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HomeMy WebLinkAboutOrdinance-1988-0781INTRODUCED BY COUNCILMEMBER FLASCO ORDINANCE NO. 781 Series of 1988 TITLE: AN ORDINANCE REPEALING AND REENACTING, WITH AMENDMENTS, CHAPTER 21, TAXATION, OF THE CODE OF LAWS OF THE CITY OF WHEAT RIDGE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1_ Chapter 21, Taxation, Article 1, Retail Sales, of the Code of Laws of the City of Wheat Ridge is hereby repealed and reenacted, with amendments, as follows: Sec. 21-1. DEFINITIONS. As used herein, the following words and phrases shall have the following meanings: Admission charge shall mean any charge for the right or privilege of admission to an amusement or entertainment event. Alarm and security systems services and/or sales means the entire service charge or purchase price for any alarm or security system. 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 means 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 sport 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. Auction or estate liquidation sale means 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 when such individual is acting either as agent for the owner of such tangible personal property or is in fact the owner thereof. Bowling alley operator means 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, including charges for bowling by the line. Business means all activities or undertakings of any nature engaged in or caused to be engaged in by any person with the object of profit or gain, benefit or advantage, direct or 1 indirect. Business shall mean any business, trade, occupation, profession, avocation or calling of any kind carried on or engaged in by a person, having a fixed or transitory situs within the City. Canvasser means any person, whether as volunteer, agent, organizer or employee of an exempt or charitable 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 activites protected by the First Amendment of the United States Constitution. Carrier access services sale means any charge by local telephone exchange companies to providers of interchange telecommunications services for use in providing their interchange telecommunications services. Capital lease means a lease with characteristics of a purchase, including without limitation, a lease term corresponding to the useful life or property, the lessee's payment of costs of property incidental to ownership, or the lessee's option to purchase for less than fair value. Charitable organization means any non-profit entity organized and/or operated in the City exclusively for religious, or charitable purposes, 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 that does not participate in or intervene in any political campaign on behalf of any candidate for public office, or publish or distribute any statements on such candidate's behalf; which, consistent with existing laws and for the benefit of an indefinite number of persons, exclusively, freely, and voluntarily ministers to those persons' physical, mental, or spiritual needs. City means the City of Wheat Ridge, Colorado. City Code shall mean the Code of Laws of the City of Wheat Ridge, Colorado. Computer software means the internalized instruction code which controls the basic operations (i.e., arithmetic and logic) of the computer, causing it to execute instructions contained in system programs, as an integral part of the computer. Such instruction code is not normally accessible or modifiable by the user. A software program is one in which instructions and routines (programs) are determined necessary to program the customer's electronic data processing (EDP) equipment to enable the customer to accomplish specific functions with his EDP system. The software may be in the form of: 2 (1) Systems programs (except for the instruction 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) Applications programs programs that are created to perform business functions, or control, or monitor process; (3) Pre-written (canned) programs programs that are either systems programs or application programs and are not written specifically for the user; or (4) Custom programs programs created specifically for the user. Construction equipment means all pieces of portable machinery, vehicles and other types of equipment used directly or indirectly to build, erect or otherwise construct buildings, roads, bridges or any construction project or to aid in such building or construction. Construction material means tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a completed structure or project including public and private improvements. 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, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other landscaping materials, wall board, wall coping, wall paper, weather stripping, wire netting and screen, water mains and meters, and wood preserver. The above materials, when used in forms, or other items which do not remain as an integral or inseparable part of a completed structure or project are not construction materials. Construction materials do not include such things as: carpeting, equipment, furniture, removable fixtures, window coverings, or similar items. Construction project means the erection, installation, alteration, repair, or remodeling of a building or structure upon real estate, and any other activity for which a building permit is required under the City Code. Consumer means any person or business in the City who buys, uses, stores, distributes or otherwise consumes tangible personal property or taxable services purchased from sources inside or outside the City. Consumer deductions means those items that may be deducted from gross taxable sales or gross taxable services. Customer access service charge means any direct charge by local telephone exchange companies to the consumer. 3 Engaged in business means performing services or selling, leasing, renting, delivering or installing tangible personal property in the City. This term shall include, but shall not be limited to, the following acts or methods of transacting business: (1) Maintaining within the City, directly, indirectly or by a subsidiary, an office, distributing house, sales room or house, warehouse or other place of business; or (2) Soliciting business by direct representatives, indirect representatives, or manufacturers' agents; distributing catalogues or other advertising; using any communications media; or by any other means whatsoever, receiving orders to sell, lease, or rent tangible personal property or services in the City or for use, purchase, consumption, storage or distribution in the City; or (3) Extending credit to potential consumers or purchasers residing in the City; or (4) Collecting debts from persons residing in the City through the use of process or forums in the City; or (5) Providing three or more units of real property for rent or lease as a residence, or providing any real property for rent or lease for commercial or business uses. Exempt organization means any governmental, quasi-governmental, religious, or charitable organization which has applied for, and been assigned, a Certificate of Exemption from the City of Wheat Ridge. Farm closeout sale means an auction or private sale to make full and final disposition of all tangible property previously used by a farmer or rancher in farming or ranching operations which are being abandoned. Food means food which is advertised or marketed for human consumption and is sold in the same form, condition, quantities and packaging as is commonly 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 does not include food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, delicatessans, carryout 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, spirituous, malt or vinous liquor; proprietary medicines; nostrums, lozenges; tonics; carbonated beverages including carbonated water marketed in containers; non-alchoholic cocktail mixes; vitamins and other 4 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 take-out 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 taxable sales and service means the total amount received in money, credit, property or other consideration valued in money from sales, leases, rentals and purchases at retail within the City, and taxable under the provisions of this Chapter, and shall include the cost of goods purchased tax free by the taxpayer or taken from his stock and used or consumed by him personally or used by him in the rendering of a service. Hotel room, motel room, or other accommodations means any room or other accommodation in any hotel, apartment-hotel, motel, guest house, trailer court or park, or any similar place furnishing rooms or other public accomodations to any person who, for consideration, uses, possesses, or has the right to use or possess such room or other accomodation for a total continuous duration of less than one month. License means a City of Wheat Ridge sales and use tax license, and/or general business license. Linen service means delivery and pick up, cleaning, mending, lease and/or rental of bed linen, table linen, uniforms, runners and mats, shirts and smocks, cloth towels and dispensers, diapers, mops, etc. which are rented or leased under contract and are maintained by the renter or lessor. When the customer is charged the replacement cost for lost or damaged items provided by the service, the transaction is not considered a lease or rental and is considered a taxable sale. Local exchange company means any person who provides public telephone or telecommunication exchange access lines, mobile telecommunications or channels necessary to effect the transfer of two-way voice communication or other data conveyance from within the city. Lodgers tax means the amount assessed or charged by this Chapter, and collected by retailers and vendors for the lease, rental or furnishing price of each hotel room, motel room, or other accommodation. Mobile machinery means those vehicles, self-propelled or otherwise, which are not designed primarily for the transportation of person or cargo over the public highways, and those motor vehicles which may have originally been designed for the transportation of persons or cargo over the public highways, 5 and those motor vehicles which may have originally been designed for transportation 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 includes, 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 means 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, constitution or statute. Newspaper means (a) a publication, printed on newsprint, intended for general circulation, and published regularly at short intervals, containing information and editorials on current events and news of general interest; or (b) publications which meet the requisites of a legal newspapers as provided in Sections 24-70-101 to -108, C.R.S. (1982), as amended. The term newspaper may not be extended to include: magazines, trade publications or journals, credit bulletins, advertising inserts, circulars, directories, maps, racing programs, reprints, newspaper clipping and mailing service or listings, publications that include an updating or revision service, books or pocket editions of books or other newspapers not otherwise qualifying under this subsection. Newspaper advertising supplements shall mean inserts, attachments, or supplements that: (a) are primarily devoted to advertising; and (b) the distribution, insertion, or attachment of which is paid for by the advertiser. Non-profit organization means 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 participate in, or intervene in any political campaign on behalf of any candidate for public office. Non-resident vendor means any retailer or vendor whose place of business is outside the City. Open to the public means any place or event to which admission or access is open to members of the general public. This term includes, without limitation, the following places or events where a charge or fee for admission is imposed upon members of the public: 6 (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 or dissertation; (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", "door charge", or any other such term. Peddler is any person, whether as volunteer, owner, agent, consignee or employee, who engages in a temporary business of selling and delivering goods within said City, and who, in furtherance 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 business license from the City and operates in full compliance with the zoning code of the City. Person means any individual, firm, co-partnership, joint venture, corporation, estate or trust, receiver, trustee, assignee, lessee or any person acting in fiduciary or representative capacity, whether appointed 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 means the address to which an item is delivered by the seller, to the purchaser whether by common carrier, mail, or conveyed by the seller. Prescription drug means a substance for human or animal consumption used in the treatment or prevention 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 practitioner's office. Prescription drug does not include any medical substance which may be purchased by the general public without a physician's prescription except for insulin and insulin injecting and measuring devices. Private communication service means: (1) The communication service furnished to a subscriber which entitles the subscriber to: (a) exclusive or priority use of any communication channel or groups of channels, or (b) the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, groups 7 of channels, or intercommunication system may be connected through switching as herein described, (2) Switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels or systems described in paragraph (1), and (3) The channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term does not include any communication service unless a separate charge is made for such service. Prosthetic device means any artificial limb, part, device or appliance for human or animal use, which aids or replaces a bodily function; which was designed, manufactured, altered or adjusted to fit a particular patient; and, which is prescribed by a member of the healing arts. Prosthetic devices include, but are not limited to prescribed auditory, opthalmic or ocular, cardiac, dental, therapeutic, or orthopedic devices or appliances, and oxygen and related accessories. Purchase or Sale means the acquisition or disposition for any consideration by any person of tangible personal property or taxable services that are purchased, leased, sold, used, stored, distributed, or consumed, but excludes a bona fide gift of property or services. These terms include capital leases, installment and credit sales, and property and services acquired by: (1) The transfer, either conditionally or absolutely, of title to, and/or possession of, tangible personal property; (2) A lease, lease-purchase agreement, rental, or grant of a license, including royalty agreements, to use tangible personal property or taxable services; (4) Performance of taxable services; (5) Barter or exchange for other property or services, including coupons (if vendor is reimbursed for coupons from the manufacturer, the full face amount or value of the coupon is taxable); or (6) A lease, rental, or grant of a license to use, store, distribute or consume tangible personal property. (7) When interpreting this definition, the following shall apply: (a) Tangible personal property furnished together with an operator shall be considered a rental, if the measurement of the price is time; (b) The utilization of coin operated devices which do not vend articles of tangible personal property shall be considered short term rentals of tangible personal property, and the gross receipts are considered taxable; (c) Royalty agreements shall be considered a grant of a license to use property; (d) the sale of electrical energy, natural and manufactured gas, and telecommunications service. (8) This definition excludes the following: 8 (a) A division of partnership assets among the partners according to their interests in the partnership; (b) 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 outstanding stock, except qualifying shares, in proportion to the assets contributed; (c) The transfer of assets of shareholders in the formation or dissolution of professional corporations; (d) The dissolution and the pro rata distribution of the corporation's assets to its stockholders; (e) A transfer of a partnership interest; (f) 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 partnership; (g) The repossession of personal property by a chattel mortgageholder or foreclosure by a lienholder; (h) The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation; (i) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent by a parent corporation to a parent corporation or to another subsidiary which is owned at least eighty 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. Purchase price or sales price means 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 or state government or by this Chapter. (1) For interpreting this definition, the purchase price or sale price of goods manufactured or made to order includes the full purchase price for material used, and the service performed in connection therewith, and the profit thereon included in the price charged to the user or customer. (2) Purchase price or sales price includes without limitation, any finance, service, or other charge, except when separately stated; installation and delivery fees; transportation and other charges to effect delivery to the purchaser if the sales agreement requires such delivery to consumate the sale; and indirect federal manufacturers' excise taxes, except when separately stated. (3) In the case of a retail 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 automotive vehicle and is exchanged for another automotive vehicle and both vehicles are 9 subject to licensing, registration, or certification under the laws of the State of Colorado, including without limitation, vehicles operating on public highways, off-highway recreation vehicles, and watercraft. Purchaser means any person to whom a taxable service has been rendered or who has leased or purchased at retail tangible personal property which is used, stored, distributed or consumed in the City upon which a tax is imposed by this Chapter. Retail sale means any sale of goods or taxable services, except sale of goods for resale, within the City. Retailer or vendor means any person selling, leasing, or a person doing a retail business, known to the trade and public as such, making sales to a purchaser, or leasing or renting to a purchaser or consumer at retail and not for resale, of tangible personal property or services subject to the tax imposed by this Chapter for use, storage, distribution or consumption within the City. To prevent evasion and to provide for more efficient administration, the term "retailer" shall include any salesman, representative, peddler or solicitor, who as an agent, directly or indirectly of the dealer, distributor, supervisor or employer under whom he operates or from whom he obtains the tangible personal property or services sold by him, makes sales of tangible personal property or services subject to the tax imposed herein. Return means the standard municipal sales and use tax reporting form, and any subsequent revisions thereto, used to report Wheat Ridge sales and use tax. Sales tax means the tax levied on all sales, leases and rentals at retail on the basis of the purchase or sale price of purchases of tangible personal property and specific services taxable hereunder. Sales tax inspector means the City Treasurer, or other person designated by him, and shall likewise refer to the sales tax auditor or administrator. Security system services means electronic security system services for a building or portion thereof. Such term does not include non-electronic security services such as consulting or human or guard dog patrol services. Solicitor means 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 means sound system services involving provision of broadcast or pre-recorded audio programming to a 10 building or a portion thereof. Such term does not include installation of sound systems where the entire system becomes the property of the building owner or the sound system service is for presentation of live performances. Storage means the keeping or retention of, the exercise of dominion or control over, or the possession of, tangible personal property under lease or purchase at retail from another person within or without the City. Tangible personal property means any corporeal personal property which may be seen, weighed, measured, felt, or touched. Tax means the amount payable as provided in this Chapter by the purchaser of tangible personal property or services subject to tax, or the aggregate amount of taxes due from the retailer or vendor for taxable sales during a collection and reporting period applicable as required herein. Taxable sales and/or services means the sale and/or service to the user or consumer, exclusive of exempt sales as provided in this Chapter. Taxpayer means any consumer who must pay tax on any taxable sale, or any person obligated to account to the Treasurer for taxes collected or to be collected under the terms of this Chapter. Telecommunications service means the transport of signs, signals, writing, images, sounds, messages, data, or other information of any nature by wire, radio, light waves, electromagnetic, digital, or electronic means including pay, cable or subscription television, except carrier access services or interstate private communication services as defined herein. Theater operator means any person, whether owner, operator, lessee or any other person, who charges or causes to be charged admission to a performance or show at a theater open to the public. Transfer of ownership point means the location where an item when purchased from a vendor changes hands (i.e., if the purchaser takes the item with him the tax is due at the point of sale; if the purchaser has the item delivered, the item is taxable at the point of delivery). Treasurer means the City Treasurer, or his designee, including, not by way of limitation, the Deputy City Treasurer, or the Finance Assistant/Sales Tax Auditor. Use means the exercise, for any length of time, by any person within the City, of any right, power, or dominion over tangible personal property by lease or purchase. 11 Use tax means the tax levied upon the privilege of using, storing, distributing or otherwise consuming tangible personal property and taxable services which property or service is purchased, leased or rented at retail and not subjected to sales tax, without regard to whether the property or service is purchased either from sources within or without the City. Vehicle means any vehicle, or device in, upon, or by which any person or property is or may be transported or drawn upon a public highway, including but not limited to motor vehicles, trailers, semi-trailers, mobile homes, mobile machinery, or self- propelled construction equipment, but excluding devices moved by human power or used exclusively upon stationary rails or tracks. Vendor's fee means the portion of total sales tax collected by a licensed taxpayer under the requirements 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. Wholesale sale means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers for resale and does not include a sale by wholesalers to users or consumers not for resale; and the latter sales shall be deemed retail sales, and subject to the provisions of this Chapter. Wholesaler means any person selling to retailers, jobbers, dealers, or other wholesalers, for resale, and not for storage, use, consumption, or distribution. Note on usage. As used in this Chapter, 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. 12 Sec. 21-2. Business License and Fees - Scope of Chapter (1) It is hereby declared to be the intent of the City Council that no person may engage in business within the City of Wheat Ridge unless he obtains a valid business license issued pursuant to this Chapter, except as otherwise provided in the City Code. (2) The provisions of this Chapter shall apply to and govern the application for, and the issuance, regulation, suspension and revocation of business licenses, except that: (a) The requirement of any ordinance relating to any license or licensed activity shall be complied with and enforced in addition to the requirements of this Chapter. (b) The provisions of this Chapter shall be construed to effect the purposes of providing orderly procedures, observation of the requirements of due process of law, and implementation of the purposes of the ordinances of the City. Sec. 21-3. Applications (1) An application for a license shall be made on forms prescribed by the City Treasurer and filed at the offices of the City Treasurer, in compliance with the provisions of this Chapter. (2) Application shall be made prior to the commencement of business within the City, or in the event of a renewal, prior to January 1 of the calendar year for which the license is sought. A thirty (30) day grace period after the application deadline shall be permitted. (3) A business license shall be required in addition to all other licenses required by the City Code or state statute, except that contractors subject to licensing pursuant to Article III of Chapter 5 of the City Code shall not be required to pay for a business license. (4) Unless otherwise provided by law, if an application for a license has been timely filed, the applicant may continue in business within the City unless or until the application is denied. Sec. 21-4. issuance of License (1) No license shall be issued unless the City Treasurer finds, after investigation, that: (a) All applicable provisions of the City Code and state statutes have been met by the applicant; (b) The required fees and previously assessed penalties have been paid; (c) The application has been reviewed by the City zoning officials, the use is valid under the City land use ordinances and all required inspections have been performed. (2) Any license issued in error may be canceled. (3) Upon issuance, the license shall be mailed to the licensee at the address stated in the application. 