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SALES AND USE TAX
Sections:
I. General Provisions
3.01.010 Short title.
3.01.020 Definitions.
3.01.030 Confidential nature of returns.
3.01.040 Tax cannot be absorbed.
3.01.050 Excess tax-Remittance.
3.01.060 License and tax additional.
3.01.065 Duty to keep records.
3.01.070 Administration.
3.01.075 Notice of sales and use tax ordinance amendment.
3.01.076 Participation in simplification meetings.
3.01.080 Receipts-Disposition.
3.01.085 Economic Development Assistance.
3.01.090 Applicability to banks.
3.01.100 Statute of limitations.
II. Licensing
3.01.110 Licenses-Fees-Revocation.
III. Sales Tax
3.01.120 Property and services taxed.
3.01.130 Collection of sales tax.
3.01.140 Sales tax base-Schedule of sales tax.
3.01.150 Retailer-Multiple locations.
3.01.160 Credit sales.
3.01.170 Bad debt charge-offs.
3.01.180 Exemptions.
3.01.190 Reserved.
3.01.200 Map or location guide of city boundaries.
3.01.205 Electronic Database.
IV. Use Tax
3.01.210 Property and services taxed.
3.01.220 Collection of use tax.
3.01.230 Exemptions.
3.01.240 Proration of use tax for certain construction equipment.
V. Refunds
3.01.250 Refunds.
VI. Enforcement
3.01.260 Recovery of taxes, penalty and interest.
3.01.270 Tax lien-Exemption from lien.
3.01.280 Tax deficiency.
3.01.290 Interest rate on delinquent taxes.
3.01.300 Interest on underpayment, overpayment, nonpayment
or extensions of time for payment of tax.
3.01.310 Penalty interest on unpaid use tax.
3.01.320 Other remedies.
VII. Hearings and Appeals
3.01.330 Hearings by Finance Director.
3.01.340 Review by District Court.
3.01.350 Alternative review by Department of Revenue.
3.01.010 Short title.
The ordinance codified in this chapter shall be known as the city sales and
use tax ordinance. (Ord. O-85-137 § 1 (part), 1985).
3.01.020 Definitions.
As used in this chapter, unless the context otherwise requires, the following
terms shall have the following meanings:
"Access services" means the services furnished by a local exchange
company to its customers who provide telecommunications services, which allow
them to provide such telecommunications services.
"Acquisition charges or costs" includes "purchase price,"
as defined in this section.
"Auction" or "auction sales" means any sale where tangible
personal property is sold by an auctioneer who is either the agent for the owner
of such property or is in fact the owner thereof.
"Automotive 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,
or any device used or designed for aviation or flight in the air. Automotive
vehicle includes, but is not limited to, motor vehicles, trailers, semi-trailers,
or mobile homes. Automotive vehicle shall not include devices moved by human
power or used exclusively upon stationary rails or tracks.
"Business" includes all activities engaged in or caused to be engaged
in with the object of gain, benefit, or advantage, direct or indirect.
"Charitable 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 (but only if no part of its activities involve the provision
of athletic facilities or equipment), or for 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 (including the publishing or distributing
of statements).
"City" means the municipality of Lakewood, Colorado.
"City Attorney" means the attorney or attorneys for the city.
"City Building Inspector" means the building inspector for the city.
"City Building Official" means any individual who determines the estimate
of the cost of materials and supplies to be permanently affixed to or incorporated
in any building, dwelling, or other structure or improvement to realty for which
a use tax is required to be paid pursuant to Section 3.01.210.
"City Clerk" means the clerk of the city.
"City Council" means the council of the city.
"City Manager" means the manager of the city.
"Commercial Mobile Radio Service" or "Mobile Telecommunications
Service" means a mobile service that is: (a)(1) provided for profit, i.e.,
with the intent of receiving compensation or monetary gain; (2) an interconnected
service; and (3) available to the public, or to such classes of eligible users
as to be effectively available to a substantial portion of the public; or (b)
the functional equivalent of such a mobile service described in paragraph (a).
(Reference Section 20.3 of Title 47 of the Code of Federal Regulations).
