municipal Court and
the proceedings shall be conducted in accordance with Rule 106(a)(4) of the Colorado Rules of
Civil Procedure. The review must be sought no later than twenty-eight (28) days after the date of
the final decision of the Financial Officer.
Sec. 25-217. - Review bond required.
For transactions consummated on or after January 1, 1986, within fifteen (15) days after making
application under §25-216 for the review of a decision of the Financial Officer under this Article,
the party making such application shall file with the court a surety bond in twice the amount of
the taxes, penalties, interest, collection costs and other charges stated in the final decision by the
Financial Officer which are contested on appeal. The taxpayer may, at his or her option, satisfy
the surety bond requirement by a savings account or deposit in or a certificate of deposit issued
by a state or national bank or by a state or federal savings and loan association, in accordance
with the provisions of Section 11-35-101(1), C.R.S., equal to twice the amount of taxes,
penalties, interest, collection costs and other charges stated in the final decision by the Financial
Officer. The taxpayer may, at his or her option, deposit the disputed amount with the Financial
Officer in lieu of posting a surety bond. If such amount is so deposited, no further interest shall
accrue on the contested amount during the pendency of the action. At the conclusion of the
action, after appeal or after the time for such appeal has expired, the funds deposited shall be, at
the direction of the court, either retained by the Financial Officer and applied against the amount
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due or returned in whole or in part to the taxpayer with interest at the rate imposed by § 25-188
from the date it was paid to the Financial Officer. No claim for refund of amounts deposited with
the Financial Officer need be made by the taxpayer in order for such amounts to be repaid in
accordance with the direction of the court.
Sec. 25-218. - Notices.
Except as otherwise expressly provided in this Article, all written notices required to be mailed,
served or given to any taxpayer under the provisions of this Article shall be hand delivered or
mailed by first class mail or certified mail, postage prepaid, addressed to such taxpayer at the last
known address of the taxpayer on file with the City and shall be deemed to have been received
by the taxpayer when so mailed or delivered.
Sec. 25-219. - License and tax in addition to all other licenses and taxes.
(unchanged)
Sec. 25-220. - Hearings to be held in City.
(unchanged)
Sec. 25-221. - Administration by Financial Officer; rules and regulations.
(unchanged)
Sec. 25-222. - Violations.
. . .
(f) Except as may be otherwise provided for by rule or regulation of the Executive Director
of the Colorado Department of Revenue, it is unlawful for any person who is a resident of the
City to register any motor vehicle owned by such person or to obtain a license or to procure a
certificate of title at any address other than:
. . .
(2) For any motor vehicle for which the provisions of subparagraph (1) above do not
apply, the address of the owner's residence; except that, if a motor vehicle is permanently
operated and maintained at an address other than the address of the owner's residence,
such motor vehicle shall be registered at the address from which such motor vehicle is
permanently operated and maintained.
For purposes of this paragraph (f), a person's residence shall be his or her principal or
primary home or place of abode, to be determined in the same manner as residency for
voter registration purposes as provided in Section 31-10-201, C.R.S., except that "voter
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registration" shall be substituted for "motor vehicle registration" as a circumstance to be
taken into account in determining such principal or primary home or place of abode.
. . .
(h) It shall be unlawful for any person other than the City to become enriched or to gain any
benefit from the collection or payment of the taxes levied by this Article, unless otherwise
authorized by law.
(i) It shall be unlawful for any officer, agent or employee of the City to divulge or make
known in any way any information classified herein as confidential, except in accordance with a
court order or as otherwise provided by this Article or other applicable law.
. . .
(l) It shall be unlawful for any person to violate any other mandatory provisions of
this Article.
Sec. 25-223. - Penalties.
(a) The penalty for violating any mandatory provision of this Article shall be a fine or
imprisonment or both in the amounts stated in § 1-15.
(b) In addition to the penalties stated in (a) above, and in addition to the penalties and interest
which may be payable under the provisions of § 25-186(a), any person who registers a motor
vehicle in violation of § 25-222(f) shall be subject to a civil penalty of five hundred dollars
($500.). Such violation shall be determined by the Financial Officer and shall be assessed by and
paid to the Financial Officer and such civil penalty may be collected by the Financial Officer in
the same manner as other penalties are collected under this Article.
Sec. 25-224. - Purpose of tax; distribution of proceeds.
(unchanged)
Sec. 25-225. - Limitations on actions to collect.
(a) Except as otherwise provided in this Section or as waived by the taxpayer, none of the
following actions shall be taken by the City to collect any amount of tax due and owing under
this Article together with any applicable penalties, interest, collection costs and other charges
imposed by this Article, more than three (3) years after the later date of (i) the date on which the
tax return for that tax was filed, regardless of whether such return was filed on or after the date
required by this Article, or (ii) the last date the return for that tax was required to be filed under
this Article:
(i) issuance of notice of audit;
(ii) issuance of notice of determination, assessment and demand for payment;
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(iii) notice of lien filed;
(iv) issuance of jeopardy assessment;
(v) issuance of distraint warrant;
(vi) bond collected upon;
(vii) collection lawsuit commenced; or
(viii) any other formal legal action taken.
If the Financial Officer takes any of the foregoing actions to determine, collect or enforce any tax
deficiency under this Article before the expiration of said three (3) year period, any such action
shall stop the running of the period of limitation established in this section with regard to any
other determination, collection or enforcement action authorized under this Article thereafter
taken by the Financial Officer to recover that tax deficiency. However, no lien shall continue
after this limitation period, except for taxes assessed before the expiration of that period
regarding which a notice of lien regarding such taxes was filed prior to the expiration of that
period. In such event the lien shall continue in effect for three (3) years after it is filed as
provided in § 25-189.
(b) For transactions consummated on or after January 1, 1986, the use tax shall not be
imposed with respect to the use, storage or consumption of tangible personal property or taxable
services in the City which occurs more than three (3) years after the most recent sale of the
property or services if, within the three (3) years following such sale, the property or services has
been significantly used in the State for the principal purpose for which it was purchased.
. . .
(d) Nothing in this Section shall be construed to limit any right accrued or to revive any
liability barred by any applicable law in effect on the effective date of any ordinance from which
this Article was derived.