13 Sec. 21-5. General Business Licenses (1) Every license shall show upon its face: (a) The name of the person and the trade name of the business to whom such license has been issued; (b) The kind of license; (c) The time period for which the license is issued; (d) The street address, if any, where such business is regularly carried on; (e) Such other information deemed necessary by the City Treasurer. (2) A separate license shall be required for each location of a business within the City. (3) No license shall be transferred from one person or business or location to another. Any change of ownership, nature of business or location shall require a new application and license, including the applicable fees. (4) The license for a particular business location shall be posted at all times that it is in effect in the principal room or office of the business. No expired or invalid license shall remain posted. The license shall be exhibited upon request of any law enforcement officer or City official. (5) City inspectors and investigators shall be permitted access to the licensed premises at all reasonable times for the purpose of performing their duties under City and state law. Such inspections and investigations at reasonable times shall not be hindered in any manner. (6) The City Treasurer shall keep a record of all licenses issued, including the name of each licensee and business, the location of the business and the type of licenses issued. Sec. 21-6. Exempt Institution License (1) No exempt institution shall purchase in the City or use in the City tangible personal property or taxable services without payment of the tax imposed by this Chapter unless the institution first obtains an exempt institution license from the City and presents its license or, if a government entity, its license number, to the vendor of tangible personal property or taxable services before making a purchase, lease, or use of the property or services. (2) The application for an exempt institution license shall include the institution's articles of incorporation and a copy of the institution's federal and state tax exemption letter, its by- laws, and financial statements showing source and uses of funds. (3) As a condition of obtaining an exempt institution license, the institution shall agree to make regular and complete reports of all purchases, both those that are not taxable and those that are taxable, including without limitation, purchase of property and services resold to members and others and those used for other than the exempt purpose of the institution. Sec. 21-7. Expiration of and Renewal of License (1) All licenses shall expire on December 31 of each calendar year. 14 (2) A renewal notice shall be sent to each licensee prior to the expiration of the license. The license may be renewed by filing a new application and paying applicable fees as required by this Chapter. (3) Except as otherwise provided by the City Code, the City Treasurer may, in his discretion, waive the submission of a renewal application, so long as the application and license fees imposed by this Chapter are paid in a timely manner. Sec. 21-8. Denial of License (1) If the City Treasurer finds that the applicant has not satisfied the pre-requisites of this Chapter, the application for a license shall be denied. (2) If the City zoning officials disapprove issuance of a license, such disapproval shall be endorsed on the face of the application and written reasons for such disapproval shall be provided to the City Treasurer and the applicant. (3) A license may be denied for any reason that it could be canceled, suspended or revoked. (4) A license may not be denied solely on the grounds that the licensee has previously had a license denied, canceled, suspended, or revoked, so long as the pre-requisites of this Chapter are met and the City Code does not otherwise require denial. Sec. 21-9. Cancellation of License. A license shall be canceled by the City Treasurer: (1) When it appears that issuance of the license was illegal; or (2) The license was mistakenly issued to the wrong person or premises or the wrong license was issued; or (3) When any fee or penalty is unpaid; or (4) Upon grounds provided by ordinance or by statute. Sec. 21-10. Suspension of License. (1) A license may be suspended, with or without conditions, by the City Treasurer: (a) When any activity conducted pursuant to such license violates an ordinance or statute; or (b) Upon any grounds which would authorize revocation of a license except grounds which make relocation mandatory; or (c) Upon any ground of suspension provided by the City Code. (2) A license may be conditionally suspended upon any grounds authorizing suspension thereof. Sec. 21-11. Revocation of License. A license may be revoked by the City Treasurer: (1) When it appears that the license was obtained by fraud or misrepresentation or false statements within the application; or (2) When it appears that the activity conducted pursuant to such license is a public nuisance as defined by ordinance or by statute; or 15 Code. (3) Upon any grounds of revocation provided by the City Sec. 21-12. Adverse action general provisions (1) Whenever the City Treasurer cancels, suspends, or revokes a license, the Treasurer shall state the grounds for such action in a notice given by certified mail, return receipt requested, to the address of the licensee as shown on the records of the City Treasurer. Notice of the denial of a license application shall be given in the same manner. All references to "licensee" in this section shall also apply to applicants who have been denied a license. Within ten (10) days following the date of the notice, the licensee may either: (a) Perform any act or cure any default necessary to avoid the adverse action; or (b) Request a hearing, in which event the license shall not be denied, canceled, suspended or revoked, except as provided by subsection (2) of this section. (2) Except as otherwise provided in this section, no license shall be denied, canceled, suspended or revoked without affording opportunity for a hearing before the City Treasurer. In such hearing the licensee shall have the opportunity to appear in his own behalf, with or without the assistance of legal counsel, present evidence in his own behalf, and cross-examine witnesses presented against him. The City Treasurer or other hearing officer shall determine whether the reasons for the denial, suspension, cancellation or revocation, as provided in Sections 21-7 through 21-11, in fact exist. (3) A licensee shall be deemed to have been afforded opportunity for a hearing if notice of the proposed adverse action, and the grounds therefor, which may include notice of the date, time and place of a hearing, is given in the manner provided herein, and (a) The notice is not delivered because the licensee has moved from the address stated in the license or application therefor, provided, however, in such circumstances that a notice has also been posted in a conspicuous place at the location as indicated on the license or the application therefor for at least ten (10) days; or (b) The notice is not delivered because the address stated in the license or application therefor is false or nonexistent; or (c) The notice is not delivered because the licensee refuses to accept the certified mail, provided, however, in such circumstances that a notice has also been posted in a conspicuous place at the location as indicated on the license or the application therefor for at least ten (10) days; or (d) The licensee, having received a notice that an adverse action will be taken unless a hearing is requested, fails to request a hearing within the time stated in such notice; or (e) The licensee, having received notice of hearing, fails without good cause to attend such hearing in person or by counsel; or 16 (f) The licensee, having requested a hearing, fails without good cause to attend such hearing in person or by counsel. (4) The City Treasurer may nominate another officer or employee of the City to sit as a hearing officer to conduct any hearing requested by a licensee, but no final adverse action shall be taken except by the City Treasurer after reviewing the recommendations of the hearing officer and the record of the hearing. (5) Nothing in this Chapter shall authorize adverse action against a licensee based upon consumer complaints against a business. (6) Notwithstanding the procedures set forth in this section, the City Treasurer may enter an order for immediate suspension of a license, pending further investigation for a period not to exceed ten (10) days, upon a finding that probable cause exists for revocation of a license of a business regulated and controlled under the police power of the City or the state. (7) Any surrender of a license shall not affect the civil or criminal liability of the licensee nor entitle the licensee to a refund of any fees paid prior to surrender. (8) No revocation, suspension or surrender of a license shall impair or affect the obligation of any lawful contract between the licensee and third parties, unless the contract so requires. Sec. 21-13. Fees (1) The annual license fee shall be ten dollars ($10.00). (2) A non-refundable application fee of five dollars ($5.00) shall be paid at the time of filing an application. (3) The license fee shall be paid at the time of filing an application, which fee shall be refunded in the event of denial of the license or withdrawal of the application prior to issuance of the license. (4) Fees may be paid in cash or by check, bank draft or money order. Fees paid in any form except cash will be accepted by the City Treasurer subject to collection. (5) Whenever any check, bank draft or other instrument received by the City Treasurer for payment of any fee or penalty is returned unpaid or uncollectable, such fee or penalty shall be deemed unpaid. Any license issued while a required fee or penalty assessed pursuant to the City Code remains unpaid shall be canceled. (6) In the event that a license is sought for a time period between August 31 and December 31 of a calendar year, the full application fee and one-half (1/2) the license fee shall be paid. (7) A fifty dollar ($50.00) late application fee shall be assessed, in addition to the regular application and license fees, for any application received more than thirty (30) days after the commencement of business within the City or, in the case of a renewal, any application received after January 30 of the calendar year for which the license is sought. This late application fee shall be in addition to all other fees and penalties that may be assessed pursuant to the City Code. 17 (8) The City Treasurer may issue a replacement for a lost or damaged license upon payment of a five dollar ($5.00) fee. Sec. 21-14. Violations (1) It shall be a violation of the City Code to conduct business within the City without a valid business license or without an application filed in a timely manner with the City Treasurer unless specifically exempted from the provisions of this Chapter. Each day that a business is conducted in violation of the City Code shall be a separate offense. Any violation of this Chapter shall be subject to any of the remedies as provided by Section 21-34 of this Code of laws. Sec. 21-15. Sales tax - Property and service subject to tax (A) There is hereby levied and there shall be collected and paid a tax, in the amount stated in Section 21-18, on all sales and services taxable by the State of Colorado under the sales tax provisions of the Colorado Revised Statutes 1973, Section 39-26- 104, as amended, including, but not limited to, the following: (1) Retail Sales. The sale, purchase, lease, rental, or grant of license for use of tangible personal property, and any subsequent lease, rental, or sale of tangible 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 purchase and use of the property so acquired which is subsequently leased, rented, or sold. When a retail sale involves the exchange 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 traded-in at the time and place of exchange or trade-in. (2) Leases or Rentals. If tangible personal property is purchased for use exclusively in the rental or leasing business and is not at any time used for the purchaser's general business or personal use, use tax is not due upon the purchase of the tangible 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 levied a tax upon the sale of telecommunications services, whether furnished by public or private corporations or enterprises for all intrastate, interstate and international telecommunications service charged to an apparatus, telephone, or account in Wheat Ridge, or to a customer location within Wheat Ridge, or to a person residing in Wheat Ridge, without regard to where the bill for such service is physically received. For purposes of this section, "telecommunications service" includes the installation of any telecommunications equipment or apparatus. A credit shall be allowed to the extent provided in Section 21-22(5) for any telecommunications services subject to the tax herein that are also subject to a sales tax outside of this City. (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 resale. 18 (5) Meals. Meals furnished in any restaurant, eating house, hotel, motel, drugstore, club, resort or other place as follows: (a) On the selling price of meals, whether sold to the public or to employees. (b) On the cost of meals which are given to employees in return for their labor or services rendered or otherwise given away. (c) Meals provided to employees of the places mentioned in this paragraph at no charge or at a reduced charge and which are considered as part of their salary, wages, or income shall be exempt from taxation under the provisions of this article. (6) Pay Television. Pay, cable or subscription television services sold, purchased, leased, rented, furnished, or used, including charges for service connections, installations, connection charges and all and any other similar charges made for such services. (7) Vending Machines. Every retailer or vendor vending items of tangible personal property through coin-operated vending machines shall be taxable and such retailer or vendor shall pay retail sales or use tax at the rate specified in Section 21-18 on the tangible personal property sold or vended in the coin- operated machine; unless the sale shall be otherwise exempt as provided in this Chapter. Owners of vending machines that vend articles of tangible personal property are subject 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 utilization 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 property purchased at retail to national banking associations and banks organized and chartered under the laws of the State of Colorado, for use within the city. (9) Manufacturing Equipment. Machinery, machine tools and specific processing equipment and repair parts and replacements thereof, exclusively and directly used in manufacturing or processing tangible personal property. (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 re-manufactured or rebuilt and, as so re-manufactured or rebuilt, 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, development, writing, translation, fabrication, maintenance, lease, or transfer of computer program (software) services. (14) Storage Units. On the total lease or rental charges for storage lockers/units. (15) Amusement or Entertainment Events. On the price of admission for any amusement or entertainment event as specified in Section 21-18. 