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HomeMy WebLinkAbout22 - TAXATION . e . . . Chapter 22 TAXATION. Article I. In General Sec. 22-1. Lodgers'tax. Sec. 22~2. Admissions tax.. Sees. 22-3-22-20. Reserved. Article II. Sales and Use Tax Division 1. Generally See. 22-21. Definitions and usage. See. 22-22. Legislative intent. See. 22-23. MotOr vehicles. Sees. 22-24-22-32. Reserved. Division 2. Administration and Enforcement Sec. 22-33. Administrative authority of treasurer. Sees. 22-34, 22-35. Reserved. Sec. 22-36. Disputes; refunds, limitation of actions. Sec. 22-37. Nonresident vendor. Sec. 22-38. Transfer of ownership of business; renewal or issuance of busi- ness license. Liability of retailer or vendor for collection. Reports by vendor; payment of tax.; monies collected held in trust. Sales or use tax; deficiency. Business records; burden of proof. Refusal to report; estimate of tax; emergency collection proce- dures; penalties and interest. Sec. 22-44. Limitation of action. See. 22-45. Taxpayer remedies. See. 22-46. Additional remedies of city. See. 22-47. Intercity claims for recovery. See. 22-48. Notice of sales and use tax ordinance amendment. See. 22-49. Participation in simplification meetings. Sees. 22.50-22-55. Reserved. Sec. 22-39. Sec. 22-40. See. 22-41. Sec. 2242. Sec. 2243. Division 3. Sales Tax See. 22-56. Schedule. Sec. 22-57. Property and service subject to tax. Sec. 22-58. Exempt sales. Sees. 22-59-22-65. Reserved. Division 4. Use Tax Sec. 22-66. Property subject to tax. Sec. 22-67. Exemptions. Sec. 22-68. Building materials and supplies. Sees. 22-69-22-72. Reserved. .Charter reference-Taxation, ~ 11.1 et seq. Cross references-Improvement districts, Ch. 10; licenses, permits and miscellaneous business regulations, Ch. 11. State law references-Home rule powers, Co. Canst. Art. XX, ~ 6; municipal taxation, C.R.S. ~ 31-20-101 et seq. Supp. No. 19 1431 Supp. No. 19 Sec. 22-73. See. 22-74. See. 22-75. See. 22-76. Sec. 22-77. See. 22- 7S. Sec. 22-79. Sec. 22-80. See. 22-81. Sec. 22-S2. See. 22-83. See. 22-S4. WHEAT RIDGE CITY CODE Division 5. Enhanced Sales Tax Incentive Program Program established. Purpose. Definitions. Participation. Approval of agreement; use of funds generally. Uses enumerated. Increments, sharing of funds. Revenues restricted. Capital improvement fund. Criteria for approval of application. Agreement required. Joint venture; liability. . e Division 6. Business Development Zone See. 22-S5. Program established. Sec. 22-86. Legislative declarations. Sec. 22-87. Definitions. Sec. 22-8S. Participation. Sec. 22-89. Approval of agreement; use of funds generally. See. 22-90. Uses enumerated. See. 22-91. Increments, sharing of funds. See. 22-92. Capital improvement fund. Sec. 22-93. Criteria for_ approval of application. See. 22-94. Agreement required. Sec. 22-95. Joint venture liability. See. 22-96. ESTIP and TIF. Sees. 22-97-22-99. Reserved. See. 22-100. See. 22-101. See. 22-102. See. 22-103. See. 22-104. Sec. 22-105. See. 22-107. Article m. Basic Local Telecommunications Service . Levy of tax. Definitions. Local purpose. Amount and payment of tax. Failure to pay. Inspection of records. Tax in lieu of other occupation taxes. . . 1432 . e . e . TAXATION ARTICLE I. IN GENERAL. Sec. 22-1. Lodgers' tax. (a) Tax imposed; conditions. There is hereby imposed an excise tax on the price paid or charged for the lease, rental or on the transaction of furnishing rooms or accommodations to any per- son who for a consideration uses, possesses or has the right to use or possess any room or rooms or other accommodations in any hotel, apartment hotel, guesthouse, guest ranch, mobile home, auto camp, trailer court or park, or any other place furnishing rooms or other accommodations under any concession, permit, right of access, license to use or other special agreement. Such tax on accommodations shall be subject to the following conditions: (1) The tax hereby imposed shall be in lieu of city sales tax on such rental or furnishing of accommodations. The tax hereby cre- ated in this section shall not apply to the sale or sales of any goods, services or commodities other than the furnishing of rooms and accommodations. (2) The tax hereby imposed shall be collected and paid at the rate often (10) percent of the purchase price paid or charged for such accommodations and shall exclude the sale of any goods, services and com- modities other than the furnishing of rooms or other accommodations. (3) The person, partnership, corporation or other entity making such rooms or other accommodations available shall for all purposes of this chapter be deemed to be a "retailer" or "vendor," as defined in sec- tion 22-21 of this chapter. (4) The rental or furnishing of accommoda- tions for a period of at least thirty (30) consecutive days shall be exempt from the tax hereby created. For purposes of estab- 'Editor'. note-Section 2 of Ord. No. 1988-7S1, adopted Dec. 12, 19S5, repealed Ord. No. 1985.642, adopted Jan. 1, 1986, from which ordinance was derived the prm;;.sions codi- fied herein as ~~ 22.1 and 22-2. Section 1 ofOrd. No. 19S5-7S1 enacted new provisions, relative to the same subject matter, which have been included herein as a new Art. 1_, 99 22-1 and 22-2. of Ch. 22. Supp. No. 22 ~ 22-2 lishing the thirty-day period, the accom- modation may not be transferred or trans- ferable by one consumer or person or entity to any other consumer, person or entity. (b) Conditions for collection and enforcement. The provisions for collection and enforcement of lodgers' tax shall be the same as collections and enforcement of sales and use tax. (Ord. No. 1988-781, ~ 1(21-27), 12-12-88; Ord. No. 1991-869, ~3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91; Ord. No. 1996-1060, ~ 1, 12-16-96; Ord. No. 1998-1138, ~~ I, 3, 11-23-98) Sec. 22_2.Aibnis~onstax. (a) Thx imposed; conditions. There is hereby imposed an excise tax of four (4) percent of each admission charge on every vendor who charges admission to an amusement or entertainment event, as defined in section 22-21 of this Code of Laws, within the city. Such tax is in lieu of all other taxes imposed by this chapter or other law. (b) Exempt transactions. The following per- sons are exempt from the payment or collection of the tax imposed by this section: (1) The United States government and the State of Colorado, and the political subdi- visions thereof, including the city, in the conduct of their governmental functions. (2) Religious and charitable organizations in the conduct of their religious and charita- ble functions; provided, that an exempt institution license from the city is pos- sessed by such organization. (3) A school, other than a school held or conducted for private or corporate profit, in the conduct of its educational func- tions; provided, that a letter of exemption from the city is possessed by such school. (4) Any person who refunds an admission charge for any reason, either before or after an amusement or entertainment event has taken place, and refunds the tax along with the charge. (5) Any person who provides free passes, com- plimentary admission tickets or other- 1433 ~ 22-2 WHEAT RIDGE CODE wise does not collect an admission charge, but if such person imposes a reduced charge, whether for a pass, complimen- tary admission or otherwise, the tax im- posed in this section is applicable to the amount of such charge. (6) Notwithstanding the foregoing, exempt from taxation under this section shall be nonprofit museums, whether operated by public or private entities, and art exhibits or shows or other events sponsored by the city and held at city-owned facilities. (c) ConditiOns for collection and enforcement. The provisions for collection and enforcement of the admissions tax shall be the same as collec- tions and enforcement of sales and use tax. (Ord. No_ 1988- T81, S 1(21-28), 12-12-88; Ord. No. 1991-867, S 3, 9-1-91; Ord_ No. 1991-123, S 1, 12-23-91; Ord. No. 1996-1060, S 2, 12-16-96) Sees. 22.3-22.20. Reserved. ARTICLE II. SALES AND USE TAX. DIVISION 1. GENERALLY Sec. 22.21. Definitions and usage. (a) Terms defined. As used in article II of chapter 11, sections 22-1 and 22-2, and this arti- cle, and wherever else in this Code they may be applicable, the following words and phrases shall have the following meanings: Access services: The services furnished by a local exchange company to its customers who -Editor's note-,Section 2 of Ord. No. 1985-7S1, adopted Dee. 12, 1985, repealed Ord. No. 19S5-642, adopted Jan. I, 19S6; OId.No. 1986-696, adopted Nov. 1, 1986: and Ord. No. 1987-711, adopted Feb. 13, 1987, from which were derived the provisions codified herein as Art. II. ~~ 22-21-22-23. 22-33, 22-36-22-46, 22-56-22.58. and 22.66-22-68, of Ch. 22. Section 1 of said Ord. No. 1988-781 enacted provisions, rela- tive to the same subject matter, which have been included herein as a new Art. II of Ch. 22. Charter reference-Revenue bonds funded by sales and use tax, ~ 12.5. State law reference-Municipal sales or use tax, C.R.S. ~ 29-2-101 et seq. Supp. No. 22 provide telecommunications services which allow them to provide such teleco=unications ser- vices. Admission charge: Any charge for the right or privilege to gain entrance to any place, event, performance or scheduled activity held within the city; and every person, business, corporation or association, whether owner, lessee, operator or sublessee, who or which charges or causes to be charged admission as defined herein shall be responsible for the collection of the tax imposed by this article. This tax is defined as an admis- sions tax. Alarm and security systems services and I or sales: The entire service charge or purchase price including freight for any alarm or security sys- tem. This charge or price includes, but is not limited to, compensation paid for monitoring, maintenance, rental, lease, material, equipment or installation of alarm or security systems. Amusement or entertainment event: Any event where a person pays to gain admission to any place in the city that is open to the public, or to gain access to a performance, stage show, play, concert, or to a sporting or recreation event, or to a motion picture, or to the use of lanes and pinsetters for bowling balls in a bowling alley or a game of regular or miniature golf, and other activities as defined by the city treasurer and promulgated in the city's regulations. Auction: Any sale where tangible personal prop- erty is sold by an auctioneer who is either the agent for the owner of such property or is in fact the owner thereof. Auction or estate liquidation sale: Any sale conducted or transacted at a permanent place of business operated by an auctioneer or estate liquidator, or a sale conducted or transacted at any location where tangible personal property is sold by an auctioneer or estate liquidator or any such individual or business acting either as agent for the owner of such tangible personal property or is in fact the owner thereof. 1434 . . . e . . e . e . Automotive vehicle or motor vehicle: Any vehi- cle or device in, upon or by which any person or property is or may be transported or drawn upon a public highway, or any device used or designed for aviation or flight in the air. "Automotive vehicle" includes, but is not limited to, motor vehicles, trailers, semi-trailers or mobile homes. "Au_ Supp. No. 1S TAXATION ~ 22-21 1434.1 TAXATION e tomotive vehicles" shall not include devices moved by human power or used exclusively upon sta- tionary rails or tracks. Bowling alley operator: Any person, whether owner, operator, lessee or any other. person, who charges or causes to be charged admission to a bowling alley or fees for the utilization, lease or rental of bowling alleys and pinsetters for bowling balls in a bowling alley open to the public, in- cluding charges for bowling by the line. Business: All activities engaged in or caused to be engaged in with the object of gain, benefit or advantage, directly or indirectly. e Canvasser: Any person, whether as volunteer, agent, organizer or employee of an exempt or char- itable organization, who travels by foot, wagon, motor vehicle, pushcart or any other method of transportation from house to house or.from street to street, or in and upon public parks or properties to distribute informational literature to solicit charitable contributions or to engage in other ac- tivities protected by the First Amendment of the United States Constitution_ . Capital lease: A lease with characteristics of a purchase, as defined by generally accepted ac- counting principles. The intent of the vendor ev- idenced by the treatment of the lease in the ven- dor's fmancial statements, past course of dealings and usage of trade will also be considered as a basis of classifying a lease as capital in nature. . Charitable organization: Any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or ed- ucational purposes; or to foster national or inter- national amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment); or for the preven- tion of cruelty to children or animals, no part of the net earning of which inures to the benefit of any private sharehnlrl",. n,. individual, no substan- tial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distrib- uting of statements), any political campaign on behalf of any candidate for public office. Supp. No. 13 ~ 22-21 Carrier access services sale: Any charge by local telephone exchange companies to providers of in- terchange telecommunications services for use in providing their interchange telecommunications services. City: The City of Wheat Ridge, Colorado. City Code: The Code of Laws of the City of Wheat Ridge, Colorado. Computer software: The internalized instruc- tion code which controls the basic operation (i.e., arithmetic and logic) of the computer, causing it to execute instructions contained in system pro- grams as an integral part of the computer. Com- puter software is also one in which instructions and routines (programs) are determined neces- sary to program the customer's electronic data processing (EP A) equipment to enable the cus- tomer to accomplish specific functions with his EDP system. The software may be in the form of: (1) Systems programs (except for the instruc- tion codes which are considered tangible property in this definition)-Programs that control the hardware itself and allow it to compile, assemble and process application programs; (2) Application programs-Programs that are created to perform business functions, or control, or monitor process; (3) Prewritten (canned) programs-Programs that are either systems programs or appli- cation programs and are not written specif- ically for the user; or (4) Custom programs-Programs created spe- cifically for the user. Construction equipment: All pieces of portable machinery, vehicles and other types of equipment used directly or indirectly to build, erect or oth- erwise construct buildings, roads, bridges or any construction project or to aid in such building or construction. Construction material: Tangible personal prop- erty which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a completed struc- ture or project, including public and private im- 1435 ~ 22.21 WHEAT RIDGE CITY CODE provements. Construction materials include, but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement, concrete; conduit, electric wiring.and connections, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fIxtures, putty, reinforcing mesh, road base, roofmg, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall- board, wall coping, wallpaper, weather stripping, wire netting and screen, water mains and meters and wood preserver. The above materials, when used in form.s, or other items which do not remain as an integral or inseparable part of a completed structure or project, are not construction mate- rials. Construction materials do not include such things as: carpeting, equipment, furniture, remov- able fIxtures, window coverings or similar items. Construction project: The erection, installation, demolition, alteration, repair or remodeling of a building or structure upon real estate, and any other activity for which a building permit ~s re- quired under the city Code. Consume: The utilization of any item of tan- gible personal property in the provision of any service or in the production of any physical product or other item of tangible personal property. Consumer: Any individual person or persons or entity engaged in business in the city who buys, uses, stores, distributes or otherwise consumes in the city tangible personal property or taxable ser- vices purchased from sources inside or outside the city. Consumer deductions: Those items that may be deducted from gross sales and service on the sales/use tax return. Customer access service charge: Any direct charge by local telephone exchange companies to the consumer. Dwelling unit: A building or any portion of a building designed for occupancy as complete, in- dependent living quarters for one (1) or more per- sons, having direct access from the outside ofthe Supp. No. 13 building or through a common hall and having living, sleeping, kitchen and sanitary facilities for the exclusive use of the occupants. e Drugs dispensed in accordance with a prescrip- tion or prescription drugs: Drugs dispensed in ac- cordance with any order in writing, dated and signed by a licensed practitioner of the healing arts, or given orally by a practitioner, and imme- diately reduced to writing by the pharmacist, as- sistant pharmacist or pharmacy intern, specifying the name and address of the person for whom the medicine, drug or poison is offered and directions, if any, to be placed on the label. Engaged in business in the city: Performing or providing services or selling, leasing, renting, de- livering or installing tangible personal property for storage, use or consumption within the city. "Engaged in business in the city" includes, but is not limited to, anyone of the following activities by a person: (1) Directly, indirectly or by.a.subsidiary main- tains a building, store, office, salesroom, . warehouse, or other place of business within the taxing jurisdiction; (2) Send one or more employees, agents or com- missioned sales persons into the taxing ju- risdiction to solicit business or to install, assemble, repair, service or assist in the use of its products, or for demonstration for other reasons; (3) Maintains one or more employees, agents or commissioned sales persons duty at a lo- cation within the taxing jurisdiction; (4) Owns, leases, rents or otherwise exercises control over personal property, commercial real property or more than ten (10) residen- tial dwelling units within the taxing juris- diction; or (5) Makes more than one delivery Into the taxing jurisdiction within a twelve-month period. e Exempt commercial packaging materials: Con- tainers, labels and shipping cases sold to a person engaged in manufacturing, compounding, or . 1436 . e . e . TAXATION wholesaling, jobbing, retailing, packaging, distrib- uting or bottling for sale, profit or use that meets all of the following conditions: (1) Is used by the manufacturer, compounder, wholesaler, jobber, retailer, packager, dis- tributor or bottler to contain or label the finished product; _ (2) Is transferred by such person along with and as a part of the finished product to the purchaser; and (3) Is not refundable to said person for reuse. Exempt organization: Any governmental, quasigovernmental, religious or charitable orga- nization which has applied for, and been assigned, an exempt institution license from the City of Wheat Ridge. Farm closeout sale: Full and final disposal of all tangible property previously used by a farmer or rancher in farming or ranching operations which are being abandoned. Finance director: The treasurer of the City of Wheat Ridge or his designee. Food: Food which is advertised or marketed for human consumption and is sold in the same form, condition, quantities and packaging as is com- monly sold by grocers. The term includes cereals and cereal products; milk and milk products; meat and meat products; fish and fish products; eggs and egg products; vegetables and vegetable products; fruit and fruit products; sugar and sugar products and sugar substitutes; coffees and coffee substitutes; teas; cocoa and cocoa products; candy; ice for human consumption; distilled water for human consumption; and spices, condiments, salt and oleo-margarine. The term also includes food or drink served or furnished in or by restau- rants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets, re- sorts, snack bars, caterers, delicatessens, car- ryout shops and other like places of business at which prepared food or drink is regularly sold, including sales from pushcarts, motor vehicles and other mobile facilities; chewing gum, spiritu- ous, malt or vinous liquor; proprietary medicines; nostrums, lozenges; tonics; carbonated beverages including carbonated water marketed in contain- Supp. No. 22 ~ 22-21 ers; nonalcoholic cocktail mixes; vitamins and other dietary supplements; pet foods; seeds and plants to grow food; food or drink furnished, prepared or served for consumption at tables, chairs or counters or from trays, glasses, dishes or other tableware provided by the vendor; prepared- food or drink sold by vendors who regularly sell for consumption on or near the premises of the vendor, even though such food or drink is sold on a takeout or to-go order and is bagged, packaged or wrapped and taken from the premises of the vendor; and food or drink vended by or through machines on behalf of a vendor. Gross sales: The total amount received in money, credit, property or other consideration valued in money for all sales, leases, or rentals of tangible personal property or services. Healthcare facility: An individual or entity engaged in providing medical services, supplies, room and board to individual persons, and provid- ing a place for healthcare services to be con- ducted. The medical services may be of a thera- peutic, diagnostic, prognostic or of a rehabilitative nature. Healthcare facilities may include, but not be limited to: health resorts; spas; sanatoriums; sanitariums; rest homes; convalescent homes; hos- pitals for humans or animals, whether for profit or not-for-profit; wellness centers; psychiatric, vocational, mental or physical rehabilitation cen- ters; extended day care centers; and self-help preventive medicine/education centers. Hotel room, motel room or other accommoda. tions: Any room or other accommodation in any hotel, apartment-hotel, motel, guesthouse, trailer court or park, or any similar place furnishing rooms or other accommodations to any person or animal who, for consideration, uses, possesses or has the right to use or possess, for any reason allowable by law, such room or other accommoda- tion for a total continuous duration of less than thirty (30) days. For purposes of establishing the thirty-day period, the accommodation may-not-Jre-- transferred or transferable by one consumer or person or entity to any other consumer, person or entity. License: A City of Wheat Ridge sales and use tax license and/or general business license. 