"Commercial packaging materials" means containers, labels and shipping
cases used by a person engaged in manufacturing, compounding, wholesaling, jobbing,
retailing, packaging, distributing or bottling for sale, profit or use that
meets all of the following conditions: (i) is used by the manufacturer, compounder,
wholesaler, jobber, retailer, packager, distributor or bottler to contain or
label the finished product; (ii) is transferred by said person along with and
as a part of the finished product to the purchaser; and (iii) is not returnable
to said person for reuse. "Commercial packaging materials" as defined
are exempt from sales or use tax imposed by this chapter.
"Construction materials" 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, fireplace inserts,
electrical heating and cooling equipment, flooring, glass, gravel, insulation,
lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe
valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh,
road base, roofing sand, sanitary sewer pipe, sheet metal, site lighting, steel,
stone, stucco, tile, trees, shrubs, and other landscaping materials, wall board,
wall coping, wallpaper, weather stripping, wire netting and screen, water mains
and meters, and wood preserver. The above materials, when used for forms, or
other items which do not remain as an integral or inseparable part of a completed
structure or project are not construction materials.
"Consumer" means (a) an individual person, or (b) a person engaged
in business in the city who uses, stores, distributes or otherwise consumes
in the city tangible personal property or taxable services purchased from sources
inside or outside the city.
"County" means Jefferson County, Colorado.
"County Clerk and Recorder" means the county clerk and recorder for
the county.
"Customer" means the person or entity that contracts with the home
service provider for mobile telecommunications services, or if the end user
of the mobile telecommunications services is not the contracting party, the
end user of the mobile telecommunications service. The term "customer"
does not include a reseller of mobile telecommunications service or a serving
carrier under an arrangement to serve the customer outside the home service
provider's licensed service area. (Reference 4 U.S.C. Section 128(2)).
"Department of Revenue" means the Department of Revenue of the state.
"District Court" means the district court in and for Jefferson County,
Colorado.
"Doing business in the city" means providing of performing services,
or selling, leasing, renting, delivering or installing tangible personal property
for storage, use or consumption within the city. Doing business in the city
includes, but is not limited to, any one of the following activities by a person:
1. Directly, indirectly, or by a subsidiary maintains a building, store, office,
salesroom, warehouse, or other place of business within the city;
2. Sends one or more employees, agents or commissioned sales persons into the
taxing jurisdiction to solicit business or to install, assemble, repair, service,
or assist in the use of its products, or for demonstration or other reasons;
3. Maintains one or more employees, agents or commissioned sales persons on
duty at a location within the taxing jurisdiction;
4. Owns, leases, rents or otherwise exercises control over real or personal
property within the taxing jurisdiction; or
5. Makes more than one delivery into the taxing jurisdiction within a twelve-month
period.
"Enhanced Zip Code" means a United States postal zip code of 9 or
more digits. (Reference 4 U.S.C. Section 128(4))
"Farm close-out sale" means the full and final disposition of all
tangible personal property previously used by a farmer or rancher in farming
or ranching operations which are being abandoned.
"Finance Department" means the finance department of the city.
"Finance Director" means the Finance Director of the City of Lakewood
or such other person designated by the municipality; "Finance Director"
shall also include such person's designee.
"Food" means food for domestic home consumption as defined in 7 U.S.C.
Section 2012(g) as amended, as such section existed on October 1, 1987, or is
thereafter amended for purposes of the federal food stamp program as defined
in 7 U.S.C. Section 2012(h), as amended; except that "food" does not
include carbonated water marketed in containers; chewing gum; seeds and plants
to grow food; prepared salads and salad bars; cold sandwiches; deli trays; and
food or drink vended by or through machines or non-coin operated or coin-collecting
food and snack devices on behalf of a vendor.
"Gross sales" means the total amount received in money, credit, property
or other consideration valued in money for all sales, leases, or rentals of
tangible personal property or services.
"Gross taxable sales" means the total amount received in money, credits,
or property, excluding the fair market value of exchanged property consideration
valued in money from sales and purchases at retail within this city, and embraced
within the provisions of this chapter. The taxpayer may take credit in his report
of gross sales for an amount equal to the sale price of property returned by
the purchaser when the full sale price thereof is refunded whether in cash or
by credit. The fair market value of any exchanged property which is to be sold
thereafter in the usual course of the retailer's business, if included in the
full price of a new article, shall be excluded from the gross sales. On all
sales at retail that are valued in money, when such sales are made under conditional
sales contract, or under other forms of sale where the payment of the principal
sum there under is extended over a period longer than sixty days from the date
of sale thereof, only such portion of the sale amount hereof may be counted
for the purpose of imposition of the tax imposed by this chapter as has actually
been received in cash by the taxpayer during the period for which the tax imposed
by this chapter is due and payable.
