HomeMy WebLinkAbout087 - 07/16/2019 - AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO THE IMPOSITIOORDINANCE NO. 087, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY
OF FORT COLLINS RELATING TO THE IMPOSITION, COLLECTION
AND ENFORCEMENT OF THE CITY'S SALES AND USE TAXES
WHEREAS, Article XX, Section 6.g. of the Colorado Constitution grants to the City of
Fort Collins, as a home rule municipality, 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. 058, 1967, to levy, collect and enforce beginning on
January 1, 1968, a sales and use tax on the purchase 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"); and
WHEREAS, the Sales and Use Tax Code is currently found in Article III of City Code
Chapter 25, which has been significantly amended many times.since its adoption in 1967; and
WHEREAS, City staff has reviewed Article III and has recommended revisions to clarify
the rate of tax imposed, including updating the rate of tax to include the extension of the eighty-
five one-hundredths (0.85) percent tax approved by the voters at the City's regular election held
on April 2, 2019; and
WHEREAS, City staff has also recommended revisions to require retailers doing business
at more than one location to file a separate return for each location, to clarify that the refund
procedures apply to taxes paid in error or by mistake, and to provide that taxpayer financial
information may be shared within the City organization or with City contractors if reasonable
precautions are in place to prevent disclosure of such information to the public; and
WHEREAS, the City Council hereby finds that amending the Sales and Use Tax Code as
proposed in this Ordinance is in the best interests of the City and its taxpayers and promotes the.
health,safety and welfare of the community by providing for the accurate and efficient imposition,
collection and enforcement of the City's sales and use taxes.
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 Section 25-75 of the Code of the City of Fort Collins is hereby
amended to read as follows:
See. 25-75. Rate of tax.
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a) The amount of tax hereby levied is three and eight-five hundredths (3.85) percent
of the purchase price of tangible personal property and taxable services except that
the amount of use tax levied on manufacturing equipment is three(3)percent of the
purchase price. This tax is composed of a rate of two and twenty-five hundredths
2.25) percent that does not expire and is not restricted in the use of its proceeds
and the remaining rate of one and sixty hundredths (1.60) percent is comprised of
the following voter-approved taxes:
1) A twenty-five one-hundredths(0.25)percent tax that expires at midnight on
December 31, .2030, the proceeds of which are to 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;
2) A twenty-five one-hundredths(0.25)percent tax that expires at midnight on
December 31,202-5,the proceeds of which are to 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;
3) A twenty-five one-hundredths(0.25)percent tax that expires at midnight on
December 31,2025,the proceeds of which are to 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; and
4) An eighty-five one-hundredths (0.85) percent tax that expires at midnight
on December 31,2020,the proceed.s of which are to be used in accordance with the
terms and conditions of Ordinance No. 126, 2010.
When the tax described in subsection(a)(4)above expires at midnight on December
31, 2020, the eighty-five one-hundredths (0.85)percent tax approved at the City's
regular election held on April 2, 2019, shall commence. Of this tax, the rate of
twenty-five one-hundredths (0.25) percent shall expire at midnight on December
31, 2030, and its revenues shall be used to fund municipal operations and
maintenance and for any other public purposes. The remaining rate of sixty one-
hundredths (0.60) percent shall not expire and its revenues shall be used to help
sustain.public safety service levels and fund municipal operations and maintenance,
and to fund any other public purposes, except fifteen and sixty one=hundredths
15.6) percent of these revenues shall be used to fund the fire protection and
emergency services being provided by the Poudre Fire Authority (PFA) under the
City's existing agreement with the Poudre Valley Fire Protection District(District),
or in such other amount as the City and the District may agree, but absent an
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agreement between them for PFA's services, these revenues may be used as
determined by City Council.
Section 3. That Section 25-128 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 25-128. Consolidation of returns prohibited.
A retailer doing business in two(2) or more places or locations, whether within or without
the City, and collecting taxes hereunder must file one (1) return for each such places or
locations. Any retailer conducting online sales must file a separate return covering online
sales.
Section 4. That Section 25.147 of the Code of the City of Fort Collins is hereby
amended to read as follows!
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,claims an exemption as provided in this
Article, or claims that taxes were paid in error or by mistake. Such refund shall be made
by the Financial Officer after compliance with the following:
1) Application. An application for a refund of sales or use, tax paid under
dispute, paid in error by a purchaser or user who claims an exemption under
Subsection 25-73(c) or Subsection 25-74(b), or paid in error or by mistake 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 ofproof. The burden of proving that any transaction or item is not
taxable, is exempt from the tax, or that tax was paid in error or by mistake shall be
upon the person asserting such claim under such reasonable requirements of proof
as the Financial Officer may prescribe;
Section 5. That Section 25-166 of the Code of the City of Fort Collins is hereby
amended by the addition of a new subsection(g)to read as follows:
Sec.25-166. Preservation of returns and other records; confidentiality.
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g) Notwithstanding the provisions of this Section, the Financial Officer may disclose
financial information within the City organization or to City contractors as required
for the conduct of City business or in furtherance of City purposes and objectives,
so long as the release of the information is conditioned upon reasonable precautions
and requirements to prevent disclosure of said information to the public.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
July, A.D. 2019, and to be presented for final passage on the 16th day of July, A.D. 2019.
or
ATTEST:
OV poRr co
SEAL
lty C rk cOLnRPO
Passed and adopted on final reading on the 16th day of July, A.D. 2019.
Mayor
ATTEST:
WORT
C
ety Cl SEAL :
COLORPOO
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