1437 ~ 22.21 WHEAT RIDGE CODE Linen services: Services involving provision aild cleaning of linens, including, but not limited to, rags, uniforms, coveralls and diapers. Local exchange company: Any person who pro- vides public telephone or telecommunication ex- change access lines, mobile telecommunications or channels necessary to effect the transfer of two-way voice communication or other data con- veyance from within the city. Lodgers' tax: The amount assessed or charged by this chapter and collected by retailers and vendors on the purchase price paid or charged for the lease, rental or on the transaction of furnish- ing rooms or accommodations to any person who for a consideration uses, possesses or has the right to use or possess any room or rooms or other accommodations in any hotel, apartment hotel, guesthouse, guest ranch, mobile home, auto camp, trailer court or park, or any other place furnish- ing rooms and accommodations under any conces- sion, permit, right of access, license to use or other agreement or otherwise. Lodging services: The furnishing of rooms or accommodations by any person, partnership, as- sociation, corporation, estate, representative ca- pacity or any other combination of individuals by whatever nameknown~ to a person who for a consideration uses, possesses or has the right to use or possess any room in a hotel, inn, bed and breakfast_ residence, ~ apartment, hotel, lodginghouse, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park or similar establishment for a period of less than thirty (30) days under any concession, permit, right of access, license to use, or other agreement or otherwise. Medical equipment: All items of tangible per- sonal property utilized by a physician, dentist or veterinarian, or which is utilized within a healthcare facility, in the rendering or delivery of medical or healthcare services to any person or animal. Medical supplies: Drugs dispensed in accor- dance with a prescription; insulin in all its forms dispensed pursuant to the direction of a licensed physician; glucose useable for treatment of insu- lin reactions; urine- and blood-testing kits and Supp. No. 22 materials; insulin measurii1g and injecting de- vices, including hypodermic syringes and needles; prosthetic devices; wheelchairs and hospital beds; drugs or materials when furnished by a doctor as part of professional services provided to a patient; and corrective eyeglasses, contact lenses or hear- ing aids; provided, that these definitions include items purchased for use by medical and dental practitioners or medical facilities in providing their services, even though certain of those items may be packaged for single use by individual patients after which the item would be discarded_ Mobile machinery: Those vehicles, self-pro- pelled or otherwise, which are not designed pri- marily for the transportation of persons or cargo over the public highways, and those motor vehi- cles which may have originally been designed for the transportation of persons or cargo over the public highways, and those motor vehicles which may have originally been designed for transpor- tation of persons or cargo, but which have been redesigned or modified by the mounting thereon of special equipment or machinery, and which may be only incidentally operated or moved over the public highways. This definition iricludes, but is not limited to, wheeled vehicles commonly used in the construction, maintenance and repair of roadways, the drilling of wells and the digging of ditches. Municipality: Any municipal corporation or similar form of local government in Colorado, or another state, except counties, school districts or special districts, and the City of Wheat Ridge; including any city, town, and city and county, whether organized pursuant to charter, constitu- tion or statute. Newspaper: A publication, printed on news- print, intended for general circulation, and pub- lished regularly at short intervals, containing information and editorials on current events and news of general interest. The term "newspaper" does not include: magazines, trade publications or journals, credit bulletins, advertising inserts, circulars, directories, maps, racing programs, re- prints, newspaper clipping and mailing services or listings, publications that include an updating or revision service, books or- pocket editions of books. 1438 . . . . . . e . e . Newspaper advertising supplements: Inserts, attachments or supplements that are primarily devoted to advertising and the distribution, inser- tion or attachment of which is paid for by the advertiser. Nonprofit organization: Any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes; or to foster national or international amateur sports competition; or the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which does not par- ticipate in or intervene in any political campaign on behalf Supp. No. 22 TAXATION ~ 22-21 1438_1 e e e TAXATION of any candidate for public office. For purposes of this chapter, an entity's status as exempt from federal and/or state income taxes is in no way a controlling factor in the city's determination of an entity's "nonprofit" status. Nonresident vendor: Any retailer or vendor whose place of business is outside the city. Open to the public: Any place or event to which admission or access is open to members of the general public. This term includes, without limi- tation, the following places or events where a charge or fee for admission is imposed upon mem- bers of the public: (1) Any performance of a motion picture, stage show, play, concert or other manifestation of the performing arts; (2) Any sporting or athletic contest, exhibit or event, either amateur or professional; (3) Any lecture, rally, speech, dissertation or educational seminar; (4) Any showing, display or exhibition of any type, including art exhibitions; (5) Any restaurant, tavern, lounge or club, whether the admission is called a "cover charge," ledoor charge" or any other such term. Pay television shall include, but not be limited to, cable, microwave or other television service for which a charge is imposed. Peddler: Any person, whether as volunteer, owner, agent, consignee or employee, who em- gages in a temporary business of selling and de- livering goods within the city, and who, in fur- therance of such purpose, leases, uses or occupies any tent, temporary structure, stand or outdoor location on private property for the exhibition and sale of such goods. This definition shall include any person who associates temporarily with any local dealer, trader, merchant or auctioneer, or conducts a transient business in connection with, as a part of or in the name of any local dealer, trader, merchant or auctioneer. This definition shall not include any person who holds a general bushiess license from the city and operates in full compliance with the zoning code of the city. Supp. No.9 !} 22.21 Person: Any individual, firm, copartnership, joint venture, corporation, estate or trust, receiver, trustee, assignee, lessee or any person acting in fiduciary or representative capacity, whether ap- pointed by a court or otherwise, or any group or combination acting as a group and the plural as well as singular number. Point of destination: The address to which an item is delivered by the seller to the purchaser whether by common carrier, mail or conveyed by the seller. Preprinted newspaper supplements shall mean inserts, attachments or suppiements circulated in newspapers that are primarily devoted to adver- tising and the distribution, insertion or atttach- ment of which is commonly paid for by the adver- tiser. Prescription drug: A substance for human or animal consumption used in the treatment or pre- vention of disease or other illness, the sale of which is delivered on a written order dated and signed by a member of the healing arts, specifying the name and address of the patient for whom the medical substance is ordered and directions, if any, to be placed on the label or dispensed in the prac- titioner's office. "Prescription drug" does not in- clude any medical substance which may be pur- chased by the general public without a physician's prescription except for insulin and insulin in- jecting and measuring devices. Prescription drugs for animals: Drugs dispensed in accordance with any order in writing, dated and signed by a practitioner, or given orally by a practitioner, specifying the animal for which the medicine or drug is offered and directions, if any, to be placed on the label. Price or purchase price: The price to the con- sumer, exclusive of any direct tax imposed by the federal government or by this article, and, in the case of all retails sales involving the exchange or property, also exclusive of the fair market value of the property exchanged at the same time and place of the exchange, if: (1) Such exchanged property is to be sold there- after in the usual course of the retailer's business; or 1439 S 22.21 WHEAT RIDGE CITY CODE e (2) Such exchanged property is a vehicle and is exchanged for another vehicle and both ve- hicles are subject to licensing, registration or certification under the laws of this state, including, but not limited to, vehicles oper- ating upon public highways, off-highway recreation vehicles, watercraft and aircraft. .Any money or other consideration paid over and above the value of the exchanged prop- erty is subject to tax. "Price" or Bpurchase price" includes: (1) The amount of money received or due in cash and credits; (2) Property at fair market value taken in ex- change but not for resale in the usual course of the retailer's business; (3) Any consideration valued in money, such as trading stamps or coupons, whereby the manufacturer or $omeone else reimburses the retailer for part of the purchase price and other media of exchange; (4) The total price charged on credit sales in- cluding finance charges which are not sep- arately stated. An amount charged asin- terest on the unpaid balance of the purchase price is not part of the purchase price un- less the amount added to the purchase price is included in the principal amount of a promissory note; except the interest or car- rying charge set out separately from the unpaid balance of the purchase price on the face of the note is not part of the purchase. price. An amount charged for insurance on the property sold and separately stated is not part of the purchase price; (5) Installation, delivery and wheeling-in charges included in the purchase price and not separately stated; (6) Transportation and other charges to effect delivery of tangible personal property to the purchaser; (7) Indirect federal manufacturers' excise taxes, such as taxes on automobiles, tires and floor stock; (8) The gross price of articles sold after manu- facturing or after having been made to Supp. No.9 order, including the gross value of all the materials used, labor and service performed and the profit thereon. "Price" or "purchase price" shall not include; (1) Any sales or use tax imposed by the State of Colorado or by any political subdivision thereof; (2) The fair market value of property ex- changed ifsuch property is to be sold there- after in the retailer's usual course of busi- ness. This is not limited to exchanges in Colorado. Out-of-state tradein's are an al. lowable adjustment to the purchase price. (3) Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reporting gross sales. Private communications services: Telecommuni. cations services furnislTed-to a subscriber, which entitles the subscril:1er to exclusive or priority use of any communication channel or groups of chan- nels, or to the exclusive or priority use of any interstate intereommunications system for the sub- scriber's stations. Prosthetic devices: Any artificial limb, part, de- vice or appliance for human use which aids or replaces a bodily function; is designed, manufac- tured, altered or adjusted to fit a particular indi- vidual; and is prescribed by a licensed practi- tioner of the healing arts. Prosthetic devices include, but are not limited to, prescribed audi- tory, ophthalmic or ocular, cardiac, dental, or or- thopedic devices or appliances, oxygen concentra- tors and oxygen with related accessories. Purchase or sale: The acquisition for any con- sideration by any person of tangible personal prop- erty or taxable services that are purchased, leased, rented, sold, used, stored, distributed or consumed, but excludes a bona fide gift of property or ser- vices. These terms include capital leases, install- ment and credit sales, and property and services acquired by: (1) Transfer, either conditionally or absolutely, of title or possession or both to tangible per- sonal property; e e 1440 . . . e . TAXATION (2) Alease, lease-purchase agreement, rental or grant of a license, including royalty agreement, to use tangible personal prop- erty or taXable services; (3) Performance of taxable services; or (4) Barter or exchange for other property or services including coupons. (5) Tangible personal property furnished to- gether with an operator shall be consid- ered a rental if the measurement of the price is time. The terms "purchase" and "sale" do not include; (1) A division of partnership assets among the partners according to their interests in the partnership; (2) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation's outstand- ing stock, except qualifying shares, in proportion to the assets contributed; (3) The transfer of assets of shareholders in the formation or dissolution of profes- sional corporations; (4) The dissolution and the pro rata distribu- tion of the corporation's assets to its stock- holders; (5) A transfer of a partnership interest; (6) The transfer in a reorganization qualify- ing under section 368(a)(1) of the Internal . Revenue Code of 1954, as amended; (7) The formation of a partnership by the transfer of assets to the partnership or transfers to a partnership in exchange for proportionate interests in the partner- ship; . (8) The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder; (9) The transfer of assets from a parent cor- poration to a subsidiary corporation or corporations which are owned at least eighty (80) percent by the parent corpora- tion, which transfer is solely in exchange for stock or securitieS of the subsidiary corporation; Supp. No. 1S ! 22-21 (10) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty (80) percent by the parent corporation to a parent corpora- tion or to another subsidiary which is owned at least eighty (80) percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets; (11) The transfer of assets between parent and closely held subsidiary corporation, or be- tween subsidiary corporations closely held by the same parent corporation, or be- tween corporations which are owned by the same shareholders in identical per- centage of stock ownership amounts, com- puted on a share-by-share basis, when a tax imposed by this article was paid by the transferor corporation at the time it acquired such assets, except to the extent that there is an increase in the fair mar- ket value of such assets resulting from the manufacturing, fabricating or physical changing of the assets by the transferor corporation. To such an extent any trans- fer referred to in this paragraph (11) shall constitute a sale. For the purposes of this paragraph (11), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty (80) percent of the total combined voting power of all classes of stock enti- tled to vote and owns at least eighty (80) percent of the total combined voting power of all classes of stock entitled to vote and owns at least eighty (80) percent of the total number of shares of all other classes of stock. Purchase price or sales price: The total price paid by the consumer, purchaser or lessee in cash, property, services, coupons or other consideration, exclusive of any direct tax imposed by the federal. state or county government or by this chapter. (1) For interpreting this definition, the pur- chase price or sale price of goods manu- factured or made to order includes the full purchase price for material used, and the 1441 g 22-21 WHEAT RIDGE CITY CODE (2) labor performed in connection therewith, and the profit thereon included in the price charged to the user or customer. Purchase price or sales price includes, without limitation, any finance, service or other charge, except when separately stated; installation and delivery fees; trans- portation and other charges to effect de- livery to the purchaser if the sales agree- ment requires such delivery to consummate the sale; and indirect federal manufactur- ers' excise taxes, except when separately stated. In the case of a ret1l11 sale involving the exchange of property, the purchase price or sales price excludes the fair market value of the property exchanged at the time and place of the exchange if: a. Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or b. Such exchanged property is an auto- motive vehicle and is exchanged for another automotive vehicle and both vehicles are subject to licensing, reg- istration or certification under the laws of the State of Colorado, includ- ing, without limitation, vehicles op- erating on public highways, off-high- way recreation vehicles and watercraft. (3) Purchaser: Any person to whom a taxable ser- vice has been rendered or who has leased or purchased at retail tangible personal property within the city upon which a tax is imposed by this chapter. . Recreation services: AlLservices relating to ath- letic or entertainment participation events includ- ing, but not limited to, pool, golf, billiards, skat- ing, tennis, bowling, health/athletic club memberships, coin operated amusement devices, video games and video club memberships. Regulations: Those regulations promulgated by the city treasurer pursuant to the authority del- egated to him by section 22-3 of this chapter, as the same. may be from time to time amended. Supp. No. 1S Retail sales: All sales except wholesale sales. Retailer or vendor: Any person selling, leasing or renting tangible personal property or services at retail. Retailer shall include: (1) Auctioneer; (2) Salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer; (3) Charitable organization or governmental entity which makes sales of tangible per- sonal property to the public, notwithstand- ing the fact that the merchandise sold may have been acquired by gift or dona- tion or that the proceeds are to be used for charitable or governmental purposes. Return: The standard municipal sales and use tax reporting form, and any subsequent revisions thereto, used to report Wheat Ridge sales and use tax. Sale: A retail sale as defined herein. Sales tax: The tax to be collected and remitted . by a retailer on sales taxed under this Code. Sales tax inspector: The city treasurer, or other person designated by him, and shall likewise refer to the sales tax auditor or administrator. Security system services: Electronic security system services for a building or portion thereof. Such term does not include nonelectronic security services such as consulting or human or guard dog patrol services. Solicitor: Any person, whether as volunteer, owner, agent, consignee or employee, who travels by foot, wagon, motor vehicle, pushcart or any other method of transportation from house to house or street to street selling or offering to sell services, food, beverages, goods or merchandise. Sound system services: Sound system services involving provision of broadcast or prerecorded audio programming to a building or a portion thereof. Such term does not include installation of sound systems where the entire system becomes 1442 . e . . . . e . . . TAXATION the property of the building owner or the sound system service is for presentation of jive perfor- mances. Storage: The keeping or retention of, the exer- cise of dominion or control over, or the possession of tangible personal property under lease or pur- chase at retail from another person within or without the city. Tangible personal property: Any corporeal per- sonal property which may be seen, weighed, mea- sured, felt or touched. Tax: The use tax due from a consumer or the sales tax due from a retailer or the sum of both due from a retailer who also consumes. Tax deficiency: Any amount of tax that is not reported or not paid on or before the due date. Taxable sales: Gross sales less any exemptions and deductions specified in this Code. Taxable services: Services subject to tax pursu- ant to this Code. Taxpayer: Any person obligated to collect and/or pay tax under the terms of this Code. Telecommunications service: The transmission of any two-way interactive electromagnetic com- munications, including, but not limited to, voice, image, data and any other information, by the use of any means but not limited to wire, cable, fiber optical cable, microwave, radio wave or any com- binations of such media. "Telecommunications service" includes, but is not limited to, basic local exchange telephone service, toll telephone service and teletypewriter service, including, but not lim- ited to, residential and business service, directory assistance, cellular mobile telephone or telecom- munication service, specialized mobile radio and two-way pagers and paging service, including any form of mobile two-way communication. "Telecom- munications service" does not include separately stated nontransmission services which constitute computer processing applications used to act on the information to be transmitted_ Theater operator: Any person, whether owner, operator, lessee or any other person, who charges or causes to be charged admission to a perfor- mance or show at a theater open to the public. Supp. No. 22 ~ 22-21 Therapeutic device: Devices, appliances or re- lated accessories that are sold to correct or treat a human physical disability or surgically created abnormality; if such device, appliance or related accessory has a retail value of more than one hundred dollars ($100.00), it must be sold. in accordance with a written recommendation from a licensed doctor to qualify as a "therapeutic device" for purposes of this Code. Third-party recordkeeper: An entity which has contractually undertaken the duty of collection of accounts from city residents or businesses for taxable services or sales undertaken or occurring within the city, which third-party recordkeeper shall have the rights, duties and obligations as specified in section 22-42(h) hereof. Total tax liability: The total of all tax, penalties or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales. Transfer of ownership point: The geographical location at which point the purchaser takes phys- ical or legal possession of the property. Treasurer: The city treasurer, or his designee, including, not by way of limitation, the deputy city treasurer or the finance assistant/sales tax auditor. Use: The exercise, for any length of time, by any person, corporation, partnership or associa- tion within the city of any right, power or. domin- ion over tangible personal property by lease or purchase. Use tax: The tax paid or required to be paid by a consumer for using, storing, distributing or otherwise consuming tangible personal property or taxable services inside the city. Vehicle: Any vehicle or device in, upon or by which any person or property is or may be trans- ported or drawn upon a public highway, includ- ing, but not limited to, motor vehicles, trailers, semitrailers, mobile homes, mobile machinery or self-propelled construction equipment, but exclud- ing devices moved by human power or used exclu- sively upon stationary rails or tracks. Vendor's fee: The portion of total sales tax collected by a licensed taxpayer under the require- 1443 ~ 22-21 ~ WHEAT RIDGE CODE ments of this chapter that the taxpayer may retain as payment or offset for his expense in collecting and remitting the sales tax collected from taxable sales and leases to purchasers and consumers. The vendor's fee may only be retained when sales tax collected has been remitted to the city as prescribed in this chapter. The vendor's fee is set forth at section 22-40(b) of this chapter. WATS/800 service: Any outbound or inbound interstate wide are telecommunications service or other similar service which entitles the sub- scriber, upon payment of a periodic charge, based upon a flat amount and/or usage, to make or receive~ a large volume of telephonic communica- tions to or from persons having telephone or radio telephone stations in specified areas which are outside the telephone system area in which the subscriber's station is located. Wholesale sales: Sales to licensed retailers, jobbers, dealers or wholesalers for resale. Sales by wholesalers to consumers are not wholesale sales. Sales by wholesalers to nonlicensed retailers are not wholesale sales. Wholesaler: Any person selling to retailers, jobbers,dealers or other wholesalers for resale and not for storage, use, consumption or distribu- tion. (b) Usage. As used in this chapter and else- where, a masculine pronoun shall include the feminine and vice versa, and a singular pronoun shall include the plural and vice versa, unless the context in which the pronoun is used indicates otherwise. . (Ord. No_ 1988-781, ~ 1(21-1), 12-12-88; Ord. No. 1989c804,~ 1, 8-28-89; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991'885, ~.