HomeMy WebLinkAboutOrdinance-1991-0869
INTRODUCED BY COUNCILMEMBER MERKL
Ordinance No. 869
Series of 1991
TITLE: AN ORDINANCE REPEALING AND REENACTING, PORTIONS OF
CHAPTER 11, LICENSES, PERMITS AND MISCELLANEOUS BUSINESS
REGULATIONS; AND PORTIONS OF CHAPTER 22, TAXATION, OF THE
CODE OF LAWS OF THE CITY OF WHEAT RIDGE.
WHEREAS, certain portions of Chapters 11 and 22 of the Code
of Laws of the City of Wheat Ridge have, in the course of
implementation and enforcement, been found necessary to be
amended to provide for greater clarity and more certain
implementation and enforcement;
WHEREAS, remaining portions of said Chapters 11 and 22 do
not at this time require amendment or repeal;
WHEREAS, the City Council of the City of Wheat Ridge, in
order to provide greater clarity in its licensing and taxation
ordinances, and in order to provide for more certain, consistent
and efficient implementation and enforcement thereof, has
determined to amend Chapters 11 and 22 only as set forth herein.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE,
COLORADO THAT:
Section 1. The following sections, and only the following
sections, of Chapter 11, Licenses, Permits and Miscellaneous
Business Regulations, Article I and Article II, of the Code of
Laws of the City of Wheat Ridge are hereby repealed and
reenacted, as follows:
Sec. 11-1. Exempt Institution License
(c) As a condition of obtaining an exempt institution
license, the institution shall agree to keep regular and complete
records 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.
(d) Any Exempt Institution License issued by the City
Treasurer may be issued subject to conditions or restrictions
which are consistent with, and authorized by, the provisions of
Chapters 11 and/or 22 of this Code of Laws.
Sec. 11-23. Scope of Article
(a) Legislative intent. 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 article.
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Sec. 11-24. Applications
(d) Unless otherwise provided by law, if an application for
a license has been timely filed, and the applicant is not
currently in violation of any other provision of the City's Code
of Laws and the applicant does not owe the City past due or
delinquent taxes, penalties or interest, the applicant may
continue in business within the City unless or until the
application is denied.
Sec. 11-27. Expiration of and Renewal of License
(a) All General Business licenses shall expire on December
31 of each calendar year. All Exempt Institution Licenses are
issued for a three year period.
(b) 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 article.
(c) 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 and the
vendor is not delinquent in the payment of any tax either
collected and due the City, made by or otherwise assessed by the
City, or delinquent in filing of required City sales and use tax
returns.
(d) The City Treasurer may authorize the renewal of an
Exempt Institution License as long as the organization has not
changed the substance of the data on the original application,
and so long as the licensee is not in violation of the terms of
its previous Exempt Institution License or any provisions of the
City's Code.
Sec. 11-30. Cancellation of License. A license shall be
canceled by the City Treasurer:
(1) When it appears that issuance of the license was
illegal;
(2) The license was mistakenly issued to the wrong person or
premises or the wrong license was issued;
(3) When any taxes due the City or penalties or interest are
unpaid; or
(4) Upon grounds provided by ordinance or by statute.
Sec. 11-34. Adverse action.
(a) 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 twenty (20) days following the date of the
notice, the licensee may either:
(1) Perform any act or cure any default necessary to
avoid the adverse action; or
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(2) Request a hearing, in which event the license shall
not be denied, canceled, suspended or revoked, except as provided
by paragraph (b) of this section.
(c) 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:
(1) 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
twenty (20) days;
(2) The notice is not delivered because the address
stated in the license or application therefor is false or
nonexistent;
(3) 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 twenty (20) days;
(4) 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;
(5) The licensee, having received notice of hearing,
fails without good cause to attend such hearing in person or by
counsel; or
(6) The licensee, having requested a hearing, fails
without good cause to attend such hearing in person or by
counsel.
(d) Notice shall be provided for as follows:
(1) Notice given under this article must be in writing;
(2) Notice shall be first attempted by personal service
upon the individual identified as such person authorized to
accept service for the business;
(3) Upon failure to serve notice by personal service,
the City may send notice by certified mail, addressed to the
person authorized to receive such notice; and
(4) If such notice by certified mail is returned as
undeliverable for any reason then the City may serve notice by
posting such notice in a conspicuous place at the location of the
business as indicated on the business license or application.
(g) 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 thirty (30) 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.
Section 2. The following sections, and all subsections thereof,
of Chapter 11, Licenses, Permits and Miscellaneous Business
Regulations, Article I and Article II, of the Code of Laws of the
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City of Wheat Ridge, are retained in their present form as the
same appear in the Code of Laws of the City of Wheat Ridge, and
are not amended, repealed, or altered in any way:
a. 11-1(a) and (b)
b. 11-22
c. 11-23(b)
d. 11-24(a), (b) and (c)
e. 11-25
f. 11-26
g. 11-28
h. 11-29
i. 11-31
j. 11-32
k. 11-33
1. 11-34(b), (e), (f), (h) and (i)
Section 3. The following sections, and only the following
sections, of Chapter 22, Taxation, Article I and Article II,
Divisions 1,2,3 and 4, of the Code of Laws of the City of Wheat
Ridge are hereby repealed and reenacted as follows:
Sec. 22-1. Lodgers' Tax
(a) Tax Imoosed; conditions. There is hereby imposed an
excise tax on the price paid or charged for the lease, rental, or
on the transaction of furnishing rooms or accommodations to any
person who for a consideration uses, possesses, or has the right
to use or possess, any room or rooms or other accommodations in
any hotel, apartment hotel, guest house, guest ranch, mobile
home, auto camp, trailer court or park, mortuary, or any other
place furnishing rooms or other accommodations under any
concession, permit, right of access, license to use or other
special agreement. Such tax on accommodations shall be subject
to the following conditions:
(1) The tax hereby imposed shall be in lieu of City
sales tax on said rental or furnishing of 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.
(2) The tax hereby imposed 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.
(3) The person, partnership, corporation or other
entity making such rooms or other accommodations available
shall for all purposes of this chapter be deemed to be a
"retailer" or "vendor", as defined in Section 22-21 of this
chapter.
(4) The rental or furnishing of accommodations for a
period of at least thirty (30) consecutive days shall be exempt
from the tax hereby created. For purposes of establishing the
thirty (30) day period, the accommodation may not be transferred
or transferable by one consumer or person or entity to any other
consumer, person or entity.
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(b) Conditions for collection and enforcement. The
provisions for collection and enforcement of lodgers tax shall be
the same as collections and enforcement of sales and use tax.