(e) Notwithstanding the foregoing provisions of this section, the taxpayer and the Financial
Officer may agree in writing to an extension of any period of limitation imposed in this section,
and the period agreed on may be extended by subsequent agreement in writing.
Sec. 25-226. - Notice of sales and use tax ordinance amendment.
(unchanged)
Sec. 25-227. - Participation in meetings.
The Financial Officer shall cooperate with and participate on an as-needed basis with a
permanent statewide sales and use tax committee convened by the Colorado Municipal League
which is composed of state and municipal sales and use tax and business officials. Said
committee will meet for the purpose of discussing and seeking resolution to sales and use tax
problems which may arise.
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Introduced, considered favorably on first reading, and ordered published this 18th day of
April, A.D. 2017, and to be presented for final passage on the 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-1-
ORDINANCE NO. 062, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE IV OF CHAPTER 25 OF THE CODE OF THE
CITY OF FORT COLLINS CONCERNING THE CITY’S LODGING TAX
WHEREAS, the City of Fort Collins, as a home rule municipality, is granted in Article
XX, § 6.g. of the Colorado Constitution all powers necessary to levy and collect taxes for
municipal purposes, subject to any limitations in the Colorado Constitution; and
WHEREAS, on February 21, 1984, the City Council, in the exercise of its home rule
taxing powers, adopted Ordinance No. 20, 1984, adding a new chapter to the City Code to levy,
collect and enforce a three percent (3%) tax on the price of lodging accommodations provided in
the City (the “Lodging Tax Code”);
WHEREAS, the Lodging Tax Code is found in Article IV of City Code Chapter 25 and
has existed in substantially its current form since its adoption in 1984 with only minor
amendments since that time; and
WHEREAS, since early 2016, City staff has worked with the Colorado Municipal League
on a statewide effort to update and make more consistent the definitions that municipalities
around state use for the imposition and collection of their respective sales and use taxes; and
WHEREAS, in connection with this effort, City staff has also reviewed the other
provisions of the City’s sales and use tax provisions found in Article III of Code Chapter 25 (the
“Sales and Use Tax Code”) to update and revise those provisions for clarification and
consistency with the current practices and regulations that the Financial Officer and the City’s
Sales Tax Department follow in administering the Sales and Use Tax Code; and
WHEREAS, as the result of these efforts, City staff has presented to City Council for its
consideration Ordinance No. 061, 2017, which significantly changes the Sales and Use Tax Code
related to not only definitions, but also to the City’s administrative processes for the collection
and enforcement of its sales and use taxes; and
WHEREAS, City staff has also conducted the same review of the Lodging Tax Code
which does not currently have the same degree of specificity and clarity with respect the
Financial Officer’s authority and powers to collect, enforce and administer the Lodging Tax
Code as are now found in the Sales and Use Tax Code and as amended if Ordinance No. 061,
2017 is adopted; and
WHEREAS, City staff therefore proposes in this Ordinance most of these same changes
to the Lodging Tax Code so both codes will be administered in essentially the same manner and
with the same requirements; and
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WHEREAS, the City Council hereby finds that collecting and enforcing the Sales and
Use Tax Code and the Lodging Tax Code in substantially the same manner is in the City’s and
its taxpayers’ best interests and necessary for the publics’ health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Article IV of Chapter 25 of the Code of the City of Fort Collins is
hereby amended to read as follows:
ARTICLE IV.
LODGING TAX
Sec. 25-241. - Definitions.
The following words, terms and phrases, when used in this Article, shall have the meanings
ascribed to them in this Section:
. . .
Collection costs shall mean all of the City’s costs incurred to enforce the provisions of this
Article, which shall include, without limitation, all costs of audit, assessment, hearings,
execution, lien filings, distraint actions, litigation, locksmith fees, auction costs, bank fees,
prosecution costs and related attorney fees.
. . .
Dwelling unit shall mean a building or any portion of a building designed for occupancy as
complete, independent living quarters for one (1) or more persons, having direct access from the
outside of the building or through a common hall and having living, sleeping, kitchen and
sanitary facilities for the exclusive use of the occupants.
Financial Officer shall mean the Financial Officer of the City of Fort Collins or such other
individual person designated by the Financial Officer.
Lodging accommodation shall mean the furnishing of a room or other accommodation by any
person to another person who for consideration uses, possesses or has the right to use or possess
that room or accommodation in a hotel, motel, inn, bed and breakfast residence, apartment hotel,
lodging house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto camp,
trailer court or park, dwelling unit, or any similar establishment or accommodation, for a period
of less than thirty (30) consecutive days under any lease, rental, concession, permit, right of
access, license to use or other agreement.
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. . .
Lodging price shall mean the gross price paid, exclusive of other taxes paid and charges
separately stated including, without limitation, pet fees, cleaning fees, security deposits and in-
room charges for food, beverages, and telephone and video services, by the lodging customer for
the provision of a lodging accommodation.
Lodging provider shall mean any person furnishing a lodging accommodation or such person’s
authorized agent.
. . .
Lodging tax deficiency shall mean any amount of lodging tax, penalties, interest, collection costs
and other charges owed under this Article that is not reported or not paid on or before the date
that any return or such payment is required under this Article.
. . .
Lodging transaction shall mean the furnishing of a lodging accommodation to any person who,
for consideration, uses, possesses or has the right to use or possess that accommodation.
Person shall mean any individual, firm, partnership, joint venture, corporation, limited liability
company, estate, trust, receiver, trustee, assignee, lessee or any person acting in a fiduciary or
representative capacity, whether appointed by a court or otherwise, or any group or combination
acting as a unit.
. . .
Sec. 25-242. - Tax levied.
On and after 11:59 p.m. March 31, 1984, there is levied and shall be paid and collected an excise
tax of three (3) percent on the lodging price paid for the leasing, rental or furnishing of any
lodging accommodation located in the City. This tax shall be in addition to the sales and use tax
as established pursuant to Article III of this Chapter. It shall be a violation of this Code for any
lodging customer of a lodging accommodation located in the City to fail to pay, or for any
lodging provider of such accommodation to fail to collect, the tax levied pursuant to this Section.
