HomeMy WebLinkAbout130 - 11/20/2007 - AMENDING SECTION 25-123(C) OF THE CITY CODE RELATING TO THE VENDOR FEE FOR COLLECTING AND REMITTING ORDINANCE NO. 130, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25-123(c)
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO THE VENDOR FEE
FOR COLLECTING AND REMITTING SALES TAX
WHEREAS, Section 25-123(c) of the Code of the City of Fort Collins (the "Code")
authorizes retailers to retain 3% of the first $3000 of the amount of sales tax they collect for the
City(the "vendor's fee"); and
WHEREAS, the ability to retain this vendors' fee is in recognition of the time and effort
expended by retailers to collect the City's sales tax from their customers; and
WHEREAS, the total amount currently retained by retailers is approximately $700,000
per year; and
WHEREAS, the loss of this amount of sales tax revenues has a significant negative effect
upon the City and its citizens given the recent budget constraints; and
WHEREAS, the City Council believes it to be in the best interest of the City to reduce
the amount retained by retailers for collecting City sales and use tax revenue and to deposit any
additional revenues collected by the City as a result of that reduction into the General Fund; and
WHEREAS, City staff has recommended limiting the vendor fee to 1% of the first $4500
in sales tax collected by the retailers; and
WHEREAS, City staff has also identified references in Section 25-123(d) where it is not
clear that sales tax is the tax referred to and the intent of the section would be clarified by the
suggested amendments; and
WHEREAS, City Council believes that such recommendation is reasonable and is in the
best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 25-123(c) and (d) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 25-123. Remittance of sales tax collected by retailer.
(c) Every retailer shall file a tax return each month with the Financial Officer
on or before the twentieth day of each month for the preceding month and remit
the tax due to the Financial Officer simultaneously therewith. Every retailer may
deduct one (1) percent of the first four thousand five hundred dollars ($4,500.) of
the amount of the sales tax to be remitted by him or her under this Article for the
collection and remittance of sales tax. However, if the remission of the sales tax
by the retailer is delinquent, the retailer may not retain any amounts for collecting
and remitting the sales tax unless the retailer demonstrates reasonable grounds for
the delinquency acceptable to the Financial Officer.
(d) If any retailer shall, during any reporting period, collect as a sales tax an
amount in excess of the rate stated in § 25-75, the retailer shall remit to the
Financial Officer the full amount of the sales tax imposed and such excess.
Section 2. That this Ordinance shall become effective on January 1, 2008.
Introduced, considered favorably on first reading, and ordered published this 6th day of
November, A.D. 2007, and to be presented for final passage on the 20th day of November, A.D.
2007.
i
i
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 20th day of mber, A.D. 2007.
1
Mayo
ATTEST:
City Clerk