Sec. 22-2. Admissions' Tax
(a) Tax Imposed; Conditions. 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 as defined in Section 22-21 of this Code of Laws, within
the City. Said tax is in addition to all other taxes imposed by
this Chapter or other law.
(b) Exempt transactions. The following persons are exempt
from the payment or collection of the tax imposed by this
section:
(1) The United states government and the state of
Colorado, and the political subdivisions thereof, including the
City, in the conduct of their governmental functions;
(2) 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;
(3) 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.
(4) Any person who refunds an admission charge for any
reason, either before or after an amusement or entertainment
event has taken place, and refunds the tax along with the charge.
(5) Any person who provides free passes, 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.
(6) Notwithstanding the foregoing, exempt from taxation
under this section shall be 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.
(d) Conditions for collection and enforcement. The provisions
for collection and enforcement of the admissions tax shall be the
same as collections and enforcement of sales and use tax.
Section 22-21. Definitions and usage.
(a) Terms defined. As used in Article II of Chapter 11,
Section 22-1 and 22-2, and this article, and wherever else in
this Code they may be applicable, the following words and phrases
shall have the following meanings:
Admission charge shall mean any charge for the right or privilege
to gain entrance to any place, event, performance or scheduled
activity held within the City; and every person, business,
corporation or association whether owner, lessee, operator, or
sublessee who charges or causes to be charged admission as
defined herein shall be responsible for the collection of the tax
imposed by this article. This tax is defined as an admissions
tax.
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Alarm and security systems services and/or sales means the entire
service charge or purchase price including freight 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 sporting or recreation event, or to a motion
picture, or to the use of lanes and pinsetters for bowling balls
in a bowling alley or a game of regular or miniature golf, and
other activities as defined by the City Treasurer and promulgated
in the City's Regulations.
Auction 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 or any such individual
or business acting either as agent for the owner of such tangible
personal property or is in fact the owner thereof.
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, persons or
other entities composed of persons, corporations, partnerships,
associations or joint ventures with or without the object of
profit or gain, benefit or advantage, direct or 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 nexus within or to 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 activities 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.
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Capital lease means a lease with characteristics of a purchase,
as defined by generally accepted accounting principles. The
intent of the vendor evidenced by the treatment of the lease in
the vendor's financial statements, past course of dealings and
usage of trade will also be considered as a basis of classifying
a lease as capital in nature.
Charitable organization means any non-profit entity organized
and/or operated in the City for which no part of its net
earnings 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
without financial charge of any kind to such persons, voluntarily
ministers to those persons' physical, mental, or spiritual needs.
For purposes of this Chapter, an entity's non-profit status as
evidenced by federal and/or state income tax provisions is not in
any way a controlling factor in the City's determination of an
entity's "charitable" status. For purposes of this Chapter, a
charitable organization shall be considered to be a business if
it accepts monetary consideration for the provision of any item
of tangible personal property or for the provision of any
service.
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 operation (i.e., arithmetic and logic) of the
computer, causing it to execute instructions contained in system
programs, as an integral part of the computer. Computer software
is also 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:
(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) Application 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.
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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, wallboard, wall coping,
wallpaper, 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,
demolition, 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.
Consume means the utilization of any item of tangible personal
property in the provision of any service, or in the production of
any physical product or other item of tangible personal property.
Consumer means any individual person or persons or entity engaged
in business in the City who buys, uses, stores, distributes or
otherwise consumes in the City tangible personal property or
taxable services purchased from sources inside or outside the
City.
Consumer deductions means those items that may be deducted from
gross sales and service on the sales/use tax return.
Customer access service charge means any direct charge by local
telephone exchange companies to the consumer.
Engaged in business means any business, as herein defined,
performing any services or selling, leasing, renting,
warehousing, delivering or installing any tangible personal
property for storage, use or consumption within the City.
Engaged in business in the City includes, but shall not be
limited to, the following activities by a vendor:
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(1) Maintaining within the City, directly, indirectly
or by a subsidiary, an office, distribution center, sales room or
center, warehouse or other place of business;
(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;
(3) Extending credit to potential consumers or
purchasers residing in the City;
(4) Collecting debts from persons residing in the City
through the use of process or forums in the City; or
(5) Providing three (3) 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, an Exempt Institution License from the City of
Wheat Ridge.
Farm closeout sale means an auction or other public 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 also
includes food or drink served or furnished in or by restaurants,
cafes, lunch counters, cafeterias, hotels, drugstores, social
clubs, nightclubs, cabarets, resorts, snack bars, caterers,
delicatessens, 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-alcoholic
cocktail mixes; vitamins and other dietary supplements; pet
foods; seeds and plants to grow food; food or drink furnished,
prepared or served for consumption at tables, chairs or counters
or from trays, glasses, dishes or other tableware provided by the
vendor; prepared food or drink sold by vendors who regularly sell
for consumption on or near the premises of the vendor, even
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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 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 or authorized by him to be used, in the rendering of
a service.
Healthcare Facility is defined as an individual or entity engaged
in the business of providing medical services, supplies, room and
board to individual persons, and providing a place for hea1thcare
services to be conducted. The medical services may be of a
therapeutic, diagnostic, prognostic, or of a rehabilitative
nature. Hea1thcare facilities may include, but not be limited to:
health resorts; spas; sanatoriums; sanitariums; rest homes;
convalescent homes; hospitals for humans or animals, whether for
non-profit or for-profit; wellness centers; psychiatric,
vocational, mental or physical rehabilitation centers; extended
daily care centers; and, self-help preventive medicine/education
centers.
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, mortuary, or any similar place
furnishing rooms or other accommodations to any person, or animal
who, for consideration, uses, possesses, or has the right to use
or possess, for any reason allowable by law, such room or other
accommodation for a total continuous duration of less than thirty
(30) days. For purposes of establishing the thirty (30) day
period, the accommodation may not be transferred or transferable
by one consumer or person or entity to any other consumer,
person, or entity.
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
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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 on the purchase price paid
or charged for the lease, rental or on the transaction of
furnishing rooms or accommodations to any person who for a
consideration uses, possesses, or has the right to use or
possess, any room or rooms or other accommodations in any hotel,
apartment hotel, guest house, guest ranch, mobile home, auto
camp, trailer court or park, mortuary, or any other place
furnishing rooms and accommodations under any concession, permit,
right of access, license to use or other agreement or otherwise.
Mobile machinery means those vehicles, self-propelled or
otherwise, which are not designed primarily for the
transportation of persons 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,
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 24-70-108, 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 are primarily devoted to
advertising and the distribution, insertion, or attachment of
which is paid for by the advertiser.