Sec. 25-243. - Transactions exempt from tax.
The following lodging transactions are exempt from taxation under this Article:
(1) All lodging accommodations provided to the United States Government and to the
State of Colorado, its departments or institutions and political subdivisions in their
governmental capacities only, including the City;
(2) All lodging accommodations provided to charitable organizations;
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(3) All lodging accommodations provided to persons which the City is prohibited
from taxing under the Constitution or laws of the United States or Colorado Constitution;
(4) All lodging accommodations provided to any person for a period of at least thirty
(30) consecutive days; and
(5) Any lodging transaction, if the price of such lodging accommodation is paid in
advance on a weekly basis and does not exceed the total sum of seventy-five dollars
($75.) per week.
Sec. 25-244. - Use of tax.
(unchanged)
Sec. 25-245. - License required for lodging providers.
(a) It shall be unlawful for any person to engage in the business of providing lodging
accommodations without first having obtained a license, which license shall be granted and
issued without fee by the Financial Officer and shall be in force and effect until revoked.
(b) When a lodging accommodation business is transacted at two (2) or more separate places
by one (1) person, a separate license for each place of business shall be required.
(c) Such license shall be granted only upon application stating the name and address of the
person desiring such license, the name and type of lodging accommodations to be provided, the
location of the business, including the street number, and such other information as may be
reasonably required by the Financial Officer.
(d) If an application for a license is submitted by a person that previously held a license
under this Article, the Financial Officer may require that any lodging tax deficiency being owed
and due under the previous license be paid and a bond posted in an amount set by the Financial
Officer to ensure payment of lodging taxes under the new license prior to the issuance of such
new license.
(e) Each license shall be numbered and shall show the name, mailing address and place of
business of the licensee and shall be posted in a conspicuous place in the place of business for
which it is issued. No license shall be transferable.
Sec. 25-246. - Exception to licensing requirement.
(unchanged)
Sec. 25-247. - Revocation of license.
(unchanged)
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Sec. 25-248. - Appeal of revocation; procedure.
Any finding and order of the Financial Officer revoking the license of any person shall be subject
to review by the Larimer County District Court or the City’s Municipal Court, upon application
of the aggrieved party. The procedure of the review shall be in accordance with Rule 106(a)(4)
of the Colorado Rules of Civil Procedure.
Sec. 25-249. - Engaging in business without license to be a violation.
Any person engaged in the business of providing lodging accommodations in the City without
having secured a license, except as specifically provided herein, shall be guilty of a violation of
this Article and upon conviction shall be punished pursuant to § 1-15.
Sec. 25-250. - Payment of tax.
(a) Every lodging provider shall be liable and responsible for the payment of the lodging tax,
an amount equal to three (3) percent of the lodging price derived from the providing of lodging
accommodations as established pursuant to § 25-242. Any such lodging provider shall file a
return each month with the Financial Officer on or before the twentieth day of each month for
the preceding month and remit any amount equivalent to the lodging tax collected to the
Financial Officer.
(b) The returns to be filed by the lodging provider shall contain such information and be on
such forms as the Financial Officer may prescribe. The Financial Officer may extend the time for
filing returns and paying the lodging taxes due under such reasonable rules and regulations as the
Financial Officer may prescribe, but no such extension shall be for a greater period than is
permitted in § 25-253.
(c) The burden of proving that any lodging provider is exempt from collection of the lodging
tax and paying the same to the Financial Officer or from making such returns shall be on the
lodging provider under such reasonable requirements of proof as the Financial Officer may
prescribe.
(d) The lodging provider shall add the lodging tax imposed or the average equivalent to the
lodging price, showing such tax as a separate and distinct item and when added such tax shall
constitute a part of such price and shall be a debt from the lodging customer to the lodging
provider until paid and shall be recoverable at law in the same manner as other debts.
(e) No person other than the City may take enrichment from the collection or payment of the
lodging tax or from liability for payment of the full amount of the tax as levied by § 25-242,
except as otherwise provided by law.
Sec. 25-251. - Formulation and promulgation of rules and regulations.
To provide uniform methods of adding the lodging tax or the average equivalent to the lodging
price, it shall be the duty of the Financial Officer, with the approval of the City Manager, to
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formulate and promulgate appropriate rules and regulations to effectuate the purposes of this
Article.
Sec. 25-252. - Advertisement of assumption or absorption of tax prohibited.
(unchanged)
Sec. 25-253. - Remittance of tax on other than monthly basis.
If the accounting method regularly employed by the lodging provider in the transaction of
business, or other conditions, is such that filing lodging tax returns on a calendar month basis
will impose unnecessary hardship, the Financial Officer may upon written request of the lodging
provider accept the filing of returns at such intervals as will, in the Financial Officer's opinion,
will better suit the convenience of the lodging provider and will not jeopardize the collection of
the lodging tax. The Financial Officer may by rule permit a taxpayer whose monthly tax
collected is less than three hundred dollars ($300.) to make returns and pay taxes at intervals
greater than one (1) month.
Sec. 25-254. - Consolidation of returns.
A lodging provider providing lodging accommodations in two (2) or more places or locations
taxable hereunder may file one (1) return covering all such business activities.
Sec. 25-255. - Excess collections; failure to remit collections.
If any lodging provider shall during any reporting period collect as a lodging tax an amount in
excess of three (3) percent of the total sales on lodging accommodations as imposed in § 25-242,
the lodging provider shall remit to the City the full amount of the tax collected. The retention by
the lodging provider of any excess lodging tax collections over three (3) percent of the total
taxable sales of lodging accommodations by such lodging provider or the intentional failure to
remit punctually to the Financial Officer the full amount required to be remitted by the
provisions of this Article is hereby declared to be a violation of this Article.
Sec. 25-256. - Bad debts.
Lodging taxes paid on the amount of lodging price which are represented by accounts which are
found to be worthless and are actually and properly charged off as bad debts for the purpose of
the income tax imposed by the laws of the State may be credited upon a subsequent payment of
the lodging tax as provided in this Article, but if any such accounts are thereafter collected by the
lodging provider, a lodging tax shall be paid upon the amounts so collected.
Sec. 25-257. - Disputes over exemption from tax; application for refund.
