HomeMy WebLinkAbout058 - 11/16/1967 - IMPOSING OR LEVYING A CITY RETAIL SALES TAX AND A USE TAX IN THE CITY AT THE RATE OF ONE PER CENT (1 \ c
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ORDINANCE NO _5 1967
BEING AN ORDINANCE IMPOSING OR LEVYING A CITY RETAIL SALES
TAX AND A USE TAX IN THE CITY OF FORT COLLINS AT THE RATE
OF ONE PER CENT (1/) AND AT AN EQUIVALENT OF ONE PER CENT
(1/) BRACKET SYSTEM RATE OPERATIVE AND EFFECTIVE ON AND AFTER
11 59 0 CLOCK P M ON DECEMBER 31 1967 PROVIDING FOR LICENS
ING OF RETAILERS PROVIDING FOR EXEMPTIONS FROM SAID TAX
PROVIDING FOR THE ADMINISTRATION PAYMENT COLLECTION AND
ENFORCEMENT OF SAID TAX EMPOWERING THE CITY COUNCIL TO REPEAL
THE WITHIN ORDINANCE UNDER CERTAIN CIRCUMSTANCES AND TO SUB
MIT A SALES TAX MEASURE TO THE QUALIFIED VOTERS OF THE CITY
AT THE GENERAL CITY ELECTION IN 1969 PRESCRIBING PENALTIES
IN CASE OF NONCOMPLIANCE OR VIOLATION AND PROVIDING DETAILS
IN RELATION TO ALL OF THE FOREGOING
TITLE This ordinance consisting of three parts may be known and
cited as the CITY OF FORT COLLINS RETAIL SALES AND USE TAX ORDINANCE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
PART ONE TAX ON RETAIL SALES
Section 1 Words and Phrases Defined When not clearly otherwise
indicated by the context the following words and phrases as used in this part
shall have the following meanings
1 1 The term Person includes any individual firm co partnership
joint venture corporation estate or trust receiver trustee assignee lessee
or any person acting in a fiduciary or representative capacity whether appointed
by court or otherwise or any group or combination acting as a unit and the
plural as well as the singular number
1 2 The term Director of Finance shall mean the Director of Finance
of the City of Fort Collins the term City Manager shall mean the City Manager
of the City of Fort Collins
1 3 The term Sale or sale and purchase includes installment and
credit sales the exchange of property as well as the sale thereof for money
the sale or furnishing of steam or other heat electrical energy gas telephone
or telegraph services and the transaction of furnishing rooms or accommodations
to any person who for a consideration uses possesses or has the right to use
or possess any room or rooms in any hotel apartment hotel guest house guest
ranch mobile home auto camp trailer court or parks under any concession
permit right of access license to use or other agreement or otherwise
1 4 The term wholesaler means a person doing a regularly recognized
wholesale or jobbing business and known to the trade as such in selling to
retail merchants jobbers dealers or other wholesalers for the purpose of
resale
1 5 The term wholesale sale means a sale by wholesalers to retail
merchants jobbers dealers or other wholesalers for resale The term does
not include the sale by wholesalers to users or customers not for resale which
sales shall be deemed retail sales and subject to the provisions of this
ordinance
1 6 The term retailer or vendor means a person doing a retail
business known to the trade and public as such and selling to the user or con
sumer and not for resale
1 7 A retail sale includes all sales made within the City except
wholesale sales
1 8 The term City means the City of Fort Collins
1 9 The term taxpayer means any person obligated to account to the
Director of Finance for taxes collected or to be collected under the terms of
this ordinance
1 10 The term tax means either the tax payable by the purchaser
of a commodity or service subject to the tax or the aggregate amount of taxes
due from the vendor of such commodities or services during the period for which
he is required to report his collections as the context may require
1 11 The term tangible personal property means corporeal personal
property which may be seen weighted measured felt or touched or is in any
manner perceptible to the senses This shall not be construed to mean news
papers as legally defined by the Colorado Revised Statutes 1963 Section 109
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1 12 The term purchase price means the price to the consumer
exclusive of any direct tax imposed by the federal government or by the State
of Colorado or by this ordinance and in the case of all retail sales involy
ing the exchange of property also exclusive of the fair market value of the
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property exchanged at the time and place of the exchange provided such ex
changed property is to be sold thereafter in the usual course of the retailer s
business
1 13 The term gross taxable sales means the total amount received
in money credits property (excluding the fair market value of exchanged
property which is to be sold thereafter in the usual course of the retailer s
business) or other consideration value in money for the sales and purchases at
retail within the city and embraced within the provisions of this ordinance
provided however that the taxpayer may take credit in his report of gross
sales for an amount equal to the sale price of property returned by the purchaser
when the full sale price thereof is refunded either in cash or by credit and
provided further that the fair market value of any exchanged property which
is to be sold thereafter in the usual course of the retailer s business if
included in the full price of a new article shall be excluded from the gross
sales and provided further that taxes paid on the amount of gross sales
which are represented by accounts not secured by conditional sale contract or
chattel mortgage or financing statement and which are found to be worthless and
are actually and properly charged off as bad debt for the purpose of the income
tax imposed by the laws of the State of Colorado may be credited upon a sub-
sequent payment of the tax herein provided but if any such amounts are there
after collected by the taxpayer a tax shall be paid upon the amount so collected
Such credit shall not be allowed with respect to any account or item therein
arising from the sale of any article under a conditional sale contract whereby
the seller retains title as security for all or part of the purchase price or
from the sale of any article when the seller takes a chattel mortgage or
financing statement on the article to secure all or part of the purchase price
1 14 Sales to and purchases of tangible personal property by a
person engaged in the business of manufacturing compounding for sale profit
or use any article substance or commodity which tangible personal property
enters into the processing of or becomes an ingredient or component part of the
product which is manufactured compounded or furnished and the container label
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or the furnished shipping case thereof shall be deemed to be wholesale sales
and shall be exempt from taxation under this ordinance
1 15 Sales and purchases of electricity gas coal fuel oil or
coke for use in processing manufacturing, mining refining irrigation
building construction telegraph telephone and radio communication street and
railroad transportation services and industrial uses and newsprint and printers
ink for use by publishers of newspapers and commercial printers shall be deemed
to be wholesale sales and shall be exempt from taxation under the provisions of
this ordinance
1 16 Should a dispute arise between the purchaser and seller as to
whether or not any such sale is exempt from taxation hereunder nevertheless
the seller shall collect and the purchaser shall pay such tax and the seller
shall thereupon issue to the purchaserga) receipt or certificate on forms
prescribed by the Director of Finance showing the names of the seller and
purchaser the item purchased the date price amount of tax paid and brief
statement of the claim of exemption The purchaser thereafter may apply to
the Director of Finance for a refund of such taxes and it shall then be the
duty of the Director of Finance to determine the question of exemption subject
to review by the courts as may hereinafter be provided It shall be a violation
of this ordinance for any seller to fail to collect or any purchaser to fail
to pay a tax levied by this ordinance and on sales on which exemption is
disputed
1 17 When right to continuous possession or use of any article of
tangible personal property is granted under a lease or contract and such
transfer or possession would be taxable under this ordinance if an outright
sale were made such lease or contract shall be considered the sale of such
article and the tax shall be computed and paid as in the case of an outright
sale taxable hereunder
1 18 A farm closeout sale means a sale by auction or private
treaty of all tangible personal property of a farmer or rancher previously
used by him in carrying on his farming or ranching operations Unless said farmer
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or rancher is making or attempting to make full and final disposition of all
property used in his farming or ranching operations and is abandoning the said
operations on the premises whereon they were previously conducted such sale
shall not be deemed a farm closeout sale within the meaning of this ordinance
1 19 The sales tax is imposed on the full purchase price of articles
sold after manufacture or after having been made to order and includes the full
purchase price of materials used and service performed in connection therewith
excluding however such articles as are otherwise exempted in this ordinance
1 20 The sale price is the gross value of all the materials
labor service and the profit thereon included in the price charged to the
user or consumer
1 21 The term business shall include all activities or under
takingsof any nature engaged in or caused to be engaged in by any person with
the object of gain benefit or advantage direct or indirect
1 22 Auction sale means any sale conducted or transacted at a
permanent place of business operated by an auctioneer or a sale conducted or
transacted at any location where tangible personal property is sold by an
auctioneer when such auctioneer is acting either as agent for the owner of
such tangible personal property or is in fact the owner thereof For any pur
pose of this ordinance the auctioneer at any sale as defined herein except
when acting as an agent for a duly licensed retailer or vendor or when selling
only tangible personal property which is exempt from retail sales or use tax
as provided in Sections 10 and 11 of this ordinance is a retailer or vendor
as defined in Section 1 6 of this ordinance and the sale made by him is a
retail sale as defined in Section 1 7 of this ordinance and the business con
ducted by him in accomplishing such sale is the transaction of a business as
defined in Section 1 21 of this ordinance
Section 2 Licenses for Retail Sellers ,
2 1 It shall be unlawful for any person to engage in the business
of selling at retail as the same is defined in this ordinance on and after
11 59 o clock P M December 31 1967 without first having obtained a license