~.1-4, 12-23-91; Ord. No. 1992-893, ~ 1, 4-13-92;Ord. No. 1994-958, ~ 1, 3-14-94; Ord_ No. 1996-1060, ~ 3, 12-16-96; Ord. No. 1997-1075, ~ 1,4-14-97; Ord. No. 1998-1138, ~~ 2, 4, 11-23-98) Sec. 22-22. Legislative intent. It is the intent of the City of Wheat Ridge that all sales, transfers or consumption of tangible personal property within the city shall be subject to the sales and/or use tax imposed hereby, unless the same is specifically exempted from taxation Supp. No. 22 under the provisions of sections 22-58 or 22-67 hereof. The city council hereby reaffirms its au- thority as a home rule city, pursuant to the provisions of article XX of the Constitution of the State of Colorado, and the Home Rule Charter of the City of Wheat Ridge, to "assess, levy and collect" local sales and use taxes as deemed ap- propriate by the city council in the exercise of its lawful legislative discretion. (Ord. No. 1988-781, ~ 1(21-35), 12-12-88; Ord. No. 1989-804, ~ 2, 8-28-89; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 5, 12-23-91; Ord. No. 1996-1060, ~ 4, 12-16-96) State law reference-Home rule powers, Col. Canst. Art. XX,H. Sec. 22-23. Motor vehicles. (a) No motor vehicle, defined as any vehicle, including any device in or upon which any person or property is or may be transported or drawn upon a public highway, road or street, which is purchased by a resident of the city or other person for use within the city, shall be registered in Jefferson County nor shall title to a motor vehicle as defined herein be transferred within Jefferson County by the county clerk of the respective county if the tax imposed by the provisions of this chapter has not been paid. (b) The determination of the address of regis- tration for the purpose of establishing liability under this chapter for sales or use taxes on motor and other vehicles required to be registered shall be made pursuant to the criteria established in~ 42-6-137, C.R.S. (Ord. No. 1988-781, ~ 1(21-26), 12-12-88; Ord. No. 1991-885, ~ 1, 12-23-91) Sees. 22.24-22-32. Reserved. DIVISION 2. ADMINISTRATION AND ENFORCEMENT Sec. 22-33. Administrative authority oftrea- surer~ (a) The administration ofthis chapter is vested in and shall be exercised by the treasurer, who shall prescribe forms and reasonable rules and regulations, and forms in conformity with this 1444 . . . . . . :e . . . chapter for the making of returns and reports, ascertainment and collection of the tax imposed hereunder, and for the proper administration and enforcement of this chapter. (b) The rules and regulations as prescribed by the treasurer and, as from time to time are amended by the treasurer, pursuant to his author- ity specified in paragraph (a) shall be pub- Supp. No. 1S TAXATION ~ 22-33 1444.1 e e e TAXATION lished and appear as appendix A to this chapter. The forms developed pursuant to paragraph (a) for making returns and reporting taxes assessed under this chapter shall be published and appear as appendix B to this chapter. (Ord. No. 1988-781, !i1(21-36), 12-12-88; Ord. No. 1991-885, !iI, 12-23-91) Editor's note-The rules and regulations and the forms for making returns and reporting taxes mentioned above and set out in appendices A and B to this chapter have not been in- cluded herein, but can be found on file in the city treasurer1s office. Sees. 22.34, 22-35. Reserved. Sec. 22.36. Disputes; refunds, limitation of ac- tions. (a) Should a dispute arise between the seller and purchaser as to whether or not any purchase, storage, use or consumption of a service or com. modity is exempt under this chapter, neverthe. less the seller shall collect and the purchaser shall pay such tax. The seller shall thereupon issue to the purchaser an appropriate receipt showing the details of the transaction and disburse the col. lected, but disputed, tax to the city. (1) The purchaser may apply for a refund by submitting to the treasurer in writing the amount and reason for such refund within sixty (60) days of the date of purchase for the unintentional payment of tax on ex- empt purchases or an overpayment of taxes reported and paid by any taxpayer to the treasurer. (2) The treasurer shall forthwith, after receipt of the application for refund, submit same to the sales tax inspector for a determina- tion of applicability. (3) The treasurer shall disburse to the appli- cant a refund when such has been approved by the sales tax inspector or notify the ap- plicant in instances of disapproval by the sales tax inspector. (b) An application for refund of sales or use tax paid by a person who established that a tax was paid by another on a purchase, storage, use or consumption made on behalf of a person entitled to an exemption and that a refund has not been Supp. No.9 S 22.37 granted to the person making the purchase, storage, use or consumption, or of tax monies paid in error or by mistake, shall be made within three (3) years after the date of purchase, storage, use or consumption of the goods for which the refund is claimed. (c) All claims for refunds shall be processed in the manner provided in section 22-45. (d) The provisions of this section are expressly subject to the provisions of sections 22-45 and 22-47 of this Code of Laws. (Ord. No. 1988-781, !i1(21-17), 12-12-88; Ord. No. 1991-869, !i 3, 9-1-91; Ord. No. 1991-885, !i!i1, 6, 12-23-91) Editor's note-Section 5 ofOrd. No. 1991-885, adopted Dec. 23,1991, amended S 22.36 by adding provisions designated as paragraph (b). Inasmuch as ~ 22-36 already contained pro..'i,- sians designated as paragraph (b). the editor, at his discretion, has included these provisions as paragraph (dJ. Sec. 22-37. Nonresident vendor. (a) Engaging in business. It shall be unlawful for any nonresident vendor to engage in business in the city without first having obtained a license in accordance with section 11-23. Any nonresi- dent vendor engaged in business in the city shall have the same tax liability and responsibility for reporting and collecting the city tax on sales to city residents as a resident vendor has with re- spect to sales tax pursuant to this chapter. (b) Engaging in peddling or soliciting. It shall be unlawful for any person to engage in the busi- ness of a peddler or solicitor within the city limits of Wheat Ridge without first obtaining a license as provided herein. (c) Engaging in canvassing. It shall be unlawful for any person to engage in canvassing in a resi- dential area within the city limits of Wheat Ridge without first obtaining a license as provided herein. (d) Presentation of license. Any nonresident vendor shall present its license for inspection upon request of the sales tax inspector or other law enforcement officer of the city. (1) If such nonresident vendor is unable to pro- duce a license, or identify the person in whose possession such license could be 1445 :::~.. S 22.37 WHEAT RIDGE CITY CODE e found, or produces an expired or invalid li- cense, such nonresident vendor. shall be di. rected and ordered to cease his operations immediately and not resume such opera- tions until a valid license is obtained. (2) Any nonresident vendor who fails to comply with such order or directive may be issued a summons and complaint pursuant to sec- tion 22-46(hl, or may be subject to the im- poundment of his property as specified in paragraph (e) of this section. (el Seizure of property; administrative hearing. In the event that a nonresident vendor fails to comply with an order to obtain a license and con- tinues to engage in business in the city, the city may seize and impound any personal property of the nonresident vendor, or his agent, located in the city and used in any manner in furtherance of or to facilitate the transaction of the vendor's busi- ness in the city. The vendor shall be notified of the impoundment and shall have the right to de- mand an administrative hearing to be held not later than five (5) working days from the date of seizure, unless the vendor requests a later date. The hearing officer at such hearing shall deter- mine only whether or not the nonresident vendor had a valid business license and whether or not the impounded property was used in furtherance of or to facilitate the transaction of business by the nonresident vendor in the city. If no hearing is demanded or if a hearing is held and it is de- termined that the property was so used, the im- pounded property shall be held until the vendor has obtained a license, If it is determined at the hearing that the property was not so used, it shall be released forthwith. The determination of the hearing officer shall be appealable to the district court pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. (f) Sale of impounded property upon failure to obtain license. If the vendor fails to apply for a license within ten (10) days from the date of im- poundment, the sales tax inspector may estimate the taxes due in accordance with section 22-43 and collect such taxes pursuant to this article from the proceeds of the sale of the impounded prop- erty. Such sale shall be conducted under the pro- cedures specified under section 22-46(k). Supp. No.9 (g) Investigation and issuance. Upon receipt of a license application, the sales tax inspector shall refer copies to the city zoning official and when deemed appropriate or in the best interest of the safety of the citizens of Wheat Ridge to the police department. . (h) Grounds for denial. The treasurer shall deny the issuance of a license for the following reasons: (1) Any misrepresentation, fraud, deception, breach of warranty, or breach of contract in the city or elsewhere by the applicant. (2) Failure by the applicant to comply with this . chapter or any other applicable provisions of the City Code. (3) Failure by the applicant, his supervisor or his employer to remit any tax due to the city under this chapter. (4) Upon finding after an investigation by the chief of police, felony convictions of the ap- plicant, his agents or his employees in- volving crimes against the person or prop. erty of another, or for institutionalization for mental illness which caused acts of vi. olence against the person or property of an- other; provided, however, that such felony convictions or institutionalization occurred within the five (5) years preceding the date of application. (5) For purposes of this paragraph (h): a. Crimes or acts of violence against the person of another shall include homi- cide, attempted homicide, rape, at- tempted rape, sexual assault, assault, battery and other similar felonies in- volving moral turpitude by whatever name; and b. Crimes or acts against the property of another shall include theft, burglary, breaking and entering, larceny, and other similar felonies involving moral turpitude by whatever name. (6) Persons whose applications for licenses have been denied shall be notified in writing of the reason for such denial and, upon written request to the city treasurer, are entitled to an administrative hearing pursuant to para- e e 1446 Ie e e TAXATION graph (e) of this section with the treasurer, or another hearing officer as designated by the treasurer, serving as hearing officer. The hearing officer shall determine whether the reasons for license denial in this para- graph (h) in fact exist. (i) Land use permit. The city zoning official shall determine whether the applicant must obtain a land use permit, per section 2-60G) of the Wheat Ridge Code, in order to do business at the pro, posed location. If a permit is required, the city zoning official shall recommend denial of the li- cense unless the applicant first secures approval or a permit. G) Issuance of permit upon approval of zoning. officials. Upon receipt of approval from the city zoning official and police department, if appro. priate, the treasurer will issue the license pur- suant to paragraph (k) with any condition listed, or notify applicant of denial in writing. (k) Issuance upon payment of fee. If the appli- cation is approved, upon payment of the prescribed license fee by the applicant, the sales tax inspector shall issue the license. Such license shall contain the signature of the city treasurer and shall show the name, address of said licensee, the kind of license issued, the amount of fee paid, the date of issuance and the length of time the same shall be operative. The sales tax inspector shall keep a permanent record of all licenses issued. (1) Issuance of peddler's or solicitor's license. If a land use permit is required by the city zoning official, then a peddler's license shall be issued. If no such permit is necessary, then a solicitor's li- cense shall be issued. (m) Property owner's permission required for is- suance of peddler's license. A peddler shall not receive a license under this section if he does not have written p!,rmission from respective property owners to set up displays and sell goods on private property. A permission form must be signed and notarized on the--fel'ffi-PTovided by sale~-tax in- spector_ (n) Compliance with other applicable laws. All licensees under this chapter shall comply with other applicable laws of the City of Wheat Ridge or State of Colorado. Supp. No.9 li 22.37 (0) Zoning. All peddlers conducting activities under this chapter shall conform to the zoning provisions of the Wheat Ridge Code, including the sign code, unless otherwise provided herein. (1) No peddler shall conduct his activities within ten (10) feet of any public property or right-of-way. (2) If customers of the peddler are required to park in order to gain access to the goods or services of the peddler, the peddler shall not do business at a location that lacks suf- ficient parking or that interferes with the public rights-of-way on sidewalks or streets or that requires customers to park on pri- vate property without the consent of the property owner. (3) Peddlers must be located in order to pro- vide safe access by vehicle and pedestrian traffic to the peddler's location without re- quiring illegal or unsafe turning move- ments by vehicles or trespassing across pri- vate property. (4) Peddlers shall not use a property or loca- tion in a way that: a. Impedes access to the entrance of any adjacent building or driveway. b. Is located in such a manner as to inter- fere with a fire hydrant, fire escape, bus stop, loading zone, or driveway of a fire station, police station, hospital, or handicapped parking space or access ramp. (5) A peddler's land use permit shall designate the specific location for the use and the time period for which the permit is issued. Per- mits may not be issued for any location for more than ninety (90) days. Permits may not be used at any location other than the location specified in the permit. (p) Hours of operation. Licensees shall be al- lowed to engage in their businesses between the hours of 7:00 a.m. and 10:00 p.m., unless other- wise stated in the conditions on their license. (q) Site cleanup deposit required. Before any ped- dler's license or permit shall be issued to an ap- plicant selling from a site location within the city, 1447 Ii 22-37 WHEAT RIDGE ClTY CODE e the applicant must post a one hundred dollar ($100.00) (cash) site cleanup deposit. The deposit will be refunded when the site has been approved as properly restored to a reasonable condition, on a form provided by the city, signed by the code enforcement or city zoning official. (r) Removal of trash. All trash or debris accu- mulationcaus.edby a licensee's activities shall be collected and deposited in a proper trash con. tainer. Any accumulation of trash or debris that causes the city to incur expense in removing the accumulation shall be cause for the city to pro- ceed against the site cleanup deposit. (s) Compliance with traffic and parking laws. All soliciting, peddling or canvassing activities, whether conducted on foot or from a vehicle, shall be conducted in strict accordance with all traffic and parking laws. (t) License and required fees for solicitors and peddlers: All fees for solicitors and peddlers must be paid with cash. certified check or money order as follows: (1) One hundred dollar ($100.00) deposit to be applied against sales tax collections; appli- cant must bring in sales receipts within ten (10) days after sales to claim any refund on overpayment of sales tax deposit. Failure to provide proof of sales receipts will mean forfeiture of deposit. Sales tax collections over one hundred dollars ($100.00) must be remitted within ten (10) days of sales. (2) Five dollars ($5.00) application fee (section 11-24). (3) Ten dollars ($10.00) General business li- cense fee (section 11-29). (4) One hundred dollars ($100.00) site clean up deposit. Refundable upon certificate of site clean up by code enforcement or city zoning officials. (u) Licenses to be displayed. The city treasurer shall issue the license. Each license shall bear the words "Licensed Peddler" or "Licensed Solicitor," and the period for which the license is issued. (v) Licenses for canvassers: The foregoing pro- visions shall not apply to the activities of can- Supp. No.9 vassers when such provisions conflict with this paragraph. All canvassers shall register with the treasurer and obtain a license before engaging in canvassing activities within the city. The trea- surer shall not charge a fee for such license and shall issue a "canvassers license" to all persons who satisfy the criteria of paragraph (g) through (j) inclusive. (w) Duty of enforcement personnel: It shall be the duty of any police officer, sales tax inspector or code enforcement officer of the city to require any person required to have a license. as provided in this chapter, to produce his license and to en- force the provisions of this chapter against any person found to be violating the same. (x) Treasurer shall maintain records: The chief of police shall report to the sale tax inspector all violations of this chapter and all violations of this .Code by licensees and the sales tax inspector shall maintain a record for each license issued and record the reports from the chief of police. (Ord. No. 1988.781, Ii 1(21-25), 12.12.88; Ord.No. 1991-869, Ii 3, 9-1-91; Ord. No. 1991-885, Ii 1, 12- 23-91) e Sec. 22.38. Transfer of ownership of busi- ness; renewal or issuance ofbusi. ness license. (a) Any retailer who shall sell out his business or stock of goods or shall quit business shall be required to file a final return as provided in this chapter within ten (10) days of the date of the sale of his business or stock of goods or of quitting business. (b) The purchaser of any business shall be re- sponsible for determining whether any sales or use tax, including penalties and interest, is owed for that business and shall withhold a sufficient amount from the purchase money to cover the amount of all outstanding sales and use tax due the city, including any penalties and interest, until such time as the former owner shall produce a receipt from the city treasurer showing that the taxes, and any penalties and interest, have been paid or a certificate that no taxes, penalties or interest are due. If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in this section, and the taxes, penal. e 1448 . . . . . ties or interest are due and unpaid after the ten-day period, both the purchaser and the seller shall be personally liable, jointly and severally, for the payment ofthe taxes, penalties and inter- est unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by a retailer under lease, installment sales contract, or other contract arrangement, by purchase, foreclosure sale, or otherwise, takes the same subject to the city's lien for unpaid taxes, if any, and shall be liable for the payment of all delinquent sales and use taxes on the value of property so taken or acquired. (c) The seller or his agent will be held liable for sales and use tax remittance on the sale of busi- ness in the event the purchaser fails to remit the tax due on the purchaser. (d) The city use tax shall be remitted to the city on the price paid for tangible personal prop- erty and taxable services which are purchased to establish a new business or business location within the city. Such tax shall be reported on the initial use tax return and shall be remitted to the city on or before the twentieth day of the month following the opening day of business. Timely filing shall be evidenced by the postmark date. (Ord. No. 1988-781, ~ 1(21-29), 12-12-88; Ord. No. 1991.869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91) Sec. 22-39. Liability of retailer or vendor for collection. . (a) Every retailer, vendor and wholesaler shall be liable for the collection of the tax as provided for in this chapter for sales at retail to the user or consumer by adding the tax imposed hereby or the average equivalent to the sale price or charge as a separate and distinct item, and when added, such tax shall constitute a part of such total price or charge and shall be a debt from the consumer or user to the vendor until paid and shall be recoverable at law in the same manner as other debts. (b) Except as provided in subsections (1) and (2) of this paragraph (b), it shall be unlawful for any retailer to advertise or hold out or state to the public or to any consumer, directly or indirectly, that the city sales tax or any part thereof shall be Supp. No. 19 TAXATION ~ 22-40 assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold, or if added, that it or any part thereof shall be refunded, or the sale tax is not considered an element in the sales price to the consumer. Any person violating any provisions of this section shall be subject to the penalties provided in this chapter. (1) Nothing contained in this section shall be deemed to prohibit any retailer selling malt, vinous or spirituous liquors by the drink from including in his sales price any city sales tax. (2) Nothing contained in this section shall be deemed to prohibit any owner or operator of vending machines or coin-operated de- vices from including in his sales price any city sales tax. (c) The amount paid by the purchaser as, or in the nature of, interest or finance charges on credit extended in connection with the sale of any tan- gible personal property, if the interest or finance charges are separately stated from the consider- ation received for the tangible personal property transferred in the retail sale, and if included in the report of gross sales and services, are deduct- ible from the gross sales and services. (d) If any vendor shall, during any repo.Iting period, collect as a tax an amount in excess of the percentages set forth in section 22-56 of his total taxable sales, he shall remit to the city treasurer the full net amount of the tax herein imposed and also such excess. The retention by the retailer to vendor of any excess tax collections or the inten- tional failure to remit punctually to the city treasurer the full amount required to be remitted by the provisions of this chapter is hereby de- clared to be a violation of this chapter. (Ord. No. 1988-781, ~ 1(21-19), 12~12-88; Ord. No. 1991-869, *u3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91) Sec. 22-40. Reports by vendor; payment of tax; monies collected held in trust. (a) Every vendor shall be liable as a taxpayer and responsible for the reporting to the treasurer and paying the tax at the rates specified in section 1449 * 22-40 WHEAT RIDGE CITY CODE 22-56 during the reporting period, plus any over- age of collections of tax on sales or charges for service resulting from the use of the bracket system therein prescribed, less a vendor's fee as specified in this section, to cover the taxpayer's cost of collection and reporting. Such vendor's fee is disallowed on ~any delinquent report. (b) The vendor's fee, as defined in section 22- 21, shall be zero (0) percent of the total sales tax due to the city under this chapter, up to a maxi- mum vendor's fee of zero dollars ($0.00) per reporting period. (c) The reporting period shall be monthly for vendors who exceed a forty dollar ($40.00) tax liability per month, quarterly for a vendor with less than one hundred dollars ($100.00) in tax liability per quarter, and annually only upon approval of the treasurer. A report shall be made and tax paid under the provisions of this chapter on or before the twentieth day of the month following the reporting period. Timely filing shall be evidenced by the postmark date. A report shall be made for each place of business if more than one location is used in the business of sales at retail within the city. (d) All monies paid by the purchaser to the retailer as sales taxes, lodgers' taxes, or admis- sion taxes imposed by this chapter shall be and remain the property of the city while in the hands of the retailer. Until paid to the treasurer, the monies shall be held in trust by the retailer for the sole use and benefit of the city. Failure by the retailer to pay the monies to the treasurer shall be violation of this Code. (e) Vendors are specifically prohibited from remitting city taxes to another vendor or entity either located within the city or outside the city. Vendors who receive such tax monies from con- sumers or purchasers are required to remit such monies directly to the city. (f) Failure to comply with the provisions in subsection (e) above resulting in a transfer of the city's taxes to another third party shall be a violation of this chapter. (Ord. No. 19S8-781, ~ 1(21-20), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91; Ord. No. 1997-1075, ~ 2, 4-14-97) Supp. No. 19 Sec. 22-41. Sales or use tax; deficiency. The treasurer shall, as soon as practical after receipt of a taxpayer's report, recompute the tax by the use of knoWn and visible factors, and if the resulting recomputed tax is less than that shown and paid by the taxpayer, the difference shall be credited toward the taxpayer's obligation for the next reporting period. If the recomputed tax is more than that shown and paid by the taxpayer, the difference shall be recorded as a deficiency. The taxpayer shall be notified of the deficiency as provided in section 22-45. Willful disregard ofthe requirements for reporting and remittance oftax due, or failing to respond within twenty (20) days to the treasurer's notice of deficiency, shall, in addition to constituting a violation of the Code, subject the taxpayer to penalties and interest provided in section 22-43(d). (Ord. No. 1988-781, ~ 1(21-21), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91) Sec. 22.42. Business records; burden of proof. (a) Presumption; burden to prove exemption. Every transaction of business conducted within the city is presumed to be taxable. The burden of proving that any person is exempt from taxation or any article, commodity or transaction is ex- empt under the provisions of this chapter shall be upon the person asserting the claim for exemp- tion. (b) Responsibility to preserve records. It shali be the duty of every person engaging or continu- ing in business within the city or otherwise sub- ject to the tax under the provisions of this chapter or a person requiring a license under section 11-23 or 22-37 hereof to keep and preserve suit- able records of all sales and transactions as may be necessary to determine the applicability of the provisions of this chapter thereto, and to keep such invoices, sales memoranda, books and records for a period of three (3) years; and they shall be open at any time for examination by the sales tax 1450 . . . . . . e . e . TAXATION ~ 22-42 inspector or his agents. Failure to keep and pre- serve suitable records as required by this section shall be a violation of this Code. Suitable records include, but are not limited to, the following: (1) Supporting documentation for every line item used on the sales/use tax return_ , Supp. No. 19 1450.1 I TAXATION e (2) Sales and lease invoices, contracts. (3) Purchase journals and invoices. (4) Fixed asset depreciation schedules. (5) Check books and/or check registers. (6) State sales tax returns. (7) Federal and state income tax returns. (8) Sales journals. (9) Asset ledgers. (10) General ledgers. (11) Journal entries. (12) Chart of accounts. (13) Financial reports. (14) All other supporting documents not listed above. e (c) Access to records by city personnel. Business records are to be stored or kept within reasonable access of city personnel. Should a taxpayer's busi- ness records be. maintained at a location outside the city'sjurisdiction, the city maintains the right to inspect such records at the taxpayer's location. e (d) Audit of taxpayer business records. The city maintains the authority to audit, upon reason- able notice, the business records of any taxpayer licensed to engage in business activity within the city. If the city provides written notice to the tax- payer prior to the expiration of the 36-month statute of limitations that the taxpayer's records will be audited pursuant to this chapter, such lim- itation period shall be extended one hundred eighty (180) days after the date of expiration of such period. (e) PlaJ:e of audit. The city has adopted the policy of auditing a taxpayer's records only at the tax- payer's business location where such business records are routinely kept. The city's sales tax inspectors or agents shall not engage in any tax investigations whereby such records are sent to the city for review. Notwithstanding this policy, the city treasurer may, under exceptional circum- stances, permit limited scope auditing of a tax- payer's records by mail. Such a determination is solely within the discretion of the city treasurer Supp. No.9 ! 22-42 and is not an appealable issue. All expenses in- curred by the city in connection with the audit of taxpayer business records located outside the city shall be paid by the taxpayer. (D Subpoenas to appear and/or produce records. When the sales tax inspector has scheduled an audit or examination of the records required herein not less than thirty (30) days in advance, and has so notified the taxpayer, and the taxpayer fails to make available the records required in paragraph (b) at the appointed time, the treasurer may apply to any judge of the municipal court of the city and/or district court in and for Jefferson County for a subpoena to require the taxpayer to appear before the treasurer, produce any of the foregoing information in the taxpayer's possession, and tes. tify under oath before the treasurer. If the trea- surer is unable to secure from the taxpayer infor- mation relating to the correctness of the taxpayer's return or the amount of the taxpayer's taxable sales, the treasurer may apply to any judge of the district court in and for Jefferson County or the municipal court of the city for subpoenas to such otherpersons as the treasqrer believes may have knowledge of the taxpayer's return or income. If the treasurer shows that the taxpayer cannot be found, evades service of subpoena, fails or refuses to produce records or give testimony, the judge may cause subpoenas to be issued to the persons sought, requiring them to appear before the trea- surer and give testimony regarding the ta.xpay- er's return or income. If any of the persons so served with subpoenas fail to respond thereto, the judge may proceed against such persons as in cases of contempt. (g) Performance of audit not to limit or preclude additional audits. Performance of an audit does not constitute a statute of limitations or preclude additional audits of the same period within the parameters of this section. . (h) Third-party recordkeepers. Any third-party recordkeeper, as defined in section 22-21 hereof, shall have all of the rights, duties and obligations of a taxpayer, retailer or vendor solely as the same relates to the record disclosing obligations im- posed upon taxpayers, retailers or vendors by sec- tions 22-39 through 22-42; 22-43(a), (I), (g), G); 22- 44(b); 22-46(g) and (h) hereof; provided, that the 1451 S 22.42 WHEAT RIDGE CITY CODE e city shall attempt to obtain any records or reports from the taxpayer, retailer or vendor prior to its attempts to obtain such records from thirty-party recordkeepers, and in any event such attempts to obtain records or reports shall only be undertaken after providing notice to the taxpayer, retailer or vendor; provided, further, however that a third- party recordkeeper shall be deemed a taxpayer for all purposes and shall be subject to all of the provisions of this article relating to any and all taxable transactions engaged in by such third- party recordkeeper. (i) Coordinated audit: (1) Any taxpayer licensed in this city pursuant to section 11-1 or 11-23 of this Code of Laws, and holding a similar sales tax license in at least four (4) other Colorado municipalities that administer their own sales tax collec- tion, may request a coordinated audit as provided herein. (2) Within fourteen (14) days of receipt of no. tice of an intended audit by any munici. pality that administers its own sales tax collection, the taxpayer may provide to the finance director of this city, by certified . mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those Colo- rado municipalities utilizing local collec- tion of their sales tax in which the tax. payer holds a current sales tax license and a declaration that the taxpayer will sign a waiver of any passage-of-time-based limita. tion upon this city's right to recover tax owed by the vendor for the audit period. (3) Except as provided in subparagraph (6), any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of the time limits established in sections 22.42(d) and 22-44(a) of this Code of Laws may be audited this city during the twelve (12) months after such request is sub- mitted only through a coordinated audit in- volving all municipalities electing to par- ticipate in such an audit. Supp. No.9 (4) Ifthis city desires to participate in the audit of a taxpayer that submits a complete re- quest for a coordinated audit pursuant to subparagraph (3), the finance director shall so notify the fmance director of the munic- ipality whose notice audit prompted the tax- payer's request within ten (10) days after receipt of the taxpayer's request for a coor- dinated audit. The finance director shall then cooperate with other participating mu- nicipalities in the development of arrange- ments for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the pe- riod of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for com- pletion of the coordinated audit. (5) If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this city, this city's finance di- rector shall facilitate arrangements be- tween this city and other municipalities par- ticipating in the coordinated audit unless and until an official from some other par- ticipating municipality agrees to assume this responsibility. The finance director shall cooperate with other participating mu. nicipalities to, whenever practicable, min. imize the number of auditors that will be present on the taxpayer's premises to con- duct the coordinated audit on behalf of the participating municipalities. Information obtained by or .on behalf of those munici- palities participating in the coordinated audit may be shared only among such par- ticipating municipalities. (6) If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this city, this city's finance di. rector shall, once arrangements for the co- ordinated audit between the city and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities will be participating, the period to be audited and the record.s most likely to be required by participating municipalities for completion of the coordi- nated audit. The finance director shall also propose a schedule for the coordinated audit. -- e 1452 . e . e . (7) The coordinated audit procedure set forth in this section shall not apply: a. When the proposed audit is a jeop- ardy audit; b. to audits for which a notice of audit was given prior to the effective date of this section; c. When a taxpayer refuses to promptly sign a waiver of the time limits es- tablished in sections 22-42(d) and 22-44(a) of this Code of Laws; or d. When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in such paragraph (2) of this subsection 22- 42(i). (Ord. No. 1988-781, ~ 1(21-30), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~~ 1, 6, 12-23-91) Sec. 22-43. Refusal to report; estimate of tax; emergency collection procedures; penalties and interest. (a) Refusal to report. The treasurer may, in any reasonable manner possible, estimate the amount of the tax due, to which interest and penalties in accordance with paragraph (c) may be added. in the event any taxpayer: (1) Refuses to report and remit taxes col- lected or required to be collected in accor- dance with the provisions of this chapter; (2) Fails to comply with the provisions of section 22-68 of this chapter; (3) Fails to file the report and remit the taxes required in section 22-38 of this chapter after selling his business; (4) Intends to leave the city without paying any taxes which are lawfully owed; (5) Removes or intends to remove property subject to tax hereunder from the city, or to sell any such property with the intent to remove the proceeds of sale from the city without paying tax thereon; (6) Engages or intends to engage in any ac- tivity which the treasurer reasonably be- lieves to jeopardize collection of taxes au- thorized hereunder; or Supp. No. 18 TAXATION ! 22-43 (7) Otherwise engages in conduct likely to prevent the establishment by the trea- surer of an accurate and exact amount of tax due. (b) Estimation of taxes. When an estimate of taxes due is made, the city shall first attempt to serve notice thereof on the taxpayer by personal service. If personal service cannot be achieved after reasonable effort, the taxpayer shall be served with such notice by certified mail to the taxpayer's last known address or by leaving a copy with the person in charge at the taxpayer's business establishment or last known address. (1) In the event that the taxpayer cannot be found at its last known address or notices sent by the city are returned by the post office; or there is no one available at the taxpayer's place of business to accept no- tice, the city may serve notice by posting such notice in a conspicuous place at the location of the business as indicated on the business license or application. The burden shall at all times be on the tax- payer to inform the city of the taxpayer's current address. (2) Unless the taxpayer files a written de' mand for administrative hearing and de- termination of tax liability, as provided in section 22-45 hereof, within twenty (20) days from the date of service, receipt or posting, whichever is later, of such notice, he shall conclusively be deemed to have !,ccepted the estimate as a fair and accu- rate determination of his tax obligation and shall thereby waive the right to con- test that determination. In the event that such a hearing is held, the determination of the hearing officer shall be reviewable as provided in section 22-45 hereof. (c) Emergency collection procedures. In any case wherein it appears that collection of reve- nues from taxes lawfully imposed hereby is in danger of risk of loss or noncollection, or other- wise in jeopardy, the treasurer may immediately issue demand for payment. Upon issuance of such demand for payment, the tax required therein shall be due and payable, and the treasurer may proceed forthwith to collect such' taxes by any 1453 ~ 2243 WHEAT RIDGE CITY CODE lawful means, iocluding, not by the way of limi- tation, filing ofliens upon the property subject to tax, issuance and execution of distraiot warrants, or filing of summons and complaint in any com- petent court; provided, however, that collection under this section may be stayed upon the provi- sion by taxpayer to the treasurer of such security as, io the opinion of the treasurer, shall be satis- factory to ensure payment to the city of all taxes lawfully owed by taxpayer. (d) Penalty forlatepayment. Apenalty shall be imposed on.any tax deficiency. Such penalty shall be fifteen dollars ($15.00) or ten (10) percent of the delioquent tax or deficiency per reportiog period, whichever is greater. (e), (f) Reserved. (g) Penalty for fraud. If any part of delioquent tax or deficiency is due to fraud with the iotent to evade the tax, the penalty shall be one hundred (100) percent of the total amount of the deficiency. The city treasurer shall mail a written notice of assessment to the taxpayer. The amount of the tax due, iocludiog the penalty and ioterest, shall become due and payable within ten (10) days after the date of the notice of assessment. (h) Assessment of interest. Interest shall be assesaed.at the rate established by ~ 39-21-110.5, C.R.S., as amended. Interest shall be calculated for each month from the due date. that a defi- ciency remains unpaid. (i) City treasurer may waive penalty. For good cause shown, the treasurer in his discretion is authorized to waive any penalty assessed in this chapter. For purposes of this section, interest shall never be deemed a penalty. (j) Confidentiality of information and records. Except io accordance with judicial order or as otherwise provided by law. the city treasurer, outside agents of the city, clerks and employees thereof shall not divulge or make known in any way any information disclosed io any document, report or return filed under this title except such ioformation as is displayed on the tax license. The officials charged with the custody of documents, reports and returns shall not be required to produce any of them or evidence of anything contaioed io them io any action or proceediog io Supp. No. 18 any court, except on behalf of the manager io an action or proceediog under the provisions of this title when the report of a fact shown thereby is directly involved in such action or proceeding, io either of which events the court may require the production of, and may admit into evidence, so much of such reports or of the facts shown thereby as are pertinent to the action or proceeding and no more. (k) Copies of returns or reports. Nothing io this section shall be construed to prohibit the delivery to a person or a duly authorized representative thereof of a copy of any return or report filed in connection with such person's tax. Copies of such records may be certified by the city admioistrator or an agent thereof and when so certified shall be evidence equally with the originals and may be received as evidence of their contents. (I) Publication of statistics. Nothing in this section shall be construed to prohibit the publica- tion of statistics so classified as to prevent the identification of particular reports or returns and . the items thereof or the iospection of returns by the city attorney or other legal representatives of the city. (m) Sharing information with other governmen- tal concerns. Notwithstandiog the provisions of this section, the city treasurer may furnish to the taxing officials of the State of Colorado, its polit- ical subdivisions, any other state, or political subdivision, or the United States, any ioforma- tion contained io tax returns and related docu- ments filed pursuant to this title or io the report of an audit or investigation made with respect to a return, if the recipient jurisdiction agrees with the city treasurer to grant similar privileges to _ the city and if such information is to be used by the jurisdiction only for tax purposes. (n) Violation of provisions by city employees. If a city employee or officer violates the provisions of this section, such employee or officer may be dismissed. (Ord. No. 1988-781, ~ 1(21-31), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91; Ord. No. 1996-1060, ~ 5, 12-16-96) 1454 . e . . . . e . e . TAXATION Sec. 22.44. Limitation of action. (a) No sales or use tax, or interest thereon or penalties with respect thereto, shall be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be com- menced, more than three (3) years after the date on which the tax was or is payable, nor shall any lien continue after such period, except for actual or estimated taxes assessed before the expiration of such period, notice oflien with respect to which has been filed prior to the expiration of such period. (b) In the case .of a false or fraudulent return resulting from either an intent to evade tax or from reckless or grossly negligent behavior on the part of the taxpayer, or in the case of a failure to file a return, the tax together with interest and penalties there.on may be assessed or procee~gs for the collection .of such taxes may be begun m a court .of competent jurisdiction at any time._ (c) Bef.ore the expirati.on of such period of limitation, the taxpayer and the treasurer may agree in writing to a extension thereof and the period so agreed on may be extended by subse- quent agreements in writing. (d) The period of limitation provided herein shall not run against the city for an audit period if written notice is given to the taxpayer prior to the expiration of the statute of limitations that the latter's records will be audited pursuant to section 22-42(f) of this chapter. (Ord. No. 1988-781, ~ 1(21-32),12-12-88; Ord. N.o. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-8.85, ~ 1, 12:23-91) Sec. 22-45. Taxpayer remedies. (a) When the city asserts that sales or use taxes are due in an amount greater than the amount paid by a taxpayer, the city shall mail a deficiency notice to the taxpayer by certified mail. The deficiency notice shall state the additional sales and use taxes due. The deficiency notice shall contain notification, in clear and conspicu- ous type, that the taxpayer has the right to ele~t a hearing on the deficiency pursuant to thIS section. Supp. No. 1S ~ 22-45 (b) In the event that the taxpayer disputes the tax liability imposed by the city either by any deficiency notice or otherwise, he shall file a written demand for an informal hearing and determination of tax liability within twenty (20) days from the date of the notice, which demand will stay the sale under any distraint warrant until the conclusion of the hearing. This demand shall include the name, business address and license number of the taxpayer, a copy of the notice sent by the city, the taxable periods and the amounts of tax which are being disputed, and a statement of the grounds upon which the tax- payer bases his claim. (1) Upon receipt of the taxpayer's written demand, the city treasurer shall set the time and place for the hearing, to be held as quickly as possible. The hearing shall be held before the treasurer or a hearing officer that is a qualified person who has education or experience in tax administra- tion matters and who can render a proper decision. In the event that it is deter- mined at the hearing that the taxpayer's liability is less than the amount in the possession of the treasurer, such excess shall be paid to the taxpayer forthwith. (2) Failure to demand an informal hearing and determination of tax liability shall constitute a waiver of the right to contest such liability; however, when such deter- mination is requested or when a request for a refund is timely made, the final decision rendered therein shall be appeal- able as provided herein. (3) The hearing provided in subparagraph (b)(l) above shall be informal and no transcript, rules of evidence or filing of briefs shall be required, but the taxpayer may elect to submit a brief, in which case the city may submit a brief. The city shall hold such hearing and issue the final decision thereon within ninety (90) days after the receipt of the taxpayer's written request therefor, except the city may ex- tend such period if the delay in holding the hearing or issuing the decision thereon was occasioned by the taxpayer, but, in any such event, the city shall hold such 1455 ~ 22-45 WHEAT RIDGE CITY CODE hearing and issue the decision thereon within one hundred eighty (180) days of the taxpayer's request in writing therefor. (c) If the dispute was not resolved by the informal hearing, the taxpayer, pursuant to the expressed authority of C.R.S. 29-2-106.1(9), may elect to pursue either of the following avenues of appeal within thirty (30)days of the city's [mal decision: (1) The taxpayer may request a formal hear- ing on the record before a hearing officer, who shall be selected from among other metropolitan Denver treasurers/finance di- rectors, or who shall be a neutral arbitra- tor selected by agreement of the parties. The hearing shall be held within sixty (60) days of the taxpayer's request. Those costs of compensation to the hearing of- ficer and transcription costs shall be di- vided equally between the city and the taxpayer. a. The formal hearing will be on the merits and on the record. The tax- payer shall be responsible for reten- tion of his own legal counsel, if he chooses to be so represented. A tran- script of the hearing will be main- tained and the Colorado Rules of Evidence shall be observed unless otherwise agreed by the parties. The city shall not be entitled to file a legal brief unless the taxpayer chooses to submit such a brief or statement oflegal authorities. The parties may call witnesses who will be subject to cross-examination. b. Upon notice to the taxpayer that the city has granted the taxpayer a for- mal hearing, the taxpayer shall de- posit with the city fifty (50) percent of the amount of the tax deficiency in dispute. The taxpayer will also pay to the city all amounts of tax and related penalties and interest not in dispute. The taxpayer may request permission of the city treasurer to post security or a bond in lieu of cash payment of the amount in dispute, Supp. No. 18 which request will be granted by the city treasurer if the treasurer, in his sole discretion, determines the bond or security is adequate to protect the city's interest. Failure to post the cash or security required herein shall result in the denial of taxpayer's appeal. c. Any appeal from the decision ren- dered after such formal hearing shall be pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. d. In the event the fmal decision denies the taxpayer's claims, such taxes, penalties and interest unpaid shall become immediately payable with- out further notice of demand for pay- ment by the city. The city shall use all additional remedies to collect un- paid taxes, penal ties and interest as provided for under section 22-46. (2) The taxpayer may elect to pursue the appeal provisions of C.R.S. ~ 29-2-106.1. (d) The taxpayer shall have no right to any form of appeal ifhe has not exhausted his admin- istrative remedies or if he fails to request a hearing within the time period provided in this paragraph. For purposes of this paragraph, "ex- haustion of administrative remedies" means: (1) The taxpayer has timely requested in writing a hearing before the city and the city has held such hearing and issued a final decision thereon; or, (2) The taxpayer has timely requested in writing a hearing before the city and the city has failed to hold such hearing or has failed to issue a fmal decision thereon within the time periods provided in para- graph (c) above. (e) In the event the city's final decision denies the taxpayer's claims, such taxes. penalties and interest unpaid shall become immediately pay- able without further notice of demand for pay- ment by the city. The city shall use all additional remedies to collect unpaid taxes, penalties and interest as provided for under section 22-46. (Ord. No. 1988-781, ~ 1(21-33), 12-12-88; Ord. No. 1989-804, ~ 3, 8-28-89; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~~ 1, 5, 12-23-91; Ord. No. 1996-1060, ~ 6, 12-16-96) 1456 . e . . . . e . . . TAXATION Sec. 22-46. Additional remedies of city. (a) Any sales, use, lodgers', or admissions tax imposed by this chapter, together with the inter- est and penalties herein provided and the cost of collection which may be incurred by the city, shall be and, until paid, remain a first and prior lien and shall take precedence over all other claims and mortgages upon: (1) The goods, stock-in-trade and business fixtures of or used by any retailer under lease, title-retaining contract or other con- tractual arrangement; and (2) The real and tangible and intangible per- sonal property owned or leased by any person. (b) Any lien arising under this section may be foreclosed by seizing under distraint warrant and selling so much of the property covered by the lien as may be necessary to discharge said lien. Such distraint warrant may be issued by the treasurer whenever the taxpayer or vendor is in default on the payment of sales or use tax, interest and penalty, and may be served and the goods or property subject to such liens seized and sold by the treasurer or any member of the city police department. (c) Goods or property seized pursuant to distraint warrant shall be sold at public auction after thirty (30) days' public notice by publication not less than two (2) times in a newspaper of general circulation within the city. Such goods or other property, whether real or personal, may be redeemed by the taxpayer any time prior to sale by paying such tax, penalty, and interest as is due, together with such costs as have accrued from the seizure and preparation for sale. (d) A notice of lien shall be provided for as set out in section 11-34(d) of this Code of Laws and a copy of such notice shall be filed in the public records of Jefferson County prior to the issuance of a distraint warrant. (e) In lieu of seizure of property pursuant to a distraint warrant, the treasurer may cause a civil action to be filed in the district court of Jefferson County to enforce the city's lien for such tax upon the real property situated in that county or in any Supp. No. 21 ~ 2246 other county in the state which may be subject to such lien or to subject any real property or any right, title, or interest in real property to the payment of such tax. The court shall adjudicate all matters involved in such action and may decree a sale of the real property and distribute the proceeds of such sale according to the findings of the court in respect to the interest of the parties and of the city. The proceedings in such action and the manner of sale, the period for and manner of redemption from such sale, and the execution of a deed of conveyance shall be in accordance with the law and rules of procedure for foreclosures of mortgages upon real property. In any such action, the court may appoint a receiver of the real property involved in such action if equity so requires. (0 The treasurer may treat any taxes, penal- ties or interest due and unpaid as a debt due the city from the taxpayer. (1) In case of failure to pay the taxes, or any portion thereof, or any penalty or interest thereon, when due, the treasurer may recover at law the amount of such taxes, penalties and interest, and the costs of collection incurred by the city, in the Wheat Ridge Municipal Court or in any county or district court of the county wherein the taxpayer resides or has his principal place of business having jurisdiction of the amounts sought to be collected. (2) The return of the taxpayer or the assess- ment made by the city, as herein provided, shall be prima facie proof of the amount due. (3) No such civil action may be filed by the city until the time for the taxpayer to exercise his administrative remedies or to file an appeal has expired. (4) This remedy shall be in addition to all other existing remedies available to the city. (g) Whenever the business or property of any taxpayer subject to this chapter is subject to receivership, bankruptcy or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties and interest 1457 ~ 22-46 WHEAT RIDGE CITY CODE imposed by this chapter and for which the tax- payer is in any way liable under the terms of this chapter shall be a prior and preferred lien against all the property of the taxpayer_ No sheriff, re- ceiver, assignee or other officer shall sell the property of any person subject to this chapter under process or order of any court without first ascertaining from the city treasurer the amount of any taxes due under this chapter. If any tax is due, the officer shall pay the amount of the taxes out of the proceeds less costs before making payment to any judgment creditor or other claim- ants. For the purpose of this chapter, the term "taxpayer" shall include lIretailer" or "vendor." (h) It shall be a violation of this chapter to refuse to obtain a business or exempt business license, to make any return provided to be made in this chapter, or to make any false or fraudulent return, or any false statement in any return, or to prepare such returns in a reckless or grossly negligent manner, to fail or refuse to make timely payment to the city treasurer or his authorized agent of any taxes collected or due to the city, or in any manner to evade the collection and timely payment of the tax, or any part thereof, imposed by this chapter, or for any person or purchaser to fail or refuse to pay such tax or evade the timely payment thereof, or to aid or abet another in any attempt to evade the timely payment of tax im- posed by this chapter. (1) In his discretion, the city treasurer may direct the issuance of a summons and complaint to appear before the Wheat Ridge Municipal Court to any person who may be in violation of any of the provi- sions of this chapter or the rules and regulations promulgated by the city trea- surer to enforce this chapter. (2) Any person, corporation, partnership, com- pany, association or other entity which violates any of the provisions of this chap- ter shall be gnilty of a misdemeanor and, upon conviction of such violation, shall be subject to the penalties set forth in section 1-5 of this Code; and provided that issu- ance of a summons and complaint by the city, and subsequent conviction of a viola- tion of the Code of Laws in the municipal Supp. No. 21 court, shall not prohibit the court from requiring payment of all taxes, penalties and interest found to be due under this chapter in addition to any fine imposed by the court. Each and every twenty-four- hour period of violation shall constitute a separate violation of this chapter. (3) Nothing contained in this paragraph (h) shall preclude the treasurer from institut- ing a legal or equitable action in the Jefferson County District Court for the purposes of enforcing the provisions of this chapter. In the event such an action is undertaken, the city shall be entitled to recover its attorney's fees and costs of litigation expended in said action as a portion of its judgment rendered therein. (i) In any action affecting the title to real estate or the ownership or rights to possession of personal property, the city may be made a party defendant for the purpose of obtaining an adjudi- cation or determination of its lien upon the prop- erty involved therein. (j) For the purpose of facilitating settlement and distribution of estates, trusts, receivership, other fiduciary relationships and the assets of corporations in the process of dissolution or that have been dissolved, the city treasurer may agree with the fiduciary or surviving corporate directors upon an amount of taxes due from the decedent or from the decedent's estate, the trust, receivership or other fiduciary relationship, or corporation for any periods of tax liability under this chapter. Payment in accordance with such agreement fully . satisfies the tax liability for the periods that the agreement covers, unless the taxpayer has com- mitted fraud or malfeaE;ance or misrepresented a material fact regardiog the tax or liability there- for. . (1) Except as provided in subsection (3) of this paragraph (j), any personal represen- tative of a decedent or the estate of a decedent, any trustee receiver, or other person actiog io a fiduciary capacity, or any director of a corporation in the pro- cess of dissolution or that has been dis- solved shall first pay taxes covered by this chapter due from such decedent, decedent's 1458 . . . . . . e . . . estate, trust estate, receivership, or cor- poration before he distributed the estate or fund under such person's controL Any such person who fails to pay taxes as- sessed within the periods authorized by this chapter is personally liable to the extent ofthe property distributed by such person for any unpaid taxes of the dece- dent, decedent's estate, trust estate, re- ceivership, or corporation imposed by or due under this chapter. (2) Any distributee of a decedent's estate, a trust estate, or fund and the stockholder of any dissolved corporation who receives any of the property of such decedent's estate, trust estate, fund, or corporation is personally liable for taxes assessed pur- suant to this chapter to the same extent that the decedent, trust estate, fund or corporation is liable under this chapter. (3) If a tax under this chapter is due from a decedent or the decedent's estate, per- sonalliability of the persons set forth in this section remains in effect only if a determination of the tax due is made and notice and demand thereforissued within eighteen (18) months after the decedent's personal representative files with the city treasurer a written request for such de- termination, filed after it has filed the decedent's final retum or the decedent's estate's retum to which the request ap- plies. A request for determination under this subsection does not extend the other- wise applicable period of limitation as specified in section 22-44. (4) If a tax under this chapter is due from a corporation that is in the process of disso- lution or has been dissolved, personal liability of directors or stockholders as provided in this section remains in effect only if a determination of the tax due is made and notice and demand therefor issued within eighteen (18) months after the corporation files with the city trea- surer a written request for such determi- nation, such request is required to be filed Supp. No. 21 TAXATION !l 2246 with the city treasurer within ten (10) days from the time such dissolution has began. (k) For property seized pursuant to a distraint warrant, signed ioventory of the property distrained shall be made by the city treasurer or his agent. Prior to the sale, the owner or possessor of such property shall be served with a copy of said inventory it notice of the sum of the tax due and the related expenses incurred to date, and the time and place of the sale. (1) A notice of the time and place of the sale, together with a description of the prop- erty to be sold, shall be published in a newspaper of general circulation within the county where distraint is made. (2) The time fixed for the sale shall not be less than thirty (30) days nor more than sixty (60) days from the date of distraint. The sale may be postponed by the city or agent for no more than ninety (90) days from the date originally fixed for the sale. (3) The property shall be sold at public auc- tion for not less than a fair minimum price, and if the amount bid for the prop- erty is less than the fair minimum price so fixed, the property may be declared to be purchased by the city and the city shall file a release of lien thereof. If the prop- erty is purchased by the city, such prop- erty may be disposed ofin the same man- ner as other city property and the lien thereon shall be released. (4) The property may be offered first by bulk bid, then subsequently for bid singularly or by lots, and the city or its agent may accept the higher bid. (5) The property offered for sale may be re- deemed if the owner or possessor or other person holding an unperfected chattel mort- gage or other right of possession pays the tax due and all collection costs no less than twenty-four (24) hours before the sale. (6) The city or its agent shall issue to each purchaser a certificate of sale which shall be prima facie evidence of its right to 1459 ~ 22-46 WHEAT RIDGE CITY CODE make the sale and transfer to the pur- chaser all right, title and interest of the taxpayer in and to the property sold. a. When the property sold consists of certificates of stock, the certificate of sale shall be notice to any corpora- tion, company, or association to record the transfer of its books and records. b. When the property sold consists of securities or other evidences of debt, the certificate of sale shall be good and valid evidence of title_ (7) Any surplus remaining after satisfaction of the tax due plus any costs of making the distraint and advertising the sale may . be distributed by the city first to other jurisdictions which have filed liens or claims of sales and use or personal prop- erty ad valorem taxes, and second to the owner, or such other person having a legal right thereto_ (1) Property of the taxpayer subject to distraint shall include the personal property of the tax- payer and the goods, stock in trade and business fixtures owned or used by any taxpayer including those used under lease, installment sale, or other contract agreements. (m) The taxpayer or any person who claims an ownership interest or right of possession in the distrained property may petition the city trea- surer, or the municipal court if the property was seized pursuant to a warrant used by the court, for the return of the property. (1) Grounds for return of the property shall exist only if the person making the peti- tion has a perfected interest in such prop- erty which is superior to the city's interest or that the property is exempt from the city's lien. (2) The fact finder shall receive evidence on any issue of fact necessary to the decision of the petition. If the fact finder deter- mines by a preponderance of the evidence in favor of the taxpayer or other peti- tioner, the property shall be retumed. Supp. No. 21 (n) Unless the limitation period has been ex- tended as provided in this section, the statute of limitations for provisions contained in this chap- ter shall be as follows: (1) Refunds. Any claim for refunds for dis- puted tax shall be submitted to the city treasurer on or before sixty (60) days from the date of such purchase. a. Any claim for refund resulting from a notice of overpayment shall be submitted to the city on or before thirty (30) days after the date of such notice of overpayment. b. Any other claim for refund shall be filed on or before three (3) years after the date such overpayment was paid to the city. (2) Assessments. No notice of assessment shall be issued more than three (3) years after the due date of such tax due, or for a construction project which requires a city building permit, the date the final certif- icate of occupancy was issued for such project. (3) Notice of lien. No notice of lien shall be issued more than three (3) years after the due date of the tax. If the limitation period is extended, a notice of lien may be filed on or before thirty (30) days from the date of the notice of assessment issued for such extended period. (4) Returns. When a taxpayer fails or refuses to file a return, the tax due may be assessed and collected at any time. In the case of a false or fraudulent return filed with intent to evade tax, or a return filed in a reckless or grossly negligent manner, the tax due may be assessed or proceed- ings for the collection of such tax due may be begun at any time. (5) Protest. No protest of a notice of assess- ment or denial of a claim for refund shall be valid if submitted to the treasurer in other than written form or after the pe- riod allowed in this chapter. 1460 . e . e . . e . e . TAXATION (6) Extension of period of limitation. The pe- riod of limitation may be extended before its expiration by mutual consent of the parties. (Ord. No. 1988-781, ~ 1(21-34), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91; Ord. No. 1996-1060, ~ 7,12-16-96; Ord. No. 1998-1120, ~ 10, 6-8-98) Sec. 22-47. Intercity claims for recovery. The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipal- ity. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to cor- rectly pay, collect, and remit sales and use taxes to the city. (1) As used herein, "claim for recovery" means a claim for reimbursement of sales and use taxes paid to the wrong taxing juris- diction. (2) When it is determined by the treasurer that sales and use tax owed to the city has been reported and paid to another munic- ipality, the city shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances. (3) The city may make a written claim for recovery directly to the municipality that received tax and/or penalty and interest owed to the city, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a claim for a recovery lies in the sole discretion of the city. Any claim for recovery shall include a properly executed release of claim from the tax- payer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the claim, and a request that the municipality approves or denies, in whole or in part, the claim within ninety (90) days of its receipt. The municipality to which the city submits a claim for recovery may, for good cause, request an extension of time to investi- Supp. No. 22 ~ 22-48 gate the claim and approval of such ex- tension by the city shall not be unreason- ably withheld. (4) Within ninety (90) days after receipt of a claim for recovery, the city shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received, and shall notify the municipal- ity submitting the claim in writing that the claim is either approved or denied in whole or in part, including the reasons for the decision. If the claim is approved in whole or in part, the city shall remit the undisputed amount to the municipality submitting the claim within thirty (30) days of approval. If a claim is submitted jointly by a municipality and a vendor or taxpayer, the check shall be made to the parties jointly. Denial of a claim for recov- ery may only be made for good cause. (5) The city may deny a claim on the grounds that it has previously paid a claim for recovery arising out of an audit of the same taxpayer. (6) The period subject to a claim for recovery shall be limited to the 36-month period to the date the municipality that was wrongly paid the tax receives the claim for recov- ery. (Ord. No. 1991-885, ~ 6, 12-23-91) Sec. 22-48. Notice of sales and use tax ordi- nance amendment. (a) In order to initiate a central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the finance director of the city shall file with the Colorado Municipal League prior to the effective date ~of this section. (b) In order to keep current the central regi~~-..~ ter of sales and use tax ordinances for municipal- ities that administer local sales tax collection, the finance director of the city shall file with the Colorado Municipal League, prior to the effective date of any amendment, a copy of each sales and use tax ordinance amendment enacted by the city. 1461 ~ 22-48 WHEAT RIDGE CODE (c) Failure of the city to file such ordinance or ordinance amendment pursuant to this section shall not invalidate any provision ofthe sales and use tax ordinance or any amendment thereto. (Ord_ No. 1991-885, {l 6, 12-23-91) Sec. 22-49. Participation in simplification meetings. The treasurer shall cooperate with and partic- ipate on an as needed basis with a permanent statewide sales and use tax committee convened__ by the Colorado Municipal League which is com- posed of state and municipal sales and use tax officials and business officials. Such committee will meet for the purpose of discussing and seek- ing resolution to sales and use tax -problems which may arise. (Ord_ No_ 1991-885, {l 6, 12-23-91) Sees. 22-50-22-55. Reserved. DIVISION 3. SALES TAX* Sec. 22-56. Schedule. (a) There is hereby imposed a sales tax on all sales and _services not specifically exempted in sections 22-56(a) and/or 22-58, in the amount of two and one-half (2.5) percent of the purchase price. The city considers each and every sale within the city to be taxable, unless the same is specifically exempted by this chapter. In order to avoid fracti_Qns _gf pennies, the following brackets shall be_ applicable to all taxable transactions: (1) On sales amounting to nineteen cents ($0.19) to and including eighty-four cents ($0.84) a tax of one cent ($0.01); (2) On sales amounting to eight-five cents ($0.85)uto and including one dollar and eighteen cents ($1.18) a tax of two cents ($0.02); *Editor's not~rd. No. 1994-986, adopted Dec. 12, 1994, provided for a one-half cent increase in the city's sales and use tax for purposes of expanding and renovating the police department bun ding and replacing the police department's communication system. Said increase was effective Jan. I, 1995. and remains in effect until the earlier of the collection of $2.5 million or Dec. 31, 1996. Supp. No. 22 (3) On sales in excess of one dollar ($1.00), the tax shall be two cents ($0.02) on each full dollar of the sales price, plus the tax shown on the above schedule for the ap- plicable fractional part of a dollar of each such sale price. (b) Lodgers' tax is imposed in lieu of city sales tax at the rate often (10) percent of the purchase price paid or charged for the rental or furnishing of rooms or accommodations. However, the sale of any goods, services and commodities other than --the furnishing of rooms or other accommodations shall be subject to the sales tax imposed hereby. (c) Notwithstanding subsections (a) and (b) of this section, the sales tax rate imposed by this section shall be increased to two and one-half (2]12) percent of the purchase price, effective Jan- uary 1, 1998 and terminating on December 31, 2002, or such date as a total of $12,350,000 has been raised, in the manner and as authorized by the one-half (112) percent increase approved by vote of the Wheat Ridge electorate on November 4, 1997, whichever occurs first. Upon such termi- nation, this subsection (c) shall also terminate and be deemed repealed. (Ord. No. 1988-781, {l1(21-18), 12-12-88; Ord. No. 1991-869, {l 3, 9-1-91; Ord. No. 1991-885, {l 1, 12-23-91; Ord. No. 1992-893, {l 2, 4-13-92; Ord. No. 1997-1104, {l1, 12-22-97; Ord. No. 1998-1138, {l5, 11-23-98) Cross references-Lodger's tax, ~ 22-1; admissions and amusement tax, ~ 22-2. Sec. 22-57. Property and service subject to tax. The sales tax imposed by section 22-56 above shall apply to all sales and services, including without limitation those described below, that are not specifically exempted in sections 22-56(a) and/or 22-58 of this Code: (1) Retail sales. The sale, purchase, lease, rental or grant of license for use of tangi- ble personal property, and any subse- quent lease, rental or sale of tangJ.1l1e personal property by any person to any consumer or purchaser, regardless of whether the person purchasing, leasing, renting or selling the personal property paid the tax imposed on his initial pur- 1462 . . . -. . . . . . . (2) chase and use of the property so acquired which is subsequently leased, rented or sold. When a retail sale involves the ex- change or trade-in of property, the tax shall be collected on the purchase price paid or charged, including the fair market value of the property exchanged or trad- ed-in at the time and place of exchange or trade-in except as specified under section 22-21(3). Leases or rentals. If tangible personal property is purchased for use exclusively in the rental or leasing business and is Supp. No. 20 TAXATION !i 22-57 1462.1 . e . . . not at any time used for the purchaser's general business or personal use, use tax is not due upon the purchase of the tan- gible personal property, but a sales tax is due upon the rental or leasing of tangible personal property used in the rental or leasing business, regardless of whether a sales or use tax has been paid upon a previous purchase of the property. (3) Telecommunications services. There shall be imposed a tax upon the sale of telecom- munications services, whether furnished by public or private corporations or enter- prises for all intrastate, interstate and international telecommunications service charged to an apparatus, telephone or account within the city, or to a customer location within the city, or to a person residing in the city, without regard to where the bill for such service is physi- cally received. For purposes of this sec- tion, "telecommunications service" in- cludes the installation of any telecommunications equipment or appa- ratus. A credit shall be allowed to the extent provided in section 22-66(e) for any telecommunications services subject to the tax herein that are also subject to a sales tax outside of this city if such tax is correctly assessed. (4) Energy sales. Upon the charge within the city for electrical energy and natural or manufactured gas sold for domestic or commercial consumption and not for re- sale. (5) Meals. Meals furnished in any restau- rant, eating house, hotel, motel, drug- store, club, resort or other place as fol- lows: a. On the selling price of meals, whether sold to the public or to employees before the amount of discount cou- pons are applied. b. On the cost of meals which are given to employees in return for their la- bor or services rendered or otherwise given away. This cost shall include all direct materials and labor costs Supp. No. 18 TAXATION ! 22-57 associated with the production of the meals, and all indirect overhead costs associated and attributable to the production of the meals. Indirect over- head shall utilize "full absorption" as defined and utilized in U.S. Trea- sury tax statutes and Internal Rev- enue Service regulations. (6) Pay television. Pay, cable or subscription television services sold, purchased, leased, rented, furnished or used, including charges for service connections, installa- tions, connection charges and all and any other similar charges made for such ser- vices. (7) Vending machines. Every retailer or ven- dor vending items of tangible personal property through coin-operated vending machines shall be taxable and such re- tailer or vendor shall pay retail sales or use tax at the rate specified in section 22-56 on the tangible personal property sold or vended in the coin-operated ma- chine unless the sale shall be otherwise exempt as provided in this chapter. Own- ers of vending machines that vend arti- cles of tangible personal property are sub- ject to sales or use tax on the cost of the vending machines, provided that owners of coin-operated devices that do not vend articles of tangible personal property are not subject to the sales or use tax on the cost of such devices; instead, the utiliza- tion of such machines are considered short- term rentals of tangible personal property and the gross receipts are subject to the sales tax. (8) Sales to banks. On the purchase price paid for sales of tangible personal prop- erty purchased at retail to national bank- ing associations and banks for use within the city. (9) Manufacturing equipment. Machinery, ma- chine tools and specific processing equip- ment and repair parts and replacements thereof used in manufacturing or process- ing tangible personal property. 1463 ~ 22-57 WHEAT RIDGE CITY CODE (10) Clothing. On the entire amount charged for clothing purchased at retail. (11) Resale. Upon used merchandise which has previously been purchased and which has been remanufactured or rebuilt and, as so remanufactured or rebuilt, has been sold to a subsequent owner. (12) Farm equipment. Upon farm equipment not titled or registered as a motor vehicle. (13) Software services. On the design, develop- ment, writing, translation, fabrication, maintenance, lease or transfer of com- puter program (software) services. (14) Storage units. On the total lease or rental charges for storage lockers/units located within the city. (15) Amusement or entertainment events. On the price of admission for any amusement or entertainment event as specified in section 22-56. (16) Auction, farm or estate sale. On sales made at an auction, farm closeout sale or estate sale held within the city. (17) 7bbacco products. The sale of any tobacco product which is not a cigarette is subject to sales tax. (18) Fund raising organizations. The cost of all materials, equipment, supplies pur- chased and/or used or consumed by fund raising organizations, other than such or-. ganizations qualifying as exempt organi- zations, is taxable. Fund raising organi- zations, whether or not qualifying as exempt institutions, must collect and re- mit sales taxes on any sales they may conduct. (19) Florists. All sales at retail by a florist are taxable and all orders taken by florists within the city and telegraphed to florists outside the city are subject to the city sales tax. When a florist within the city receives a telegraphic order from a florist outside the city, the sale is exempt from city sales tax. When a florist has more than one location in the city, interoffice transactions and deliveries are deemed not to be telegraphic orders. Supp. No. 1S (20) Other services. On the consideration paid for any linen services, sound system ser- vices, and alarm and/or security system services, advertising services, credit bu- reaus, or broadcast stations as defined in section 22-21 of this chapter, and such other services specified by regulation pro- mulgated hereunder. (21) Scope of tax authority. For the purpose of this chapter, tax is due on all items deliv- ered into or out of the city at the point of destination or wherever transfer of own- ership takes place. (22) Medical supplies and medical equipment. All medical supplies and medical equip- ment, as-hereinbefore defined, except those specifically exempted pursuant to section 22-58(25) hereof, shall be taxable, either as a sales' tax to the ultimate consumer (i.e., patient) or as a Use tax payable by either the health care facility, physician, dentist or veterinarian utilizing, making available for utilization or consumption by others, or consuming the medical sup- plies or equipment in the provision of health care services. In the event either the city's sales or use tax is paid on any nonexempt medical supply or item ofmed- ical equipment at the time of its purchase by the nonexempt health care facility, physician. dentist or veterinarian. there shall not be a sales tax imposed on any further sale or consumption of such med- ical supply or item of medical equipment, the intent being to subject all transac- ti,)Us involving nonexempt medical sup- plies and equipment to either the sales tax or the use tax, but not both. (Ord. No. 1988-781, ~ 1(21-15), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~~ 1, 6, 12-23-91; Ord. No. 1992-893, ~~ 3-5, 4-13-92) Sec. 22.58. Exempt sales. (a) Enumeration of exempt items of sales and service. There shall be exempt from taxation un- der the provisions of this chapter the following: (1) All direct sales to the United States gov- ernment, to the State of Colorado, its 1464 . e . . . TAXATION ~ 22-5S . departments and institutions, and the po- (9) Consideration received for labor or ser- litical subdivisions thereofin their govern- vices sold, except those specific services e mental capacities. defmed as taxable. if such services are (2) All direct sales to, but not sales by, char- separately stated from the tangible per- sonal property sold. Manufacturing or fab- itable organizations, as defined in section rication labor is not exempt, 22-21 in the conduct of their regular reli- gious, charitable, and eleemosynary func- (10) The sale of newspapers as defined in ~ tions and activities; provided, however. 24-70-102, C.R.S. that building materials and supplies shall (11) The sale of construction and building ma- be subject to use tax as provided in section terials, as defined in section 22-21, if the 22-68 hereof. Any exempt organization purchaser of such materials presents to which makes sales of tangible personal the retailer a building permit or other property to the public and which other- documentation acceptable to the city evi- wise meets the definition of a retailer in dencing that another municipality's local section 22-21 must have a sales tax li- use tax was correctly assessed or is re- cense and collect and remit tax in the quired to be paid on the materials. same manner as any other retailer. The (12) Tangible personal property or the furmsh- fact that the merchandise sold may have ing of services if the transaction was pre- been acquired by gift or donation, or that viously subjected to a sales or use tax, the proceeds are to be used for charitable lawfully imposed on the purchaser or user purposes, does not make the sales exempt by another municipality, equal to or in from tax. excess of the rate established pursuant to . (3) All sales to organizations which have pre- section 22-56. A credit shall be granted viously obtained from the city exempt against the city's sales tax with respect to institution licenses and have presented such transaction equal to the lawfully the licenses to the vendor at the time of imposed local sales or use tax previously their purchases. paid by the purchaser or user to the previous municipality. The amount of the (4) All sales which the city is prohibited from credit shall not exceed the rate estab- taxing under the constitution or laws of lished pursuant to section 22-56. the United States or the State of Colo- (13) The sale price of property returned by the rado. purchaser when the full sale price includ- (5) All sales of cigarettes, excluding tobacco ing the tax levied is refunded, either in products. cash or by credit. (6) Food purchased with food stamps or WIC (14) Discounts from the original selling price if (Women, Infant & Children) vouchers. such discount or decrease in purchaser (7) All charges for rooms and accommoda- price and the corresponding decrease in tions except that such charges are subject sales tax due is actually passed on to the to the tax imposed under sections 22-56 consumer. An anticipated cash discount to and 22-1, which tax is subject to the same be allowed for payment on or before a requirements and obligations and provi- given date is not an allowable adjustment to the selling price in determining gross . sians as are sales taxes. taxable sales on any vendor's return prior (8) Motor fuel upon which there has been to the date when the customer actually accrued or has been paid either the gaso- receives the discount. Any adjustments in line tax or special fuel tax required by ~ sale price such as allowable discounts, . 39-27-102, C.R.S., and which is not sub- rebates, and credits cannot be anticipated ject to refund. and the tax must be based upon the Supp. No, 18 1465 ~ 22-58 WHEAT RIDGE CITY CODE original selling price unless such adjust- ments have actually been made prior to the filing of the return wherein such sale is reported; except that, ifthe price upon which the tax was computed and paid to the city by the vendor is subsequently readjusted, prior to the payment of the tax by the purchaser, a proper credit may be taken against the tax due on the next subsequent return. , (15) All sales of tangible personal property if the following conditions exist: a. The sales are to those who reside or do business outside the city for their , use outside the city; b. The article or commodity is deliv- ered to the purchaser by common carrier, by mail or conveyed by the seller; and c. Seller retains legal ownership of prop- erty until purchaser actually takes possession. (16) Allsales of tangible personal property to a public utility doing business both Within and outside the city, for use in its business outside the city, even though sale and/or delivery thereof is made within the city. (17) All sales of farm machinery, machinery parts, livestock, poultry, and livestock and poultry feed and drugs, seeds and fertiliz- ers to purchaser for use outside the city even though sale and/or delivery is made within the city; except that, trucks of one-ton manufacturer-rated capacity or less and lawn and garden tillers, mowers and renovators are not to be considered as farm machinery. (18) All permits, licenses, service charges, fines and assessments, for benefit or penalty, charged by and in accordance with the , Code of the city. (19) All sales of personal property, where the sale occurs at the residence of the owner, and where the property to be sold was originally purchased for use by members of the household (Le., garage sales, yard sales, etc.); provided, however, that such Supp. No. 1S sales shall not be exempt if the owner conducts more than four (4) three-consec- utive-day sales in a one-year period. (20) All wholesale sales or sales of tangible personal property purchased for resale; provided that the purchaser has a valid State of Colorado or city sales and use tax license. (21) Sales of tangible personal property to a person engaged in manufacturing or com- pounding for sale shall be deemed a whole- sale sale when it meets all of the following conditions: a. The property is transformed in fact by the process of manufacture; b. The property becomes by the manu- facturing processes a necessary and recognized ingredient, component and constituent part of the finished prod- uct; and c. The physical presence of the prop- erty in the finished product is essen- tial to the use thereof in the hands of the ultimate consumer. d. Additional factors to be considered are the nature of the purchaser's contractual obligations, if any, to use, alter or consume the property to produce goods or perform services; the degree to which the items in question are essential to the purchaser's performance ofthose ob- ligations; the degree to which the purchaser controls the manner in which the items are used, altered or consumed prior to their transfer to third parties; and the degree to which the form. character or composition of the items when transferred to third parties differs from the form, char- acter or composition of these items at the time they were initially pur- chased. (22) Sales of tangible personal property for use as containers, labels and shipping cases to a person engaged in manufacturing or 1466 . e . . . . e . e . TAXATlON compounding for sale shall be deemed to be wholesale sale when it meets all of the following conditions: a. The property is used by the manu- facturer or compounded to contain or label the finished product so manu- factured or compounded; b. The property is sold by the manufac- turer or compounder along with and as a part of the finished product; and c. The property is not returnable to the manufacturer for reuse. (23) The fair market value of any exchanged or traded-in property which is to be resold thereafter in the usual course of the retailer's business, if included in the full price of an article sold. (24) The exemption stated herein shall not include natural gas and/or electricity used in the processing or manufacturing of goods or commodities or substances_ (25) All sales of drugs dispensed in accordance with a prescription, prescription drugs for animals, all sales ofinsu\in in all its forms dispensed pursuant to the direction of a licensed physician, and all sales of pros- thetic devices for humans and animals. (25.1H25.4) ReserVed. (25.5) Medical supplies and medical equip- ment. All medical supplies and medical equipment which are purchased by, or for use and/or consumption within, a charita- ble or not-for-proflt health care facility to which an exempt institution license has been issued by the treasurer, provided such not-for-profit health care facility em- ploys more than one hundred (100) per- sons within the city, provides more than one hundred (100) hospital bed spaces on an ongoing basis, and provided the health care facility has entered into an agree- ment, approved by the Wheat Ridge City Council, provided for ongoing payments to the city relating to the mutual services provided by and between the city and the health care facility. Supp. No. 21 ~ 22-65 (26) Reserved. (27) All sales of electrical energy and natural or manufactured gas sold for direct use in the commercial growth of plants and flow- ers for sale, whether wholesale or retail. (b) Increase by implication or similarity pro- hibited. The foregoing list of exemptions shall not be increased by implication or similarity. (c) Exemptions allowed on return. Retailers or vendors shall not have to remit sales tax reported on their returns for deductions from gross sales. If included in reported gross sales, the following are deductible from gross sales: (1) Refunds. The price of tangible personal property or taxable services returned by a purchaser when the price and the sales tax collected are refunded in cash or by credit. (2) Bad debts. Amounts previously included in gross sales and related sales tax remit- ted to the city which are determined to be uncollectible amounts by the vendor may be included as bad debts. Only vendors using the accrual basis of accounting from gross sales may claim a bad debt deduc- tion. (3) Interest and finance charges. The amount of interest or finance charges on credit extended in connection with any sale if the interest or finance charges are sepa- rately stated from the price and included in "gross sales" on previously tiled re- turns. (Ord. No. 1988-781, ~ 1(21-16), 12-12-88; Ord. No_ 1989-804, ~ 4, 8-28-89; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~~ 1,6, 12-23-91; Ord. No. 1992-893, ~ 7,4-13-92; Ord. No. 1996-1060, ~~ 8, 9, 12-16-96) Sees. 22-59-22-65. Reserved. 