HomeMy WebLinkAbout191 - 01/04/2000 - AMENDING CITY CODE TO ESTABLISH A PROGRAM FOR A REBATE OF SALES AND USE TAXES FOR MATERIALS USED IN ORDINANCE NO. 191, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADDING A NEW DIVISION 4 TO CHAPTER 25, ARTICLE II
OF THE CODE OF THE CITY OF FORT COLLINS
ESTABLISHING A PROGRAM FOR A REBATE OF THE CITY'S
SALES AND USE TAXES FOR MATERIALS USED IN THE CONSTRUCTION OF
AFFORDABLE HOUSING UNITS, AND THE DEFERRAL OF THE PAYMENT OF
SALES AND USE TAXES THEREON
WHEREAS, the City has established several programs to promote the development of
affordable housing units, including the City's "Priority Processing Program" and "Development
Impact Fee Collection Delay Program"; and
WHEREAS, the City Council has determined that it is in the best interests of the City to
establish a program for the rebate of the City's sales and use taxes collected for materials used in the
construction of affordable housing units, which program shall be established as a"pilot" program
to continue in existence for a period of two years and automatically terminate unless extended by
the Council by ordinance; and
WHEREAS, the Council has further determined that another program should also be
established for deferring the payment of sales and use taxes for materials used in the construction
of affordable housing units,with said payment to be made at the time of issuance of certificates of
occupancy.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Code of the City be, and hereby is, amended as follows:
Section 1. That Chapter 25,Article II of the Code of the City of Fort Collins be amended
by the addition of a new Division 4 to be entitled Affordable Housing Rebate,which division shall
read as follows:
DIVISION 4. AFFORDABLE HOUSING REBATE
See. 25-55. Establishment.
There is hereby established a sales and use tax rebate program to provide relief
from sales and use taxes charged on purchases of materials used in the construction
of affordable housing units as that term is defined in §26-631.
Sec. 25-56. Application for Rebate.
Application for the sales and use tax rebate for affordable housing units shall be
made on forms to be provided by the City.
Sec. 25-57. Qualifications.
In order to qualify for the rebate, the following requirements must be met:
(1) The applicant must demonstrate to the satisfaction of the city
that the materials upon which the sales and use taxes have
been paid have been used in the construction of an affordable
housing unit as defined in §26-631 and that the applicant
requesting the rebate is the same as the payor of the taxes,or,
if not the same, has presented to the city the written
permission of the payor to request and receive the rebate;
(2) The applicant shall be in full compliance with all provisions
of the Code and shall not be in default of the terms of any
obligation, contract or other agreement with the city. If any
application for a rebate is approved under the provisions of
this Division, and the applicant for such rebate subsequently
becomes delinquent in the payment of any tax,fee, charge or
utility bill owed to the city, the rebate otherwise due said
applicant may be applied by the city in whole or in part
toward the payment of the delinquent tax, fee, charge or bill.
Sec. 25-58. Amount of rebate.
The amount of the rebate payable hereunder shall be the full amount of sales and
use taxes paid for materials used in the construction of the affordable housing unit.
The rebates provided for under this Division are subject to the appropriation of
necessary funds and the provisions of this Division shall not be construed as
establishing any right or entitlement to a rebate on the part of any applicant.
See. 25-59. 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 claimant to
verify and sign the application under oath. The burden of proving eligibility for a
rebate under this Division is on the claimant. The Financial Officer may require
reasonable information to support the rebate application.
Sec. 25-60. Sunset Provision.
The sales and use tax rebate provisions established in this Division shall terminate
and be of no further force and effect on December 1, 2001, and no rebate shall be
paid after said date except for affordable housing projects for which building permits
have theretofore been issued,unless this sunset provision is repealed or modified by
the City Council.
Section 2. That the Code of the City of Fort Collins be, and hereby is, amended by the
addition of a new Section 25-130,to read as follows:
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 unit as that term is defined in §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 unit, 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.
Introduced and considered favorably on first reading and ordered published this 7th day of
December, A.D. 1999, and to be presented for final passage on the 4th day of January, A.D. 2000.
Mayor
ATTEST: )P�r
City Clerk
Passed and adopted on final reading this 4th day of January, A.D. 2000.
Mayor
A T TEST:
City Clerk