HomeMy WebLinkAbout046 - 03/16/2004 - AMENDING THE CITY CODE RELATING TO COMPENSATION OF VENDORS FOR COLLECTING AND REMITTING SALES TAX ORDINANCE NO. 046, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 25-123(c) OF THE CODE
OF THE CITY OF FORT COLLINS
RELATING TO COMPENSATION OF VENDORS
FOR COLLECTING AND REMITTING SALES TAX
WHEREAS,Section 25-123(c)of the City Code authorizes retailers to retain 3%of the first
$3,000 of the amount of sales tax they collect for the City,as well as an additional I%of the amount
of sales tax collected in excess of$3,000; and
WHEREAS, the ability to retain this "vendors' fee" is in recognition of the time and effort
expended by City retailers in collecting the City's sales tax from their customers; and
WHEREAS,initially,the total amount of sales tax revenue retained by retailers through the
vendors' fee did not result in a substantial loss of tax revenue to the City; and
WHEREAS, over the years, the number of retailers and the amount of sales tax revenue in
the City have increased substantially, so that the amount currently retained by retailers has risen to
approximately$1 million per year; and
WHEREAS, especially in view of the budget constraints under which the City has been
operating in recent years, the loss of this amount of sales tax revenues has a significant negative
effect upon the City and its taxpayers; and
WHEREAS, the City Council believes it to be in the best interest of the City to reduce the
amount retained by retailers for collecting City sales and use tax revenue and to deposit any
additional revenues collected by the City as a result of said reduction into an Economic Vitality and
Community Sustainability Fund, as referenced in Resolution 2004-006; and
WHEREAS,City staff has recommended limiting such amount to 3% of the first$3,000 in
sales taxes collected by the retailers, and eliminating the retention of any amount of revenues
collected in excess of$3,000; and
WHEREAS,City Council believes that such recommendation is reasonable and is in the best
interest of the City.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 25-123(c)of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 25-123. Remittance of sales tax collected by retailer.
(c) Every retailer shall file a tax return each month with the Financial Officer
on or before the twentieth day of each month for the preceding month and remit the
tax due to the Financial Officer simultaneously therewith. Every retailer may deduct
three(3)percent of the first three thousand dollars ($3,000.)of the amount of the tax
to be remitted by him or her under this Article, for the collection and remittance of
the tax. However,if the remission of the tax by the retailer is delinquent,the retailer
may not retain any amounts for collecting and remitting the tax unless the retailer
demonstrates reasonable grounds for the delinquency acceptable to the Financial
Officer.
Section 2. That this Ordinance shall become effective on April 1, 2004.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2004 and to be presented for final passage on the 16th day of ch, A.D. 20
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of March, A.D. 20
Mayor
TTEST-
City Clerk