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HomeMy WebLinkAbout064 - 10/27/1966 - PERTAINING TO A CIGARETTE TAX, THE CIGARETTE TAX STAMP AND IMPRINT USED IN CONNECTION THEREWITH CIGA ORDINANCE NO 6k , 19660 BEING AN ORDINANCE PERTAINING TO A CIGARETTE TAX, THE CIGARETTE TAX STAMP AND IMPRINT USED IN CONNECTION THEREWITH, CIGARETTE LICENSES, SCHEDULE OF FEES, AMOUNT OF TAX, METHOD OF PAYMENT, STAMP TAX DISCOUNT, SALE OF TAX STAMPS, IMPRINTING MACHINES, DUTIES OF THE DIRECTOR OF FINANCE, ENFORCEMENT OF THE STAMP TAX AND SEIZURE AND SALE OF UNTAXED CIGARETTES, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Article I - In General Section 1. Definitions The following words and phrases shall, for the purposes of this ordinance, have the meanings respectively ascribed to them in this section a. Cigarette. A "cigarette" is any roll for smoking made wholly or partially of tobacco and wrapped or covered with paper or any other material, except tobacco. A cigarette may be any size or shape, and the tobacco therein may be adulterated or mixed with any other ingredient. b. Cigarette vending machine lessor A "cigarette vending machine lessor" is any person owning, possessing or having control over cigarette vending machines and permitting the operation of such machines on premises other than the place of business of such person. C. Package and carton. A "package" is the smallest individual box or container in which cigarettes are normally sold at retail Normally ten such packages are contained in a "carton" container d. Retail dealer A "retail dealer" is any person, other than a wholesale dealer, engaged in the business of selling cigarettes. e 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 f. Special stamping privilege dealer. A "special stamping privilege a dealer" is any person licensed as a retail dealer, who receives cigaretteg from sources other than a licensed wholesale dealer. g Wholesale dealer. A "wholesale dealer" is any person who sells cigarettes to retail dealers or other persons for purposes of resale only. P Article II - Licenses Section 2 License to engage in business of selling required On and after January 1, 19679 it shall be unlawful for any person to carry on or engage in the business of selling cigarettes in the City of Fort Collins without having a license to do so A separate license is required for each place of business, and each such license shall denominate the dealer s business activity, that is, wholesale dealer, retail dealer, or special stamping privilege dealer Section 3 Application Each application for a license required by this article shall include the dealer's business activity, that is, wholesale dealer, retail dealer, special stamping privilege dealer or cigarette vending machine lessor, and each such application shall state the number of vending machines installed or to be installed on the premises Section 4 Vending machine lessor s license required It shall be unlawful to engage in the business of cigarette vending machine lessor without a license Section 5 Schedule of fees Wholesale dealer license The license fee for every wholesale dealer shall be five dollars per annum Retail dealer license The license fee for every retail dealer shall be five dollars per annum Special stamping privilege license Every retail dealer or cigarette vending machine lessor who receives cigarettes from sources other than from or through a licensed wholesale dealer and the cigarette tax not having been paid, shall pay an additional license fee of five dollars per annum, the payment of which additional fee shall entitled the retail dealer or lessor to the privilege of purchasing the cigarette tax stamps as required by Section 7 of this code and affixing or imprinting the same as provided in this ordinance 2- Cigarette vending machine lessor s license The license fee for every cigarette vending machine lessor shall be five dollars per annum, and an additional fee of five dollars per annum for each cigarette vending machine placed in use and operation by the lessor Period covered by fee All license fees shall be for the calendar year, or fraction thereof, and shall expire at midnight of the last day of such year Section 6 Place of business; transfer of license Every license issued hereunder shall designate the place of business at which the holder thereof may sell cigarettes, provided, however, if a licensed dealer shall change his place of business he may obtain a new license upon paying a transfer fee of one dollar In case a licensed dealer shall sell his business, his license may be transferred to the purchaser upon payment of a transfer fee of one dollar and upon the execution by the purchaser of an appli- cation therefor in substantially the same form as in an original application for a license hereunder Article III - Imposition and Regulation of Tax Section 7 Amount of tax, how payment evidenced The cigarette tax shall be an amount equal to thmecents for each package of cigarettes sold, offered or displayed for sale within the City of Fort Collins and shall be evidenced by a cigarette tax stamp or cigarette tax stamp imprint, provided, however, that if a package of cigarettes contains more than twenty cigarettes, the tax shall be increasedthreecents for each additional twenty cigarettes, or fraction thereof, in the package Section 8 Authorized purchases of tax stamps Only those licensed as wholesale dealers under this chapter or as retail dealers with special stamping privilege license may purchase cigarette tax stamps from the director of finance Section 9 Method of payment The cigarette tax shall be paid by affixing a single cigarette tax stamp or by imprinting a single cigarette tax stamp imprint from an approved cigarette tax stamp imprinting machine on each package of cigarettes, such cigarette tax -3- stamp or cigarette tax stamp imprint to be an amount sufficient to pay the total tax Section 10 Tax Stamp Discount A discount of ten per cent of the face amount of cigarette tax stamps shall be allowed by the director of finance to each wholesale dealer, retail dealer or holder of a special stamping privilege license to compensate such dealers for their time and expense affixing or imprinting the cigarette tax stamps on the package of cigarettes Section 11 Imposition of additional taxes After the requisite cigarette tax stamps have been affixed or imprinted on any package of cigarettes by a wholesale dealer or by a retail dealer with a special stamping privilege license as provided in this code, no further cigarette tax stamp need be affixed or imprinted thereon, irrespective of the number of times that such cigarettes are sold It is the intention of this article that only one cigarette tax evidenced by one cigarette tax