If a dispute arises between the lodging customer and lodging provider as to whether or not any
lodging transaction is exempt from taxation, the lodging provider shall collect and the lodging
customer shall pay such lodging tax, and the lodging provider shall issue to the lodging customer
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a receipt or certificate on forms prescribed by the Financial Officer showing the names of the
lodging customer and lodging provider, the lodging accommodation furnished, the date, the
price, the amount of lodging tax paid and a brief statement of the claim of exemption. The
lodging customer may apply to the Financial Officer for a refund of such taxes. It shall be the
duty of the Financial Officer to determine the question of exemption subject to review by the
courts as herein provided. It shall be a violation of the Article for any lodging provider to fail to
collect, or for any lodging customer to fail to pay, a tax levied by this Article on the provision of
lodging accommodation on which exemption is disputed.
Sec. 25-258. - Procedure for refund of disputed tax.
(a) A refund shall be made or credit allowed for the tax paid under dispute by any person
who claims one (1) or more exemptions as provided by this Article. Such refund shall be made
by the Financial Officer after compliance with the following conditions precedent in this Section.
(b) Applications for refunds must be made within three (3) years after the lodging transaction
for which the exemption is claimed and must be supported by the affidavit of the person,
accompanied by the original paid invoice or sales receipt and a certificate issued by the lodging
provider, and must be made upon such forms as shall be prescribed and furnished by the
Financial Officer. The applicant must provide such other relevant information as the Financial
Officer may require.
(c) The burden of proving that any person is exempt from paying the lodging tax shall be
upon the person asserting such claim for exemption under such reasonable requirements or proof
as the Financial Officer may prescribe.
(d) Upon receipt of such application, the Financial Officer shall examine it promptly and
shall give notice to the applicant by an order in writing of the decision.
(e) An aggrieved applicant may, within twenty-one (21) days after such decision is mailed,
petition the Financial Officer for a hearing on the claim in the manner provided in Section 25-
276(c) of this Article.
Sec. 25-259. - Right of refund not assignable.
The right of any person to a refund under this Article shall not be assignable, and application for
a refund must be made by the person who acquired lodging accommodation and paid the lodging
tax as shown in the invoice of the sale.
Sec. 25-260. - False statements to be a violation.
Any applicant for a refund under the provisions of this Article or any other person who shall
make any false statement in connection with an application for a refund of lodging tax shall be
deemed guilty of a violation of this Article and punished as provided in this Article.
Sec. 25-261. - Conviction to be evidence of fraudulent intent.
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If any person is convicted under the provisions of § 25-260, such conviction shall be prima facie
evidence that all refunds received by such person during the current year were obtained
unlawfully, and the Financial Officer is hereby empowered and directed to bring appropriate
action for recovery of such refund. A brief summary of the provisions of §25-260 and this
section shall be printed on each application form for refund.
Sec. 25-262. - Information to be confidential.
. . .
(b) The persons charged with the custody of such returns shall not be required to produce any
of them or evidence of anything contained therein in any action or proceeding in any court,
except on behalf of the Financial Officer in an action under the provisions of this Article to
which the Financial Officer or the City is a party or on behalf of any party to an action or
proceeding under the provisions of this Article or to punish a violator thereof when the report of
facts shown by such report is 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 the returns
or of the facts shown thereby as are pertinent to the action or proceeding and no more.
. . .
(d) Reports and returns shall be preserved for three (3) years from the date of filing with the
Financial Officer, after which time the Financial Officer may orders them destroyed.
Sec. 25-263. - Keeping of records and accounts.
It shall be the duty of every person engaged or continuing in business in the City, for the
transaction of which a license is required under this Article, to keep and preserve suitable records
of all lodging transactions made by such person and such other books or accounts as may be
necessary to determine the amount of lodging tax for the collection of which such person is liable
under this Article. All such books, invoices and other records shall be preserved for each lodging
transaction for a period of three (3) years after the later of: (1) the date that the return for the
lodging transaction was required to be filed under this Article; or (ii) the date the return was
filed. These records shall be open for examination in the City at any time by the Financial
Officer.
Sec. 25-264. - Examination of returns; recomputation; credits; deficiencies.
As soon as practicable after the return is filed, the Financial Officer shall examine it. If it then
appears that the correct amount of lodging tax to be remitted is greater or less than that shown in
the return, the tax shall be recomputed by the Financial Officer. If the amount paid exceeds that
which is due, the excess shall be refunded or credited against any subsequent remittance from the
same person. If the amount paid is less than the amount due, the difference, together with interest
thereon at the rate of one (1) percent per month from the time the return was due shall be paid by
the taxpayer within twenty-one (21) days after written notice of determination, assessment and
-9-
demand for payment from the Financial Officer is sent to the taxpayer as provided in § 25-
276(b). The taxpayer may protest the notice of determination, assessment and demand for
payment issued under this section as provided in § 25-276(c).
Sec. 25-265. - Penalty for deficiencies due to negligence.
If any part of the deficiency in the payment of lodging tax is due to negligence, but without the
intent to defraud, there shall be added as a penalty ten (10) percent of the total amount of the
deficiency. Interest in such case shall be collected at the rate of one (1) percent per month on the
amount of such deficiency from the time the return was due from the person required to file the
return until paid, which additional amount and interest shall become due and payable within
twenty-one (21) days after written notice of determination, assessment and demand for payment
is issued by the Financial Officer as provided in § 25-276(b). The taxpayer may protest the
notice of determination, assessment and demand for payment issued under this section as
provided in § 25-276(c).
Sec. 25-266. - Penalty for deficiencies with intent to defraud.
If any part of the deficiency in the payment of the lodging tax is due to the intent by the taxpayer
to evade the tax, then there shall be added as a penalty fifty (50) percent of the total amount of
the deficiency, and in such case the whole amount of the tax unpaid, including this addition and
an additional one (1) percent per month of interest on such amounts shall be added from the date
the return was due until paid. This additional amount and interest shall become due and payable
within twenty-one (21) days after written notice of determination, assessment and demand for
payment is issued by the Financial Officer as provided in § 25-276(b). The taxpayer may protest
the notice of determination, assessment and demand for payment issued under this section as
provided in § 25-276(c).