19 (16) Auction Farm or Estate Sale. On sales made at an auction, farm closeout sale, or estate sale held within the City. (17) Other Services. On the consideration paid for any linen services, sound system services, and alarm and/or security system services, advertising services, credit bureaus, or broadcast stations as defined in Section 21-1 of this Chapter, and such other services specified by regulation promulgated hereunder.. (18) Scope of Tax Authority. For the purpose of this Chapter, tax is due on all items delivered into or out of the City at the point of destination, or wherever transfer of ownership takes place. Sec. 21-16. Sales Tax Exempt Sales (1) There shall be exempt from taxation under the provisions of this Chapter the items of sales and services exempt from taxation by the state under the sales tax provisions of the Colorado Revised Statutes 1973, Section 39-26-114, including, but not limited to, the following: (a) All direct sales to the United States government, to the State of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only except building materials sold to governmental entities shall be taxed pursuant to Section 21-24 of the City Code. (b) All direct sales, except of building materials and supplies as specified in Section 21-24, to charitable corporations, as defined in Section 21-2 in the conduct of their regular religious, charitable and eleemosynary functions and activities. Any exempt organization which makes sales of tangible personal property to the public and which otherwise meets the definition of a retailer in Section 21-1, must have a sales tax license and collect and remit tax in the same manner as any other retailer. The fact that the merchandise sold may have been acquired by gift or donation, or that the proceeds are to be used for charitable purposes, does not make the sales exempt from tax. (c) All sales to organizations which have previously obtained from the City exempt institution licenses and have presented the licenses to the vendor at the time of their purchases. (d) All sales which the City is prohibited from taxing under the constitution or laws of the United States or the State of Colorado. (e) All sales of cigarettes. (f) Food purchased with food stamps or WIC (Women, Infant & Children) vouchers. (g) All charges for rooms and accommodations except that such charges are subject to the tax imposed under Sections 21-18 and 21-27, which tax is subject to the same requirements and which obligations and provisions as are sales taxes. (h) Motor fuel upon which there has been accrued or has been paid either the gasoline tax or special fuel tax required by Section 39-27-102, C.R.S., and which is not subject to refund. 20 ` IWAPI (i) Consideration received for labor or services sold, except those specific services defined as taxable, if such services are separately stated from the tangible personal property sold. Manufacturing or fabrication labor is not exempt. (j) The sale of newspapers as defined in Section 24-70- 102, C.R.S. (k) The sale of construction and building materials, as defined in Section 29-2-109, C.R.S., if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the City evidencing that another municipality's local use tax has been paid or is required to be paid on the materials. (1) Tangible personal property or the furnishing of services if the transaction was previously subjected to a sales or use tax, lawfully imposed on the purchaser or user by another municipality, equal to or in excess of the rate established pursuant to Section 21-18. A credit shall be granted against the City's sales tax with respect to such transaction equal to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous municipality. The amount of the credit shall not exceed the rate established pursuant to Section 21-18. (m) The sale price of property returned by the purchaser when the full sale price including the tax levied is refunded, either in cash or by credit. (n) Discounts from the original selling price if such discount or decrease in purchaser price and the corresponding decrease in sales tax due is actually passed on to the consumer. An anticipated cash discount to be allowed for payment on or before a given date is not an allowable adjustment to the selling price in determining gross taxable sales on any vendor's return prior to the date when the customer actually receives the discount. Any adjustments in sale price such as allowable discounts, rebates, and credits cannot be anticipated and the tax must be based upon the original selling price unless such adjustments have actually been made prior to the filing of the return wherein such sale is reported; except that, if the 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. (o) All sales of tangible personal property if both the following conditions exist: (i) The sales are to those who reside or do business outside the City for their use outside the City; and (ii) The article or commodity is delivered to the purchaser by common carrier, by mail or conveyed by the seller. (p) All sales 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. (q) All sales of farm machinery, machinery parts, livestock, poultry, and livestock and poultry feeds and drugs, seeds and fertilizers to purchaser for use outside the City even 21 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. (r) All permits, licenses, service charges, fines and assessments, for benefit or penalty, charged by and in accordance with the Code of the City of Wheat Ridge. (s) 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 (i.e., garage sales, yard sales, etc.); provided however that such sales shall not be exempt if the owner conducts more than four three-day sales in a one year period. (t) All wholesale sales or sales of tangible personal property purchased for resale. (u) Sales of tangible personal property to a person engaged in manufacturing or compounding for sale shall be deemed a wholesale sale when it meets all of the following conditions: (1) The property is transformed in fact by the process of manufacture; (2) The property becomes by the manufacturing processes a necessary and recognized ingredient, component and constituent part of the finished product; and (3) The physical presence of the property in the finished product is essential to the use thereof in the hands of the ultimate consumer. (v) Sales of tangible personal property for use as containers, labels, and shipping cases to a person engaged in manufacturing or compounding for sale shall be deemed to be a wholesale sale when it meets all of the following conditions: (1) The property is used by the manufacturer or compounded to contain or label the finished product so manufactured or compounded; (2) The property is sold by the manufacturer or compounder along with and as a part of the finished product; and (3) The property is not returnable to the manufacturer for reuse. (w) 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. (x) The exemption stated herein shall not include natural gas and/or electricity used in the processing or manufacturing of goods or commodities or substances. (y) All sales of prescription drugs, all sales of insulin in all its forms dispensed pursuant to the direction of a licensed physician, and all sales of prosthetic devices for humans and animals. (z) "Carrier access services" and "Interstate private communicaton service" by local telephone exchange companies to providers of telecommunication service for use in providing such service shall be deemed to be wholesale sales and shall be exempt from taxation under this Chapter. 22 (aa) All sales of electrical energy and natural or manufactured gas sold for direct use in the commercial growth of plants and flowers for sale, whether wholesale or retail. (2) The foregoing list of exemptions shall not be increased by implication or similarity. (3) Exemptions allowed on return. Retailers or vendors shall not have to remit sales tax for the following amounts reported on their returns: (a) DEDUCTIONS FROM GROSS SALES: If included in reported gross sales, the following are deductible from gross sales: (i) 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. (ii) Bad debts: Taxable Wheat Ridge sales which are found to be worthless and are actually and properly charged off as bad debts for Federal income tax purposes. Any amount so deducted and subsequently collected by the taxpayer shall be subject to the tax. (iii) Interest and finance charges: The amount of interest of finance charges on credit extended in connection with any sale, if the interest or finance charges are separately stated from the price. (b) CREDITS FOR VENDOR'S FEE: The retailer's collection and remittance expense as specified in Section 21-20. Such vendor's fee shall be forfeited for any sales tax that is not reported and paid by the due date. Forfeiture of the vendor's fee shall be prima facie evidence that the taxpayer was in violation of this Chapter. Sec. 21-17. Sales Tax - Disputes; Refunds (1) Should a dispute arise between the seller and purchaser as to whether or not any purchase, storage, use or consumption of a service or commodity is exempt under this Chapter, nevertheless 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 collected, but disputed, tax to the City. (a) The purchaser may apply for a refund by submittal to the Treasurer on forms prescribed and furnished by the sales tax inspector within sixty days of the date of purchase, for the unintentional payment of tax on exempt purchases, or an overpayment of taxes reported and paid by any taxpayer to the treasurer. (b) The Treasurer shall forthwith, after receipt of the application for refund, submit same to the sales tax inspector for a determination of applicabiltity. (c) The Treasurer shall disburse to the applicant a refund when such has been approved by the sales tax inspector, or notify the applicant in instances of disapproval by the sales tax inspector. (2) An application for refund of sales or use tax paid by a person who establishes that a tax was paid by another on a 23 purchase, storage, use, or consumption made on behalf of a person entitled to an exemption and that a refund has not been 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 years after the date of purchase, storage, use, or consumption of the goods for which the refund is claimed. (3) All claims for refund shall be processed in the manner provided in Section 21-33. Sec. 21-18. Sales Tax - Schedule (1) There is hereby imposed a tax on all sales of commodities and services specified in Section 21-15 and not otherwise exempted in Section 21-16, in the amount of two percent (2%) of the purchase price. In order to avoid fractions of pennies, the following brackets shall be applicable to all taxable transactions: (a) On sales amounting to $0.19 to and including $0.84, a tax of $0.01; (b) On sales amounting to $0.85 to and including $1.18, a tax of $0.02; (c) On sales in excess of one dollar, the tax shall be two cents on each full dollar of the sales price, plus the tax shown on the above schedule for the applicable fractional part of a dollar of each such sale price. (2) There is imposed an excise tax of four percent (4%) of each admission charge on every vendor operating within the limits of the City of Wheat Ridge. Such excise tax is in addition to all other taxes imposed under Section 21-28. (3) Lodgers tax is levied in lieu of City sales tax at the rate of five percent (5%) of the purchase price paid or charged for the rental or furnishing of public accomodations, and shall exclude the sale of any goods, services and commodities other than the furnishing of rooms or other accomodations, per Section 21-27. Sec. 21-19. Sales Tax - Liability of retailer or vendor for collection (1) 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. (2) Except as provided in Subsections (a) and (b) of this Section (2), 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 Wheat Ridge sales tax or any part thereof shall be 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 sales tax is not considered an element in the sales price to the consumer. Any person violating any provision of this section shall be subject to the penalties provided in this Chapter. 