"Home Service Provider" means the facilities-based carrier or reseller
with which the customer contracts for the provision of mobile telecommunications
service. (Reference 4 U.S.C. Section 128(5)).
"Interconnected Service" means a service (a) that is interconnected
with the public switched network, or interconnected with the public switched
network through an interconnected service provider, that gives subscribers the
capability to communicate to or receive communication from all other users on
the public switched network; or (b) for which a request for such interconnection
is pending pursuant to section 332 (c)(1)(B) of the Federal Communication Act,
47 U.S.C 332(c)(1)(B). A mobile service offers interconnected service even if
the service allows subscribers to access the public switched network only during
specified hours of the day, or if the service provides general access to points
on the public switched network but also restricts access in certain limited
ways. Interconnected services do not include any interface between a licensee's
facilities and the public switched network exclusively for a licensee's internal
control purposes. (Reference Section 20.3 of Title 47 of the Code of Federal
Regulations).
"License" means a City of Lakewood sales or use tax license.
"Linen services" means services involving provision and cleaning of
linens, including but not limited to rags, uniforms, coveralls and diapers.
"Local telephone exchange company" means any person which provides
public telephone or telecommunication exchange access lines, mobile telecommunication
or channels necessary to effect the transfer of two-way voice or data grade
information between the final user and the local telecommunication network.
"Mayor" means the mayor of the city.
"Medical supplies" means drugs dispensed in accordance with a prescription;
insulin in all its forms dispensed pursuant to the direction of a licensed physician;
glucose usable for treatment of insulin reactions; urine and blood testing kits
and materials; insulin measuring and injecting devices, including hypodermic
syringes and needles; prosthetic devices; wheelchairs and hospital beds; drugs
or materials when furnished by a doctor as a part of professional services provided
to a patient; and corrective eyeglasses, contact lenses or hearing aids.
"Mobile Service" means a radio communication service carried on between
mobile stations or receivers and land stations, and by mobile stations communicating
among themselves, and includes: (a) both one-way and two-way radio communications
services; (b) a mobile service which provides a regularly interacting group
of base, mobile, portable, and associated control and relay stations (whether
licensed on an individual, cooperative, or multiple basis) for private one-way
or two-way land mobile radio communications by eligible users over designated
areas of operation; and (c) any service for which a license is required in a
personal communications service under Section 20.3 of Title 47 of the Code of
Federal Regulations. (Reference Section 20.3 of Title 47 of the Code of Federal
Regulations).
"Modified or customized computer program" means a computer program
created or modified for a specific customer where the preparation, modification
or selection of the program for the customer's use requires an analysis of the
customer's requirements and system by any vendor and the program requires adaptation
by any vendor to be used in a specific computer hardware environment.
"Newspaper" means 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. The
term newspaper does not include: magazines, trade publications or journals,
credit bulletins, advertising inserts, circulars, directories, maps, racing
programs, reprints, newspaper clipping and mailing services or listings, publications
that include an updating or revision service, or books or pocket editions of
books.
"Pay television" shall include, but not be limited to, cable, microwave
or other television service for which a change is imposed.
"Person" means any individual, firm, partnership, joint venture, corporation,
estate or trust, receiver, trustee, assignee, lessee or any person acting in
a fiduciary or representative capacity, whether appointed by court or otherwise,
or any group or combination acting as a unit.
"Place of Primary Use" means the street address representative of
where the customer's use of the mobile telecommunications service primarily
occurs, which must be the residential street address or the primary business
street address of the customer and within the licensed service area of the Home
Service Provider. (Reference 4 U.S.C. Section 124(8)).
"Prescription drugs for animals" means drugs dispensed in accordance
with any order in writing, dated and signed by a practitioner of the healing
arts, or given orally by a practitioner, specifying the animal for which the
medicine or drug is offered and directions, if any, to be placed on the label.