Sec. 25-267. - Investigation of tax records.
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 Financial Officer may hold investigations and hearings
concerning any matters covered by this Article, and may examine any relevant books, papers,
records or memoranda of any such person. The Financial Officer may require by subpoena the
attendance of such person or any officer or employee of such person or of any person having
knowledge of such transactions and may take testimony and proof for the information. The
Financial Officer shall have power to administer oaths to such persons.
Sec. 25-268. - Subpoenas and witness fees.
(unchanged)
Sec. 25-269. - Attendance of witnesses and production of evidence.
(unchanged)
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Sec. 25-270. - Depositions.
(unchanged)
Sec. 25-271. - Unpaid tax a prior lien; satisfaction of liens.
(a) The tax imposed by this Article, together with the interest, penalties, collection costs and
other charges imposed under this Article, including the City’s reasonable attorney fees, shall be
and until paid remain a first and prior lien superior to any other liens on all the tangible personal
property of the taxpayer, lodging customer or lodging provider which is located within the City
and may be foreclosed by seizing under distraint warrant and selling so much thereof as may be
necessary to discharge said lien. Such distraint warrant may be issued by the Financial Officer
whenever the taxpayer, lodging customer or lodging provider is in default in the payment of the
tax, interest, penalties, collection costs or other charges imposed under this Article. Such warrant
may be served and the goods subject to such lien seized by the Financial Officer and may be sold
by the Financial Officer at a public auction to be held ten (10) days after notice thereof has been
published in a newspaper published in the City.
(b) The Financial Officer shall forthwith levy upon sufficient tangible personal property of
the taxpayer, lodging customer or lodging provider as is necessary to satisfy the lien. The
property so levied upon shall be sold in all respects with like effect and in the same manner as is
prescribed by law in respect to executions against personal property upon judgment of a court of
record, and the remedies of garnishment shall apply.
(c) The tax imposed by this Article, together with all penalties, interest, collection costs and
other charges owed under this Article, including the City’s reasonable attorney fees, shall also be
a first and prior lien on the real property of the lodging provider, except as to preexisting liens or
claims of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights have
attached prior to the filing of the notice of lien provided for in paragraph (d) below, on the real
property of the lodging provider.
(d) The Financial Officer may issue a notice setting forth the name of the lodging provider,
the amount of the lodging tax, penalties, interest, collection costs or other charges, the date of
their accrual, and the fact that the City claims a first and prior lien therefor on the real property
of the lodging provider, except as to preexisting liens or claims of a bona fide mortgagee,
pledgee, judgment creditor or purchaser whose rights have attached prior to the filing of this
notice on the real property of the lodging provider. The notice of lien shall be made on forms
prescribed by the Financial Officer and verified by the Financial Officer and may be filed in the
office of the clerk and recorder of any county in the State in which the lodging provider owns
real property. The Financial Officer shall release any lien as shown on the records of the county
clerk and recorder as herein provided upon payment of all taxes, penalties, interest and costs of
collection covered thereby, in the same manner as mortgages and judgment liens are released.
The lien authorized by this Section may be foreclosed and executed upon by the City in the
district court of the county in which the lodging provider’s real property is located in the same
manner as mortgages and judgment liens are so foreclosed and executed upon under state law.
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Sec. 25-272. - Settlement of taxes after sale of business.
Any lodging provider who sells or closes its business shall be required to complete and file a
return as provided in this Article within ten (10) days after the date the provider sells or closes
that business, and if the business is sold, the purchaser of the business is required to withhold a
sufficient amount of the purchase money to cover the amount of any lodging tax deficiency due
and unpaid until such time as the former owner shall produce a receipt from the Financial Officer
showing that the taxes have been paid or a certificate that no taxes are due.
Sec. 25-273. - Purchase of business subject to tax lien.
If the purchaser of a business fails to withhold the amount of purchase money required in § 25-
272, and the lodging tax deficiency shall remain due and unpaid after the ten-day period allowed,
the purchaser, as well as the seller, shall be personally liable for the payment of the lodging tax
deficiency unpaid by the seller. Likewise, anyone who takes any tangible business assets of or
used by any lodging provider under lease, title retaining contract or otherwise takes the same
subject to the liens on property provided in § 25-271 for any lodging tax deficiency owed by
such provider under this Article, and shall be liable for the payment of the prior owner’s lodging
tax deficiency, but not to exceed the value of the property so taken or acquired.
Sec. 25-274. - Unpaid taxes in cases of bankruptcy or receivership.
Whenever the business or property of any taxpayer subject to the provisions of this Article shall
be placed in a receivership, bankruptcy or assignment for the benefit of creditors, or is seized
under distraint for property taxes, all lodging taxes, penalties, interest, costs of collection and
other charges imposed by this Article, for which any lodging provider is in any way liable under
the terms of this Article, shall constitute a prior and preferred lien against all the property of the
taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment
creditor or purchaser whose rights shall have attached prior to the filing of the notice of lien as
provided in § 25-271 on the property of the taxpayer, other than the lien on the taxpayer’s
tangible personal property, which lien shall be prior and superior to all other liens and
preexisting claims. No sheriff, receiver, assignee or other officer shall sell the property of any
person subject to this Article under process or order of any court without first ascertaining from
the Financial Officer the amount of any lodging tax deficiency due and payable. If there are any
such lodging tax deficiency due, owing and unpaid, it shall be the duty of such officer to first pay
the amount of the lodging tax deficiency out of the proceeds of such sale before making payment
of any monies to any judgment creditor or other claimants of whatsoever kind or nature, except
the costs of the proceedings and other preexisting claims or liens as above provided.
Sec. 25-275. - Tax money to be held in trust.
All sums of money paid by the lodging customer to the lodging provider as lodging taxes
imposed by this Article shall be and remain public money and the property of the City in the
hands of such lodging provider. The lodging provider shall hold the same in trust for the sole use
and benefit of the City until paid to the Financial Officer as herein provided. If the money is not
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paid to the Financial Officer as required by this Article, such lodging provider may be charged
with a violation of this Article, punishable as provided in Code Section 1-15.