stamp or cigarette tax stamp imprint shall be paid on each package of cigarettes Section 12 Tax stamp - design The design of the cigarette tax stamp and the cigarette tax stamp imprint shall be prescribed by the director of finance Section 13 Tax stamps - sale Cigarette tax stamps shall be sold exclusively by the director of finance Section 14 Tax stamps - imprinting machine The director of finance is hereby empowered to authorize and approve automatic cigarette tax stamp imprinting machines, which stamp imprinting machines shall be set and advanced only by the director of finance, or his authorized representative, and which machines shall be guaranteed to the director of finance as to accuracy by their respective manufacturers and users Section 15 Tax stamps - counterfeiting or tampering with official design a It shall be unlawful for any person to counterfeit, forge, imitate or colorably imitate any cigarette tax stamps or cigarette tax stamp imprint prescribed by the director of finance, and it shall be unlawful for any person to -4- cause such to be done b It shall be unlawful for any person to alter any cigarette tax stamp or cigarette tax stamp imprint prescribed by the director of finance, and it shall be unlawful for any person to cause the same to be done J c It shall be unlawful for any person to use any cigarette tax stamp which is a counterfeit, forgery, imitation or colorable imitation of any cigarette tax stamp imprint prescribed by the director of finance Section 16 Advancing tax stamp imprinting machines It shall be unlawful for any person to set or advance any approved cigarette tax stamp imprinting machine, except under the authority of the director of finance, and it shall be unlawful to use any cigarette tax stamp imprinting machine set or advanced in violation of this section Section 17 Sale, storage and display of unstamped cigarettes It shall be unlawful for any retail dealer to possess, sell, offer for sale or display for sale any unstamped packages of cigarettes It shall be the duty of every retail dealer with a special stamping privilege license to stamp all unstamped cigarettes as quickly as is reasonably possible, and it shall be unlawful for any such retail dealer with a special stamping privilege license to mingle unstamped packages of cigarettes with any packages or cartons of cigarettes displayed for sale or in any room where retail sales are conducted Section 18 When stamps not necessary No cigarette tax stamp need be affixed or imprinted by a wholesale dealer on any package of cigarettes which is sold by such wholesale dealer for resale outside the city Section 19 Advancement of tax a The cigarette tax shall be, in the first instance, advanced and paid by the wholesale dealer on the cigarettes which are stamped or imprinted with cigarette tax stamps and delivered by him to retail dealers for resale within the city b The cigarette tax shall, in the first instance, be advanced and paid by the retail dealer with a special stamping privilege license on the cigarettes which are received by the retail dealer from sources other than a licensed wholesale -5- dealer, and cigarette tax stamps or cigarette tax stamp imprints therefor shall be affixed or imprinted by the retail dealer as quickly as is reasonably possible Section 20 Duties of Finance Director The director of finance is hereby authorized to issue and promulgate from time to time, regulations to aid in the collection of the cigarette tax, which regulations shall include by way of example, but not by way of limitation, the following a The design of the cigarette tax stamp and the cigarette tax stamp imprint b The method of affixing and imprinting the cigarette tax stamp c The records which wholesale dealers, retail dealers and retail dealers with special stamping privilege licenses are to keep Section 21 Enforcement and right of entry All law enforcement officers of the city and all persons designated by the director of finance shall have the right at any and all times to enter upon the premises of any wholesale dealer, retail dealer or retail dealer with special stamping privilege license, licensed under this chapter, for the purpose of ascertaining whether the provisions of this chapter are being observed Such right shall include the power to inspect all records and books to be kept under regulations promulgated by the director of finance Section 22 Seizure and sale of untaxed cigarettes Whenever any cigarettes required by the provisions of this article to be stamped are discovered without proper cigarette tax stamp or cigarette tax stamp imprint, any law enforcement officer of the city or any authorized representative of the director of finance is hereby empowered forthwith to seize and take possession of the same, together with the vending machine and receptacle, if any, in which the same are held or displayed for sale The director of finance is hereby authorized to make proper disposition of cigarettes seized under the provisions of this section by selling the same, if possible, to satisfy the amount of cigarette stamp tax which should have been paid The balance from such sale, if any, after deducting all costs incurred and after deducting a penalty of fifty per cent of .6. the amount of the required cigarette stamp tax, shall be refunded to the person from whom such unstamped cigarettes were seized Section 23 Penalties Any person who shall violate any of the provisions of this chapter shall upon conviction be punished as provided in Section 12-6 of the Code of Ordinances of the City of Fort Collins, Colorado, 1958, as amended, and upon such conviction, any license which such party so convicted may hold under and 0 by virtue of any ordinance of the City for sale of cigarettes shall be imme- diately revoked and such person shall not beeligible to obtain a new license to engage in the business of selling cigarettes for a period of ninety days from the effective date of such revocation All the remedies herein enumerated for violation of this chapter shall be cumulative, and the institution and prosecution of any one or more of them shall not prevent the enforcement of any other remedy Section 24 Severability If any provision of this ordinance or its application to any person, firm or corporation or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this ordinance The Council declares that in these regards the provisions of this ordinance are severable Introduced, considered favorably on first reading, and ordered pub- lished this 6th day of October , A D , 1966, and to be presented for final passage on the 27th day of October , A D , 1966 lC Mfifor / ATTEST z�. City Cle Passed and adopted on final reading this 27th day of October , 1966 Mayor / ATTEST C l City C1 k - 7 -