1467 ~ 22-66 DIVISION 4. USE TAX. WHEAT RIDGE CITY CODE Sec. 22-66_ Property subject to tax. (a) General intent; filing of return required. It is hereby declared to be the legislative purpose and inteJ;l.t of the city council that for the purposes of this article every person who, on and after the effective date of this chapter, stores, uses, distrib- utes or consumes within the city any article of tangible personal property purchased at retail, and not stored or distributed in the normal func- tion of wholesaling, is exercising a taxable privi- lege and shall be taxed therefor in the amount of two (2) percent of the purchase price. It is hereby declared that every resident of the city or any person doing business within the city who pur- chases or leases tangible personal property for use, storage or consumption within the city from sources outside the city and taxable hereunder, and who has not paid the city sales tax imposed by this chapter, shall make an application, file a return, and pay the tax to the city. The use, storage or consumption of tangible personal prop- erty includes, for the purpose of this chapter, materials, commodities and items oftangible per- sonal property affixed to, or made a part of, facilities and structures on real property owned or leased within the city. (b) Acquisition of business. The city use tax shall be remitted on the price paid for tangible personal property which is acquired with the purchase of a business, and for use in the opera- tion of a business. The tax shall be based on the price paid for such chattels as recorded in the bill of sale or agreement and constituting a part of the total transaction at the time of the sale or trans- fer, provided the valuation is as great or greater than the fair market value of such merchandise or chattels. Where the transfer of ownership is a package deal made by a lump-sum transaction, the use tax shall be paid on the book value established by the purchaser for income tax de- .Editor's note-Ord. No. 1994-986, adopted Dee. 12, 1994, provided for a one-half cent increase in the city's sales and use tax for purposes of expanding and renovating the p:>Iice department building and replacing the police department's communication system. Said increase was effective Jan. I, 1995, and remains in effect until the earlier of the collection of $2.5 million or Dec. 31, 1996. Supp. No. 21 preciation purposes or fair market value if no determination has been made. When a business is taken over in return for the assumption of out- standing indebtedness owed by former owners, the tax shall be paid on the fair market value of all taxable tangible personal property acquired by the purchaser. Such tax shall be reported on the initial use tax return and remitted on or before the twentieth day of the month following the date of sale. Timely remittance shall be evidenced by the postmark date. (c) Notwithstanding subsections (a) and (b) of this section, the use tax rate imposed by this section shall be increased to two and one-half (2]12) percent of the purchase price, effective Jan- uary 1, 1998, and terminating on December 31, 2002, or such date as a total of $12,350,000 has been raised, in the manner and as authorized by the one-half ('-12) percent increase approved by vote of the Wheat Ridge electorate on November 4, 1997, whichever occurs first. Upon such termi- nation, this subsection (c) shall also terminate and be deemed repealed. (d) Taxation of leases: (1) The sales tax on any lease payment shall be paid by the lessee and shall be remit- ted by the lessor to the city, providing the property is located in the city at the time the payment is due. (2) Payment and remittance of sales tax to the city pursuant to subsection (1) above shall be made on each payment made under the lease, including, but not limited to, each payment under any option to purchase contained in the lease, each pay- ment for termination of the lease, and each payment for purchase of the leased property if the same is sold to the lessee after termination of the lease, regardless ofthe subsequent location of the property. (3) The city will collect use tax only from the lessee and only on any lease payment which is due when the property is located within the jurisdiction of the city. Such collection of use tax on a lease payment shall be subject to the credit provisions of paragraph (e). 1468 . . . e . . e . . . (4) Any applicable use tax shall be imposed on the lessee and not on the lessor. (5) Any applicable use tax shall be based upon the full purchase price of the prop- erty. (6) If a lease is renewed, it shall be treated in the same manner as provided in this section. (e) Credit for sales or use tax previously paid to another municipality: (1) The city's sales and use tax shall not apply to the storage, use or consumption of any article of tangible personal prop- erty the sale or use of which has already been subjected to a sales or use tax of another statutory or home rule mUnicipal- ity legally imposed on the purchaser or user equal to or in excess of two and one-half (2.5) percent. A credit shall be granted against the city's use tax with respect to the person's storage, use or consumption in the city of tangible per- sonal property, the amount of the credit to equal the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule munici- pality on his purchase or use of the prop- erty. The amount of the credit shall not exceed two and one-half (2.5) percent. (2) Credit shall not be given for use tax or warehouse tax paid to another jurisdic- tion if such tax was improperly assessed or imposed by the other jurisdiction. (D Proration as applied to certain construction equipment. Proration of the use tax shall be applied to construction equipment as follows: (1) Construction equipment located within the boundaries of the city for more than thirty (30) consecutive days shall be sub- ject to the full applicable use tax of the city. (2) Construction equipment which is located within the boundaries of the city for thirty (30) consecutive days or fewer shall be subjected to the city's use tax in an amount which does not exceed the amount calcu- Supp. No. 21 TAXATION 1469 ~22-66 lated as follows: the purchase price of the equipment shall be multiplied by a frac- tion, the numerator of which is one and the denominator of which is twelve, and the result shall be multiplied by two and one-half (2.5) percent. (3) Where the provisions of subsection (g)(2) of this paragraph are utilized, the credit provisions of this section shall apply at such time as the aggregate sales and use taxes legally imposed by and paid to other statutory or home rule municipalities on any such equipment equal to two and one-half (2.5) percent. (4) In order to avail himself of the provisions of this section, the taxpayer shall comply with the following procedure: a. Prior to or on the date the equip- ment is located within the bound- aries of the city, the taxpayer shall file with the city an equipment dec- laration on a form provided by the city. Such declaration shall state the dates on which the taxpayer antici- pates the equipment will be located within and removed from the bound- aries of the city, shall include a de- scription of each such anticipated piece of equipment, and shall in- clude such other information as rea- sonably deemed necessary by the city. b. The taxpayer shall file with the city an amended equipment declaration reflecting any changes in the infor- mation contained in any previous equipment declaration no less than once every ninety (90) days after the equipment is brought into the bound- aries of the city or, for equipment which is brought into the boundaries of the city for a project ofless than ninety (90) days duration, no later than ten (10) days after substantial completion of the project. c. The taxpayer need not report on any equipment declaration any equip- ~ 22-66 WHEAT RIDGE CITY CODE ment for which the purchase price was under two thousand five hun- dred dollars ($2,500.00). (Ord. No. 1988-781, ~ 1(21-22), 12-12-88; Ord. No. 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~. 1, 12-23-91; Ord. No. 1996-1060, ~~ 10, 11, 12-16-96; Ord. No. 1997-1104, ~ 2, 12-22-97) Sec. 22-67. Exemptions. There shall be exempt from the tax provided in section 22-66, the storage, use, distribution and consumption of the following: (1) Any tangible personal property or taxable services upon which the city retail sales tax has been paid to a vendor authorized and licensed to collect the same. (2) Tangible personal property which if it were sold at retail within the city would be exempt from sales tax under the pro- visions of section 22-58; provided, how- ever, that any building materials and sup- plies shall be subject to use tax as provided in section 22-68 hereof without limitation of the foregoing, this provision shall apply where tangible personal property is uti- lized or consumed by a charitable organi- zation' as defined in section 22-21, in the conduct ofits regular religious, charitable or eleemosynary functions and activities. (3). Tangible personal property brought into the city by a nonresident for his own use, storage or consumption while temporarily within the city. (4) Tangible personal property of a resident which was acquired prior to his becoming a resident. (5) Any right to the continuous possession or use for three (3) years or less of any article of tangible personal property under a lease or contract, only if the lessor has sought and been granted permission from the city to pay and has paid to the city a sales or use tax on such tangible personal prop- erty upon its acquisition. a_ With regard to the right to the con- tinuous possession or use for three (3) years or less of any article of Supp. No. 21 tangible personal property under a lease or contract, the lessor shall collect and remit sales tax on each lease payment received on such prop- erty, subject to the provisions of this section. b. Where the lessor does not lease tan- gible personal property in the ordi- nary course of business and wishes to engage in a one-time transaction with respect to an article of tangible personal property, he may request permission from the city to pay a sales or use tax on such article of tangible personal property upon its acquisition and the city may grant such permission. (Ord. No. 1988-781, ~ 1(21-23), 12-12-88; Ord. No_ 1991-869, ~ 3, 9-1-91; Ord. No. 1991-885, ~~ 1, 5, 12-23-91; Ord. No. 1992-893, ~ 8, 4-13-92) Sec. 22-68. Building materials and supplies. (a) Every person who builds, constructs, recon- structs, alters, expands, modifies or improves any building, dwelling, or other structure or improve- ment to real property in the city, including all exempt institutions or private construction job sites, and who purchases lumber, fixtures, or any other building materials and supplies used there- for, or any other article or articles of any tangible personal property used therein, and every owner or lessee of realty or improvements thereon situ- ated in this city, upon which any article or articles of tangible personal property acquired from sources within or without the city are installed, attached or affixed, or any equipment used for construction thereon or improvements thereto, and which the contractor, owner or lessee has not paid the tax imposed by this chapter thereon shall pay a use tax in either of two (2) ways: (1) By determining an estimated value of the total cost of construction as established by the city building inspector and multiply- ing that value by the tax rate established by the city treasurer according to regula- tions promulgated hereunder_ This shall establish an estimated value upon which the city sales or use tax shall be computed 1470 . e . . . . e . . . TAXATION ~ 22-6S and collected, either through the owner, lessee or general contractor or subcontrac- tor. The term "cost of construction" shall include the cost of interior decoration but shall not include land cost; or (2) By obtaining a city sales and use. t!lX license and making monthly reports and returns and remitting the tax on an ac- tual cost basis. Supp. No. 21 1470.1 . . . . . (b) The city treasurer or his authorized agent subsequently may conduct an audit to recompute the tax by comparing the estimated value of the building materials and supplies used therefor and the articles of tangible personal property used therein to the actual cost of the same. If the recomputed tax is greater than that shown and paid by the taxpayer, the taxpayer shall be noti- fied of the deficiency in the manner set forth in section 22-45. (Ord. No. 1988-781, ~ 1(21-24), 12-12-88; Ord. No. 1991_869, ~ 3, 9-1-91; Ord. No. 1991-885, ~ 1, 12-23-91; Ord. No. 1996-1060, ~~ 12, 13, 12-16-96) Sees. 22-69-22-72. Reserved. DIVISION 5. ENHANCED SALES T,AX INCENTIVE PROGRAM Sec. 22-73. Program established. There is hereby established within the city an enhanced sales tax incentive program. (Ord. No. 1988-758, ~ 1(24-1),5-23-88) Sec. 22-74. Purpose. The purpose of the enhanced sales tax incen- tive program created by this division is to_encour- age the establishment ancl/or substantial expan- sion of retail sales tax generating businesses within the city, thereby stimulating the economy of and within the city, thereby providing employ- ment for residents of the city and others, thereby further expanding the goods available for pur- chase and consumption by residents of the city, and further increasing the sales taxes collected by the city, which increased sales tax collections will enable the city to provide expanded and improved municipal services to and for the benefit of the residents of the city, while at the same time providing public or public-related improvements at no cost, or at deferred cost, to the city and its taxpayers and residents. (Ord. No. 1988-758, ~ 1(24-2), 5-23-88) Supp. No. 18 TAXATION * 22-76 Sec. 22-75. Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Enhanced sales tax shall mean the amount of sales tax collected by the city over and above a base amount negotiated by, and agreed upon by. the applicant and the city, and which amount is approved by the city council, which base amount shall never be lower than the amount of sales taxes collected by the city at the property in question in the previous twelve (12) months plus a reasonable and agreed upon percentage of an- ticipated increase in sales taxes, or, in the case of a newly established business, an amount which represents the good faith determination by the applicant and the city as to the amount of sales taxes which could be generated from the new business without the participation by applicant in the ESTIP created under this division. ESTIP means the enhanced sales tax incentive program created under this division. Owner or proprietor shall mean the record owner or operator of an individual business, or, in the case of a shopping center, the owner of the real property upon which more than one (1) business is operated, provided that the owner (whether an individual, corporation, partnership Dr other entity) is the owner or lessor of the individual businesses operated thereon. (Ord. No. 1988-758, ~ 1(24-3), 5-23-88) Sec. 22-76. Participation. Participation in ESTIP shall be based upon approval by the city council exercising its legisla- tive discretion in good faith. Any owner or propri- etor of anew ly established or proposed retail sales tax generating business or location, or the owner or proprietor of an existing retail sales tax generating business or location which wishes to expand substantially, may apply to the city for inclusion within the ESTIP provided that the new or expanded business is reasonably likely to gen- erate enhanced sales taxes of at least five thou- sand dollars ($5,000.00) in the first year of oper- ation. (Ord. No. 1988-758, ~ 1(24-4), 5-23-88; Ord. No. 1990-854, ~ 1, 11-26-90) 1471 ~ 22-77 WHEAT RIDGE CITY CODE Sec. 22-77. Approval of agreement; use of funds generally. Approval by the city council of an agreement implementing this ESTIP shall entitle the suc- cessful applicant to share in enhanced sales taxes derived from, applicant's property or business in an amount which shall not in any event exceed fIfty (50) percent of the enhanced sales taxes' provided, however, that applicant may use such amounts only for public and/or public-related pur- poses such as_ those specifIed herein and which are expressly approved by the city council at the time of consideration of the application. The time period in which the enhanced sales taxes may be shared shall not commence until all public or public-related improvements are completed, and shall be limited by the city council in its discre- . ' bon, to a specifIed time, or until a specified amount is reached. , (Ord. No. 1988-758, ~ 1(24-5), 5-23-88) Sec. 22-78. Uses enumerated. The uses to which the shared enhanced sales t~~s may be put by an applicant shall be strictly lirmted to those which are public or public-related in natu:e. For the purposes ofthis division, public or publIc-related purposes shall mean public im- provements, including but not limited to streets sidewalks, curbs, gutters, pedestrian malls street lights, drainage' facilities, landscaping, dec~rative s~ctures, statuaries, fountains, identification SIgnS, traffic safety devices, bicycle paths, off- street parking facilities, benches, restrooms, in- formation booths, public meeting facilities, and all necessary, incidental, and appurtenant struc- tures and improvements, together with the relo- cation and improvement of existing utility lines, and any other improvements of a similar nature which are specifically approved by the city council upon the city council's fInding that said improve- ment are public or public-related improvements, and that such improvements shall enhance the competitive position of the applicant within the Denver Metropolitan area marketplace. (Ord. No. 1988,758, ~ 1(24-6), 5-23-88) ~ents are subject to agreement between the par- ties, and approval by the city council and which increments shall be reasonably rel~ted to the average monthly performance of the business or property in question, or similar businesses in the area (i.e. adjust for seasonal variations). If in any month the agreed upon figure is not meet by applicant so as to create enhanced sales tax for that month, no funds shall be shared with appli- cant for that month, and no increment shall be shared until that deficit, and any other cumula- tive defIcit, has been met, so that at the end of any twelve-month cycle, funds in excess of those en- hanced sales taxes agreed to be shared shall not have been shared with any applicant. (Ord. No. 1988-758, ~ 1(24-7), 5-23-88) . e Sec. 22-80. Revenues restricted. It is an overriding consideration and determi- nation of the city council that existing sources of city sales tax revenues shall not be used im- paired, or otherwise affected by this enh~ced sales tax incentive program. Therefore, it is hereby conclusively determined that only enhanced sales taxes generated by the properties described in an application shall be subject to division under this ESTIP. It shall be the affirmative duty of the city treasurer to collect and hold all such enhanced sales taxes in a separate account apart from the sales taxes generated by and collected from the other sales tax generating uses and businesses within the city and to provide an accounting . e Sec. 22-79. Increments, sharing of funds. The base figure for sales taxes shall be divided . into twelve (12) monthly increments, which incre- Supp. No. 18 1472 e e e TAXArION system which accomplishes the overriding pur- pose ofthis section. It is conclusively stated by the city council that this division would not be adopted or implemented but for the provisions of this sec- tion. (Ord. No. 1988-758, ~ 1(24-8), 5-23-88) Sec. 22.81. Capital improvement fund. The one (1) percent of sales and use taxes ear- marked for the capital improvement fund may be utilized in this ESTIP for public improvements so long as the same are within the meaning of the phrase capital improvements as dermed in the voter approved sales tax referendum previously held within the city, and provided that the same are found and determined by the city council to be capital improvements which could be provided by the city from the capital improvement fund but for the provision of such improvements by the ap- plicant; provided, however, that such use of cap- ital improvement funds as part ofthis ESTIP shall be limited to the amount agreed pursuant to sec- tion 22-83 hereof; provided further, however, that nothing contained herein shall limit the city council in the determination to appropriate addi- tional capital improvement funds for capital im- provements affecting the property in question as a part of the city's regular appropriation and budget process. (Ord. No. 1988-758, ~ 1(24-9), 5-23.88) Sec. 22-82. Criteria for approval of applica- tion. (a) Approval of an application for inclusion in this ESTI? shall be given by the city council, at a public hearing held as a portion of a regularly scheduled