Sec. 25-276. - Failure to make return; estimate of taxes; penalty; collection costs; notices;
audit; appeal.
(a) If any person fails, neglects or refuses to collect, file a return for or pay the lodging tax as
required by this Article, the Financial Officer shall make an estimate, based upon such
information as may be available, of the amounts of the taxes due for the period or periods for
which the taxpayer is delinquent and, upon the basis of such estimated amount, shall compute
and assess in addition thereto a penalty equal to ten (10) percent thereof, together with interest on
such delinquent taxes at the rate of one (1) percent per month from the date when the tax
assessed was due. The Financial Officer may also assess against the taxpayer any penalties,
interest, collection costs and other charges due and owing under this Article, including, without
limitation, the City’s reasonable attorney fees.
(b) The Financial Officer shall then serve upon the delinquent taxpayer a written notice of
determination, assessment and demand for payment of such estimated taxes, penalties, interest,
collection costs and other charges, which notice must be served either personally or by first class
or certified mail directed to the last address of the taxpayer on file with the City. Payment of the
assessment stated in the notice shall be due and payable by the taxpayer to the City within
twenty-one (21) days from the date the notice is mailed.
(c) The Financial Officer may at any time within three (3) years of the date any lodging tax
is due, serve upon any taxpayer personally or by first-class mail or certified mail directed to the
last address of the taxpayer on file with the City, a written notice of audit notifying the taxpayer
that the Financial Officer will be conducting an audit of the taxpayer’s books and records to
determine the exact amount of any tax, penalty, interest, collection costs and other charges, due.
Within thirty (30) days of that notice or within such longer time period as permitted by the
Financial Officer, the taxpayer shall make available to Financial Officer all of the taxpayer’s
relevant books and records requested by the Financial Officer for the audit. If as a result of the
audit the Financial Officer determines the taxpayer owes the City any additional tax, penalties or
interest, collection costs or other charges, the Financial Officer shall serve upon the taxpayer a
notice of determination, assessment and demand for payment as provide in paragraph (b) above
and payment shall be due and payable twenty-one (21) days from the date such notice is mailed.
(d) A taxpayer may protest a notice of determination, assessment and demand for payment
issued to a taxpayer for failure to file a return, underpayment of tax owed or as a result of an
audit by submitting the protest in writing to the Financial Officer within twenty-one (21) days
from the date the notice of determination, assessment and demand is mailed to the taxpayer. Any
such written protest shall identify the amount disputed, the basis for the protest and be given
under oath by the taxpayer or the taxpayer’s authorized representative. Such protest may include
a request for a hearing. It shall also include a physical, post office box or email address to which
the taxpayer wishes the Financial Officer’s written order issued in paragraph (e) below to be sent
when issued.
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(e) In response to the taxpayer’s written protest, if a hearing is requested, the Financial
Officer shall notify the taxpayer in writing of the time and place of the hearing. After such
hearing, or after a consideration of the facts and figures contained in the written protest if no
hearing is requested, the Financial Officer shall make such written order in the matter as he or
she deems just and proper and shall furnish a copy of that order to the taxpayer by first class or
certified mail or by email as directed in the protest filed by the taxpayer.
(f) The Financial Officer’s order issued under paragraph (e) above shall be considered final
and reviewable in Larimer County District Court or the City’s Municipal Court in accordance
with the procedures in Rule 106(a)(4) of the Colorado Rules of Civil Procedure.
Sec. 25-277. - Jeopardy assessment.
(a) If the Financial Officer finds that collection of the lodging tax will be jeopardized for any
reason, the Financial Officer may declare the taxable period immediately terminated, determine
the lodging tax deficiency and issue a notice of determination, assessment and demand for
payment. Notwithstanding the provisions of § 25-276, the lodging tax deficiency shall then be
due and payable forthwith, and the Financial Officer may proceed to collect the deficiency as
provided in § 25-278 or pursue such other remedies authorized under this Article or by law.
(b) If the taxpayer subject to a jeopardy assessment provides security for payment of the
lodging tax deficiency satisfactory to the Financial Officer, the Financial Officer may forego the
jeopardy assessment collection proceedings.
Sec. 25-278. - Enforcing the collection of taxes due.
(a) The Financial Officer may issue a warrant directed to any employee, agent or
representative of the City or any sheriff of any county of the state, commanding such person to
distrain, seize and sell any personal property in which the taxpayer has an ownership interest,
except such property as is exempt from the execution and sale by any state statute, for the
payment of lodging tax due together with interest, penalties, collection costs and other charges
thereon in the following circumstances:
(1) When any assessed lodging tax deficiency is not paid within twenty-one (21) days
from the date of mailing of the notice of determination, assessment and demand for
payment and no hearing or extension has been requested in a timely manner;
(2) When any assessed lodging tax deficiency is not paid within twenty-one (21) days
from the date of the notice of determination, assessment and demand for payment and no
appeal from such notice has been docketed within twenty-eight (28) days after such
notice in a court having jurisdiction, except that if the Financial Officer finds that
collection of the tax will be jeopardized during such period, the Financial Officer may
immediately issue a distraint warrant;
(3) When any assessed lodging tax deficiency is not paid within the time prescribed
in judgment and order of court on any appeal to a court having jurisdiction;
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(4) Immediately upon making a jeopardy assessment or issuing a demand for
payment upon jeopardy assessment as provided in § 25-277; or
(5) After or concurrently with the filing of a notice of lien as provided in § 25-271(d).
(b) The Financial Officer may apply to the Judge of the City’s Municipal Court for a warrant
authorizing the Financial Officer to search for and seize property located within the City limits
for the purpose of enforcing the collection of lodging tax deficiency owed under this Article. The
Municipal Judge shall issue such warrant after the Financial Officer demonstrates that:
(1) The premises to which entry is sought contain property that is subject to levy and
sale for taxes due; and
(2) At least one (1) of the preconditions of (a) above has been satisfied; but if a
jeopardy assessment has been declared under § 25-277, the Financial Officer must set
forth the reasons that collection of the tax will be jeopardized.
(c) The procedures to be followed in issuing and executing a warrant pursuant to (b) above
shall comply with Rule 241(c) and (d) of the Colorado Municipal Court Rules of Procedure.