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Nonprofit 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. For purposes of this Chapter, an entity's
status as exempt for federal and/or state income taxes is in no
way a controlling factor in the City's determination of an
entity's "non-profit" status.
Nonresident 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:
(1) Any performance of a motion picture, stage show, play,
concert or other manifestation of the performing arts;
(2) Any sporting or athletic contest, exhibit or event,
either amateur or professional;
(3) Any lecture, rally, speech, dissertation, or
educational seminar;
(4) Any showing, display or exhibition of any type,
including art exhibitions;
(5) Any restaurant, tavern, lounge or club, whether the
admission is called a "cover charge", "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 the 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.
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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
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 licensed practitioner 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 with 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;
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(3) Performance of taxable services;
(4) Barter or exchange for other property or services,
including coupons the full face amount or value of the coupon is
taxable; or
(5) A lease, rental, or grant of a license to use, store,
distribute or consume tangible personal property.
(6) 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 is a taxable
transaction.
(7) This definition excludes the following:
(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
mortgageho1der 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 (80) 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 (80)
percent by a parent corporation to a parent corporation or to
another subsidiary which is owned at least eighty (80) percent by
the parent corporation, which transfer is solely in exchange for
stock or securities of the parent corporation or the subsidiary
which received the assets.
Purchase price or sales price means the total price paid by the
consumer, purchaser, or lessee in cash, property, services,
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coupons, or other consideration, exclusive of any direct tax
imposed by the federal, state or county government or by this
Chapter.
(1) For interpreting this definition, the purchase price or
sale price of goods manufactured or made to order includes the
full purchase price for material used, and the labor 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
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 within the City upon which a tax is imposed by
this Chapter.
Regulations means those regulations promulgated by the City
Treasurer pursuant to the authority delegated to him by Section
22-33 of this Chapter, as the same may be from time to time
amended.
Retail sale means any sale, except sale for resale, within the
City. The phrases "retail sales", "to engage in the business of
sales at retail", and "on the purchase price paid or charged upon
all sales and purchases of tangible personal property at retail
within the City", as used in the sentence and paragraph structure
of this Chapter, shall relate to retail sales as defined hereby.
Retailer or vendor means any person selling, leasing, or a person
engaging in 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 in the City, of tangible
personal property or services subject to the tax imposed by this
Chapter. 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
15
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;
and in such event, the agent shall be responsible for the
collection and payment of the tax imposed, including but not
limited to, whenever the principal of such agent refuses to
become licensed as a vendor hereunder.
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.
Sale means a retail sale as defined herein.
Sales tax means the tax imposed 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
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.
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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 or entity 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, and carrier access services, but not including
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.
Third Party Record Keeper means an entity which has contractually
undertaken the duty of collection of accounts from city residents
or businesses for taxable services or sales undertaken or
occurring within the City, which Third Party Record Keeper shall
have the rights, duties and obligations as specified in Section
22-42(h) hereof.
Transfer of ownership point means the geographical location at
which point the purchaser takes physical or legal possession of
the property.
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,
corporation, partnership or association within the City, of any
right, power, or dominion over tangible personal property by
lease or purchase.
Use tax means the tax imposed 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.
17
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. The vendor's fee is
specifically limited to a maximum of one hundred dollars
($100.00) per reporting period, as specified herein.
Wholesale sale means a sale by wholesalers to licensed 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.
(b) Usage. As used in this Chapter and elsewhere, 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.
Sec. 22-22. 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 contrary to 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 as allowed for under article XX of the Colorado
Constitution.
Sec. 22-36. Disputes; refunds; limitation of actions.
(a) Should a dispute arise between the seller and purchaser
as to whether or not any purchase, storage, use or consumption of
a service or 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.
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(1) The purchaser may apply for a refund by submitting
to the Treasurer in writing the amount and reason for such refund
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.
(2) The Treasurer shall forthwith, after receipt of the
application for refund, submit same to the sales tax inspector
for a determination of applicability.
(3) 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.
Sec. 22-37. Nonresident vendor
(a) Engaging in business. It shall be unlawful for any
nonresident vendor to engage in business in the City without
first having obtained a license in accordance with Section 11-23.
Any nonresident vendor engaged in business in the City shall have
the same tax liability and responsibility for reporting and
collecting the City tax on sales to City residents as a resident
vendor has with respect to sales tax pursuant to this Chapter.
(e) Seizure of orooerty: administrative hearing. 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 City 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 nonresident vendor had a valid business
license and whether or not the impounded property was used in
furtherance of or to facilitate the transaction of business by
the nonresident vendor in the City. If no hearing is demanded or
if a hearing is held and it is 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.
(g) Investigation and issuance. Upon receipt of a license
application, the Sales Tax Inspector shall refer copies to the
City Zoning Official and when deemed appropriate or in the best
interest of the safety of the citizens of Wheat Ridge, to the
Police Department.
(w) Duty of enforcement oersonnel: It shall be the duty of
any police officer, sales tax inspector or code enforcement
officer of the City to require any person required to have a
license, as provided in this Chapter, to produce his license and
to enforce the provisions of this Chapter against any person
found to be violating the same.
19
Sec. 22-38. Transfer of Ownership of Business; Renewal or
Issuance of Business License
(b) 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 seller 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, takes
the same subject to the City's lien for unpaid taxes, if any, and
shall be liable for the payment of all delinquent sales and use
taxes on the value of property so taken or acquired.
(d) The City 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 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. 22-39. Liabilitv of retailer or vendor for collection
(a) Every retailer, vendor and wholesaler shall be liable
for the collection of the tax as provided for in this Chapter for
sales at retail to the user or consumer, by adding the tax
imposed hereby or the average equivalent to the sale price or
charge as a separate and distinct item, and when added, such tax
shall constitute a part of such total price or charge and shall
be a debt from the consumer or user to the vendor until paid and
shall be recoverable at law in the same manner as other debts.
(b) Except as provided in subsections (1) and (2) of this
paragraph (b), it shall be unlawful for any retailer to advertise
or hold out or state to the public or to any consumer, directly
or indirectly, that the City sales tax or any part thereof shall
be 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.
(1) Nothing contained in this section shall be deemed
to prohibit any retailer selling malt, vinous or spirituous
liquors by the drink from including in his sales price any City
sales tax.
20
(2) 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 City sales
tax.
(c) The amount paid by the purchaser as, or in the nature of,
interest or finance charges on credit extended in connection with
the sale of any 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.