24 (a) 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 Wheat Ridge sales tax. (b) Nothing contained in this section shall be deemed to prohibit any owner or operator of vending machines or coin- operated devices from including in his sales price any Wheat Ridge sales tax. (3) The amount of gross sales which are represented by accounts not secured by a conditional sales contract or chattel mortgage and which are found to be worthless and are actually and properly charged off as bad debts for the purpose of the income tax imposed by the laws of the State of Colorado may be credited upon a subsequent payment of the tax herein. However, if any such accounts are hereafter collected by the taxpayer the tax shall be paid to the City upon the amount so collected. Provided, such credit shall not be allowed with respect to any account or item therein arising from the sale of any article under a conditional sales contract or other title retention agreements for all or part of the purchase price or from the sale of any article when the seller takes a chattel mortgage on the tangible personal property to secure all or part of the purchases price. (4) 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 tangible personal property, if the interest or finance charges are separately stated from the consideration received for the tangible personal property transferred in the retail sale, and if included in the report of gross sales and services, are deductible from the gross sales and services. (5) If any vendor shall, during any reporting period, collect as a tax an amount in excess of the percentages set forth in Section 21-18 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 intentional failure to remit punctually to the City Treasurer the full amount required to be remitted by the provisions of this Chapter is hereby declared to be a violation of this Chapter. Sec. 21-20. Sales Tax - Reports by vendor; payment of tax; monies collected held in trust (1) 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 21-18 during the reporting period, plus any overage 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. (2) The vendor's fee as defined in Section 21-1 shall be two percent (2%) of the total sales tax due to the City under this Chapter, up to a maximum allowable vendor's fee of $100.00. 25 (3) The reporting period shall be monthly for vendors who exceed a $40.00 tax liability per month, quarterly for a vendor with less than $100.00 in tax liability per quarter, and annual 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. (4) All monies paid by the purchaser to the retailer as sales taxes, lodgers taxes, or amusement/entertainment 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. Sec. 21-21. Sales or use tax - Deficiency (1) 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 21-33. Willful disregard of the requirements for reporting, and remittance of tax due, or failing to respond within ten 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 21-31(4). Sec. 21-22. Use Tax - Property subject to tax (1) Legislative intent: It is hereby declared to be the legislative intent 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, distributes or consumes within the City any article of tangible personal property purchased at retail, and not stored or distributed in the normal function of wholesaling, is exercising a taxable privilege and shall be taxed therefor at the rate specified in Section 21-24 hereof. It is hereby declared that every resident of the City or any person doing business within the City who purchases 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 tax imposed by this Chapter, shall make an application, file a return, and pay the tax to the Treasurer. The use, storage or consumption of tangible personal property includes for the purpose of this Chapter materials, commodities and items of tangible personal property affixed to, or made a part of, facilities and structures on real property owned or leased within the City. 26 (2) Acquisition of business: The Wheat Ridge 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 operation 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 transfer, 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 depreciation purposes, or fair market value if no determination has been made. When a business is taken over in return for the assumption of outstanding 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. (3) Use of stored property: For purposes of this Chapter, the storage of any article of tangible personal property, other than any construction and building materials purchased at retail and any motor and other vehicles purchased at retail on which registration is required, is subject to the provision that any article of tangible personal property located within the City for a continuous period of longer than sixty days shall be presumed to be in use or consumption rather than in storage and shall be subject to any applicable use tax the incidence of which tax shall apply from the date of the property's acquisition, subject to rebuttal as provided in subparagraph (a) of this subsection. (a) The taxpayer may rebut such presumption at a hearing pursuant to Section 21-33(2) by satisfactory evidence that: (i) Such property is in fact in storage for use or consumption outside the jurisdiction of the City; and (ii) The taxpayer is doing business in another local jurisdiction and the nature of the taxpayer's business is such that storage is likely to occur for future use in another local jurisdiction. (b) For purposes of this section, storage ends and a taxable incident occurs when the property is taken out of storage and placed into use or is consumed. Such use or consumption includes removal from storage and being made available for immediate or subsequent use or consumption at will, even if the use or consumption is not completed within the City. (4) Taxation of Leases: (a) In the case of any payment under a tangible personal property lease of thirty days or less, or in the case of any payment during the first thirty days of a lease or longer than thirty days, the sales tax on any lease payment shall be paid by the lessee and shall be remitted by the lessor to the city providing delivery of the property to the lessee occurs in the City. In the case of any payment after the first thirty days, the sales tax on any lease payment shall be paid by the 27 lessee and shall be remitted by the lessor to the City providing the property is located in the City at the time the payment is due. (b) Payment and remittance of sales tax to the City pursuant to subparagraph (a) 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 payment 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 of the subsequent location of the property. (c) 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 Section 21-22(5). (d) Any applicable use tax shall be imposed on the lessee and not on the lessor. (e) Any applicable use tax shall be based upon the full purchase price of the property. (f) If a lease is renewed, it shall be treated in the same manner as provided in this section. (5) Credit for tax previously paid: (a) The City's sales and use tax shall not apply to the storage, use, or consumption of any article or tangible personal property the sale or use of which has already been subjected to a sales or use tax of another statutory or home rule municipality legally imposed on the purchaser or user equal to or in excess of two percent (2%). 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 personal 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 municipality on his purchase or use of the property. The amount of the credit shall not exceed two percent (2%). (6) Nonapplicability to use or consumption after three years: (a) The City's use tax shall not be imposed with respect to the use or consumption of tangible personal property within the City which occurs more than three (3) years after the most recent sale of the property, if, within the three years following such sale, the property has been significantly used within the state for the principal purpose for which it was purchased. "Significant use" shall be determined at the discretion of the sales tax inspector on a case-by-case basis. (7) Proration for construction equipment: (a) Construction equipment located within the boundaries of the City for more than thirty (30) consecutive days shall be subjected to the full applicable use tax of the City. (b) 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 calculated as follows: the purchase price of the equipment shall be multiplied by a fraction, the numerator of which is one and the denominator of which is twelve, and the result shall be multiplied by two (2%) percent. 28 (c) Where the provisions of subsection (6)(b) of this section 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 two (2%) percent. (d) In order to avail himself of the provisions of this section, the taxpayer shall comply with the following procedure: (i) Prior to or on the date the equipment is located within the boundaries of the City, the taxpayer shall file with the City an equipment declaration on a form provided by the City. Such declaration shall state the dates on which the taxpayer anticipates the equipment will be located within and removed from the boundaries of the City, shall include a description of each such anticipated piece of equipment, and shall include such other information as reasonably deemed necessary by the City. (ii) The taxpayer shall file with the City an amended equipment declaration reflecting any changes in the information contained in any previous equipment declaration no less than once every ninety (90) days after the equipment is brought into the boundaries of the City or, for equipment which is brought into the boundaries of the City for a project of less than ninety (90) days duration, no later than ten (10) days after substantial completion of the project. (iii) The taxpayer need not report on any equipment declaration any equipment for which the purchase price was under $2,500.00. (e) If the equipment declaration is given as provided in subsection (6)(d) of this section, then as to any item of construction equipment for which the customary purchase price is under $2,500.00 which was brought into the boundaries of the City temporarily for use on a construction project, it shall be presumed that the item was purchased in a jurisdiction having a local sales or use tax as high as two percent and that such local sales or use tax was previously paid. In such case the burden of proof in any proceeding before the City, shall be on the City to prove such local sales or use tax was not paid. (f) If the taxpayer fails to comply with the provisions of subsection (6)(d) of this section, the taxpayer may not avail himself of the provisions of subsection (b) of this section and shall be subject to the provisions of subsection (a) of this section (6). However, substantial compliance with the provisions of subsection (d) of this section shall allow the taxpayer to avail himself of the provisions of subsection (b) of this section (6). Sec. 21-23. Use Tax - Exemptions (1) There shall be exempt from the tax provided in Section 21-22, the storage, use, distribution and consumption of the following: (a) 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. 29 (b) Tangible personal property, which if it were sold at retail within the City, would be exempt from sales tax under the provisions of Section 21-16, with the exception of disposable medical accessories, including, but not limited to, hypodermic syringes and needles or related accessories. (c) Tangible personal property brought into the City by a nonresident for his own use, storage, or consumption while temporarily within the City. (d) Tangible personal property of a resident which was acquired prior to his becoming a resident. (e) Any right to the continuous possession or use for three 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 property upon its acquisition. If such permission has not been sought or granted pursuant to this section the provisions of Section 21-22(3) shall apply- (i) With regard to the right to the continuous possession or use for three years or less of any article of tangible personal property under a lease or contract, the lessor shall collect and remit sales tax on each lease payment received on such property, subject to the provisions of this section. (ii) Where the lessor does not lease tangible personal property in the ordinary 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. Sec. 21-24. Use tax - Building materials and supplies (1) Every person who builds, constructs, reconstructs, alters, expands, modifies or improves any building, dwelling, or other structure or improvement to real property in the City, including all Federal, State, County, exempt institutions or private construction job sites, who is required to obtain building permit for such activity, and who purchases lumber, fixtures, or any other building materials and supplies used therefore, or any other article or articles of any tangible personal property used therein, and every owner or lessee of realty or improvements thereon situated 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, shall pay a use tax in either of two ways: (a) By determining an estimated amount of the total cost of construction as established by the City Building Inspector and stated on the building permit and multiplying that value by the tax rate established by the City Treasurer according to regulations promulgated hereunder. This shall establish an estimated value upon which the City sales or use tax shall be computed and collected, either through the owner, lessee or general contractor. The term "cost of construction" shall include the cost of interior decoration but shall not include land cost; or 30 (b) By obtaining a City sales and use tax license and making monthly reports and returns and remitting the tax on an actual cost basis. (2) 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 therefore 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 notified of the deficiency in the manner set forth in Section 21-33. (3) No final inspection shall be made by the City Building Inspector, and no certificate of occupancy shall be issued unless all taxes due as provided in this Chapter, on all lumber, fixtures, and any other building materials and supplies used in or connected with the construction, reconstruction, alteration, expansion, modification, or improvement of any building, dwelling, or other structure or improvement to real property within the City have been paid or arrangement therefor made with the City Treasurer. In addition to the previously stated authority of the City Building Inspector, said Chief Building Inspector is expressly authorized to issue "Stop Work Orders" upon discovery of the failure or refusal of a person subject to the use tax hereby imposed to remit the same or work adequate arrangements for remitting said use taxes. Sec. 21-25. Non-resident vendor (1) 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 21-2. Any nonresident vendor engaged in business in the City shall have the same tax liability and responsibility for reporting and collecting the City use tax on sales to City residents as a resident vendor has with respect to sales tax pursuant to this Chapter. (2) It shall be unlawful for any person to engage in the business of a peddler or solicitor within the city limits of Wheat Ridge without first obtaining a license as provided herein. (3) It shall be unlawful for any person to engage in canvassing in a residential area within the city limits of Wheat Ridge without first obtaining a license as provided herein. (4) Any non-resident vendor shall present its license for inspection upon request of the sales tax inspector or other law enforcement officer of the City. (a) If such non-resident vendor is unable to produce a license, or identify the person whose possession such license could be found, or produces an expired or invalid license, such non-resident vendor shall be directed and ordered to cease his operations immediately and not resume such operations until a valid license is obtained. (b) Any non-resident vendor who fails to comply with such order or directive may be issued a summons and complaint pursuant to Section 21-34(8), or may be subject to the impoundment of his property as specified in subsection (5) of this Section. 