(d) The taxpayer may contest a warrant issued under this section using the procedure
provided for in Rule 241(e) of the Colorado Municipal Court Rules of Procedure, except that no
proceeding to contest such warrant may be brought after five (5) days prior to the date fixed for
sale of the distrained property.
(e) The agent charged with the collection shall make or cause to be made an account of the
goods or effects distrained, and shall leave a copy of such account, signed by the agent making
such distraint, with the owner or possessor of the property, at the owner's or possessor's usual
place of abode with some family member over the age of eighteen (18) years, at the owner's or
possessor's usual place of business with a stenographer, bookkeeper or chief clerk, or, if the
taxpayer is a corporation or other business entity, with any officer, manager, general agent or
agent for process, with a statement of the sum demanded and the time and place of sale. The
agent charged with collection shall forthwith cause to be published a notice of the time and place
of sale and a description of the property to be sold in a newspaper within the county wherein
distraint is made or, in lieu thereof and in the discretion of the Financial Officer, the agent or
sheriff shall cause such notice to be publicly posted at the county courthouse wherein such
distraint is made and copies thereof shall be posted in at least two (2) other public places within
the county. The time fixed for the sale shall not be less than ten (10) days nor more than sixty
(60) days from the date of such notification to the owner or possessor of the property and the
publication or posting of such notices. The sale may be adjourned or postponed from time to
time by the agent or sheriff, if the agent or sheriff deems it advisable, to a date certain but not for
a time to exceed in all ninety (90) days from the date first fixed for the sale. When any personal
property is advertised for sale under distraint, the agent or sheriff making the seizure shall
proceed to sell such property at public auction, offering the property at not less than a fair
minimum price that includes the expenses of making the seizure and of advertising the sale. If
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the amount bid for the property at the sale does not equal the fair minimum price so fixed, the
agent or sheriff conducting the sale may declare the same to be purchased for the City. The
property so purchased may then be sold by the agent or sheriff under such regulations as may be
prescribed for disposing of City property. The goods, chattels or effects so distrained shall be
restored to the owner or possessor if, prior to the sale, the amount due is paid together with the
fees and other charges, or they may be redeemed by any person holding a chattel mortgage or
other evidence of right of possession.
(f) In all cases of sale, the agent or sheriff making the sale shall issue a certificate of sale to
each purchaser, and such certificate is prima facie evidence of the right of the agent or sheriff to
make such sale and conclusive evidence of the regularity of the proceedings in making the sale;
it transfers to the purchaser all right, title and interest of the delinquent taxpayer in and to the
property sold. Where such property consists of certificates of securities or other evidence of
indebtedness in the possession of the agent or sheriff, the taxpayer shall endorse such certificates
to the purchaser thereof and supply the purchaser with proof of the taxpayer's authority to
transfer the same or with any other requisite that may be necessary to obtain registration of the
transfer of the certificate. Any surplus remaining above first the City's taxes, penalties, interest,
collection costs and other charges and expenses of making the seizure and of advertising the sale
and then the amounts distributed pro rata to other jurisdictions under recorded sales and use or
personal property ad valorem tax liens shall be returned to the property owner or such person
having a legal right to the property; and, on demand, the Financial Officer shall render an
accounting in writing of the sale.
(g) In the case where a taxpayer has refused or neglected to pay any lodging tax deficiency
due to the City under this Article and a lien has been filed as provided in § 25-271(d), the
Financial Officer may, in addition to pursuing other collection remedies, certify the amount of
the tax, penalties, interest, collection costs and other charges due, together with ten (10) percent
of the delinquent amount for costs of county collection, to the county treasurer to be levied
against the person's property for collection by the County in the same manner as delinquent
general taxes upon such property are collected. Before certifying such amounts to the county for
collection, the Financial Officer shall provide to the property owner an opportunity for a hearing
to contest the authority of the City to impose and collect the lodging tax deficiency, or the
amount thereof. The Financial Officer shall mail the notice to the property owner by first class
mail addressed to the last known owner of the property in the records of the county assessor. If
the Financial Officer's decision after a hearing affirms the imposition of the lodging tax
deficiency, the decision shall include notice that the deficiency is due and payable within
fourteen (14) days of the date of the decision and that, if not paid when due, they will be certified
to the county treasurer for collection, along with ten (10) percent of the charges for the cost of
county collection. Whenever the Financial Officer certifies any such amounts to the county
treasurer for collection, the Financial Officer shall record notice of such certification with the
county clerk and recorder.
Sec. 25-279. - Recovery of unpaid taxes by action at law or in equity.
(a) The Financial Officer may also treat any lodging tax deficiency due and unpaid under this
Article as a personal debt due the City from the lodging provider.
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(b) In case of any failure to pay the taxes, penalties, interest, collection costs and other
charges due under this Article, the Financial Officer may recover at law the amount of such
taxes, penalties, interest, collection costs and other charges in any county or district court of the
county wherein the taxpayer resides or has his or her place of business.
(c) The City Attorney, upon the request of the Financial Officer may seek injunctive or other
equitable relief in any court of competent jurisdiction to enforce provisions of this Article.
(d) The return of the taxpayer or the assessment made by the Financial Officer as herein
provided shall be prima facie proof of the amount due.
(e) The City Attorney is hereby authorized upon request by the Financial Officer to
commence any legal action or suit for the recovery of any lodging tax deficiency due pursuant to
this Article.
Sec. 25-280. - City may be party in title actions.
(unchanged)
Sec. 25-281. - Compromise and settlement by Financial Officer.
(a) The Financial Officer may for good cause compromise and settle any actually assessed
or potential claim to lodging taxes, penalties, interest, collection costs and other charges due to
the City under this Article. Such good cause may include, without limitation, legal and factual
considerations, considerations of fairness and justice, and the financial inability of the taxpayer
to pay a greater amount.
(b) The Financial Officer shall prepare and retain in the files of Financial Services for each
settlement a written opinion explaining the good cause for the settlement. The opinion shall
also include a statement of: (i) the amount of the lodging tax, penalties, interest, collection
costs and other charges that were assessed or that could potentially be assessed; and (ii) the
amount paid by the taxpayer in accordance with the terms of the settlement agreement. In a
circumstance where the amount of the lodging tax, penalties, interest, collection costs and
other charges that could potentially be assessed cannot be reasonably determined, the Financial
Officer shall state in the written opinion the reason why these amounts cannot be reasonably
determined.