city council meeting, based upon the following criteria: (1) The amount of enhanced sales taxes which are reasonably to be anticipated to be de- rived by the city through the expanded or new retail sales tax generating business; (2). The public benefits which are provided by the applicant through public works, public improvements, additional employment for city residents, etc.; Supp. No. 12 ~ 22.S3 (3) The amount of expenditures which may be deferred by the city based upon public im- provements to be completed by the appli- cant; (4) The conformance of the applicant's prop- erty or project with the comprehensive plan and zoning ordinances of the city; (5) The agreement required by section 22-83 having been reached, which agreement shall contain and conform to all require- ments of section 22-83. (6) Approval shall be by motion adopted by a majority of the entire city council. (Ord. No. 1988-758, ~ 1(24-10), 5-23-88) Sec. 22.83. Agreement required. Each application for approval submitted to the city council shall be subject to approval by the council solely on its own merits. Approval of an application shall require that an agreement be executed by the owner and the city, which agree. ment shall, at a minimum, contain: (1) A list of those public or public-related im- provements which justify applicant's ap- proval, and the amount which shall be spent on such improvements; (2) The maximum amount of enhanced sales taxes to be shared, and the maximum time during which the agreement shall continue, it being expressly understood that any such agreement shall expire and be of no further force and effect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the max- imum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired); (3) A statement that this is a personal agree- ment which is not transferable and which does not run with the land; (4) That this agreement shall never constitute a debt or obligation of the city within any constitutional or statutory provision; (5) The base amount which is agreed upon by month, and the fact that if, in any month as 1473 ~ 22.S3 WHEAT RIDGE CITY CODE e specified, sales taxes received from the prop- erty do not at least equal such amount, that there shall be no sharing of funds for such month; (6) The base amount shall be agreed upon which shall consider the historic level of sales at the property in question, or a sim- ilar property within the area in the event of a new business, and a reasonable allow- ance for increased sales due to the improve- ments and upgrades completed as a result of inclusion within this program; (7) A provision that any enhanced sales taxes subject to sharing shall be escrowed in the event there is a legal challenge to this en- hanced sales tax incentive program or the approval of any application therefor; (8) An affirmative statement that the obliga- tions, benefits, and/or provisions of this agreement may not be assigned in whole or in any part without the expressed authori- zation of the city council, and further that no third party shall be entitled to rely upon or enforce any provision hereof; (9) Any other provisions agreed upon by the parties and approved by the city council. (Ord. No. 1988-758, !l1(24-11), 5-23-88) Sec. 22-84. Joint venture; liability. The city council has enacted this ESTIP as a joint benefit to the public at large and to private owners for the purposes of providing the city with increased sales tax revenues generated upon and by properties improved as a result of this pro- gram; public improvements being completed by private owners through no debt obligation being incurred on the part of the city, and allowing ap. plicants an opportunity to improve properties which generate sales activities, which improve- ments make those properties more competitive in the marketplace and further provide to the appli- cant additional contingent sources of revenues for upgrading such properties. The city council spe- cifically finds and determines that creation of this ESTIP is consistent with the city's powers as a home rule municipal corporation, and that exer- cise of such powers in the manner set forth herein Supp. No. 12 is in furtherance of the public health, safety and welfare. Notwithstanding any provision hereof, the city shall never be a joint venturer in any private entity or activity which participates in this ES- TIP, and the city shall never be liable or respon. sible for any debt or obligation of any participant in ESTIP. (Ord. No. 1988-758, !l1(24-12), 5-23-88) DMSION 6. BUSINESS DEVELOPMENT ZONE Sec. 22.85. Program established. There is hereby established within the City of Wheat Ridge the "Wheat Ridge Business Devel- opment Zone" program. (Ord. No. 888, !l1, 1-13-92) Sec. 22.86. Legislative declarations. (a) The city council of the City of Wheat Ridge hereby finds and declares: (1) That the health, safety and welfare of the people of this city are in large part depen- dent upon the continued encouragement, de- velopment and expansion of opportunities for employment in the private sector in this city; (2) That there currently exists in this city busi- nesses or vacant land which require new development or revitalization opportuni- ties to overcome conditions of unemploy- ment, underemployment, net out-migration of the population, diminution of tax reve- nues, chronic economic distress and blighting influences such as, but not lim- ited to, deterioration of business districts, deterioration of public infrastructures, traffic and drai"age problems or sudden se- vere economic dislocations; (3) That by creating new development, rede- velopment or expansion opportunities for businesses within the city the city council will increase the likelihood that new and improved businesses will generate more mu- nicipal sales and use tax revenues for the city in the future. e e 1474 TAXATION e (b) It is therefore declared to be the policy of the City of Wheat Ridge, in order to provide in- centives for private enterprises to expand or for new businesses to locate in the city, to develop a program which empowers the city council to des. ignate portions of the city as a "business develop- ment zone" and to provide for the abatement of certain categories of fees, taxes and other busi- ness development-related charges for new devel- opment or redevelopment within such districts. (c) The city council has enacted this division 6 of article II of chapter 22 of the Code of Laws as a joint benefit to the public at large and to private owners for the purposes of reducing blight in our business districts and of providing the city with increased sales and use tax revenues generated upon and by properties improved as a result of this program and allowing owners and propri- etors opportunities to improve properties which generate sales activities, which improvements make those properties more competitive in the marketplace and further provide to owners and proprietors additional contingent sources of reve- nues for ungrading such properties. (d) The city council specifically finds and deter- mines that creation of this "business develop- ment zone" ordinance and the exercise of the powers enumerated herein are consistent with and promotes the public health, safety and general welfare of the citizens of Wheat Ridge. (Ord. No. 888, !iI, 1-13-92; Ord. No_ 1993.947, !iI, 12-13-93) e e Sec. 22-87. Definitions. As used in this division, the following ph;ases shall have the following meanings unless the con- text clearly indicates another meaning: (1) The phrase eligible city fees, charges and taxes shall mean and shall be limited to use tax on furniture and fIXtures associated with the initial development or redevelop- ment "project," use tax on building mate- rials, building permit fees and zoning fees. (2) The phrase expected incremental future sales and use tax revenue shall mean the amount of the additional sales and use tax revenue, as projected by the city, expected to be gen- Supp. No. 12 .22.89 erated during the council-designated time period from the time of completion of the "project" over and above the sales and use tax fees generated on the premises in the twelve (12) months preceding the applica- tion described in section 22-88. (3) The phrase owner or proprietor shall mean the record owner, tenant or opeator of an individual business or, in the case of a shop- ping center, the owner of the real property upon which more than one business is op- erated. (4) Project shall mean the specific development or redevelopment expenditures which re- late both to the abatement of "eligible city fees, charges, and taxes" and "expected in- cremental future sales and use tax revenues." (Ord. No. 888, !i1, 1-13.92) Sec. 22.88. Participation. Participation in the business development zone program shall be based upon approval by the city council, exercising its legislative discretion in good faith. Any owner or proprietor of an established, proposed or newly purchased business, or the owner or proprietor of an existing business which wishes to expand, may apply to the city for inclu- sion within the program. Abatement or sharing of eligible city fees, charges, and taxes shall, upon approval of the application by the city council, be granted up to the amount of expected incremental future sales and use tax revenue to be generated .by the project during the agreed to time period. (Ord. No. 888, !i1, 1-13-92) Sec. 22-89. Approval of agreement; use of funds generally. Approval by the city council of an agreement implementing the provisions of this division shall entitle the applicant to share in the eligible city fees, charges and taxes up to the amount agreed by the city council; provided, however, that appli- cant may use such amounts only for the purpose of developing or redeveloping the business within the approved business development zone, which 1475 ~ 22.89 WHEAT RIDGE CITY CODE purposes shall be specifically enumerated in the agreement provided for in section 22-94 hereof. (Ord. No. 888, ~ 1, 1-13-92) Sec. 22.90. Uses enumerated. The uses to which the eligible city fees, charges and taxes may be put by an applicant shall be strictly limited to those which are approved by the city council and relate directly to the devel- opment or redevelopment of businesses within the city, which developed or redeveloped businesses' will generate more municipal sales and use tax revenues for the city in the future. Priority shall be given to all businesses which make application for inclusion within this program and who agree to utilize the eligible city fees, charges and taxes for the public or public-related purposes identified section 22-78 of this Code of Laws. (Ord. No. 888, ~ 1, 1-13-92) Sec. 22;91. Increments, sharing of funds. The base figure for eligible city fees, charges and taxes shall be divided into twelve (12) monthly increments, which increments are subject to agree- ment between the parties and approved by the city council, and which increments shall be rea- sonably related to the amount of sales and use taxes generated on the premises in the twelve (12) months preceding the application received by the city for participation in this program. The ac- counting and payment provisions of sections 22-79 and 22-80 hereof are hereby declared to be appli- cable to any application approved hereunder (Ord. No. 888, ~ 1, 1-13-92) Sec. 22-92. Capital improvement fund. 'I:he one percent of use taxes earmarked for the Capital Improvement Fund may be utilized in this business development zone program for public im- provements so~long as the same are within the meaning of the phrase capital improvements as defined in the voter-approved sales tax ref",rendum previously held within the city, and provided the public improvements are found and determined by the city council to be capital improvements which could be provided by the city from the Cap- Supp. No. 12 ital Improvement Fund but for the provision of such improvements by the applicant. (Ord. No. 888, ~ 1, 1-13-B2) Sec. 22.93. Criteria for approval of applica. tion. (a) Approval of an application for inclusion in this business development zone program shall be given by the city council at a public hearing held as a portion of a regularly scheduled city council meeting based upon the following criteria: (1) The amount of expected incremental future sales -and use taX revenue which reason. ably [can] be anticipated to be derived by the city through the expanded or new tax generating business; (2) The public benefits which are provided by the applicant through public works, public improvements, additional employment for city residents, etc.; (3) The amount, if any, of city expenditures which may be deferred based upon public improvements to be completed by the ap- plicant; (4) The conformance of the applicant's prop- erty or project with the comprehensive plan and zoning ordinances of the city; (5) The agreement required by section 22-94 hereof having been reached, which agree- ment shall contain and conform to all of the requirements of such section. (b) Approval of any application shall be made by motion adopted by a majority of the entire city council. (c) The city council may by three-fourths ma- jority vote approve exceptions to the provisions of this division when such exceptions are found to be in the public's interest and such exceptions pro- vide substantial benefit to the city. (Ord. No. 888, ~ 1, 1-13-92; Ord. No. 1993-947, S 2, 12-13-93) Sec. 22-94. Agreement required. Each application for approval to the city council shall be subject to approval by the council solely 1476 e - e . e . e . on its own merits. Approval of one application shall not require, or be deemed precedent for, approval of any other application. Approval of an application shall require that an agreement be executed by the owner and the city, which agree- ment shall, at a minimum contain: (1) A list of those public or public-related improvements which justify applicant's approval, and the amount which shall be spend on such improvements; (2) The maximum amount of expected incre- mental future sales and use tax revenue and the maximum time during which the agreement shall continue, it being ex- pressly understood that any such agree- ment shall expire and be of no further force and effect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired); (3) A statement that this is a personal agree- ment which is not transferable and which does not run with the land; (4) That this agreement shall never consti- tute a debt or obligation of the city within any constitutional or statutory provision; (5) The base amount which is agreed upon by month, and the fact that if, in any month as specified, expected incremental future sales and use tax revenue received from the property does not at least equal such amount, that there shall be no sharing of funds for such month; (6) The base amount shall be agreed upon, which shall consider the use taxes gener- ated by the property in question, or a similar property within the city in the event of a new business; (7) A provision that any expected incremen- tal future sales and use tax revenue shall be escrowed in the event there is a legal challenge to this business development zone program; Supp. No. 19 TAXATION ~ 22-96 (8) An affirmative statement that the obliga- tions, benefits and/or provisions of this agreement may not be assigned in whole or in any part without the expressed allo. thorization of the city council, and further that no third party shall be entitled to rely upon or enforce any provision hereof; (9) Any other provisions agreed upon by the parties and approved by the city council. (Ord. No. 888, ~ 1, 1-13-92) Sec. 22-95. Joint venture liability. The city council has enacted this business development zone as a joint benefit to the public at large and to private owners for the purposes of providing the city with increased tax revenues generated upon and by properties improved as a result of this program; public improvements be- ing completed by private owners through no debt obligation being incurred on the part of the city, and allowing applicants an opportunity to im- prove properties which generate sales and other business activities. The city council specifically finds and determines that creation of this busi- ness development zone is consistent with the city's powers as a home rule municipal corpora- tion, and that exercise of such powers in the manner set forth herein is in furtherance of the public health, safety and welfare. Notwithstand- ing any provision hereof, the city shall never be a joint venturer in any private entity or activity which participates in this business development zone program, and the city shall never be liable or responsible for any debt or obligation of any participant in this business development zone. (Ord. No_ 888, ~ 1, 1-13-92) Sec. 22-96. ESTIP and TIF. If the applicant, owner or proprietor partici- pates in the city's Enhanced Sales Tax Incentive Program ("ESTIP") or if the owner's or proprietor's business is located in an urban renewal area in which all or a portion of sales tax revenues have been pledged as part of a tax increment financing program, he or she shall be ineligible for partici- pation in this business development zone pro- gram. (Ord. No. 888, ~ 1, 1-13-92) 1477 ~ 22-97 WHEAT RIDGE CITY CODE Sees. 22-97-22-99. Reserved. ARTICLE m. BASIC LOCAL TELECOMMUNICATIONS SERVICE. Sec. 22-100. Levy of tax. There is hereby levied a tax on and against each person, corporation or entity engaged in the business or occupation of providing basic local telecommunications service within the City of Wheat Ridge. (Ord. No. 1997-1072, ~ 1, 3-24-97) See. 22.101. Definitions. For the purposes of this article, the following terms shall be construed as defined herein: Basic local telecommunications service means the electronic or optical transmission of informa- tion between separate points by prearranged means, which may include the provision of a tone, or its functional equivalent, a local line or other transmission path and such local usage as is necessary to place or receive a call. Basic local telecommunications service does not include long distance service, cellular service or mobile radio telephone service. However, the provision of cel- lular or mobile radio service to any resident, business or other entity as its primary local telecommunications service shall be deemed basic telecommunication service for the purpose of de- termining the applicability of this business and occupation tax. Incumbent basic local telecommunications ser- vice provider or incumbent provider shall be the *Editor's note-Ord. No. 1997-1072, ~ 1, adopted March 24, 1997, repealed and re-enacted the provisions of Ch. 22, Art. III to read as herein set out. Prior to this revision, Art. III contained provisions relative to telephone exchanges and was derived from Code 1977, ~~ 21-21-22-27 and from the follow- ing ordinances: Ord. No. 1987- 73S 1985-77S 1989-S17 Date Ord. No. 1990-S56 1991-S87 1991-SSS Date Ord. No. Date 11-23-87 11-28-88 2-12-90 12-10.90 1992-9S0 12-23-91 1994-956 1-13-92 1995-991 12-14.92 2-2S.94 2-13-95 Supp. No. 19 company or entity providing basic local telecom- munications service within the city as of July 1, 1996. Line shall mean a separate telephone number, except that, to the extent basic local telecommu- nications service is provided through trunks, a line shall mean network access register. or its functional equivalent. New basic local telecommunications service pro- vider or new provider shall be any company or entity other than the incumbent provider who enters into the business of providing basic local telecommunications service in the city. (Ord. No. 1997-1072, ~ 1, 3-24-97) Sec. 22-102. Local purpose. The tax provided in this article is upon the affected occupations and businesses in the perfor- mance of local functions and is not a tax upon those functions relating to interstate commerce. (Ord. No. 1997-1072, ~ 1, 3-24-97) Sec. 22-103. Amount and payment of tax. The amount of the tax levied and payment of the tax shall be as follows: (1) The Incumbent Basic Local Telecommuni- cations Service Provider shall pay one hundred ninety thousand five hundred and seventy-five dollars ($190.575.00) as follows: One hundred ninety thousand five hundred and seventy-five dollars ($190,575.00) shall be paid in twelve (12) equal monthly installments of fifteen thou- sand eight hundred and eighty-one dol- lars and twenty-five cents ($15,881.25), each installment to be paid on the last business day of each calendar month. (2) Each New Basic Local Telecommunica- tions Service Provider shall pay a tax based on a calculated fraction of the tax paid by the Incumbent Basic Local Tele- communications Service Provider. The amount shall be determined as follows: a. The incumbent provider per line charge will be determined by divid- ing the Incumbent Basic Local Tele- communications Service Provider tax 1478 . e . . . . e . . . by the number of customer lines provided by the Incumbent Basic Lo- cal Telecommunications Service Pro- Incumbent Provider Tax ($190.575.00) = No. of Incumbent Provider Lines b. The tax paid by each new Basic Local Telecommunications Service Provider shall be the Per Line Charge as defined through the above for- mula multiplied by the number of lines provided in Wheat Ridge by the New Basic Local Telecommunica- tions Provider. (3) Calculation of the tax paid by a cellular or mobile radio telephone service provider shall be based only on the number of lines or the functional equivalent actually used to provide Basic Local Telecommunica- tions Service as described in section 22- 101 above. (4) The amount of the tax levied against new Basic Local Telecommunication Service Provider shall be calculated each August and shall be effective on the following January 1 and shall be payable in twelve (12) equal monthly installments, each in- stallment to be paid on the last business day of each calendar month. (Ord. No. 1997-1072, ~ 1, 3-24-97) Sec. 22-104. Failure to pay. If any Basic Local Telecommunications Service Provider subject to this article fails to pay the taxes as herein provided; the full amount thereof shall be due and collected from such provider, and the same, together with an addition of ten (10) percent of the amount of taxes due shall be and is declared to be a debt due and owing from such provider to the city. (Ord. No. 1997-1072, ~ 1,3-24-97) Sec. 22-105. Inspection of records. The city, its officers, agents or representatives, shall have the right at any reasonable time to examine the books and records of the Basic Local Supp. No. 19 TAXATION ~ 22-107 viderwithin Wheat Ridge. Expressed as a formula, the ratio shall be as follows: New Provider Tax Number of New Provider Lines Telecommunications Service Providers which are subject to the provisions of tax imposed in this article and to make copies of the entries or con- tents thereof. (Ord. No. 1997-1072, ~ 1,3-24-97) Sec. 22-107. Tax in lieu of other occupation taxes. The tax provided in this article shall be in lieu of all other occupation taxes or taxes on the privilege of doing business within the city on any provider of Basic Local Telecommunications Ser- vice subject to the provisions of this article. (Ord. No. 19!)7:1072, ~ 1, 3-24-97) [The next page is 1515] 1479