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HomeMy WebLinkAboutOrdinance-2007-1405 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER SANG Council Bill No. 26 Ordinance No. 1405 Series of 2007 TITLE: AN ORDINANCE AMENDING CHAPTER 22, SUBSECTION 22-58(a)(2) OF THE WHEAT RIDGE CODE OF LAWS CONCERNING DIRECT SALES TO CHARITABLE ORGANIZATIONS WHEREAS, the City of Wheat Ridge ("City") conducts audits of businesses operating within the City pursuant to Chapter 22 of the Wheat Ridge Code of Laws ("Code") in order to ensure businesses are remitting correct tax to the City; and WHEREAS, Subsection 22-58(a)(2) of Chapter 22 of the Code is ambiguous with respect to the licensing requirements otherwise imposed by Chapter 11 of the Code; and WHEREAS, amending Subsection 22-58(a)(2) to incorporate a reference to Chapter 11 of the Code will aid the City in auditing businesses making direct sales to charitable organizations and will also serve to better inform taxpayers of the licensing requirements of Chapter 11; and WHEREAS, the City Council believes it to be in the best interest of the City to amend Chapter 22, Subsection 22-58(a)(2) of the Code to make clear that in order to qualify for the sales tax exemption of Chapter 22, charitable organizations must have obtained an exempt institution license under Chapter 11. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Subsection 22-58(a)(2) of Chapter 22 of the Wheat Ridge Code of Laws is hereby amended to read: Sec. 22-58. Exempt sales. (a) Enumeration of exempt items of sales and service. There shall be exempt from taxation under the provisions of this chapter the following: (2) All direct sales to, but not sales by, charitable organizations, as defined in section 22-21, in the conduct of their regular religious, charitable, and eleemosynary functions and activities PROVIDED THAT THE CHARITABLE ORGANIZATION HAS OBTAINED AN EXEMPT INSTITUTION LICENSE PURSUANT TO CHAPTER 11 ARTICLE I; provided FURTHER, however, that building materials and supplies shall be subject to use tax as provided in section 22-68 hereof. Any exempt organization which makes sales of tangible personal property to the public and which otherwise meets the definition of a retailer in section 22-21 must have a sales tax license and collect and remit tax in the same manner as any other retailer. The fact that the merchandise sold may have been acquired by gift or donation, or that the proceeds are to be used for charitable purposes, does not make the sales exempt from tax. Section 2. Severabilitv. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. Section 3. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 7 to () on this 8th day of October, 2007, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for October 22, 2007, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of 8 to 0 , this 22nd day of October , 2007. SIGNED by the Mayor on this 23rd ;;iii;dt Jt ~IIiO, Mayor ,2007. ATTEST: ~ Michael Snow, City Clerk ?:1:li Gehftd"E. Dahl, City I'. rney First Publication: October 11, 2007 Second Publication: October 25, 2007 Wheat Ridge Transcript Effective Date: November 9, 2007