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therefor which license shall be granted and issued without fee by the Director
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of Finance and shall be in force and effect until revoked
2 2 Application content Such license shall be granted only upon
application stating the name and address of the person desiring such license
the name of such business and the character thereof the location including
the street number of such business and such other facts as may be reasonably
required by the Director of Finance
Section 3 Each Retail Establishment to be Licensed In case
business is transacted at two or more separate places by one person a separate
license for each place of business shall be required
Section 4 Form of License License Non transferable Each License
shall be numbered and shall show the name mailing address and place and
character 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
Section 5 Sale at Retail Without License Any person engaged in
the business of selling at retail in the City without having secured a License
therefor except as specifically provided herein shall be guilty of a violation
of this ordinance and shall be punished accordingly
Section 6 Revocation of License by Director of Finance The Director
of Finance may after giving reasonable notice and after full hearing revoke
the license of any person found by the Director of Finance to have violated any
provision of this ordinance
Section 7 Appeal from the Director of Finance s Order Any finding
and order of the Director of Finance revoking the license of any person shall be
subject to review by the District Court of the district where the business of
the licensee is conducted upon application of the aggrieved party The pro
cedure of the review shall be in accordance with Rule 106 (a) (4) of the Colo
rado Rules of Civil Procedure
Section 8 When License not Required No license shall be required
for any person engaged exclusively in the business of selling commodities which
are exempt from taxation under this ordinance
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Section 9 Taxable Transactions and Items On and after 11 59
o clock P M December 31 1967 there is hereby levied and there shall be
collected and paid a tax in the amount stated in Section 12 hereof as follows
9 1 On the purchase price paid or charged upon all sales and purchases
of tangible personal property at retail provided however that the Director of
Finance may authorize a retailer doing business wholly or partly on a credit basis
to make returns and to remit sales tax on the basis of cash actually received
9 2 In the case of retail sales involving the exchange of property
on the purchase price paid or charged including the fair market value of the
property exchanged at the time and place of the exchange excluding however
from the consideration or purchase price the fair market value of the exchanged
property provided such exchanged property is to be sold thereafter in the usual
course of the retailer s business
9 3 Upon telephone and telegraph services whether furnished by
public or private corporations or enterprises for all City local telephone or
telegraph service receipts including zone calls and intrastate telephone or
telegraph service receipts originating within the City
9 4 For gas and electric service whether furnished by municipal
public or private corporations or enterprises for gas and electricity furnished
and sold for domestic and commercial consumption and not for resale upon steam
when consumed or used by the purchaser and not resold in original form whether
furnished or sold by municipal public or private corporations or enterprises
9 5 Upon the entire amount charged to any person or persons for
rooms or accommodations as defined in Section 1 3 hereof
9 6 Upon the amount paid for all meals and cover charges if any
furnished in any restaurant eating house hotel drug store club resort
hospital nursing home or other such place at which meals or food are regularly
sold to the public
Section 10 Transactions and Items Exempt from Taxation The sale
of the following classes of tangible personal property are exempt from taxation
under this ordinance
10 1 Motor vehicles trailers and semi trailers registered outside
the City of Fort Collins provided however that the purchase of any motor
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vehicle trailer or semi trailer outside the City by a resident of the City
for use in the City shall be subject to tax hereunder which tax shall be
payable to the Director of Finance prior to or at the time the registration
license is issued by the County Clerk of Larimer County If any resident of
the City shall register his motor vehicle trailer or semi trailer in any
other county of the State of Colorado he shall be guilty of a violation of
this ordinance
10 2 Sales of tangible personal property shall be exempted from
the operation of this ordinance if both the following conditions exist (1)
the sales are to those who reside or do business outside the City and (2)
the articles purchased are to be delivered to the purchaser outside the City
by common carrier or by the conveyance of the seller or by mail provided
however that the articles so purchased and so delivered are used outside the
City
10 3 All commodities which are taxed under the provisions of Colo
rado Motor Fuel Tax of 1933 shall be exempt from taxation hereunder
10 4 The sale of goods manufactured within 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 seller or the buyer to a point outside the boundaries of the City for
use outside the City
10 5 All sales to the United States Government to the State of
Colorado its departments or institutions and the political subdivisions
thereof in their governmental capacities only and all sales to the City and
any department thereof
10 6 All sales to religious charitable and eleemosynary corpora
tions in the conduct of their religious charitable and eleemosynary functions
and activities only
10 7 All sales which the City is prohibited from taxing under the
Constitution or laws of the United States or the State of Colorado shall be
exempt hereunder
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10 8 All sales and purchases of neat cattle sheep lambs swine and
goats all sales and purchases of mares and stallions for breeding purposes and
all farm auction closeout sales shall be exempt from taxation hereunder
10 9 All sales of drugs for human consumption dispersed in accordance
with a prescription and all sales of prosthetic devices
10 10 All sales of cigarettes
10 11 All sales and purchases of commodities and services under the
provisions of Section 1 3 hereof to any occupant who is a permanent resident of
any hotel apartment hotel Lodging house motor hotel guest house guest
ranch mobile home auto camp trailer court or park and who enters into or
has entered into a written agreement for occupancy of a room or rooms or accommo
dations for a period of at least thirty (30) consecutive days during the
calendar year or preceding year This exemption shall not apply to the sale
or sales of any goods services or commodities other than the furnishing of
rooms and accommodations unless such goods services or commodities are other
wise exempt from the tax herein
10 12 Sales of tangible personal property to a public utility doing
business both within and without the City for use in its said business opera
tions outside the City even though delivery thereof is made within the City
10 13 Return for Vending Machine Sales Every retailer or vendor
vending items of tangible personal property through coin operated vending
machines shall be exempt from the provisions of Section 11 (a) and (b) and
Section 12 of this ordinance but nevertheless such retailer or vendor shall
pay a retail sales or use tax of one per cent (1/) of the tangible personal
property sold in excess of ten cents so vended in the coin operated machines
unless the sale shall be otherwise exempt as provided in this ordinance
Section 11 Retailer Responsible for Payment of Tax
(a) Every retailer or vendor shall irrespective of the provisions
of Section 12 of this ordinance be liable and responsible for the payment of
an amount equivalent to one per cent (1/) of all sales made by him of commodities
or services as specified in Section 9 of this ordinance and shall file a return
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each month with the Director of Finance on or before the 20e day of each month
for the preceding month and remit an amount equivalent to said one per cent
(1/) of such sales to the Director of Finance Every retailer or vendor may
deduct three per cent (3/) of the amount of the tax to be paid by him under
this ordinance to cover his expenses of collection and remittance of the tax
(b) Every retailer or vendor conducting a business in which the
transaction between the vendor and the consumer consists of the supplying of
tangible personal property and services in connection with the maintenance or
servicing of same shall be required to pay the tax levied under this ordinance
upon the full contract price unless application is made to the Director of
Finance for permission to use a percentage basis of reporting the tangible
personal property sold and the services supplied under such contract The
Director of Finance is hereby authorized to determine the percentage based
upon the ratio of the tangible personal property included in the consideration
as it bears to the total of the consideration paid under said combination con
tract or sale which shall be subject to the tax levied pursuant to the provisions
of this ordinance This paragraph (b) shall not be construed to include items
upon which the tax is imposed on the full purchase price as defined in Section
1 19 of this ordinance
11 1 Return Content Form Etc The returns to be filed by the
taxpayer or his duly authorized agent as set forth in the immediately pre
ceding paragraph shall contain such information and be made in such manner and
upon such forms as the Director of Finance may prescribe The said Director of
Finance may extend the time for making returns and paying the taxes due under
such reasonable rules and regulations as he may prescribe but no such extension
shall be for a greater period than is provided in Section 15
11 2 Exemption Burden of Proof The burden of proving that any
retailer is exempt from collecting the tax upon any goods sold and paying same
to the Director of Finance or from making such returns shall be on the retailer
or vendor under such reasonable requirements of proof as the Director of Finance
may prescribe
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Section 12 Bracket Schedule of Tax Retailers to Collect Tax
There is hereby imposed a tax upon all sales of commodities and services specified
in Section 9 and not exempt therefrom as specified in Section 10 in accordance
with the following schedule
(a) on sales amounting to 19 cents to and including $1 18 a tax
of one cent
(b) on all higher sales one cent shall be added in each bracket of
$1 00 or any part thereof of additional sale price