"Pre-written computer program" means system program or application
or canned program that is not written specifically for the user.
"Price" or "purchase price" means the price to the consumer,
exclusive of any direct tax imposed by the federal government or by this article,
and, in the case of all retail sales involving the exchange of property, also
exclusive of the fair market value of the property exchanged at the same time
and place of the exchange, if:
1. Such exchanged property is to be sold thereafter in the usual course of the
retailer's business; or
2. Such exchanged property is an automotive vehicle and is exchanged for another
automotive vehicle and both automotive vehicles are subject to licensing, registration,
or certification under the laws of this state, including, but not limited to,
vehicles operating upon public highways, off-highway recreation vehicles, watercraft,
and aircraft. Any money or other consideration paid over and above the value
of the exchanged property is subject to tax
"Price" or "purchase price" includes:
1. The amount of money received or due in case and credits;
2. Property at fair market value taken in exchange but not for resale in the
usual course of the retailer's business;
3. Any consideration valued in money, such as trading stamps or coupons whereby
the manufacturer or someone else reimburses the retailer for part of the purchase
price and other media of exchange;
4. The total price charged on credit sales including finance charges which are
not separately stated. An amount charged as interest on the unpaid balance of
the purchase price is not part of the purchase price unless the amount added
to the purchase price is included in the principal amount of a promissory note;
except the interest or carrying charge set out separately from the unpaid balance
of the purchase price on the face of the note is not part of the purchase price.
An amount charged for insurance on the property sold and separately stated is
not part of the purchase price;
5. Installation, delivery and wheeling-in charges included in the purchase price
and not separately stated;
6. Transportation and other charges to effect delivery of tangible personal
property to the purchaser;
7. Indirect federal manufacturer's excise taxes, such as taxes on automotive
vehicles, tires and floor stock;
8. The gross purchase price of articles sold after manufacturing or after having
been made to order, including the gross value of all the materials used, labor
and service performed and the profit thereon.
"Price" or "purchase price" shall not include:
1. Any sales or use tax imposed by the State of Colorado or by any political
subdivision thereof;
2. The fair market value of property exchanged if such property is to be sold
thereafter in the retailer's usual course of business. This is not limited to
exchanges in Colorado. Out of state trade-ins are an allowable adjustment to
the purchase price;
3. Discounts from the original price if such discount and the corresponding
decrease in sales tax due is actually passed on to the purchaser. An anticipated
discount to be allowed for payment on or before a given date is not an allowable
adjustment to the price in reporting gross sales.
"Prosthetic devices" means any artificial limb, part, device or appliance
for human use which aids or replaces a bodily function; is designed, manufactured,
altered or adjusted to fit a particular individual; and is prescribed by a licensed
practitioner of the healing arts. Prosthetic devices include but are not limited
to prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic
devices or appliances, oxygen concentrators and oxygen with related accessories.
"Qualified hospital organization" means any of the following:
(1) An organization that is exempt from federal income tax under section 115 or section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, but only if the organization holds a license to operate a "general hospital" for people issued pursuant to sections 25-3-101 and 25-3-102, Colorado Revised Statutes (2000), as amended, including any successor provisions to those sections, and operates a general hospital within the City of Lakewood; or (2) A corporation or trust that:
(a) Is exempt from federal income tax under section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended; and
(b) Owns or employs personal property or improvements that are used in the operations of one or more organizations described in paragraph (1) of this definition; and
(c) Either (i) directly controls, or is controlled by, one or more organizations described in paragraph (1) of this definition, (ii) is controlled by a management organization as defined in paragraph (3) of this definition in common with one or more organizations described in paragraph (1) of this definition, or (iii) owns a hospital that is licensed to operate as a "general hospital" for people pursuant to sections 25-3-101 and 25-3-102, Colorado Revised Statutes (2000), as amended, including any successor provisions to those sections, and that is operated by an organization described in paragraph (1) of this definition; or
(3) An organization that is exempt from federal income tax under section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, and which organization’s principal function is to manage the property or operations, or both, of one or more organizations described in paragraphs (1) or (2) of this definition; or
(4) A partnership, limited partnership, limited liability limited partnership, limited liability partnership, limited liability company, or joint venture if all of the partners, members, joint ventures or other participants in such partnership, limited partnership, limited liability limited partnership, limited liability partnership, limited liability company or joint venture are organizations described in paragraphs (1), (2) or (3) of this definition.