31 (5) In the event that a nonresident vendor fails to comply with an order to obtain a license and continues to engage in business in the City, the sales tax inspector may seize and impound any personal property of the non-resident 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 business in the City. The vendor shall be notified of the impoundment and shall have the right to demand an administrative hearing to be held not later than five working days from the date of seizure, unless the vendor requests a later date. The hearing officer at such hearing shall determine only whether or not the non-resident 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 non-resident vendor in the City. If no hearing is demanded or if a hearing is held and it is determined that the property was so used, the impounded 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. (6) If the vendor fails to apply for a license within 10 days from the date of impoundment, the sales tax inspector may estimate the taxes due in accordance with Section 21-31 and collect such taxes pursuant to this article from the proceeds of the sale of the impounded property. Such sale shall be conducted under the procedures specified under Section 21-34(11). (7) 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, the Police Department. (8) Grounds for denial: The Treasurer shall deny the issuance of a license for the following reasons: (a) Any misrepresentation, fraud, deception, breach of warranty, or breach of contract in the City or elsewhere by the applicant; (b) Failure by the applicant to comply with this Chapter or any other applicable provisions of the City Code; (c) Failure by the applicant, his supervisor, or his employer to remit any tax due to the City under this Chapter; (d) Upon finding after an investigation by the Chief of Police, felony convictions of the applicant, his agents or his employees involving crimes against the person or property of another, or for institutionalization for mental illness which caused acts of violence against the person or property of another; provided, however, that such felony convictions or institutionalization occurred within the five (5) years preceding the date of application. (e) For purposes of this subsection (8): (i) Crimes or acts of violence against the person of another shall include homicide, attempted homicide, rape, attempted rape, sexual assault, assault, battery, and other similar felonies involving moral turpitude by whatever name; and 32 (ii) 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. (f) Persons whose applications for licenses have been denied shall be notified in writing the reason for such denial, and upon written request to the City Treasurer are entitled to an administrative hearing pursuant to subsection (5) of this Section 21-25, 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 subsection (8) in fact exist. (9) The City Zoning Official shall determine whether the applicant must obtain a land use permit, per Section 2-24(h) of the Wheat Ridge Code, in order to do business at the proposed location. If a permit is required, the City Zoning Official shall recommend denial of the license unless the applicant first secures approval or a permit. (10) Upon receipt of approval from the City Zoning Official and Police Department if appropriate, the Treasurer will issue the license pursuant to subsection (11) with any condition listed, or notify applicant of denial in writing. (11) If the application 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. (12) 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 license shall be issued. (13) A peddler shall not receive a license under this section if he does not have written permission from respective property owners to set up displays and sell goods on private property. A permission form must be signed and notarized on the form provided by Sales Tax Inspector. (14) A licensee under this Chapter shall comply with other applicable laws of the City of Wheat Ridge or State of Colorado. (15) 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. (a) No peddler shall conduct his activities within ten (10) feet of any public property or right-of-way. (b) 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 sufficient parking or that interferes with the public rights-of- way on sidewalks or streets or that requires customers to park on private property without the consent of the property owner. (c) Peddlers must be located in order to provide safe access by vehicle and pedestrian traffic to the peddler's location without requiring illegal or unsafe turning movements by vehicles or trespassing across private property. 33 (d) Peddlers shall not use a property or location in a way that: (i) Impedes access to the entrance of any adjacent building or driveway, (ii) Is located in such a manner as to interfere 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. (e) A peddlers land use permit shall designate the specific location for the use and the time period for which the permit is issued. Permits may not be issued for any location for more than 90 days. Permits may not be used at any location other than the location specified in the permit. (16) Hours of Operation: Licensees shall be allowed to engage in their businesses between the hours of 7:00 a.m. and 10:00 p.m., unless otherwise stated in the conditions on their license. (17) Site Cleanup Deposit Required: Before any peddler's license or permit shall be issued to an applicant selling from a site location within the City, the applicant must post a $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. (18) Removal of Trash: All trash or debris accumulation caused by a licensee's activities shall be collected and deposited in a proper trash container. Any accumulation of trash or debris that causes the City to incur expense in removing the accumulation shall be cause for the City to proceed against the Site Cleanup Deposit. (19) All solicitating, peddling, or canvassing activities, whether conducted on foot or from a vehicle, shall be conducted in strict accordance with all traffic and parking laws. (20) License and Required Fees for Solicitors and Peddlers: (a) All fees for solicitors and peddlers must be paid with cash, certified check or money order as follows: (1) $100.00 Deposit to be applied against Sales Tax collections, applicant must bring in sales receipts within ten 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 $100.00 must be remitted within ten days of sales. (2) $5.00 Application Fee (Sec. 21-3) (3) $10.00 General Business License Fee(Sec.21-13) (4) $100.00 Site Clean Up Deposit. Refundable upon certification of site clean up by Code Enforcement or City Zoning Official. (21) 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. (22) Licenses for Canvassers: The foregoing provisions shall not apply to the activities of canvassers when such provisions conflict with this subsection (22). All canvassers shall register 34 with the Treasurer and obtain a license before engaging in canvassing activities within the City. The Treasurer shall not charge a fee for such license and shall issue a "Canvassers License" to all persons who satisfy the criteria of subsections (7) through (10), inclusive. (23) Duty of enforcement personnel: It shall be the duty of any police officer, sales tax enforcement officer 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 enforce the provisions of this Chapter against any person found to be violating the same. (24) Treasurer shall maintain records: The Chief of Police shall report to the Sales 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. Sec. 21-26. Motor Vehicles (1) 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. (2)The determination of the address of registration 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 Section 42- 6-137, C.R.S. Sec. 21-27. Lodgers' Tax (1) There is hereby levied an excise tax on the price paid or charged for the lease, or rooms or other public accommodations to any person who for a consideration uses, possesses, or has the right to use or possess, any room or rooms or other public accommodations in any hotel, apartment hotel, guest house, guest ranch, mobile home, auto camp, trailer court or park or any other place furnishing rooms or other public accommodations under any concession, permit, right of access, license to use or other agreement. Such tax on public accommodations shall be subject to the following conditions: (a) The tax hereby levied shall be in lieu of City sales tax on said rental or furnishing of public accommodations. The sales tax hereby created in this section shall not apply to the sale or sales or any goods, services or commodities other than the furnishing of rooms and accommodations. (b) The tax hereby levied shall be collected and paid at the rate of five percent (5%) of the purchase price paid or charged for such accommodations and shall exclude the sale of any goods, services and commodities other than the furnishing of rooms or other accommodations. 35 (c) The person, partnership, corporation or other entity making such rooms or other public accommodations available shall for all purposes of this chapter be deemed to be a "retailer or vendor", as defined in Section 21-1 of this Code of Laws. (d) The rental or furnishing of public accommodations for a period of at least thirty (30) consecutive days shall be exempt from the tax hereby created. (2) The provisions for collection and enforcement of lodgers tax shall be the same as collections and enforcement of sales and use tax. Sec. 21-28. Admission and amusement tax (1) Legislative intent. It is hereby declared to be the legislative intent of the city council that every person who pays to gain admission to any amusement or entertainment event in the City shall pay the tax imposed by this section, and every person, whether owner, lessee or operator, who charges or causes to be charged admission to any amusement or entertainment event shall collect the tax imposed by this section. (2) Excise tax based on admissions. There is hereby imposed an excise tax of four percent (4%) of each admission charge on every vendor who charges admission to an amusement or entertainment event within the limits of the City of Wheat Ridge. Said excise tax is in addition to all other taxes imposed by this Chapter or other law. (3) Exempt transactions. The following persons are exempt from the payment or collection of the tax levied by this section: (a) The United States government and the State of Colorado, and the political subdivisions thereof, including the City, in the conduct of their governmental functions; (b) Religious, and charitable organizations in the conduct of their religious and charitable functions; provided, that an exempt institution license from the City is possessed by such organization; (c) A school, other than a school held or conducted for private or corporate profit, in the conduct of its educational functions; provided, that a letter of exemption from the City is possessed by such school. (d) 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. (e) Any person who provides free passes, complimentary admission tickets or otherwise does not collect an admission charge; but, if such person imposes a reduced charge, whether for a pass, complimentary admission or otherwise, the tax imposed in this section is applicable to the amount of such charge. (f) Non-profit 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. (4) The provisions for collection and enforcement of admissions and amusement tax shall be the same as collections and enforcement of sales and use tax. 36 Sec. 21-29. Transfer of Ownership of Business; Renewal; or Issuance of Business License (1) 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. (2) The purchaser of any business shall be responsible 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 purchases money as provided in this Section, and the taxes, penalties or interest are due and unpaid after the ten (10) day period, both the purchaser and the vendor shall be personally liable, jointly and severally, for the payment of the taxes, penalties and interest 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, shall be liable for the payment of all delinquent sales and use