(d) If any vendor shall, during any reporting period, collect
as a tax an amount in excess of the percentages set forth in
Section 22-56 of his total taxable sales, he shall remit to the
City Treasurer the full net amount of the tax herein imposed, and
also such excess. The retention by the retailer to vendor of any
excess tax collections or the 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. 22-40. Reports by vendor; payment of tax; monies collected
held in trust
(b) The vendor's fee as defined in Section 22-21 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 one
hundred dollars ($100.00) per reporting period.
(d) All monies paid by the purchaser to the retailer as
sales taxes, lodgers taxes, or admissions taxes imposed by this
Chapter shall be and remain the property of the City while in the
hands of the retailer. Until paid to the Treasurer, the monies
shall be held in trust by the retailer for the sole use and
benefit of the City. Failure by the retailer to pay the monies
to the Treasurer shall be violation of this Code.
(e) Vendors are specifically prohibited from remitting City
taxes to another vendor or entity either located within the City
or outside the City. Vendors who receive such tax monies from
consumers or purchasers are required to remit such monies
directly to the City.
(f) Failure to comply with the provisions in subsection 22-
40(e) resulting in a transfer of the City's taxes to another
third party shall be a violation of this chapter.
Sec. 22-41. Sales or use tax; Deficiency
The treasurer shall, as soon as practical after receipt of a
taxpayer's report, recompute the tax by the use of known and
visible factors and if the resulting recomputed tax is less than
that shown and paid by the taxpayer, the difference shall be
credited toward the taxpayer's obligation for the next reporting
period. If the recomputed tax is more than that shown and paid
by the taxpayer, the difference shall be recorded as a
deficiency. The taxpayer shall be notified of the deficiency as
provided in Section 22-45. Willful disregard of the requirements
21
for reporting, and remittance of tax due, or failing to respond
within twenty (20) days to the treasurer's notice of deficiency,
shall, in addition to constituting a violation of the Code,
subject the taxpayer to penalties and interest provided in
Section 22-43(d).
Sec. 22-42. Business Records; Burden of Proof
(a) 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.
(b) 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 11-23 or 22-37 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 (3) years; and
they shall be open at any time for examination by the sales tax
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, but are not limited to, the
following:
(1) Supporting documentation for every line item used
on the Sales/Use Tax Return.
(2) Sales & Lease Invoices, Contracts
(3) Purchase Journals & Invoices
(4) Fixed Asset Depreciation Schedules
(5) Check Books and/or Check Registers
(6) State Sales Tax Returns
(7) Federal and State Income Tax Returns
(8) Sales Journals
(9) Asset Ledgers
(10) General Ledgers
(11) Journal Entries
(12) Chart of Accounts
(13) Financial Reports
(14) All other supporting documents not listed above
(c) Business records are to be stored or kept within
reasonable access of City personnel. Should a taxpayer's business
records be maintained at a location outside the City's
jurisdiction, the City maintains the right to inspect such
records at the taxpayer's location.
(d) Audit of Taxpayer Business Records. The City maintains
the authority to audit, upon reasonable notice, the business
records of any taxpayer licensed to engage in business activity
within the City. If the City provides written notice to the
taxpayer prior to the expiration of the 36 month statute of
limitations that the taxpayer's records will be audited pursuant
to this chapter, such limitation period shall be extended 180
days after the date of expiration of such period.
22
(e) The City has adopted the policy of auditing a taxpayer's
records only at the taxpayer's business location where such
business records are routinely kept. The City's sales tax
inspectors or agents shall not engage in any tax investigations
whereby such records are sent to the City for review.
Notwithstanding this policy, the City Treasurer may, under
exceptional circumstances, permit limited scope auditing of a
taxpayer's records by mail. Such a determination if solely within
the discretion of the City Treasurer and is not an appealable
issue. All expenses incurred by the City in connection with the
audit of taxpayer business records located outside the City shall
be paid by the taxpayer.
(f) When the sales tax inspector has scheduled an audit or
examination of the records required herein not less than thirty
(30) days in advance, and has so notified the taxpayer, and the
taxpayer fails to make available the records required in
paragraph (b) at the appointed time, the Treasurer may apply to
any judge of the Municipal Court of the City and/or District
Court in and for Jefferson County for a subpoena to require the
taxpayer to appear before the Treasurer, produce any of the
foregoing information in the taxpayer's possession, and 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 be issued 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.
(g) Performance of an audit does not constitute a statute of
limitations or preclude additional audits of the same period
within the parameters of this Section.
(h) Any Third Party Record Keeper, as defined in Section
22-21 hereof, shall have all of the rights, duties and
obligations of a taxpayer, retailer or vendor solely as the same
relates to the record disclosing obligations imposed upon
taxpayers, retailers or vendors by Sections 22-39, 22-40, 22-41,
22-42, 22-43(a), 22-43(f), 22-43(g), 22-43(j), 22-44(b),
22-46(g), and 22-46(h) hereof; provided that the City shall
attempt to obtain any records or reports from the taxpayer,
retailer or vendor prior to its attempts to obtain such records
from Third Party Record Keepers, and in any event such attempts
to obtain records or reports shall only be undertaken after
providing notice to the taxpayer, retailer, or vendor; provided,
further, however that a Third Party Record Keeper shall be deemed
23
a taxpayer for all purposes, and shall be subject to all of the
provisions, of this Article II of Chapter 22 relating to any and
all taxable transactions engaged in by said Third Party Record
Keeper.
Sec. 22-43. Refusal to report; estimate of tax; emergency
collection procedures; ~enalties and interest
(a) Refusal to report. The Treasurer may, in any reasonable
manner possible, estimate the amount of the tax due, to which
interest and penalties in accordance with paragraph (c) may be
added, in the event any taxpayer:
(1) Refuses to report and remit taxes collected or
required to be collected in accordance with the provisions of
this Chapter;
(2) Fails to comply with the provisions of Section 22-
68 of this Chapter;
(3) Fails to file the report and remit the taxes
required in Section 22-38 of this Chapter after selling his
business;
(4) Intends to leave the City without paying any taxes
which are lawfully owed;
(5) Removes, or intends to remove, property subject to
tax hereunder from the City, or to sell any such property with
the intent to remove the proceeds of sale from the City without
paying tax thereon;
(6) Engages or intends to engage in any activity which
the Treasurer reasonably believes to jeopardize collection of
taxes authorized hereunder; or
(7) Otherwise engages in conduct likely to prevent the
establishment by the Treasurer of an accurate and exact amount of
tax due.
(b) Estimation of taxes. When an estimate of taxes due is
made, the City shall first attempt to serve notice thereof on the
taxpayer by personal service. If personal service cannot be
achieved after reasonable effort, the taxpayer shall be served
with such notice by certified mail to the taxpayer's last known
address, or by leaving a copy with the person in charge at the
taxpayer's business establishment or last known address.