(c) except as provided in paragraph (d) of this Section retailers
shall add the tax imposed hereby or the average equivalent thereof to the
sale price or charge showing such tax as a separate and distinct item and
when added such tax shall constitute a part of such price or charge and shall
be a debt from the consumer or user to the retailer until paid and shall be
recoverable at law in the same manner as other debts The retailer shall be
entitled as collecting agent of the City to apply and credit the amount of his
collection against the one per cent (1/) rate to be paid by him under the pro
visions of Section 11 remitting any excess of collections over said one per
cent (1/) less the three per cent (3/) collection expense allowance to the
Director of Finance in the retailer s next monthly sales tax return
(d) nothing herein contained shall be deemed to prohibit any retailer
selling malt vinous or spirituous liquors by the drink from including in his
sale price any tax levied under this article The following brackets shall be
used by such retailers in determining amounts to be included in sales prices as
provided in this paragraph
Total Sales Price Tax Included $0 19 $1 18 1 cent
On each further addition of one dollar or any part thereof to the
sale price one additional cent shall be included therein
No person other than the City may enrich himself or gain any benefit
from the collection or payment of such tax nor shall the use of the above
brackets relieve the retailer from liability for payment of the full amount of
the tax levied by Section 11 of this ordinance
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No retailer selling malt vinous or spirituous liquors by the drink
shall advertise or hold out to the public in any manner directly or indirectly
that the tax levied by this article is not considered as an element in the sale
price to the consumer
Section 13 Director of Finance Formulates Rules To provide uniform
methods of adding the tax or the average equivalent thereof to the selling
price it shall be the duty of the Director of Finance with the approval of
the City Manager to formulate and promulgate after hearing appropriate rules
and regulations to effectuate the purpose of this ordinance
Section 14 Unlawful to Advertise Assumption or Absorption of Tax
It shall be unlawful for any retailer to advertise or hold out or state to the
public or to any customer directly or indirectly that the tax or any part
thereof imposed by this ordinance will be assumed or absorbed by the retailer
or that it will not be added to the selling price of the property sold or if
added that it or any part thereof will be refunded
Section 15 Special Accounting Basis for Remittance of Tax If the
accounting method regularly employed by the retailer in the transaction of his
business or other conditions are such that reports of sales made on a calendar
month basis will impose unnecessary hardship the Director of Finance may upon
written request of the retailer accept reports at such intervals as will in
his opinion better suit the convenience of the taxpayer and will not jeopardize
the collection of the tax provided however the Director of Finance may by
rule permit a taxpayer whose monthly tax collected is less than Twenty and
No/100 Dollars ($20 00) to make returns and pay taxes at intervals greater
than one month
Section 16 Consolidation of Returns A retailer doing business in
two or more places or locations taxable hereunder may file one return covering
all such business activities in the City
Section 17 Tax on Credit Sales etc In case of a sale on credit
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or a conditional sale contract whereby the seller retains title as security for
all or part of the purchase price or whenever the seller takes a chattel
mortgage on the goods or commodities to secure all or part of the purchase price
the total tax based on the total selling price shall become immediately due and
payable This tax shall be charged or collected by the seller No refund or
credit shall be allowed to either party to the transaction in case of repossession
Section 18 Excess Collections Failure to Remit Collections If
any vendor shall during any reporting period collect as a tax an amount in
excess of one per cent (1/) of his total taxable sales he shall remit to the
City of Fort Collins the full net amount of the tax herein imposed and also
such excess The retention by the retailer or vendor of any excess tax
collections over one per cent (1/) of the total taxable sales of such retailer
or vendor or the intentional failure to remit punctually to the Director of
Finance the full amount required to be remitted by the provisions of this
ordinance is hereby declared to be a violation of this ordinance
PART TWO TAX ON STORAGE DISTRIBUTION CONSUMPTION OR USE
Section 19 Words and Phrases Defined As used in Part Two of this
ordinance the following words and phrases shall mean or include
19 1 Person means an individual firm co partnership joint
venture association corporation estate or trust receiver trustee assignee
or any other person acting in a fiduciary or representative capacity whether
appointed by a court or otherwise or any other group or combination acting as
a unit and the plural as well as the singular
19 2 Vendor means a person making sales to a purchaser or leasing
to a person at retail and not for resale in theCity or elsewhere of tangible
personal property or services subject to the tax imposed by this ordinance for
use storage distribution or consumption within the City To prevent evasion
and to provide for more efficient administration the term vendor shall be
extended to include any salesman representative peddler or canvasser who as
agent indirectly or directly of the dealer distributor supervisor or employer
under whom he operates or from whom he obtains the tangible personal property
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sold by him makes sales of tangible personal property or services subject to
the tax imposed herein and in such event such agent shall be responsible for
the collection and payment of the tax imposed by this ordinance whenever the
principal of such agent refuses to become licensed as a vendor hereunder
19 3 Purchaser means any person to whom a taxable service has been
rendered or who shall have leased or purchased at retail tangible personal
property which is used stored distributed or consumed in the City upon which
a tax is imposed by this ordinance
19 4 Use means the exercise for any length of time by any person
within the City of any right power or dominion over tangible personal property
under a lease or when purchased at retail either within or without the City
from a vendor or any other person
19 5 Storage means any keeping or retention of, or exercise of
dominion or control over or possession for any length of time of tangible
personal property under a lease or when purchased at retail within or without
the City from a vendor or anyone else
19 6 Purchase or sale means the acquisition for a price by any
person of taxable services or tangible personal property which is used stored
distributed or consumed within the City A transaction shall be deemed to be
a purchase or sale if the acquisition of tangible personal property was effected
by
(1) The transfer either conditionally or absolutely of title or
possession or both of the tangible personal property or
(2) A lease rental or grant of a license to use (including royalty
agreements) store distribute or consume the tangible personal property
19 7 Purchase price means the aggregate value in money of any
thing or things paid or delivered by a lessee or purchaser to a retailer or
vendor in the consummation of a lease or of a retail sale as defined in Section
19 15 hereof without any deduction therefrom on account of the cost of the
property sold cost of material used labor or service cost or any other expense
whatsoever and provided that when articles of tangible personal property are
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sold after manufacture or after having been made to order the gross value of
all materials labor service and profit thereon shall be included in the said
purchase price However the purchase price shall not include any direct tax
imposed by the federal government or by the State of Colorado or by this ordinance
19 8 Tangible personal property means corporeal personal property
including but not Limited to automotive vehicles as herein defined which may
be seen weighed measured felt or touched or is in any manner perceptible to
the senses The term tangible personal property shall not include newspapers
as legally defined by Article 2 Chapter 109 Colorado Revised Statutes 1963
as amended
19 9 City means the City of Fort Collins or its territorial
limits as the case may be
19 10 Director of Finance means the Director of Finance of the
City of Fort Collins
19 11 City Manager means the City Manager of the City of Fort
Collins
19 12 Code means the Code of the City of Fort Collins
19 13 Wholesaler means a person doing a regularly recognized
wholesale or jobbing business and known to the trade as such and selling to
retail merchants jobbers dealers or other wholesalers for the purpose of
resale
19 14 Wholesale sale or wholesale purchase means a sale by
wholesalers to retail merchants jobbers dealers vendors or other wholesalers
for resale It does not include a sale by a wholesaler to users purchasers or
customers not for resale which sales shall be deemed retail sales and subject
to the provisions of this ordinance
19 15 Retail sale or purchased at retail means any sale purchase
lease rental or grant of license to use tangible personal property except a
wholesale sale or purchase
19 16 Taxpayer means any person obligated to account to the
Director of Finance for taxes collected or from whom a tax is due under the
terms of this article
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19 17 Tax means either the tax payable by the purchaser or the
aggregate amount of taxes due from a vendor during the period for which he is
required to report his collections as herein required
19 18 Gross taxable sales means the total amount received in
money credits property or other consideration valued in money from sales
leases and purchases at retail as defined in subsection 19 15 hereof subject
to the tax herein imposed provided that the vendor taxpayer may take credit
in his report of gross taxable sales for an amount equal to the sale or purchase
price of tangible personal property returned by the purchaser when the full sale
or purchase price thereof is refunded `either in cash or by credit
19 19 Business shall include all activities or undertakings of
any nature engaged in or caused to be engaged in by any person with the object
of gain benefit or advantage direct or indirect
19 20 Engaged in business in the City means the selling leasing
or delivering in the City or any activity in the City in connection with the
selling leasing or delivering in the City of tangible personal property by a