taxes on the value of property so taken or acquired. (3) The seller or his agent will be held liable for sales and use tax remittance on the sale of business in the event the purchaser fails to remit the tax due on the purchaser. (4) The Wheat Ridge use tax shall be remitted to the City on the price paid for tangible personal property and taxable services which are purchased to establish a new business or business location within the City. Such tax shall be reported on on the initial use tax return and 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. Sec. 21-30. Burden of Proof as to keeping records (1) 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 exempt under the provisions of this chapter shall be upon the person asserting the claim for exemption. (2) It shall be the duty of every person engaging or continuing in business within the City or otherwise subject to the tax under the provisions of this chapter or a person requiring a license under Section 21-2 or 21-25 hereof to keep and preserve suitable 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 years; and they shall be open at any time for examination by the sales tax 37 inspector or his agents. Failure to keep and preserve suitable records as required by this section shall be a violation of this Code. Suitable records include the following: Supporting documentation for every line item used on the Sales/Use Tax Return Sales & Lease Invoices, Contracts Sales Journals Purchase Journals & Invoices Asset Ledgers Fixed Asset Depreciation Schedules General Ledgers Check Books and/or Check Registers Journal Entries State Sales Tax Returns Chart of Accounts Federal and State Income Tax Returns Financial Reports All other supporting documents not listed above (3) Required records need not be stored or kept within the City, but if they are not, they must be, upon request of the sales tax inspector, produced for inspection either at the taxpayer's place of business within the City or at the Wheat Ridge Municipal Building, no later than fourteen days from the date of request. (4) Upon approval by the City Treasurer in any case where there is a logistics or security problem, it is permissable for the sales tax inspector, or his agents, to travel to the location where the records are kept. The taxpayer is liable for all costs incurred throughout the audit. (5) When the sales tax inspector has scheduled an audit or examination of the records required herein not less than fourteen days in advance, and has so notified the vendor or taxpayer, and the taxpayer fails to make available the records required in subsection (2) 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 testify under oath before the Treasurer. If the Treasurer is unable to secure from the taxpayer information 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 other persons as the treasurer 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 issue to the persons sought, requiring them to appear before the Treasurer and give testimony regarding the taxpayer'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. (6) The taxpayer and the City Treasurer may agree in writing to extend the fourteen (14) day period specified in this section; provided, however, that no extension exceeds sixty (60) days. (7) If the City provides written notice to the taxpayer prior to the expiration of the period of limitation that the latter's records will be audited pursuant to this Chapter, such period of limitation shall be extended for the audit period until thirty (30) days after the date of the Notice of Assessment or 38 Notice of Overpayment issued as a result of such audit. "Audit Period" is the thirty-six (36) month reporting period preceding the date of the notice of audit, or if a City building permit is required, the period between the issuance of such building permit and the issuance of a final Certificate of Occupancy, or since the inception of the business if no business license has been issued. (8) 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. Sec. 21-31. Refusal to report; estimate of tax; emergency collection procedures; penalties and interest; fraud (1) The Treasurer may, in any reasonable manner possible, estimate the amount of the tax due, to which the Treasurer may add interest and penalties in accordance with subsection (4), in the event any taxpayer: (a) Refuses to report and remit taxes collected or required to be collected in accordance with the provisions of this Chapter; (b) Fails to comply with the provisions of Section 21- 24 of this Chapter; (c) Fails to file the report and remit the taxes required in Section 21-29 of this Chapter after selling his business; (d) Intends to leave the City without paying any taxes which are lawfully owed; (e) 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; (f) Engages or intends to engage in any activity which the Treasurer reasonably believes to jeopardize collection of taxes authorized hereunder; or (g) Otherwise engages in conduct likely to prevent the establishment by the Treasurer of an accurate and exact amount of tax due. (2) When an estimate of taxes is made, the sales tax inspector shall serve notice thereof on the taxpayer by personal service, first class or certified or registered 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. (a) 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, no further attempts at providing notice shall be required. The burden shall at all times be on the taxpayer to inform the City of the taxpayer's current address. (b) Unless the taxpayer files a written demand for administrative hearing and determination of tax liability, as provided in Section 21-33 hereof, within ten (10) days from the date of receipt of such notice, he shall conclusively be deemed to have accepted the estimate as a fair and accurate determination of his tax obligation and shall thereby waive the 39 right to contest that determination. In the event that such a hearing is held, the determination of the hearing officer shall be reviewable as provided in Section 21-33 hereof. (3) In any case wherein it appears that collection of revenues from taxes lawfully imposed hereby is in danger of risk of loss or non-collection, or otherwise in jeopardy, the Treasurer may immediately issue demand for payment. Upon issuance of said demand for payment, the tax required therein shall be due and payable, and the Treasurer may proceed forthwith to collect said taxes by any lawful means, including, not by the way of limitation, filing of liens upon the property subject to tax, issuance and execution of distraint warrants, or filing of summons and complaint in any competent court; provided, however, that collection under this Section 21-31 may be stayed upon the provision by taxpayer to the Treasurer of such security as, in the opinion of the Treasurer, shall be satisfactory to insure payment to the City of all taxes lawfully owed by taxpayer. (4) When a sales and use tax deficiency exists from under reporting or failure to pay due to negligence or a knowing, intentionally disregard of the provisions of this Chapter or rules and regulations promulgated thereunder, without the intent to defraud, interest shall be assessed at the rate established by Section 39-21-110.5, C.R.S. (5) Penalty for Fraud: If any part of delinquent tax or deficiency is due to fraud with the intent to evade the tax, the penalty shall be fifty percent (50%) 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, including the penalty and interest, shall become due and payable within ten (10) days after the notice of assessment is mailed by the Treasurer. Interest shall be one (1%) per month of the tax due from the date the tax was due until paid. (6) Special Penalty for Enforcement Proceedings: When any person liable for the payment of a tax imposed by this Chapter has repeatedly failed, neglected or refused to pay the tax within the time specified for such payments, and the Treasurer has been required to exercise enforcement proceedings against the taxpayer three (3) or more times to collect such taxes due, the Treasurer is hereby authorized to assess and collect the amount of such taxes due together will all the interest and penalties thereon provided by law and also an additional amount equal to fifteen percent (15%) of the delinquent taxes or deficiency, interest and penalties due, or the sum of twenty five dollars ($25.00) whichever amount is greater. (7) 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. (8) Except in accordance with judicial order or as otherwise provided by law, the City Treasurer, and agents, clerks, and employees thereof, shall not divulge or make known in any way any information disclosed in any document, report, or return filed under this title except such information as is displayed on the tax license. The officials charged with the custody of 40 documents, reports, and returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the manager in an action or proceeding under the provisions of this title when the report of a fact shown thereby is directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit into evidence, so much of said reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. (9) Nothing in 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 administrator or an agent thereof and when so certified shall be evidence equally with the originals and may be received as evidence of their contents. (10) Nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof or the inspection of returns by the city attorney or other legal representatives of the City. (11) Notwithstanding the provisions of this section, the City Treasurer may furnish to the taxing officials of the State of Colorado, its political subdivisions, any other state, or political subdivision, or the United States, any information contained in tax returns and related documents filed pursuant to this title or in 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. (12) If a City employee or officer violates the provisions of this section, such employee or officer shall be dismissed. Sec. 21-32. Limitation of action (1) 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 commenced, more than three 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 of lien with respect to which has been filed prior to the expiration of such period. (2) In the case of a false or fraudulent return with intent to evade tax, or in the case of a failure to file a return, the tax together with interest and penalties thereon may be assessed, or proceedings for the collection of such taxes may be begun in a court of competent jurisdiction at any time. (3) Before the expiration of such period of limitation, the taxpayer and the Treasurer may agree in writing to an extension thereof and the period so agreed on may be extended by subsequent agreements in writing. 41 (4) 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 21-30(6) of this chapter. Sec. 21-33. Taxpayer's remedies (1) 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 conspicuous type, that after the taxpayer has exhausted the local remedies provided by this section, the taxpayer has the right to elect a hearing of the deficiency pursuant to 29-2- 106.1(3), C.R.S. (2) 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 administrative hearing and determination of tax liability within ten (10) days of receipt 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 taxpayer bases his claim. (a) 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, and shall appoint as the hearing officer any qualified person who has education or experience in tax administration matters and who can render a proper decision. In the event that it is determined 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. (b) Failure to demand an administrative hearing and termination of tax liability shall constitute a waiver of the right to contest such liability; however, when such determination is requested or when a request for a refund is timely made, the final decision rendered therein shall be appealable as provided herein. (3) The hearing provided in subsection (2) 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 days after the receipt of the taxpayer's written request therefor, except the City may extend 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 hearing and issue the decision thereon within one hundred eighty (180) days of the taxpayer's request in writing therefor. 