(1) In the event that the taxpayer cannot be found at
its last known address or notices sent by the City are returned
by the post office, or there is no one available at the
taxpayer's place of business to accept notice, the City may serve
notice by posting such notice in a conspicuous place at the
location of the business as indicated on the business license or
application. The burden shall at all times be on the taxpayer to
inform the City of the taxpayer's current address.
(2) Unless the taxpayer files a written demand for
administrative hearing and determination of tax liability, as
provided in section 22-45 hereof, within twenty (20) days from
the date of service, receipt or posting, whichever is later, of
such notice, he shall conclusively be deemed to have accepted the
estimate as a fair and accurate determination of his tax
obligation and shall thereby waive the right to contest that
24
determination. In the event that such a hearing is held, the
determination of the hearing officer shall be reviewable as
provided in section 22-45 hereof.
(c) Emergency collection procedures. In any case wherein it
appears that collection of 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 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.
(d) Penalty for late oavment. A penalty shall be imposed on
any tax deficiency. Such penalty shall be fifteen dollars
($15.00) or ten percent (10%) of the delinquent tax or deficiency
per reporting period, whichever is greater.
(e) Pena1tv for audit assessment. A penalty shall be imposed
on a sales, use, lodgers, or admissions audit assessment at the
rate of thirty percent (30%) of the total assessment.
(f)Penalty for gross negligence or reckless disregard for
tax.
(1) When any taxpayer through its own reckless or grossly
negligent behavior underco11ects or does not remit directly to
the City all City sales taxes collected or use taxes that should
have been self-imposed, the penalty shall be fifty percent (50%)
of the total amount of the resulting deficiency. For purposes of
this chapter, gross negligence or reckless behavior shall consist
of business or accounting practices which, through their design,
implementation or neglect, so deviate from reasonable and prudent
business and accounting practices that proper and correct
collection and remittance of taxes due the City is impaired. It
shall be a rebuttable presumption that a taxpayer is guilty of
gross negligence or reckless behavior if the amount of sales,
use, admissions or lodging tax collected and remitted to the City
by the taxpayer is underreported and/or undercol1ected by ten
percent (10%) or more of the correct amount.
(2) When any taxpayer liable for the collection,
remittance and/or 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 with all the interest and penalties thereon
provided by law and also an additional amount equal to fifty
percent (50%) of the delinquent taxes or deficiency, interest and
penalties due, or the sum of fifty dollars ($50.00) whichever
amount is greater.
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(g) 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 one hundred percent (100%) 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 date of the notice of assessment.
(h) Assessment of interest. Interest shall be assessed at
the rate established by Section 39-21-110.5, C.R.S., as amended.
Interest shall be calculated for each month from the due date
that a deficiency remains unpaid.
(i) City Treasurer may waive penaltv. For good cause shown,
the Treasurer in his discretion is authorized to waive any
penalty assessed in this Chapter. For purposes of this Section,
interest shall never be deemed a penalty.
(j) Confidentiality of information and records. Except in
accordance with judicial order or as otherwise provided by law,
the City Treasurer, outside agents of the City, clerks, and
employees thereof, shall not divulge or make known in any way any
information disclosed 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
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.
(k) Copies of returns or reports. 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.
(1) Publication of statistics. 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.
(m) Sharing information with other governmental concerns.
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.
26
(n) Violation of provisions by city emo10yees. If a City
employee or officer violates the provisions of this section, such
employee or officer may be dismissed.
Sec. 22-44. Limitation of action
(b) In the case of a false or fraudulent return resulting
from either an intent to evade tax or from reckless or grossly
negligent behavior on the part of the taxpayer, or in the case of
a failure to file a return, the tax together with interest and
penalties thereon may be assessed, or proceedings for the
collection of such taxes may be begun in a court of competent
jurisdiction at any time.
Sec. 22-45. Taxpaver's remedies
(b) In the event that the taxpayer disputes the tax
liability imposed by the City either by any deficiency notice, or
otherwise, he shall file a written demand for an informal hearing
and determination of tax liability within twenty (20) days from
the date of the notice, which demand will stay the sale under any
distraint warrant until the conclusion of the hearing. This
demand shall include the name, business address and license
number of the taxpayer, a copy of the notice sent by the City,
the taxable periods and the amounts of tax which are being
disputed, and a statement of the grounds upon which the taxpayer
bases his claim.
(1) Upon receipt of the taxpayer's written demand, the
City Treasurer shall set the time and place for the hearing, to
be held as quickly as possible, 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.
(2) Failure to demand an informal hearing and
determination of tax liability shall constitute a waiver of the
right to contest such liability; however, when such 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 subparagraph (b)(l) 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.
(c) If the dispute was not resolved by the informal hearing,
the taxpayer may elect the following avenue of appeal within
27
thirty (30) days of the city's final decision:
(1) The taxpayer may request a formal hearing on the
record before a hearing officer, who shall be selected from among
other metropolitan Denver Treasurers/Finance Directors, or who
shall be a neutral arbitrator selected by agreement of the
parties. The hearing shall be held within sixty (60) days of the
taxpayer's request. Those costs of compensation to the hearing
officer and transcription costs shall be divided equally between
the City and the taxpayer.
a. The formal hearing will be on the merits and on
the record. The taxpayer shall be responsible for retention of
his own legal counsel, if he chooses to be so represented. A
transcript of the hearing will be maintained and the Colorado
Rules of Evidence shall be observed unless otherwise agreed by
the parties. The City shall not be entitled to file a legal brief
unless the taxpayer chooses to submit such a brief or statement
of legal authorities. The parties may call witnesses who will be
subject to cross examination.
b. Upon notice to the taxpayer that the City has
granted the taxpayer a formal hearing, the taxpayer shall
deposit with the City fifty percent (50%) of the amount of the
tax deficiency in dispute. The taxpayer will also pay to the City
all amounts of tax and related penalties and interest not in
dispute. The taxpayer may request permission of the City
Treasurer to post security or a bond in lieu of cash payment of
the amount in dispute, which request will be granted by the City
Treasurer if the Treasurer, in his sole discretion, determines
the bond or security is adequate to protect the City's interest.
Failure to post the cash or security required herein shall result
in the denial of taxpayer's appeal.
(2) 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.
(e) In the event the City's final decision denies the
taxpayer's claims, such taxes, penalties and interest unpaid
shall become immediately payable without further notice of demand
for payment by the City. The City shall use all additional
remedies to collect unpaid taxes, penalties and interest as
provided for under section 22-46.