retail sale as defined in subsection 19 15 hereof for use storage distribu
tion or consumption within the City This term shall include but shall not be
limited to the following acts or methods of transacting business
(1) The maintaining within the City directly or indirectly or by
a subsidiary of an office distributing house sales room or house warehouse
or other place of business
(2) The soliciting either by direct representatives indirect
representatives, manufacturer s agents, or by distribution of catalogues or
other advertising or by use of the newspaper radio television or any other
advertising media or by any other means whatsoever of business from persons
residing in the City and by reason thereof receiving orders for or purchasing
or renting tangible personal property from such persons residing in the City
for use, consumption distribution and storage for use or consumption in the
City and the tangible personal property so ordered purchased or leased
actually has come to rest for any length of time in the City and has become a
part of the mass of property of the City as a result thereof
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19 21 Automotive vehicle means any vehicle including every
device in upon or by which any person or property is or may be transported
or drawn upon a public highway or any device used or designed for aviation or for
flight in the air and upon which a specific ownership tax is imposed by the State
of Colorado including but not limited to motor vehicles trailers or semi
trailers and aircraft but excepting devices moved by human power or used
exclusively upon stationary rails or tracks and excepting any such vehicles as
herein defined used or engaged in interstate commerce
Section 20 Legislative Intent
20 1 It is hereby declared to be the legislative intent of the
City Council that for the purposes of this ordinance every person who stores
uses distributes or consumes in the City any article of tangible personal
property purchased at retail as herein defined is exercising a taxable privilege
20 2 It is hereby declared to be the legislative intent of the
City Council that for the purposes of this ordinance, every vendor who is
engaged in business in the City as herein defined and who shall deliver or
cause to be delivered to the purchaser in theCity any property taxable herein
shall collect the tax imposed by this ordinance upon the basis of an addition
price of
of the tax imposed by this ordinance to the total/articles of tangible personal
property that are purchased sold or leased at any one time by or to every
customer or buyer in the manner hereinafter set forth
Section 21 Imposition of the Tax
21 1 On and after 11 59 o clock P M December 31 1967 there is
hereby levied and there shall be collected and paid, a tax by every person
exercising the taxable privilege defined in Section 20 hereof for the privilege
of storing using distributing or consuming in the City any article of tangible
personal property as herein defined purchased or acquired at retail
21 2 The amount of the tax hereby levied is one per cent (1/) of the
purchase price as herein defined of such tangible personal property, subject only
to Section 23 3 hereof
21 3 In allcases the purchase price or acquisition cost or charge
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of such tangible personal property so acquired or used shall exclude the
fair market value of any property exchanged as a part of the consideration
paid
Section 22 Items Exempt From Taxation of Use Storage Distribution
etc The use storage distribution or consumption in the City of the following
tangible personal property is hereby specifically exempted from the tax imposed
by Section 21
(1) Tangible personal property the sale of which is subject to the
City retail sales tax as provided herein
(2) Tangible personal property purchased for retail in this City
either in its original form or as an ingredient of a manufactured or com
pounded product in the regular course of business
(3) Motor fuel upon which has accrued or has been paid the motor
fuel tax prescribed by the Colorado Motor Fuel Tax law of 1933
(4) Tangible personal property brought into the City by a non
resident thereof for his own use storage distribution or consumption while
temporarily within this City and the personal property of a resident if such
personal property was purchased prior to becoming a resident of this City
(5) All sales to the United States Government or the State of
Colorado or its institutions or its political subdivisions in their govern
mental capacities only
(6) Tangible personal property purchased from a non resident vendor
by a resident common carrier resident public utility or resident construction
company which tangible personal property is stored in this City but not used
or consumed in this City
(7) Tangible personal property of a person engaged in the business
of manufacturing compounding for sale profit or use any article substance
or commodity which tangible personal property enters into the processing of
or becomes an ingredient or component part of the product or service which is
manufactured, compounded or furnished and the container label or furnished
shipping case thereof
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(8) Sales and purchases of electricity gas coal fuel oil or coke
for use in processing manufacturing mining refining irrigation building
construction telegraph telephone radio and television communication street
and railroad transportation services and all industrial uses and newsprint
and printers ink for use by publishers of newspapers and commercial printers
(9) All sales to the City and any department thereof
(10) All sales to religious charitable and eleemosynary corpora
tions in the conduct of their religious charitable and eleemosynary functions
and activities
(11) All sales and purchases of neat cattle sheep lambs swine and
goats all sales and purchases of mares and stallions for breeding purposes
and all farm auction closeout sales shall be exempt from taxation hereunder
(12) Automotive vehicles and parts and accessories therefor when
used or engaged in interstate commerce
(13) Tangible personal property upon the sale of which a retail
sales tax at a rate equal to or greater than one per cent (1/) has been imposed
and collected by a municipal corporation organized and existing under the
authority of Article XX of the Constitution of the State of Colorado If the
rate of retail sales tax paid to such municipal corporation is less than one
per cent (1/) the difference between the tax due under this ordinance and the
tax computed at the rate of such other retail sales tax in accordance with the
formula set forth in Section 23 of this ordinance shall be paid to the Director
of Finance
(14) All sales uses and other transactions which the City is pro
hibited from taxing under the Constitution and laws of the United States of
America or under the Constitution of the State of Colorado
(15) Sales or purchases of drugs for ) human consumption dispersed
in accordance with a prescription and all sales of prosthetic devices
Section 23 Collection of Tax
23 1 Every vendor engaging in business in the City as herein
defined and making sales or Leases of tangible personal property for use
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storage distribution or consumption in the City which are taxable under the
provisions of this ordinance at the time of making such sales and leases is
required to collect the tax imposed by Section 21 of this ordinance from the
purchaser
23 2 The tax to be collected as provided by Section 23 1 hereof
shall be stated and charged separately from the sale price and shown separately
from the sale price on any record thereof at the time when the sale is made or
at the time when evidence of the sale is issued or employed by the vendor
provided that when added such tax shall constitute a part of such purchase
price or charge and shall be a,_debt from the purchaser to the vendor until paid
and shall be recoverable at law in the same manner as other debts The tax
shall be paid by the purchaser to the vendor as trustee for and on account of
the City and the vendor shall be liable for the collection thereof for and on
account of the City
Section 23 3 Notwithstanding the rate of tax imposed by Section 21
of this ordinance and in order to avoid fractions of pennies the following
brackets shall be applicable to all taxable transactions
(1) On sales as herein defined from 19 cents to and including $1 18
tax of one cent
(2) On all higher sales one cent shall be added in each bracket of
$1 00 or any part thereof of additional sales price
23 4 (a) Every retailer or vendor shall add the tax imposed by
Section 21 of this ordinance or the average equivalent thereof as set forth
in Section 23 3 of this ordinance provided however that every retailer or
vendor shall irrespective of Section 23 3 of this ordinance be liable and
responsible to the City for the payment on a monthly basis of an-amount equiva
lent to one per cent (1/) of all of his gross taxable sales as herein defined
of the tangible personal property used stored distributed or consumed in the
City as specified in Section 21 of this ordinance and also any excessive
collections over said one per cent (1/) arising by the use of the bracket
system provided in Section 23 3 of this ordinance less three per cent (3/) of
20
such amount to cover the retailer s or vendor s cost in the collection and remit
tance of said tax
23 4 (b) Every retailer or vendor conducting a business in which
the transaction between the vendor and the purchaser consists of the supplying
of tangible personal property and services in connection with the maintenance
or servicing of the same shall be required to pay the tax levied pursuant to
this ordinance upon the full contract price unless application is made to the
Director of Finance for permission to use a percentage basis of reporting the
tangible personal property sold and the services supplied under such contract
the Director of Finance is hereby authorized to determine the percentage based
upon the ratio of the tangible personal property included in the consideration
as it bears to the total of the consideration paid under the said combination
contract or sale which shall be subject to the sales and use tax levied pursuant
to the provisions of this ordinance This section shall not be construed to
include items upon which the sales and use tax is imposed on the full purchase
price as defined in Section 19 7 of this ordinance
23 5 Every vendor shall before the twentieth (20 °) day of
February 1968 and before the twentieth (20 ") day of each month thereafter
make a return to the Director of Finance for the preceding calendar month
commencing with the month of January 1968 and remit to said Director of
Finance simultaneously therewith the total amount due the City as provided by
Section 23 4
23 6 The monthly returns of the vendor as required hereunder shall
be made in such manner and upon such forms as the Director of Finance may
prescribe
Section 24 Director of Finance to Formulate Rules Special
Accounting etc To provide uniform methods of adding the tax or the average
equivalent thereof to the purchase price it shall be the duty of the Director
of Finance to formulate and promulgate with the approval of the City Manager
after hearing appropriate rules and regulations to effectuate the purpose of
this ordinance provided that if the accounting method regularly employed by
21
the vendor in the transaction of his business or other conditions are such
that the returns aforesaid made on a calendar month basis will impose unnecessary
hardship the Director of Finance may upon request of the vendor accept returns
at such intervals as will in his opinion better suit the convenience of the vendor
and will not jeopardize the collection of the tax provided, however the
Director of Finance may by rule permit a vendor whose monthly tax collected is
less than Twenty and No/100 Dollars ($20 00) to make returns and pay taxes at
intervals greater than one (1) month
Section 25 Consolidation of Returns A vendor doing business in
two or more places or locations whether in or without the City and collecting
taxes hereunder may file one return covering all such places or Locations when
accompanied by a supplemental report showing the gross and net taxable sales and
taxes collected thereon for each such place or location
Section 26 Tax on Credit Sales etc
26 1 Whenever tangible personal property is sold which is taxable
hereunder under a conditional sales contract or rental purchase contract
whereby the vendor retains title as security for all or part of the purchase
price or whenever the vendor takes a chattel mortgage or financing statement
on such tangible personal property to secure all or part of the purchase price
the total tax based on the total selling price shall become immediately due and
payable This tax shall be charged or collected by the vendor No refund or
credit shall be allowed to either party to the transaction in case of repossession
26 2 Provided further that taxes paid on the amount of gross
taxable sales, which are represented by accounts not secured by conditional
sale contract rental purchase contract or chattel mortgage or financing state
ment and 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 of Colorado may be credited upon a subsequent payment of the tax herein
provided but if any such accounts are thereafter collected by the vendor a tax
shall be paid upon the amounts so collected Such credit shall not be allowed
with respect to any account or item therein arising from the sale of any article
22
under a conditional sale contract whereby the vendor retains the title as security
for all or part of the purchase price or from the sale of any articles when the
vendor takes a chattel mortgage or financing statement on the article to secure
all or part of the purchase price
Section 27 Automobiles Purchased Outside the City No automotive
vehicle as defined in Section 19 21 of this ordinance purchased or acquired
by a resident of the City for use in the City at retail outside the City shall
be registered in Larimer County nor shall title thereto be transferred within
Larimer County nor shall a license or registration for the use thereof in the
State of Colorado be issued by the County Clerk of Larimer County if the tax
imposed by this ordinance upon the privilege of using storing distributing
or consuming the same has not been paid to the Director of Finance
Section 28 Returns When Tax Not Paid to Vendor By Whom Every
person who operates or maintains in theCity a business as defined in Section
19 19 hereof and who purchases or leases tangible personal property for use
storage or consumption in the City in connection with his said business as
above defined from sources without the City and taxable hereunder and who
has not paid the tax imposed by this ordinance thereon to a vendor required or
authorized to collect the same shall monthly make a return and pay the tax
due to the Director of Finance on or before the twentieth (20 °) day of
February 1968 and before the twentieth (20 °) day of each calendar month
thereafter for the preceding calendar month commencing with January 1968
Such returns shall show the value of the tangible personal property purchased
by such person the use storage distribution or consumption of which became
subject to the tax imposed by this ordinance during the period of time covered
by the return
28 1 Every resident of theCity who purchases or leases tangible
personal property for use storage or consumption in the City from sources
without the City and taxable hereunder and who has not paid the tax imposed by
this ordinance thereon to a vendor required or authorized to collect the same
or to any vendor shall make a return and pay the tax due to the Director of
Finance within thirty (30) days from the purchase or lease of such tangible
23
personal property Such return shall show the value of the tangible personal
property purchased by such person the use storage distribution or consumption
of which is subject to the tax imposed by this ordinance
Section 29 Returns by Owners or Lessees When Every owner or
lessee of realty situate in the City and of improvements and structures located
upon realty situate in the City upon which any article or articles of tangible
personal property taxable hereunder acquired from sources outside the City
are attached or affixed who has not paid the tax imposed by this article thereon
to a vendor required or authorized to collect the same shall monthly make a
return and pay the tax due to the Director of Finance on or before the twentieth
(20 ") day of February, 1968 and before the twentieth (20h) day of each calendar
month thereafter for the preceding calendar month commencing with January 1968
Section 30 Tax Must Be Collected Notwithstanding Sale Made Outside
City Every vendor required or permitted to collect the tax shall collect the
tax imposed by the provisions of this ordinance notwithstanding the following
(1) That the purchaser s order or the contract of sale is delivered
mailed or otherwise transmitted by the purchaser to the vendor at a point out
side of the City as a result of solicitation by the vendor through the medium
of catalog or other written advertisement or
(2) That the purchaser s order or contract of sale is made or closed
by acceptance or approval outside of the City or before said tangible personal
property enters the City or
(3) That the purchaser s order or contract of sale provides that
said property shall be or it is in fact procured or manufactured at a point
outside of the City and shipped directly to the purchaser from the point of
origin or
(4) That said property is mailed to the purchaser in the City from
a point outside the City or delivered to a carrier at a point outside theCity
F 0 B or otherwise and directed to the vendor in the City regardless of
whether the cost of transportation is paid by the vendor or by the purchaser or
(5) That said property is delivered directly to the purchaser at a
point outside the City provided however that in paragraphs (1) through (5)
24
above the property is intended to be brought into the City for use storage or
consumption in the City
Section 31 Licenses for Vendors It shall be unlawful for any person
to engage in the business of selling at retail as the same is defined in Part
Two of this ordinance tangible personal property and services subject to the
tax imposed by this ordinance without first having obtained a license therefor
which license shall be granted and issued by the Director of Finance and shall
be in force and effect until revoked
Section 32 Application Content Such license shall be granted only
upon application stating the name and address of the person desiring such
license the name of such business and the character thereof the location
including the street number of such business and such other facts as may be
required
Section 33 Each Retail Establishment to be Licensed In case
business is transacted at two or more separate places by one person a separate
license for each place of business shall be required
Section 34 Form of License License Non transferable Each license
shall be numbered and shall show the name residence and place and character 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
Section 35 Doing Business Without a License Any person engaged in
business in the City as defined in Part Two of this ordinance without having
secured a license therefor except as specifically provided herein shall be
guilty of a violation of this ordinance
Section 36 Revocation of License by Director of Finance The
Director of Finance may on reasonable notice and after full hearing revoke the
license of any person found by the Director of Finance to have violated any
provision of this ordinance
Section 37 Appeal from Director s Order Any finding and order of
the Director of Finance revoking the license of any person shall be subject to
review by the District Court of the district where the business of the licensee
25
11
is conducted upon application of the aggrieved party The procedure for review
shall be in accordance with Rule 106a (4) of the Colorado Rules of Civil Procedure
Section 38 Unlawful to Advertise Assumption or Absorption of Tax
It shall be unlawful for any vendor to advertise or hold out or state to the
public or to any customer directly or indirectly that the tax or any part
thereof imposed by this ordinance will be assumed or absorbed by the vendor
or that it will not be added to the selling price of the property sold or if
added that it or any part thereof will be refunded
Section 39 Excess Collections Failure to Remit Collections If
any vendor shall during any reporting period collect as a tax an amount in
excess of one per cent (1/) of his total taxable sales he shall remit to the
Director of Finance the full net amount of the tax herein imposed and also such
excess The retention by the vendor of any excess of tax collections over one
per cent (1/) of the total taxable sales of such vendor or the intentional
failure to remit punctually to the Director of Finance the full amount required
to be remitted by the provisions of this ordinance is hereby declared to be a
violation of this ordinance
Section 40 Disputed Tax and Refunds Should a dispute arise between
the purchaser and vendor as to whether or not any sale or commodity or service
is exempt from taxation hereunder nevertheless the vendor shall collect and the
purchaser shall pay such tax and the vendor shall thereupon issue to the
purchaser a receipt or certificate on forms prescribed by the Director of
Finance showing the names of the purchaser and vendor the items purchased the
date, price, amount of tax paid and a brief statement of the claim of exemption
The purchaser thereafter may apply to the Director of Finance for a refund of
such taxes and it shall be the duty of the Director of Finance to determine the
question of exemption subject to review by the courts as herein provided It
shall be a violation of this ordinance for any vendor to fail to collect or any
purchaserto fail to pay a tax levied by this ordinance and on sales commodities
or services on which exemption is disputed
26
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Section 41 Burden of Proof The burden of proof that sales of
commodities and services on which tax refunds are claimed are exempt from
taxation hereunder or were not at retail shall be on the one making such
claim under such reasonable requirements of proof as the Director of Finance
may prescribe
PART THREE ADMINISTRATION PAYMENT REFUNDS COLLECTION AND
ENFORCEMENT OF THE RETAIL SALES AND USE TAX VIOLATIONS AND
PENALTIES PROVIDING FOR REPEAL OF ORDINANCE UNDER CERTAIN
CIRCUMSTANCES AND FOR SUBMITTING A SALES TAX MEASURE TO THE
QUALIFIED VOTERS OF THE CITY AT THE GENERAL CITY ELECTION IN 1969
Section 42 Refunds Procedure A refund shall be made or credit
allowed for the tax so paid under dispute by any person who claims one or more
exemptions as provided by the City of Fort Collins Retail Sales and Use Tax
Ordinance Such refund shall be made by the Director of Finance after com-
pliance with the following conditions precedent
42 1 Application Applications for refund must be made within
sixty (60) days after the purchase or acquisition of the goods on 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 seller and be made upon such forms as shall be prescribed and
furnished by the Director of Finance which forms shall contain such information
as said Director of Finance shall prescribe
42 2 Burden of Proof The burden of proving that any person is
exempt from paying the tax upon any personal property purchased acquired used
stored or consumed within the City shall be upon the person asserting such
claim for exemption under such reasonable requirements or proof as the Director
of Finance may prescribe
42 3 Decisions Upon receipt of such application the Director of
Finance shall examine the same with all due speed and shall give notice to the
applicant by an order in writing of his decision thereon
42 4 Hearing An aggrieved applicant may within ten (10) days
after such decision is mailed to him petition the Director of Finance for a
hearing on the claim in the manner provided hereinafter
27
Section 43 Refunds not Assignable The right of any person to
refund under this ordinance shall not be assignable and application for refund
must be made by the same person who purchased the goods and paid the tax thereon
as shown in the invoice of the sale thereof
Section 44 Penalty for Violating Refund Provisions Any applicant
for refund under the provisions hereinabove or any other person who shall make
any false statement in connection with an application for a refund of any tax
shall be deemed guilty of a violation of this ordinance and punished as herein
after provided
Section 45 Violations of Refund Provisions to be Used as Evidence
of Fraudulent Intent If any person be convicted under the provisions of
Section 44 such conviction shall be prima facie evidence that all refunds
received by such person during the current year were obtained unlawfully and
the Director of Finance is hereby empowered and directed to bring appropriate
action for recovery of such refund A brief summary of the above mentioned
penalties shall be printed on each form application for refund
Section 46 Sales Tax Information to be Confidential
46 1 Except in accordance with judicial order or as otherwise herein
provided the Director of Finance his agents, clerks and employees shall not
divulge any information gained from any return filed under the provisions of
this ordinance
46 2 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 Director of
Finance in an action under the provisions of this ordinance to which he is a
party or on behalf of any party to an action or proceeding under the provisions
of this ordinance 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 said returns or of the facts shown thereby as are pertinent to the
action or proceeding and no more
28
46 3 Nothing construed in this section shall be construed to
prohibit the delivery to a person or his duly authorized representative of a
copy of any return or report filed in connection with his tax nor to prohibit
the publication of statistics so classified as to prevent the identification of
particular reports or returns and the items thereof nor to prohibit the
inspection by the City Attorney of the City or any other legal representative
of the City of the report or return of any person who shall bring action to
set aside or review the tax based thereon or against whom an action or pro
ceeding is contemplated or has been instituted under this ordinance
46 4 Reports and returns shall be preserved for three (3) years and
thereafter until the Director of Finance, with approval of the City Manager
orders them destroyed
Section 47 Duty to Keep Books and Records 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 hereunder to keep and preserve suitable records
of all sales made by him and such other books or accounts as may be necessary
to determine the amount of tax for the collection of which he is liable hereunder
It shall be the duty of every such person to keep and preserve for a period of
three (3) years all invoices of goods and merchandise purchased for resale and
all such books invoices and other records shall be open for examination at
any time by the Director of Finance or his duly authorized agents
Section 48 Penalty for Wrongfully Divulging Sales Tax Information
Any City officer or employee or any member of the office of or officer or
employee of the Director of Finance who shall divulge any information classified
herein as confidential in any manner except in accordance with proper judicial
order or as otherwise provided by law shall be guilty of a violation hereof
Section 49 Examination of Returns Refunds Credits and Deficiencies
As soon as practicable after the return is filed the Director of Finance shall
examine it
49 1 If it then appears that the correct amount of tax to be remitted
is greater or less than that shown in the return, the tax shall be recomputed by
the Director of Finance
29
49 2 If the amount paid exceeds that which is due the excess shall
be refunded or credited against any subsequent remittance from the same person
49-3 If the amount paid is less than the amount due the difference
together with interest thereon at the rate of one-half of one per cent (�/) per
month from the time the return was due shall be paid by the taxpayer within
ten (10) days after written notice and demand to him from the Director of
Finance
Section 50 Penalty for Deficiencies Caused by Disregard of Rules
If any part of the deficiency is due to negligence but without the intent to
defraud there shall be added ten per cent (10/) of the total amount of the
deficiency and interest in such case shall be collected at the rate of one per
cent (1/) per month on the amount of such deficiency from the time the return
was due from the person required to file the return which interest and
addition shall become due and payable within ten (10) days after written notice
and demand by the Director of Finance
Section 51 Penalties for Deficiency Caused by Fraud If any part
of the deficiency is due to the intent by the taxpayer to evade the tax then
there shall be added fifty per cent (50/) of the total amount of the deficiency
and in such case the whole amount of the tax unpaid including the additions
shall become due and payable ten (10) days after written notice and demand by
the Director of Finance and an additional one per cent (1/) per month on said
amounts shall be added from date the return was due until paid
Section 52 Investigation of Retailer s Books For the purpose of
ascertaining the correctness of a return, or for the purpose of determining the
amount of tax due from any person the Director of Finance or his duly authorized
deputies or appointed agents may hold investigations and hearings concerning any
matters covered by this ordinance and may examine any relevant books papers
records or memoranda of any such person and may require the attendance of such
person or any officer or employee of such person or of any person having
knowledge of such sales and may take testimony and proof for his information
The Director of Finance and his duly authorized deputies shall have power to
administer oaths to such persons
30
Section 53 Hearings Subpoenas and Witness Fees All subpoenas
issued under the terms of this ordinance may be served by any person over the
age of 18 years The fees of witnesses for attendance and trial shall be the
same as the fees of witnesses before the District Court such fees to be paid
when the witness is excused from further attendance When the witness is sub
poenaed at the instance of the Director of Finance such fees shall be paid in
the same manner as other expenses under the terms of this ordinance and when
a witness is subpoenaed at the instance of any party to any such proceeding
of
the Director/Finance may require that the cost of service of the subpoena and
the fee of the witness be borne by the party at whose instance the witness is
summoned In such case the Director of Finance in his discretion may require
a deposit to cover the cost of such service and witness fees A subpoena issued
as aforesaid shall be served in the same manner as a subpoena issued out of a
court of record
Section 54 Judge Compels Attendance Any district judge of the
District Court upon the application of the Director of Finance may compel the
attendance of witnesses the production of books papers records or memoranda
and the giving of testimonyrbefore the Director of Finance or any of his duly
authorized deputies or appointed agents by an attachment for contempt or
otherwise in the same manner as production of evidence may be compelled before
said Court
Section 55 Depositions The Director of Finance or any party in an
investigation or hearing before the Director of Finance may cause the deposition
of witnesses residing within or without the State to be taken in the manner
prescribed by law for like depositions in civil actions in courts of this State
and to that end compel the attendance of witnesses and the production of books
papers records or memoranda
Section 56 Unpaid Tax a Prior Lien, Satisfaction of Lien by Levy
Sale etc
56 1 The tax imposed by the City of Fort Collins Retail Sales and
Use Tax Ordinance together with the interest and penalties herein provided and
31
the cost of collection which may be incurred by the City shall be and until
paid remain a first and prior lien superior to any other liens on all the
tangible personal property of taxpayer purchaser or vendor 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 Director of Finance or his authorized
agent whenever the taxpayer purchaser or vendor is in default in the payment
of said tax interest and penalty Said warrant may be served and the goods
subject to such lien seized by the Director of Finance or his authorized agent
and may be sold by him at a public auction to be held ten (10) days after
notice thereof has been published in a newspaper published in the City
56 2 The Director of Finance or his authorized agent shall forth
with levy upon sufficient of the tangible personal property of the taxpayer
purchaser or vendor, and the said 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 property upon judgment of a court of record and
the remedies of garnishment shall apply
Section 57 Sale of business Any retailer who shall sell out his
business or stock of goods or shall quit his business shall be required to make
out a return as provided in this ordinance within ten (10) days after the date
he sold out his business or stock of goods or quit business and his successor
in business shall be required to withhold sufficient of the purchase money to
cover the amount of the sales and use tax due and unpaid until such time as the
former owner shall produce a receipt from the Director Of Finance showing that
the taxes have been paid or a certificate that no taxes are due
Section 58 Purchases Subject to Tax Lien If the purchaser of a
business or stock of goods shall fail to withhold the amount of purchase money
as above provided and the tax shall be due and unpaid after they ten (10) day
period allowed he as well as the vendor shall be personally liable for the
payment of the taxes unpaid by the former owner Likewise, anyone who takes
any stock of goods or business fixtures of or used by any retailer under lease
32
title retaining contract or other contract arrangement by purchase foreclosure
sales, or otherwise takes same subject to the lien for any delinquent sales and
use taxes owed by such retailer and shall be liable for the payment of all
delinquent sales taxes of such prior owner, not, however exceeding the value
of the property so taken or acquired
Section 59 Status of Unpaid Tarn Bankruptcy and Receivership
Whenever the business or property of any taxpayer subject to the City of Fort
Collins Retail Sales and Use Tax Ordinance shall be placed in a receivership
bankruptcy or assignment for the benefit of creditors or seized under dis
traint for property taxes all taxes penalties and interest imposed by this
ordinance and for which said retailer is in any way liable under the terms of
i
this ordinance shall constitute a prior and preferred Lien against all the
property of said taxpayer except as to pre existing 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 as hereinafter provided on the property
of the taxpayer other than the goods stock in trade and business fixtures of
such taxpayer and no sheriff, receiver assignee or other officer shall sell
the property of any person subject to this ordinance under process or order of
any court without first ascertaining from the Director of Finance the amount of
any taxes due and payable under the City of Fort Collins Retail Sales and Use
Tax Ordinance and if there be any such taxes due owing and unpaid, it shall
be the duty of such officer to first pay the amount of said taxes out of the
proceeds of such sale before making payment of any moneys to any judgment
creditor or other claimants of whatsoever kind or nature except the costs of
the proceedings and other pre existing claims or liens as above provided
Section 60 Trust Status of Tax in Possession of Retailer All sums
of money paid by the purchaser to the retailer as taxes imposed by this ordinance
shall be and remain public money and the property of the City in the hands of
such retailer and he shall hold the same in trust for the sole use and benefit
of the City untilpaid to the Director of Finance as herein provided and for
failure so to pay to the Director of Finance such retailer shall be punished
for a violation hereof
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Section 61 Refusal to Make Return Estimate of Taxes Penalty
Notice Assessment
61 1 If any person neglects or refuses to make a return in payment
of the taxes as required by this ordinance the Director of Finance shall make
an estimate based upon such information as may be available of the amount of
the taxes due for the period or periods for which the taxpayer is delinquent
and upon the basis of such estimated amount compute and assess in addition
thereto a penalty equal to ten per cent (10/) thereof together with interest
on such delinquent taxes at the rate of one per cent (1/) per month from the
date when due
61 2 Promptly thereafter the Director of Finance shall give to the
delinquent taxpayer written notice of such estimated taxes penalty and interest
which notice must be served either personally or by registered or certified mail
61 3 Such estimate shall thereupon become an assessment and such
assessment shall be final and due and payable from the taxpayer to the Director
of Finance ten (10) days from the date of service of the notice or the date of
mailing by registered or certified mail., provided however that within said ten
day period such delinquent taxpayer may petition the Director of Finance for
a revision or modification of such assessment and shall within such ten day
period furnish the Director of Finance the facts and correct figures showing
the correct amount of such taxes
61 4 Such petition shall be in writing and the facts and figures
submitted shall be submitted either in writing or orally and shall be given
under oath of said taxpayer
61 5 Thereupon the Director of Finance may modify such assessment
in accordance with the facts submitted Such assessment shall be considered
the final order of the Director of Finance and may be reviewed under Rule 106
(a) (4) of the Colorado Rules of Civil Procedure as provided in this ordinance
provided that the taxpayer gives written notice to the Director of Finance of
his intent to seek review within five (5) days after receipt of the final order
of assessment
34
Section 62 Notice of Tax Lien
62 1 If any taxes penalty or interest imposed by this ordinance
and shown by returns filed by a taxpayer or as shown by assessments duly made
as provided herein are not paid within five (5) days after the same are due
the Director of Finance shall issue a notice setting forth the name of the
taxpayer the amount of the tax penalties and interest the date of the
accrual thereof and that the City claims a first and prior lien therefor on
the real and tangible personal property of the taxpayer except as to pre
existing claims or liens of a bona fide mortgagee pledgee judgment creditor
or purchaser whose right shall have attached prior to the filing of the notice
as hereinafter provided on property of the taxpayer
62 2 Such notice shall be on forms prepared by the Director of
Finance and shall be verified by him or his agent and may be filed in the
office of the Clerk and Recorder of any county in this state in which the tax
payer owns real or tangible personal property and the filing of such notice
shall create such lien on such property in that county and constitute a notice
thereof
Section 63 Release of Lien Any lien for taxes as shown on the
records of the county clerks and recorders as herein provided shall upon the
payment of all taxes penalties and interest covered thereby be released by
the Director of Finance in the same manner as mortgage or judgments are released
Section 64 Recovery of Unpaid Tax by Action at Law
64 1 The Director of Finance may also treat any such taxes, penalties
or interest due and unpaid as a debt due the City from the vendor retailer
64 2 In case of failureto pay the taxes or any portion thereof or
any penalty or interest thereon when due the Director of Finance may recover
at law the amount of such taxes penalties and interest in any county or district
court of the county wherein the taxpayer resides or has his place of business
64 3 The return of the taxpayer or the assessment made by the
Director of Finance as herein provided shall be prima facie proof of the amount
due
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64 4 ° The City Attorney is hereby authorized upon request by the
Director of Finance to commence any legal action or suit for the recovery of
the tax due under the City of Fort Collins Retail Sales and Use Tax Ordinance
Section 65 City a Party to Title Actions for Determination of
Liens In any action affecting the title to real estate or the ownership or
right to possession of persona property the City may be made a party for the
purpose of obtaining a judgment or determination of its lien upon the property
involved therein
Section 66 Director of Finance May Waive Penalty The Director of
Finance is hereby authorized to waive for good cause shown according to such
policies as may from time to time be established by the City Council any
penalty assessed as in this ordinance provided For this purpose any interest
imposed in excess of six per cent (6/) per annum shall be deemed a penalty
Section 67 Petitions by Aggrieved Taxpayers to Set Hearings If
any taxpayer having made a return and paid the tax provided for in theCity of
Fort Collins Retail Sales and Use Tax Ordinance, deems himself aggrieved by
the assessment made upon him by the Director of Finance he may apply to the
Director of Finance by petition in writing within ten (10) days after the
notice is mailed to him for a hearing and a correction of the amount of the
tax so assessed in which petition he shall set forth the reasons why such
hearing should be granted and the amount by which such tax should be reduced
The Director of Finance shall notify the petitioner in writing of the time and
place fixed by him for such hearing After such hearing the Director of
Finance shall make such order in the matter as is just and proper and shall
furnish a copy of such order to the petitioner
Section 68 Decisions of Director of Finance Notice When Final
Every decision of the Director of Finance shall be in writing and notice
thereof shall be mailed to the taxpayer within ten (10) days and all such
decisions shall become final upon the expiration of thirty (30) days However
for purposes of review the decision shall be final immediately
Section 69 Review of Director of Finance s Decision The taxpayer
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may apply for review of the decision by the Director of Finance in the District
Court in and for Larimer County and in accordance with Rule 106 (a) (4) of the
Colorado Rules of Civil Procedure
Section 70 Review Bond Filed with Director of Finance Before
making application to the District Court the party making such application
shall file with the Director of Finance a bond in twice the amount of the taxes
interest and other charges audited and stated in the determination and decision
of the Director of Finance with good and sufficient surety or at his option
may deposit lawful money of the United States in the same manner as herein
provided
Section 71 Review in District Court
71 1 The District Court shall determine denovo or review all
questions of law and fact determined by the Director of Finance in administering
the provisions of this ordinance by writ under Rule 106 (a) (4) of the Colorado
Rules of Civil Procedure
71 2 Every writ for a determination denovo or for review shall be
issued by the Clerk of the District Court upon a verified petition of the tax
payer filed within twenty (20) days after mailing of notice of the decision of
the Director of Finance and upon proof of compliance with Section 71 hereof
71 3 The writ shall be served within five (5) days after its
issuance and shall be returnable at such time as the District Court may deter
mine not less than ten (10) days nor more than twenty (20) days after the
date when the writ was issued The Director of Finance shall forthwith certify
the record of his proceedings to said Court
71 4 The procedure thereunder shall be in conformity with the Rules
of Civil Procedure of the State of Colorado
Section 72 Review of District Court Decisions by Supreme Court The
decision of the District Court may be reviewed in the Supreme Court upon writ
of error by any party
Section 73 Notices to be Sent Registered or Certified Mail All
notices required to be given to any taxpayer under the provisions of this
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ordinance shall be in writing and if mailed �prepaid by certified or registered
mail return receipt requested to him at his last known address shall be
sufficient for the purpose of this ordinance
Section 74 License and Tax in Addition to all Other Taxes The
license and tax imposed by this ordinance shall be in addition to all other
licenses and taxes imposed by law except as herein otherwise provided
Section 75 Hearings to be Held in City Every hearing before the
Director of Finance shall be held in the City of Fort Collins
Section 76 Administration of Ordinance by Director of Finance The
administration of the licensing provisions of this ordinance is hereby vested
in the Director of Finance and the administration of all other provisions of
this ordinance is hereby vested in and shall be exercised by the Director of
Finance who shall prescribe forms and reasonable rules and regulations, in
conformity with this ordinance for the making of returns for the ascertainment
assessment and collection of taxes imposed and for the proper administration
and enforcement thereof
Section 77 Purpose of Tax Distribution of Proceeds The City
Council hereby declares that the purpose of the levy of the taxes imposed by
this ordinance is for the raising of funds for the payment of the expenses of
operating the City and for capital improvements and in accordance with these
purposes all of the proceeds of said tax shall be placed in and become a part
of the General Fund of the City
Section 78 Statute of Limitations The taxes for any period
together with interest thereon and penalties with respect thereof imposed by
this ordinance shall not be assessed nor shall any notice of Lien be filed or
distraint warrant be issued or suit for collection be instituted or any other
action to collect the same be commenced more than three (3) years after the
date on which the tax was or is payable Nor shall any lien continue after
such period except for taxes assessed before the expiration of such period
notice of lien with respect to which has been filed prior to the expiration of
such period in which cases such lien shall continue only for one (1) year
after the filing of notice thereof
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78 1 In case of a false or fraudulent return with intent to evade
tax the tax together with interest and penalties thereon may be assessed
or proceedings for the collection of such taxes may be begun at any time
78 2 Before the expiration of such period of limitation the tax
payer and the Director of Finance may agree in writing to an extension thereof
and the period so agreed on may be extended by subsequent agreement in writing
Section 79 Motor Vehicles and Trailers Any resident of the City
who shall purchase any automotive vehicle as defined in Section 19 21 hereof,
whether new or used outside the corporate limits of the City for use within
the City shall immediately and prior to registering and obtaining a license
therefor make a return showing such transaction to the Director of Finance and
thereupon pay to him the tax applicable thereto as provided for herein and
failure to do so shall constitute a violation of this ordinance
Section 80 Failure to Register Automotive Vehicles in Larimer
County Any resident of the City who registers his automotive vehicle as
defined herein whether new or used, outside the corporate limits of the City
for use within the City shall immediately and prior to registering and
obtaining a license therfor make a return showing such transaction to the
Director of Finance and thereupon payto him the tax applicable thereto as
provided for herein and failure to do so shall constitute a violation of this
ordinance
Section 81 Building Materials and Supplies Any person who shall
build construct reconstruct alter expand modify or improve any building
dwelling or other structure or improvement to real property within the City of
Fort Collins and who shall purchase the lumber fixtures or any other building
materials and supplies used therefor from any source outside the corporate
limits of the City shall keep and preserve all invoices and statements showing
such purchases and shall on or before the twentieth (20th) 1ay of each
succeeding month following the commencement of such construction file a return
with the Director of Finance and shall thereupon pay to said Director of Finance
the full amount of the tax due thereon as provided herein for the preceding
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month or months Any failure to preserve such statements and invoices and to
make such return and payment of this tax shall be deemed a violation of this
ordinance and any person so offending shall be subject to the penalties and
punishment provided herein It shall be the duty of the City Building Inspector
and the contractors and subcontractors who are hired to do the above stated
work or any portion thereof to furnish the Director of Finance such infor
matron as he may require as to any purchases of lumber, fixtures or any other
building materials and supplies for such work which were obtained from sources
outside the corporate limits of the City The full amount of any tax due and
not paid for lumber fixtures or any other building materials and supplies
purchased from such outside sources together with penalties and interest
thereon as herein provided shall be and constitute a lien upon the real property
benefited by such work and the Director of Finance is hereby authorized to
file a notice of such lien with the County Clerk and Recorder of Larimer County
Section 82 Lien for Unpaid Taxes on Personal Property Affixed to
Real Property The full amount of unpaid taxes arising from and required to be
reported pursuant to the provisions of Section 29 together with interest and
penalties as herein provided shall be and constitute a first and prior lien
which lien shall have precedence over all other liens of whatsoever kind and
nature except as to liens for general taxes created by state law and except
as to pre existing 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 tax lien on the property of the taxpayer
Section 83 No Final Inspection or Certificate of Occupancy Unless
Tax Paid No final inspection shall be made by the City Building Inspector or
no certificate of occupancy shall be issued unless all taxes due as provided
herein on all lumber fixtures and any other building materials and supplies
used in or connected with the construction reconstruction alteration expan
sion modification or improvement of any budding dwelling or other structure
or improvement to real property within the City have been paid or arrangements
therefor made with the Director of Finance
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Section 84 Severability If any part section subsection, sentence,
clause or phrase of this ordinance is for any reason held to be invalid such
decision shall not affect the remaining portions of this ordinance the City
Council hereby declares that it would have passed this ordinance and each part
section subsection sentence clause and phrase thereof irrespective of the
fact that any one or more parts sections, subsections sentences clauses or
phrases be declared invalid
Section 85 Violations Evasion of Collection or Payment of Tax
It shall be a violation of this ordinance for any retailer vendor or any other
person subject to the tax levied herein to refuse to make any return provided
to be made in this ordinance or to make any false or fraudulent return or any
false statements in any return, or to fail or refuse to make paygient to the
Director of Finance of any taxes collected or due the City or in any manner to
evade the collection and payment of the tax, or any part thereof imposed by
this ordinance or for any person or purchaser to fail or refuse to pay such
tax or evade the payment thereof, or to aid or abet another in any attempt to
evade the payment of the tax imposed by this ordinance Any corporation making
a false return or a return containing a false statement shall be guilty of a
violation of this ordinance
Section 86 Penalty
86 1 Any person who shall violate any of the provisions of this
ordinance shall be guilty of a violation thereof and shall be punished by a fine
not to exceed Three Hundred and No/100 Dollars ($300 00) or imprisonment not to
exceed ninety (90) days
86 2 Each and every twenty four (24) hours continuation of any
violation shall constitute a distinct and separate offense
Section 87 Repeal of Ordinance Under Certain Circumstances In the
event a county wide sales tax becomes effective in Larimer County and provision
is made for the distribution of revenue collections to the City of Fort Collins
in an amount at least equal to the revenue collections which would be received
under the within ordinance the within ordinance shall become inoperative and
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shall be forthwith repealed by the City Council of the City of Fort Collins as
of the effective date of such county wide sales tax
Section 88 Submission of Sales Tax Measure at General City Election
In the event no county wide sales tax as provided for in the section immediately
preceding becomes effective prior to the date of the general election to be
held in the year 1969 a measure shall be submitted to the qualified voters at
such election for approval of the within ordinance and if a majority of the
qualified voters voting thereon fail to approve the within ordinance the same
shall be repealed with such repeal to be effective January 1 1970
Section 89 Section Headings The section headings contained herein
are intended for convenience only and shall have no substantive effect
Introduced considered favorably on first reading and ordered
published this 26 ° day of October, A D 1967 and to be presented for final
passage on the 16 h day of November, A D 1967
W
Mayor
ATTEST
C` cy�---
City Clqrk
Passed and adopted on final reading this 16 " day of November A D
1967
Mayor
ATTEST
City C1e k
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