42 (4) If the dispute was not resolved by the informal hearing, the taxpayer may elect any single one of the following avenues of appeal within thirty days of the city's final decision: (a) The taxpayer may request a formal hearing on the record before a City hearing officer, which shall be held within sixty days of the taxpayer's request. Any appeal from the decision rendered after such formal hearing shall be pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure. (b) If the deficiency notice or claim for refund involves only the City, the taxpayer may appeal such deficiency or denial of a claim for refund to the District Court of the County of Jefferson as provided in Section 29-2-106.1(8), C.R.S. (1986) as amended. (c) The taxpayer may elect a state hearing on the deficiency or denial of claim pursuant to Section 29-2-106.1(3), C.R.S. (1986) as amended. (5) The taxpayer shall have no right to any form of appeal if he has not exhausted his administrative remedies or if he fails to request a hearing within the time period provided in this subsection. For purposes of this subsection, "exhaustion of administrative remedies" means: (a) 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, (b) 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 final decision thereon within the time periods provided in subsection (3) above. (6) In the event that the taxpayer elects the avenue of appeal specified in subsection (4)(a) above, the taxpayer shall post a bond in twice the amount of the taxes, interests and other charges stated in the final decision which are contested on appeal, or other security as required by Section 39-21-105(4), C.R.S. as a condition precedent to exercising his right to appeal. Sec. 21-34. Additional remedies of City (1) Any sales, use, lodgers, amusement or entertainment tax imposed by this Chapter, together with the interest 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 upon: (a) The goods, stock-in-trade, and business fixtures of or used by any retailer under lease, title-retaining contract or other contractual arrangement; and (b) The real and personal property owned or leased by any person, and shall take precedence on all such property over other claims and mortgages. (2) 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 43 goods or property subject to such liens seized and sold by the treasurer or any member of the City police department. (3) Goods or property seized pursuant to distraint warrant shall be sold at public auction after ten days' public notice by publication not less than two 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. (4) A notice of lien shall be served on the taxpayer and a copy of such notice shall be filed in the real estate records of Jefferson County prior to the issuance of a distraint warrant. (5) 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 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. (6) Recovery of unpaid tax by action of law: The Treasurer may treat any taxes, penalties or interest due and unpaid as a debt due the City from the taxpayer. (a) 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 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. (b) The return of the taxpayer or the assessment made by the City, as herein provided, shall be prima facie proof of the amount due. (c) 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. (d) This remedy shall be in addition to all other existing remedies available to the City. (7) Whenever the business or property of any taxpayer subject to this Chapter is subject to receivership, bankruptcy of assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties and interest imposed by this Chapter and for which the taxpayer is in any way liable under the terms of this Chapter shall be a prior and 44 preferred lien against all the property of the taxpayer. No sheriff, receiver, 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 judgement creditor or other claimants. For the purpose of this Section, the term "taxpayer" shall include "retailer" or "vendor". (8) Violations; Summons and Complaint; Penalty: 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 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 imposed by this Chapter. (a) 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 provisions of this Chapter or the rules and regulations promulgated by the City Treasurer to enforce this Chapter. (b) Any person, corporation, partnership, company, association or other entity which violates any of the provisions of this Chapter 21 shall be guilty of a misdemeanor and, upon conviction of such violation, shall be subject to a fine of not more than $999.00, or imprisonment not to exceed 180 days, or both such fine and imprisonment; provided, however, that no person under the age of 18 years shall be subjected to such imprisonment; and provided further that issuance of a summons and complaint by the City, and subsequent conviction of a violation of the Code of Laws in the Municipal Court, shall not prohibit the Court from requiring payment of all taxes, penalties and interest found to be due under this Chapter 21 in addition to any fine imposed by the Court. Each and every twenty-four (24) hours period of violation shall constitute a separate violation of this Chapter. (c) Nothing contained in this subsection (8) shall preclude the Treasurer from instituting a legal or equitable action in the Jefferson County District Court for the purposes of enforcing the provisions of this Chapter 21. In the event such an action is undertaken, the City shall be entitled to recover its attorneys fees and costs of litigation expended in said action as a portion of its judgment rendered therein. (9) 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 adjudication or determination of its lien upon the property involved therein. 45 (10) 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 committed fraud or malfeasance or misrepresented a material fact regarding the tax or liability therefor. (a) Except as provided in subsection (c) of this subsection (10), any personal representative of a decedent or the estate of a decedent, any trustee receiver, or other person acting in a fiduciary capacity, or any director of a corporation in the process of dissolution or that has been dissolved shall first pay taxes covered by this Chapter due from such decedent, decedent's estate, trust estate, receivership, or corporation before he distributes the estate or fund under such person's control. Any such person who fails to pay taxes assessed within the periods authorized by this Chapter is personally liable to the extent of the property distributed by such person for any unpaid taxes of the decedent, decedent's estate, trust estate, receivership, or corporation imposed by or due under this Chapter. (b) 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 pursuant to this Chapter to the same extent that the decedent, trust estate, fund or corporation is liable under this Chapter. (c) If a tax under this Chapter is due from a decedent or the decedent's estate, personal liability 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 therefor issued within eighteen months after the decedent's personal representative files with the City Treasurer a written request for such determination, filed after it has filed the decedent's final return or the decedent's estate's return to which the request applies. A request for determination under this subsection does not extend the otherwise applicable period of limitation as specified in Section 21-32. (d) If a tax under this Chapter is due from a corporation that is in the process of dissolution 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 months after the corporation files with the City Treasurer a written request for such determination, filed after it has filed the corporation's return, but only if the request states that the dissolution was begun in 46 good faith before the expiration of the eighteen month period and the dissolution is completed. A request for determination under this subsection does not extend the otherside applicable period of limitation as specified in Section 21-32. (11) For property seized pursuant to a distraint warrant, signed inventory 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 a notice of the sum of the tax due and the related expenses incurred to date, and the time and place of sale. (a) A notice of the time and place of the sale, together with a description of the property to be sold, shall be published in a newspaper of general circulation within the county where distraint is made. (b) The time fixed for the sale shall not be less than ten (10) 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. (c) The property shall be sold at public auction for not less than a fair minimum price, and if the amount bid for the property 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 property is purchased by the City, such property may be disposed of in the same manner as other City property and the lien thereon shall be released. (d) 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. (e) The property offered for sale may be redeemed if the owner or possessor or other person holding an unperfected chattel mortgage or other right of possession, pays the tax due and all collection costs no less than twenty-four (24) hours before the sale. (f) The City of its agent shall issue to each purchaser a certificate of sale which shall be prima facie evidence of its right to made the sale and transfer to the purchaser all right, title, and interest of the taxpayer in and to the property sold. (i) When the property sold consists of certificates of stock, the certificate of sale shall be notice to any corporation, company, association to record the transfer of its books and records. (ii) When the property sold consists of securities or other evidences of debt, the certificate of sale shall be good and valid evidence of title. (g) 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 property ad valorem taxes, and second to the owner, or such other person having a legal right thereto. 47 (12) Property of the taxpayer subject to distraint shall include the personal property of the taxpayer 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. (13) The taxpayer or any person who claims an ownership interest or right of possession in the distrained property may petition the City Treasurer, or the Municipal Court if the property was seized pursuant to a warrant used by the Court, for the return of the property. (a) Grounds for return of the property shall exist only if the person making the petition has a perfected interest in such property which is superior to the City's interest or that the property is exempt from the City's lien. (b) The fact finder shall receive evidence on any issue of fact necessary to the decision of the petition. If the fact finder determines by a preponderance of the evidence in favor of the taxpayer or other petitioner, the property shall be returned. (14) Unless the limitation period has been extended as provided in this Section, the Statute of Limitations for provisions contained in this Chapter shall be as follows: (a) Refunds: Any claim for refund for disputed tax shall be submitted to the City Treasurer on or before sixty (60) days from the date of such purchase. (i) Any claim for refund resulting from a Notice of Over-payment shall be submitted to the City on or before thirty (30) days after the date of such Notice of Overpayment. (ii) Any other claim for refund shall be filed on or before three (3) years after the date such overpayment was paid to the City. (b) 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 Certificate of Occupancy was issued for such project. (c) 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. (d) 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, the tax due may be assessed, or proceedings for the collection of such tax due may be begun at any time. (e) No protest of a Notice of Assessment or Denial of a Claim for Refund shall be valid if submitted to the Treasurer in other than written form or after the period allowed in this Chapter. (f) The period of limitation may be extended before its expiration. 43 Sec. 21-35. Legislative intent This Chapter contains provisions which are consistent with some of those set forth in H.B. 1007, enacted by the Fifty-fifth Colorado General Assembly and approved by the Governor on June 6, 1985, and codified in Section 29-2-106.1, C.R.S. (1986) as amended. The City Council finds that Article XX of the Colorado Constitution grants plenary power to home rule cities to levy and collect taxes within the City limits. The City Council does not endorse or recognize restrictions on the taxing power of home rule cities, such power being a matter of purely local concern. Thus, it is the intent of the City Council in enacting provisions consistent with Section 29-2-106.1, C.R.S. (1986) to assist the business community, but not in any way to prejudice the City's right to fully exercise its constitutional authority to levy and collect taxes within its boundaries. Sec. 21-36. Administrative authority of Treasurer (a) The administration of this Chapter is vested in and shall be exercised by the Treasurer, who shall prescribe forms and reasonable rules and regulations, and forms in corformity with this 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 authority specified in subsection (a) shall be published and appear as Appendix A to this Chapter. The forms developed pursuant to subsection (a) for making returns and reporting taxes assessed under this Chapter shall be published and appear as Appendix B to this Chapter. Section 2. Ordinance 696, Series of 1986; Ordinance 703, Series of 1986; Ordinance 642, Series of 1985; and Ordinance 711, Series of 1987, are hereby specifically repealed. Section 3. Safety clause. The City Council hereby and determines, and declares that this ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public, and that this ordinance is necessary for the preservation of health and welfare. The City council further determines that the ordinance bears a rational relation to the proper legislative object sought to be attained. Section 4. Severability_ If any clause, sentence, paragraph, or part of this ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect application to other persons or circumstances. 49 Section 5. This ordinance shall take effect January 1, 1989. INTRODUCED, READ, AND ADOPTED on of _ 6 to 0 on t] November , 1988, newspaper of general circulation Public Hearing and consideration for Monday, December 12 1988, 7,30 Chambers, 7500 West 29th Avenue, first reading by a vote Zis 28th day of ordered published in full in a in the City of Wheat Ridge and on final passage set p.m. in the Council Wheat Ridge, Colorado. READ, ADOPTED, AND ORDERED PUBLISHED on second and final reading by a vote 8 to 0 on this 12th day of December , 1988. SIGNED by the Mayor on this 1988. th day of December Dan Wilde, Mayor ATTEST: Wanda Sang, City Cler 1st Publication: December 1, 1988- 2nd Publication: December 15, 1988 Wheat Ridge Sentinel: Effective Date: January 1, 1989 50 APPROVED AS TO FORM BY OFFICE OF CITY ATTORNEY r .z 1 , JOH E. HAYES~