Sec. 22-46. Additional remedies of City
(a) Any sales, use, lodgers, admissions 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 and
shall take precedence over all other claims and mortgages upon:
(1) The goods, stock-in-trade, and business fixtures of
or used by any retailer under lease, title-retaining contract or
other contractual arrangement; and
(2) The real and tangible and intangible personal
property owned or leased by any person.
(c) Goods or property seized pursuant to distraint warrant
shall be sold at public auction after thirty (30) days' public
notice by publication not less than two (2) times in a newspaper
28
of general circulation within the City. Such goods or other
property whether real or personal may be redeemed by the taxpayer
any time prior to sale by paying such tax, penalty, and interest
as is due, together with such costs as have accrued from the
seizure and preparation for sale.
(d) A notice of lien shall be provided for as set out in
section 11-34(d) of this Code of Laws and a copy of such notice
shall be filed in the public records of Jefferson County prior to
the issuance of a distraint warrant.
(g) 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
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 Chapter,
the term "taxpayer" shall include "retailer" or "vendor".
(h) It shall be a violation of this Chapter to refuse to
obtain a business or exempt institution license, to make any
return provided to be made in this Chapter, or to make any false
or fraudulent return, or any false statement in any return, or to
prepare such returns in a reckless or grossly negligent manner,
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.
(1) In his discretion the City Treasurer may direct the
issuance of a summons and complaint to appear before the Wheat
Ridge Municipal Court to any person who may be in violation of
any of the provisions of this Chapter or the rules and
regulations promulgated by the City Treasurer to enforce this
Chapter.
(2) Any person, corporation, partnership, company,
association or other entity which violates any of the provisions
of this Chapter 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
29
interest found to be due under this Chapter 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.
(3) Nothing contained in this paragraph (h) 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. 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.
(j) For the purpose of facilitating settlement and
distribution of estates, trusts, receivership, other fiduciary
relationships and the assets of corporations in the process of
dissolution or that have been dissolved, the City Treasurer may
agree with the fiduciary or surviving corporate directors upon an
amount of taxes due from the decedent or from the decedent's
estate, the trust, receivership or other fiduciary relationship,
or corporation for any periods of tax liability under this
Chapter. Payment in accordance with such agreement fully
satisfies the tax liability for the periods that the agreement
covers, unless the taxpayer has committed fraud or malfeasance or
misrepresented a material fact regarding the tax or liability
therefor.
(1) Except as provided in subsection (3) of this
paragraph (j), 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.
(2) Any distributee of a decedent's estate, a trust
estate, or fund and the stockholder of any dissolved corporation
who receives any of the property of such decedent's estate, trust
estate, fund, or corporation is personally liable for taxes
assessed pursuant to this Chapter to the same extent that the
decedent, trust estate, fund or corporation is liable under this
Chapter.
(3) If a tax under this Chapter is due from a decedent
or the decedent's estate, 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 (18) 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
30
request applies. A request for determination under this
subsection does not extend the otherwise applicable period of
limitation as specified in Section 22-44.
(4) If a tax under this Chapter is due from a
corporation that is in the process of 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 (18) months after the corporation
files with the City Treasurer a written request for such
determination, such request is required to be filed with the City
Treasurer within ten (10) days from the time such dissolution has
begun.
(k) 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.
(1) 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.
(2) The time fixed for the sale shall not be less than
thirty (30) days nor more than sixty (60) days from the date of
distraint. The sale may be postponed by the City or agent for no
more than ninety (90) days from the date originally fixed for the
sale.
(3) The property shall be sold at public 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.
(4) The property may be offered first by bulk bid, then
subsequently for bid singularly or by lots, and the City or its
agent may accept the higher bid.
(5) The property offered for sale may be 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.
(6) 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.
a. 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.
31
b. When the property sold consists of securities or
other evidences of debt, the certificate of sale shall be good
and valid evidence of title.
(7) Any surplus remaining after satisfaction of the
tax due plus any costs of making the distraint and advertising
the sale, may be distributed by the City first to other
jurisdictions which have filed liens or claims of sales and use
or personal property ad valorem taxes, and second to the owner,
or such other person having a legal right thereto.
(n) 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:
(1) 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.
a. 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.
b. Any other claim for refund shall be filed on or
before three (3) years after the date such overpayment was paid
to the City.
(2) Assessments:
issued more than three (3)
due, or for a construction
permit, the date the final
for such project.
(3) Notice of Lien: No Notice of Lien shall be issued
more than three (3) years after the due date of the tax. If the
limitation period is extended, a Notice of Lien may be filed on
or before thirty (30) days from the date of the Notice of
Assessment issued for such extended period.
(4) Returns: When a taxpayer fails or refuses to file a
return, the tax due may be assessed and collected at any time. In
the case of a false or fraudulent return filed with intent to
evade tax, or a return filed in a reckless or grossly negligent
manner, the tax due may be assessed, or proceedings for the
collection of such tax due may be begun at any time.
(5) Protest: 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.
(6) The period of limitation may be extended before its
expiration by mutual consent of the parties.
No Notice of Assessment shall be
years after the due date of such tax
project which requires a City building
Certificate of Occupancy was issued
32
DIVISION 3. SALES TAX
Sec. 22-56. Schedule.
(a) There is hereby imposed a sales tax on all sales not
specifically exempted in Sections 22-56(a) and/or 22-58, in the
amount of two percent (2%) of the purchase price. The City
considers each and every sale within the City to be taxable,
unless the same is specifically exempted by this Chapter. In
order to avoid fractions of pennies, the following brackets shall
be applicable to all taxable transactions:
(1) On sales amounting to $0.19 to and including $0.84,
a tax of $0.01;
(2) On sales amounting to $0.85 to and including $1.18,
a tax of $0.02;
(3) 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.
(b) Lodgers tax is imposed 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 rooms or accommodations. However,
the sale of any goods, services and commodities other than the
furnishing of rooms or other accommodations shall be subject to
the sales tax imposed hereby.
Sec. 22-57. Property and service subject to tax
There is hereby imposed and there shall be collected and paid
a tax, in the amount stated in Section 22-56, on all sales and
services 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 except as specified under Section 22-21 "Purchase
price", paragraph (3).
(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 imposed a
tax upon the sale of telecommunications services, whether
furnished by public or private corporations or enterprises for
all intrastate, interstate and international telecommunications
33
service charged to an apparatus, telephone, or account within the
City, or to a customer location within the City, or to a person
residing in the City, without regard to where the bill for such
service is 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 22-66(e) for any
telecommunications services subject to the tax herein that are
also subject to a sales tax outside of this City if such tax is
correctly assessed.
(4) Energv 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.
(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 before the amount of discount coupons are
applied.
(b) On the cost of meals which are given to employees
in return for their labor or services rendered or otherwise given
away. This cost shall include all direct materials and labor
costs associated with the production of the meals; and all
indirect overhead costs associated and attributable to the
production of the meals. Indirect overhead shall utilize "full
absorbtion" as defined and utilized in U.S. Treasury tax statutes
and Internal Revenue Service Regulations.
(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 22-56 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 for use within the city.
(9) Manufacturing Equipment. Machinery, machine tools and
specific processing equipment and repair parts and replacements
thereof, used in manufacturing or processing tangible personal
property.
(10) Clothing. On the entire amount charged for clothing
purchased at retail.
34
(11) Resale. Upon "used merchandise" which has previously
been purchased and which has been remanufactured or rebuilt and,
as so remanufactured or rebuilt, been sold to a subsequent owner.
(12) Farm Equioment. 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) Storaqe Units. On the total lease or rental charges for
storage lockers/units located within the City.
(15) Amusement or Entertainment Events. On the price of
admission for any amusement or entertainment event as specified
in Section 22-56.
(16) Auction. Farm. or Estate Sale. On sales made at an
auction, farm closeout sale, or estate sale held within the City.
(17) Tobacco Products. The sale of any tobacco product which
is not a cigarette is subject to sales tax.
(18) Fund Raising Organizations. Fund raising organizations
are businesses, as defined in this Chapter, and as such are
subject to all of the provisions of this Chapter. Accordingly,
the cost of all materials, equipment and supplies purchased
and/or used or consumed by fund raising organizations is taxable,
and such entity must collect and remit sales and use taxes on any
purchases they make or sales they may conduct.
(19) Florists. All sales at retail by a florist are taxable
and all orders taken by florists within the City and telegraphed
to florists outside the City are subject to the Wheat Ridge sales
tax. When a florist within the City receives a telegraphic order
from a florist outside the City, the sale is exempt from Wheat
Ridge sales tax. When a florist has more than one location in the
City, inter-office transactions and deliveries are deemed not to
be telegraphic orders.
(20) 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 22-21 of this Chapter, and such
other services specified by regulation promulgated hereunder..
(21) Scooe 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. 22-58. Exempt Sales
There shall be exempt from taxation under the provisions of
this Chapter certain items of sales and services including, but
not limited to, the following:
(1) 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 22-68 of the City
Code.
(2) All direct sales to, but not sales by, charitable
organizations, as defined in Section 22-21 in the conduct of
35
their regular religious, charitable and eleemosynary functions
and activities; provided, however, that building materials and
supplies shall be subject to use tax as provided in Section 22-68
hereof, and provided further that any and all items of tangible
personal property purchased by, or for use by or within, any
facility (whether that facility is an exempt institution, a not-
for-profit corporation, a charitable corporation or entity, or a
for-profit corporation, or entity) shall be subject to the use
tax imposed by Section 22-66 hereof. Any exempt organization
which makes sales of tangible personal property to the public and
which otherwise meets the definition of a retailer in Section 22-
21, must have a sales tax license and collect and remit tax in
the same manner as any other retailer. The fact that the
merchandise sold may have been acquired by gift or donation, or
that the proceeds are to be used for charitable purposes, does
not make the sales exempt from tax.
(3) 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.
(4) All sales which the City is prohibited from taxing
under the constitution or laws of the United States or the State
of Colorado.
(5) All sales of cigarettes, excluding tobacco products.
(6) Food purchased with food stamps or WIC (Women,
Infant & Children) vouchers.
(7) All charges for rooms and accommodations except that
such charges are subject to the tax imposed under Sections 22-56
and 22-1, which tax is subject to the same requirements and which
obligations and provisions as are sales taxes.
(8) 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.
(9) Labor or services, except those specific services
defined as taxable, if such labor is separately stated from the
tangible personal property sold.
(10) The sale of newspapers as defined in Section 24-70-
102, C.R.S.
(11) The sale of construction and building materials, as
defined in Section 22-21, 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 was correctly assessed or is required to be paid on
the materials.
(12) 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 22-56. 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 22-56.
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(13) 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.
(14) 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.
(15) All sales of tangible personal property if the
following conditions exist:
a. The sales are to those who reside or do business
outside the City for their use outside the City;
b. The article or commodity is delivered to the
purchaser by common carrier, by mail or conveyed by the seller;
and
c. Seller retains legal ownership of property until
purchaser actually takes possession.
(16) 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.
(17) 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
though sale and/or delivery is made within the City, except that
trucks of one-ton manufacturer-rated capacity or less and lawn
and garden tillers, mowers and renovators are not to be
considered as farm machinery.
(18) All permits, licenses, service charges, fines and
assessments, for benefit or penalty, charged by and in accordance
with the Code of the City of Wheat Ridge.
(19) All sales of personal property, where the sale
occurs at the residence of the owner, and where the property to
be sold was originally purchased for use by members of the
household (i.e., garage sales, yard sales, etc.); provided
however that such sales shall not be exempt if the owner conducts
more than four three-consecutive-day sales in a one year period.
(20) All wholesale sales or sales of tangible personal
property purchased for resale provided that the purchaser has a
valid state of Colorado or Wheat Ridge sales and use tax license.
(21) 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:
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a. The property is transformed in fact by the
process of manufacture;
b. The property becomes by the manufacturing
processes a necessary and recognized ingredient, component and
constituent part of the finished product; and
c. The physical presence of the property in the
finished product is essential to the use thereof in the hands of
the ultimate consumer.
d. Additional factors to be considered are: the
nature of the purchaser's contractual obligations, if any, to
use, alter or consume the property to produce goods or perform
services: the degree to which the items in question are essential
to the purchaser's performance of those obligations; the degree
to which the purchaser controls the manner in which the items are
used, altered or consumed prior to their transfer to third
parties; and the degree to which the form, character, or
composition of the items when transferred to third parties
differs from the form, character or composition of these items at
the time they were initially purchased.
(22) 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:
a. The property is used by the manufacturer or
compounded to contain or label the finished product so
manufactured or compounded;
b. The property is sold by the manufacturer or
compounder along with and as a part of the finished product; and
c. The property is not returnable to the
manufacturer for reuse.
(23) The fair market value of any exchanged or traded-
in property which is to be resold thereafter in the usual course
of the retailer's business, if included in the full price of an
article sold.
(24) The exemption stated herein shall not include
natural gas and/or electricity used in the processing or
manufacturing of goods or commodities or substances.
(25) All sales of 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.
(26) "Interstate private communication service" shall
be exempt from taxation under this Chapter.
(27) 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.
(b) Increase bv implication or similaritv orohibited. The
foregoing list of exemptions shall not be increased by
implication or similarity.
(c) Exemotions allowed on return. Retailers or vendors
shall not have to remit sales tax for the following amounts
reported on their returns:
38
(1) Deductions from gross sales: If included in
reported gross sales, the following are deductible from gross
sales:
a. 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.
b. Bad debts: Amounts previously included in gross
sales and related sales tax remitted to the City which are
determined to be unco11ectab1e amounts by the vendor may be
included as bad debts. Only vendors using the accrual basis of
accounting from gross sales may claim a bad debt deduction.
c. 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 and included in "gross sales" on previously
filed returns.
(2) Credits for vendor's fee: The retailer's
collection and remittance expense as specified in Section 22-40.
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.
DIVISION 4. USE TAX.
Sec. 22-66. Property subject to use tax
(a) General intent; filing of return required. It is hereby
declared to be the legislative policy and 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 in the amount of
two percent (2%) of the purchase price. 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.
(b) Acquisition of business: The City use tax shall be
remitted on the price paid for tangible personal property which
is acquired with the purchase of a business, and for use in the
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
39
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.
(d) Taxation of leases:
(1) The sales tax on any lease payment shall be paid by
the 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.
(2) 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.
(3) The City will collect use tax only from the lessee
and only on any lease payment which is due when the property is
located within the jurisdiction of the City. Such collection of
use tax on a lease payment shall be subject to the credit
provisions of paragraph (e).
(4) Any applicable use tax shall be imposed on the
lessee and not on the lessor.
(5) Any applicable use tax shall be based upon the full
purchase price of the property.
(6) If a lease is renewed, it shall be treated in the
same manner as provided in this section.
(e) Credit for sales or use tax previous Iv paid to another
municipality:
(1) 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%).
(2) Credit shall not be given for use tax or warehouse
tax paid to another jurisdiction if such tax was improperly
assessed or imposed by the other jurisdiction.
40
(f) Proration as applied to certain construction eauipment.
(1) 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.
(2) Construction equipment which is located within the
boundaries of the City for thirty (30) consecutive days or fewer
shall be subjected to the City's use tax in an amount which does
not exceed the amount 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 percent (2%).
(3) Where the provisions of subsection (f)(2) 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 percent (2%).
(4) In order to avail himself of the provisions of this
section, the taxpayer shall comply with the following procedure:
a. Prior to or on the date the 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.
b. 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.
c. The taxpayer need not report on any equipment
declaration any equipment for which the purchase price was under
two thousand five hundred dollars ($2,500.00).
Sec. 22-67. Exemptions.
There shall be exempt from the tax provided in Section 22-66,
the storage, use, distribution and consumption of the following:
(1) Any tangible personal property or taxable services upon
which the City retail sales tax has been paid to a vendor
authorized and licensed to collect the same.
(2) Tangible personal property, which if it were sold at
retail within the City, would be exempt from sales tax under the
provisions of Section 22-58, provided, however, that any building
materials and supplies shall be subject to use tax as provided in
Section 22-68 hereof, and provided further that any and all items
of tangible personal property purchased by, or for use by or
within, any facility (whether that facility is an exempt
institution, a not-for-profit corporation, a charitable
corporation or entity, or a for-profit corporation, or entity)
shall be subject to the use tax as imposed by Section 22-66
hereof.
41
(3) Tangible personal property brought into the City by a
nonresident for his own use, storage, or consumption while
temporarily within the City.
(4) Tangible personal property of a resident which was
acquired prior to his becoming a resident.
(5) Any right to the continuous possession or use for three
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 22-66(c) shall
apply.
a. 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.
b. 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. 22-68. Building materials and supplies
(a) 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, 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, or any equipment used for construction thereon or
improvements thereto, and which the contractor, owner or lessee
has not paid the tax imposed by this Chapter thereon, shall pay
the use tax in either of two ways:
(1) By determining an estimated value of the total cost
of construction as established by the City Building Inspector
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 general contractor or subcontractor. The term
"cost of construction" shall include the cost of interior
decoration but shall not include land cost; or
(2) By obtaining a City sales and use tax license and
making monthly reports and returns and remitting the tax on an
actual cost basis.
42
(b) The City Treasurer or his authorized agent subsequently
may conduct an audit to recompute the tax by comparing the
estimated value of the building materials and supplies used
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 22-45.
(c) 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 the event that any subcontractor fails or
refuses to make any return required, the general contractor and
ultimately the owner or owners will be held liable for any tax
due. 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.
Section 4. The following sections, and all subsections thereof,
of Chapter 22, Taxation, Article I and Article II, Divisions
1,2,3 and 4 of the Code of Laws of the City of Wheat Ridge, are
retained in their present form as the same appear in the Code of
Laws of the City of Wheat Ridge, and are not amended, repealed,
or altered in any way:
a. 22-23
b. 22-33
c. 22-36(b) and (c)
d. 22-37(b) through (d) inclusive, (f), (h) through (v)
inclusive, and (x)
e. 22-38(a) and (c)
f. 22-40(a) and (c)
g. 22-44(a), (c) and (d)
h. 22-45(a) and (d)
i. 22-46(b), (e), (f), (i), (l) and (m)
j. 22-66(c)
Section 5. 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.
Section 6. Safety Clause. The City Council hereby finds,
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,
43
and that this ordinance is necessary for the preservation of
health and safety and for the protection of public convenience
and welfare. The City Council further determines that the
ordinance bears a rational relation to the proper legislative
object sought to be attained.
Section 7. This ordinance shall take effect September 1,l991.
INTRODUCED, READ, AND ADOPTED on first reading by a vote
of 7 to 0 on this 8th day of
July , 1991, ordered published in full in a
newspaper of general circulation in the City of Wheat Ridge and
Public Hearing and consideration on final passage set
for Monday. AUQust 12. 1991 7:30 p.m. in the Council
Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado.
READ, ADOPTED,
by a vote of
AUQust
AND ORDERED
7 to 1
PUBLISHED on second
on this 12th
1991.
and final reading
day of
SIGNED by the Mayor on this
1991.
13th
day of
Auqust
.
~~~
!)
ATTES'!': ;. //, .
,--. t0~.LJ.
Wanda Sang, City Cler
Dan Wilde, Mayor
APPROVED AS TO
OFF7??]
FORM BY
A ORNEY
lst Publication: July 17, 1991
2nd Publication: August 21, 1991
Wheat Ridge Sentinel:
Effective Date: September 1, 1991
44