HomeMy WebLinkAbout082 - 06/20/2023 - AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO SALES AND USEORDINANCE NO.082,2023
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY OF
FORT COLLINS RELATING TO SALES AND USE TAX
WHEREAS,Article XX,Section 6(g)of the Colorado Constitution grants to the City of
Fort Collins,as a home rule municipality,all powers necessary to levy and collect taxes for
municipal purposes,subject to any limitations in the Colorado Constitution;and
WHEREAS,on November 16,1967,the City Council,in the exercise of its home rule
taxing powers,adopted Ordinance No.058,1967,to levy,collect,and enforce beginning on
January 1,1968,a sales and use tax on the purchase of tangible personal property sold at retail in
the City and on certain taxable services provided in the City (the “Sales and Use Tax Code”);and
WHEREAS,the Sales and Use Tax Code is currently found in Chapter 25,Article III of
the City Code,which has been significantly amended many times since its adoption in 1967;and
WHEREAS,City staff has reviewed the Sales and Use Tax Code and has recommended
revisions to it to clarify an exemption from use tax for property purchased outside the city and to
create an explicit process by which a taxpayer can claim a refund or credit resulting from an
overpayment of tax discovered during an audit;and
WHEREAS,City staff has also recommended a change to the sale and use tax license
requirements to conform to Senate Bill 2022-032 regarding the simplification of local licensing
requirements in coordination with the Department of Revenue’s administration of the state sales
and use tax simplification system;and
WHEREAS,City Council hereby finds that amending the City Code as proposed in this
Ordinance is in the best interests of the City and its taxpayers and promotes the health,safety and
welfare of the community by providing for the accurate and efficient imposition,collection,and
enforcement of the City’s taxes.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1.That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2.That Section 25-74 of the Code of the City of Fort Collins is hereby
amended by the amendment of Subsection (4)and the addition of a new Subsection (5)to read as
follows,with the remaining Subsections renumbered accordingly:
Sec.25-74.Imposition of the use tax and exemptions.
(b)Transactions and items exempt from the use tax.The use,storage,distribution or
consumption in the City of the following are hereby exempted from the use tax:
(4)Tangible personal property brought into the City by a nonresident for that person’s
own use,storage,distribution or consumption while temporarily in the City;
(5)Tangible personal property that is first used,stored,consumed or distributed within
the City more than one (1)year after the most recent sale of the property if,within the year
following such sale,the property has been used in a significant way outside the City for the
principal purpose for which it was most recently purchased.This exemption shall not apply to:
(a)construction equipment,tools,and machinery;
(b)construction materials;
(c)vehicles that are capable of moving themselves,or of being moved from
place to place upon wheels or endless tracks,excluding bicycles and other devices
moved by human power;and
(d)farm machinery and farm machinery parts used in farming operations,but
not farm machinery parts installed on farm machinery in the City.Trucks having a
manufacturer’s rated capacity of one (1)ton or less shall not be considered farm
machinery;
Section 3.That Section 25-9 1 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.25-91.Sales/use tax license required.
(a)Except as provided in §25-97 or in this Section,no person shall engage in the business of
selling at retail tangible personal property and taxable services subject to the tax imposed by this
Article without first having obtained a license therefor,which license shall be granted and issued
by the Financial Officer and shall be in full force and effect until revoked.
(b)Except as provided in §25-97 or in this Section,no person shall use,store,distribute or
consume any tangible personal property or taxable services subject to the tax imposed by this
Article without first having obtained a license therefor,which license shall be granted and issued
by the Financial Officer and shall be in full force and effect until revoked.
(e)The requirement to obtain a license under Subsections (a)and (b)shall not apply to a person
identified therein who either does not have a physical presence in,or has only an incidental
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physical presence,in the city as defined in C.R.S.§39-26-802.9(2)(c)and (e),who has a state
standard retail license,and who remits tax to the City through the state electronic sales and use tax
simplification system.
Section 4.That Section 25-186 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.25-186.Failure to make return;estimate of taxes;notices;appeal;audit.
(c)The Financial Officer may at any time within three (3)years of the date a tax is due,serve
upon any taxpayer personally,by first-class mail or certified mail directed to the last address of the
taxpayer on file with the City,or by electronic mail directed to the last such address on file with
the City,a written notice of audit notifying the taxpayer that the Financial Officer will be
conducting an audit of the taxpayer’s books and records to determine the exact amount of any tax,
penalty,interest,collection costs and other charges due.Within thirty (30)days of the date such
notice is mailed or within such longer time period as permitted by the Financial Officer,the
taxpayer shall make available to Financial Officer all of the taxpayer’s relevant books and records
requested by the Financial Officer for the audit.If as a result of the audit the Financial Officer
determines the taxpayer owes the City any additional tax,penalties,interest,collection costs or
other charges under this Article,the Financial Officer shall serve upon the taxpayer a notice of
determination,assessment and demand for payment for such tax deficiency as provided in
paragraph (b)above and payment shall be due and payable twenty-one (21)days from the date
such notice is mailed.If as a result of the audit the Financial Officer determines the taxpayer has
overpaid tax to the City,the Financial Officer shall serve upon the taxpayer a notice of
overpayment.Taxpayer must sign and submit the notice back to the Financial Officer within thirty
(30)days from the date such notice is mailed to be entitled to a refund or credit in the amount of
the overpayment.
Introduced,considered favorably on first reading,and ordered published this 6th day of
June,2023,and to be presented for final passage on the 20th day of Ju ,2023.
AflEST:
Chief Deputy City Clerk
Passed and adopted on final reading on this 20th day of June,2023.
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AflEST:
a’.~
Chief Deputy City Clerk