. . .
(d) Notwithstanding the foregoing, the Financial Officer may not compromise and settle a
claim that waives more than one hundred thousand dollars ($100,000.) of assessed lodging tax,
penalties, interest, collection costs and other charges or that waives an amount of tax, penalties,
interest, collection costs and other charges that could potentially be assessed but the amount of
that assessment cannot be reasonably determined, unless the City Manager approves the
Financial Officer's written opinion.
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. . .
Sec. 25-282. - Review bond required.
Before making application to the District Court or the City’s Municipal Court, the party making
such application shall file with the Financial Officer a bond in twice the amount of the lodging
taxes, penalties, interest, collection costs and other charges stated in the Financial Officer’s
order. The bond shall be issued by a good and sufficient surety reasonably acceptable to the
Financial Officer or such other security acceptable to the Financial Officer.
Sec. 25-283. - Notices.
Except as otherwise expressly provide in this Article, all notices required to be given to any
taxpayer under the provisions of this Article shall be in writing and hand delivered or mailed by
prepaid first class or certified to the taxpayer’s last-known address on file with the City, and such
notice shall be deemed to have been received by the taxpayer when so delivered or mailed.
Sec. 25-284. - Tax in addition to other taxes.
The lodging tax imposed by this Article shall be in addition to all other taxes imposed by law
except as herein otherwise provided.
Sec. 25-285. - Administrative officer designated.
The administration of all provisions of this Article is hereby vested in and shall be exercised by
the Financial Officer who shall prescribe forms and reasonable rules and regulations in
conformity with this Article for the making of returns, for the determination, assessment and
collection of lodging tax and other amounts imposed under this Article and for such other proper
administration and enforcement of this Article.
Sec. 25-286. - Statute of limitations.
(a) Except as otherwise provided in this section or as waived by the taxpayer, none of the
following actions shall be taken by the City to collect any amount of lodging tax due and owing
under this Article, together with any applicable interest, penalties, collection costs and other
charges imposed by this Article, more than three (3) years after the later of (i) the date on which
the tax return for that tax was filed, regardless of whether such return was filed on or after the
date required by this Article, or (ii) the last date the return for that tax was required to be filed by
this Article:
(i) issuance of notice of audit;
(ii) issuance of notice of determination, assessment and demand for payment;
(iii) notice of lien filed;
(iv) issuance of jeopardy assessment;
(v) issuance of distraint warrant;
(vi) bond collected upon;
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(vii) collection lawsuit commenced; or
(viii) any other formal legal action taken.
If the Financial Officer takes any of the foregoing listed actions to determine, collect or enforce
any lodging tax deficiency under this Article before the expiration of said three (3) year period,
any such action shall stop the running of the period of limitation established in this section with
regard to any other determination, collection or enforcement action authorized under this Article
thereafter taken by the Financial Officer to recover that lodging tax deficiency. However, no lien
shall continue after this limitation period, except for taxes assessed before the expiration of that
period and regarding which a notice of lien was filed prior to the expiration of that period. In
such event the lien shall continue in effect for three (3) years after it is filed as provided in § 25-
271.
(b) In case of a false or fraudulent return with intent to evade the tax and in the case of
failure to file a return, the tax together with interest, penalties and collection costs and other
charges, including reasonable attorney fees, may be assessed or proceedings for the collection of
such taxes may be begun at any time.
(c) Notwithstanding the foregoing provisions of this section, the taxpayer and the Financial
Officer may agree in writing to an extension of any period of limitation imposed in this section,
and the period agreed on may be extended by subsequent agreement in writing.
Sec. 25-287. – Violations and penalty.
(a) It shall be unlawful for any lodging provider to fail to collect or for any lodging customer
to fail to pay any lodging tax, penalty, interest, collection costs or other charges levied by this
Article regardless of whether the tax liability is disputed or an exemption is claimed.
(b) It shall be unlawful for any lodging provider to retain any lodging tax collected in excess
of the rate stated in § 25-242 or to fail to remit punctually to the Financial Officer the full
amount required by the provisions of this Article, including penalties, interest, collection costs
and other charges.
(c) It shall be unlawful for any person to fail or refuse to make or file any return required to
be made or filed by this Article or to make any false or fraudulent return or any false or
fraudulent statement in any return.
(d) It shall be unlawful for any person to do business as a lodging provider without the
license required by this Article or to continue to provide a lodging accommodation after such
license is revoked.
(e) It shall be unlawful for any applicant for a tax refund under this Article to make a false
statement in connection with such application.
(f) It shall be unlawful for any lodging provider to advertise or hold out or state to the public
or to any lodging customer, directly or indirectly, that the tax or any part thereof imposed by this
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Article will be assumed or absorbed by the lodging or that it will not be added to the lodging
price of the lodging accommodation to be provided, or, if added, that it or any part thereof will
be refunded.
(g) It shall be unlawful for any person other than the City to become enriched or to gain any
benefit from the collection or payment of the taxes levied by this Article, unless otherwise
authorized by law.
(h) It shall be unlawful for any person to aid or abet another in any attempt to evade the
payment of the lodging tax imposed by this Article.
(i) It shall be unlawful for any officer, agent or employee of the City to divulge or make known
in any way any information classified in this Article as confidential, except in accordance with a
court order or as otherwise provided by this Article or other applicable law.
(j) It shall be unlawful for any person to interfere with the actions of any employee or agent
of the City relating to the distraint warrant procedures in § 25-278, such interference to include
but not be limited to the removal of signs or tags placed on the premises or items of property
which are to be sold by the City pursuant to such procedure.
(k) It shall be unlawful for any person to violate any other mandatory provision of this Article.
(l) The penalty for violating any mandatory provision of this Article shall be as provided in
§ 1-15.
Introduced, considered favorably on first reading, and ordered published this 18th day of
April, A.D. 2017, and to be presented for final passage on the 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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Passed and adopted on final reading on this 2nd day of May, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk