HomeMy WebLinkAbout022 - 08/14/1958 - RELATING TO CIGARETTE DEALERS PROVIDING FOR LICENSING OF CIGARETTE DEALERS ESTABLISHING AN OCCUPATIO ORDINANCE NO 22 1958
RELATING TO CIGARETTE DEALERS PROVIDING FOR LICENSING OF
CIGARETTE DEALERS ESTABLISHING AN OCCUPATION TAX ON THE
BUSINESS OF SELLING CIGARETTES PRESCRIBING PENALTIES FOR
THE VIOLATION OF THE PROVISIONS HEREOF
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
Division 1 Generally
Section 1 Definition As used in this ordinance, the following
words, unless the context indicates otherwise shall have the following
meanings
Cigarette6 Any roll for smoking made wholly or in part of tobac-
co, irrespective of size or shape and whether or not such tobacco is flavored
adulterated or mixed with any other ingredient the wrapper or cover of which
is made of paper or any other substance or material except tobacco
Dealer Any wholesale dealer or retail dealer as herein defined
Package The individual package, box or other container in which
cigarettes are mrmally sold at retail or are intended to be sold
Retail Dealer Any person other than a wholesale dealer, engaged
in the business of selling cigarettes
Sale Any transfer of title or possession or both, exchange or
barter conditional or otherwise, in any manner or by any means whatsoever,
for a consideration or any agreement therefor
Wholesale Dealer Any person who sells cigarettes to retail
dealers or other persons for the purpose of resale only
Person Natural persons associations of persons firms partner-
ships and corporations
Section 2 License Required It shall be unlawful for any person
to exercise carry on or engage in the occupation of selling cigarettesin the
city without having a license therefor
'Section 3 Application for License Every application for a license
under this ordinance shall be in such form and shall contain such information
as may be prescribed by the city manager
Section 4 Basic License Fee The basic license fee for carrying
on the business of selling cigarettes within the city shall be Five ($5 00)
Dollars for both wholesale and retail dealers
Section 5 Designation of Place of Business Every license
issued under this ordinance shall designate the place of business whereat
the holder thereof may sell cigarettes
Section 6 Scope of License Every license issued under this
ordinance shall authorize the sale of cigarettes only at a single place of
business, and such license shall give authority to a dealer to sell only at
the place designated in the license
Section 7 Display of License Every license issued under the
provisions of this ordinance shall be prominently displayed at all times
at the place of business covered by such license
Section 8 Period of Validity of License All licenses issued
under this ordinance shall expire at midnight of the last day of the year
in which the license is issued
Section 9 Suspension or Revocation of License The city manager
shall have the power upon the violation by any holder of a license issued
under this ordinance of any of the provisions of this ordinance or of any
of the regulations lawfully prescribedihereunder by the city manager, or
for violation of any other ordinance or statute, to suspend or revoke any
such license, after notice shall first have been given to the holder of
such license and a hearing had before the city manager Five (5) days'
notice mailed to the last known address of the holder of such license
shall constitute due notice
Any device or method employed by the holder of a license issued
under the provisions of this ordinance for the evasion of payment of the
occupation tax imposed by the ordinance shall be sufficient Cause for sus-
pending or revoking such license
Section 10 New License upon Change of Place of Business If a
dealer licensed under the provisions of this ordinance changes his place of
busienss he may obtain a new license therefor upon paying a transfer fee of
- 2 -
One ($1 00) Dollar
Section 11 Transfer of License When Business Sold In case any
dealer licensed under the provisions of this ordinance pells his business
his license may be transferred to the purchaser thereof upon the payment of
a transfer fee of one ($1 00) Dollar and upon the execution of an applica-
tion therefor by the purchaser in substantially the same form as an original
application for a license under this ordinance
Section 12 Inspection of Premises and Records of Licensee Any
police officer of the city or any person designated for that purpose by the
city manager shall have the right at any and all times to enter upon the
premises of any dealer licensed under this ordinance for the purpose of see-
ing whether the provisions of this ordinance are being complied with or not
and shall also have the right to inspect all records kept under regulations
promulgated by the city manager
Section 13 Violation of City Wnager's Regulations It shall be
unlawful for any person either as principal agent or employee, to fail to
comply with or to violate any of the provisions of any regulation lawfully
issued under this ordinance by the city manager
Section 14 Penalty Unless another penalty is expressly pro-
vided herein every person found guilty of violation of any provision of
this ordinance may be punished by a fine of not more than Three Hundred
($300 00) Dollars and imprisMmemtc of not more than ninety (90) days
DIVISION 2 Occupation Tax
Section 15 Levied, Amount In addition to the fee specified
in Section 4 of this ordinance the holder of a license for carrying on
the business of selling cigarettes within the city shall pay as a part
of the fee for such license an occupation tax as follows
Such tax shall be an amount equal to two cents for each package
of cigarettes sold offered or displayed for sale within the city provided
however, if the package of cigarettes contains more than twenty cigarettes
3 -
then the tax shall be increased two cents for each additional twenty ciga-
rettes or fraction thereof in the package
Section 16 Who to Pay in First Instance The occupation tax
provided for in this division shall be in the first instance advanced and
paid by the wholesale dealer based upon the number of cigarettes which are
delivered by him to a retail dealer for resale
The occupation tax on cigarettes received by a retail dealer from
other than a wholesaler licensed by the city shall be in the first instance
advanced and paid by the retail dealer
Section 17 Ultimate Payment by Consumer The occupation tax pro-
vided for by this division shall be ultimately collected from and paid by
the ultimate consumer of the cigarettes
Section 18 Not to be Absorbed by a Dealer It shall be unlawful
for any wholesaler or retailer to assume or absorb the tax provided for in
this division It shall likewise be unlawful for any wholesaler or retailer
to advertise hold out or state to the public or to the consumer directly
or indirectly that the tax provided for in this division or any part there-
of, will be assumed or absorbed by such wholesaler or retailer or that the
same will not be collected from the person or persons who purchase such
cigarettes
Section 19 Stamps generally The occupation tax provided for
in this division shall be paid by the purchase from the city clerk of stamps
of such design and denomination as may be prescribed by the city manager
Such stamps shall evidence the payment of the occupation tax imposed by this
division
Section 20 Affixing Stamps--Generally Stamps for the occupa-
tion tax levied by this division shall be affixed by the wholesaler before
the cigarettes are delivered to the retail dealer for resale In cases where
the retailer is to advance and pay the occupation tax in the first instance
under the provisions of Section lb of this Ordinance such retailer shall
affix the stamps therefor just as soon as the cigarettes are received by
him
- 4 -
The city manager is authorized to specify in the regulations
adopted under this division the manner in which a retail dealer, once
having started to affix stamps shall prosecute such work
The affixing of stamps, as provided for in this division shall
also include the affixing of tax meter stamps upon packages of cigarettes
Section 21 Same -- In ease of Sale by the Carton In case any
retail dealer desirerko make sales of cigarettes in cartons containing more
than one package of cigarettes the necessary number of stamps may be af-
fixed to the outside of such carton In such case the carton may be sold
without stamps being affixed w the several packages therein contained, but
if the wrapping of the package is broken before sale, then each package
contained therein shall be stamped
Section 22 Same -- Not Required When Wholesaler Sells Outside
City No stamps need be affixed by a wholesale dealer to any package of
cigarettes which is sold by such wholesale dealer for resale outside the
city
Section 23 Only One Tax and One Stamp Required Per Package
After the stamps provided for in this division have been affixed to any
package of cigarettes by a wholesale dealer or by a retail dealer as
herein provided no further stamps need be affixed thereto irrespective
of the number of times that such cigarettes are sold, it being the inten-
tion of this division that only one occupation tax shall be paid based
upon each package of cigarettes
Section 24 Additional Fee When Retailer Purchases From Other
Than Licensed Wholesaler Any retail dealer who receives cigarettes other
than from a licensed wholesale dealer shall pay an additional license reg-
istration fee of Five ($5,,00) Dollars the payment of which additional lic-
ense registration fee shall entitle such retail dealer to the privilege of
purchasing the stamps provided for in this division from the city clerk and
affixing the same as herein provided Such fee shall be in addition to any
other fee prescribed by this ordinance
- 5 -
Section 25 Unlawful Purchase of Stamps It shall be unlawful
for any person to purchase the tax stamps provided for in this division,
from the city clerk unless such fperson holds a license under this ordinance
in the case of a retailer, such purchase shall be unlawful unless the lic-
ensee has paid the additional registration fee required by Section 24 of
this ordinance
Section 26 Cancellation of Stamps The stamps provided for in
this division shall be cancelled when affixed to the package containing the
cigarettes or tobacco
Section 27 Discount A discount of eight per cent of the face
amount of the stamps provided for in this division shall be allowed by the
city clerk to dealers authorized to affix stamps under this division such
discount to compensate such dealers for their trouble and expense in affix-
ing the stamps to the packages of cigarettes
Section 28 Forged, Altered, etc , Stamps It shall be unlawful
for any person falsely or fraudulently to make, forge, alter or counterfeit
any stamp or stamps prescribed by the city manager under the provisions of
this division, or to cause or procure to be falsely or fraudulently made
forged altered or counterfeited any such stamp or stamps or knowingly
or willfully to alter publish pass or tender as true any false altered
forged or counterfeit stamp or stamps or use any stamp which has been
theretofore used
Section 29 Collection -- By Wholesalers It shall be the duty
of each wholesaler, in selling any cigarettes or tobacco to any retailer
to make a separate and distinct charge for the tax provided for in this
division and to collect from such retailers the full amount of such tax
without any deduction discount or allowance and on any and all state-
ments or bills furnished, supplied or delivered by such wholesaler to any
retailer the amount of such tax shall be listed separately
- 6 -
Section 30 Same -- By Retailers It shall be the duty of every
retailer to collect from each person to whom he sells any cigarettes as and
when such sale is made, the full amount of the tax provided for in this div-
ision without any deduction discount or allowance on any or all such cig-
arettes so sold by such retailer
Section 31 Failure to Collect It shall be unlawful for any
wholesaler or retailer his agent or employee to sell any cigarettes with-
out collecting in addition to the price charged therefor the tax provided
for in this division
Section 32 Unstamped Cigarettes -- Sale and Possession Prohibited
No retail dealer shall sell or offer for sale or display for sale at retail
or have in his possession any cigarettes without there being affixed to the
package thereof the stamp or stamps required to be affixed thereto under the
provisions of this division
Section 33 Same -- Seizure generally whenever any cigarettes,
are discovered upon which stamps have not been affixed as provided by this
division, and which ought to have been stamped under the provisions of this
division, any police officer or any authorized representative of the city
manager is hereby empowered forthwith to seize and take possession thereof,
together with the vending machine and receptacle, if any, in which they are
held for sale
Section 34 Same -- Sale After Seizure After giving five (5)
day s notice to the person found in possession of cigarettes seized under
the preceding section the city manager shall be and is hereby authorized
to sell the same at any time and place to be fixed by him
Section 35 Same -- Same -- Disposition of Proceeds Out of the
proceeds of any sale conducted iunder the preceding section the city manager
shall pay the amount of stamps which should have been affixed to the cigaretted
together with a penalty of fifty per cent thereof and the cost incurred Ln such
proceedings and the balance of such proceeds if any shall be delivered to
the person found in possession of the cigarettes
- 7 -
Section 36 Inspection of Records The books and records of all
wholesale and retail dealers within the city shall, at all times be open '
to the inspection and examination of the city manager or of the law-enforcing
departments agents and employees of the city
Section 37 Regulations by City Manager The city manager is
hereby authorized and empowered to provide regulations to be promulgated
by him to insure the compliance with and the enfornement of the provisions
of this division and he may require such records to be kept or such busi-
ness practices to be followed to enable him to investigate, check and deter-
mine whether the wholesalers and retailers are complying with the terms and
provisions thereof
The city manager is hereby authorized to provide regulations to
be promulgated by him to aid in the collection of the tax imposed by this
division and in particular and without limiting the general language of
this section to provide for
(a) The form and issuance of the stamps by which the tax is
to be paid
(b) How the stamps shall be affixed to packages of gigarettes and
to cartons containing the same and how such stamps shall be cancelled
(c) The records which dealers are to keep concerning all ciga-
rettes purchased or sold by them
Introduced considered favorably on first reading and ordered pub-
lished this loth day of July A D 1958, and to be presented for final pas-
sage on the 14th day of August, A D 1958
ATTEST
Mayor
�j
City Clerk
Passed and adopted on final reading this 14th day of August,
A D 1958
ATTEST _(L4 e��
Mayor
���,�,� ter✓ .�cro�s.._
City Clerk
8 -