"Retailer" or "vendor" means any person selling, leasing
or renting tangible personal property or services at retail. Retailer or vendor
shall include any:
1. Auctioneer;
2. Salesperson, representative, peddler or canvasser, who makes sales as a direct
or indirect agent of or obtains such property or services sold from a dealer,
distributor, supervisor or employer;
3. Charitable organization or governmental entity which makes sales of tangible
personal property to the public, notwithstanding the fact that the merchandise
sold may have been acquired by gift or donation or that the proceeds are to
be used for charitable or governmental purposes.
"Retail sale" or "purchased at retail" or "selling
at retail" means all sales except wholesale sales made within the city.
"Return" means the sales and use tax reporting form used to report
sales and use tax.
"Rooms or accommodations" or "lodging services" means the
furnishing of rooms or accommodations by any person, partnership, association,
corporation, estate, representative capacity or any other combination of individuals
by whatever name known to a person who for a consideration uses, possesses,
or has the right to use or possess any room in a hotel, inn, bed and breakfast
residence, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch,
trailer coach, mobile home, auto camp, or trailer court and park, or any similar
type establishment, for a period of less than thirty consecutive days under
any concession, permit, right of access, license to use, or other agreement,
or otherwise.
"Sale" or "sale and purchase" means the conveyance or acquisition
for any consideration by any person of tangible personal property or table services
that are purchased, leased, rented, 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. Transfer, either conditionally or absolutely, of title or possession or both
to 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;
3. Performance of services; or
4. Barter or exchange for other property or services including coupons.
The sale, purchase, lease, or rental of services specifically enumerated in
this chapter as taxable include: (i) telecommunication services; (ii) gas, electric
and steam services; (iii) pay television services; (iv) security system and
sound system services; (v) linen services; (vi) warranty and maintenance services;
(vii) modified or customized computer program services; and (viii) services
providing admission or access to motion picture performances and to establishments
which are licensed to serve malt, vinous or spirituous liquors. "Sale"
or "sale and purchase" also includes the leasing or rental of tangible
personal property. "Sale" or "sale and purchase" also includes
the transaction of furnishing rooms or accommodations or lodging services by
any person, partnership, association, corporation, estate, receiver, trustee,
assignee, lessee, or person acting in a representative capacity or any other
combination of individuals by whatever name known to a person who for a consideration
uses, possesses, or has the right to use or possess any room in a hotel, inn,
bed and breakfast residence, apartment hotel, lodging house, motor hotel, guesthouse,
guest ranch, trailer coach, mobile home, auto camp, or trailer court and park,
or similar type establishment for a period of less than thirty consecutive days
under any concession, permit, right of access, license to use, or other agreement,
or otherwise.
"Sale" or "sale and purchase" excludes:
1. A division of partnership assets among the partners according to their interests
in the partnership;
2. The formation of a corporation by the owners of a business and the transfer
of their business assets to the corporation in exchange for all of the corporation's
outstanding stock, except qualifying shares, in proportion to the assets contributed;
3. The transfer of assets of shareholders in the formation or dissolution of
professional corporations;
4. The dissolution and the pro rata distribution of the corporation's assets
to its stockholders;
5. The transfer of assets from a parent corporation to a subsidiary corporation
or corporations which are owned at least eighty percent by the parent corporation,
which transfer is solely in exchange for stock or securities of the subsidiary
corporation;
6. The transfer of assets from a subsidiary corporation or corporations which
are owned at least eighty percent by the parent corporation to a parent corporation
or to another subsidiary which is owned at least eighty percent by the parent
corporation, which transfer is solely in exchange for stock or securities of
the parent corporation or the subsidiary which received the assets;
7. A transfer of a partnership interest;
8. The transfer in a reorganization qualifying under Section 368(a)(1) of the
Internal Revenue Code of 1954, as amended;
9. 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;
10. The repossession of personal property by a chattel mortgage holder or foreclosure
by a lien holder; and
11. The transfer of assets between parent and closely held subsidiary corporations,
or between corporations which are owned by the same shareholders in identical
percentage of stock ownership amounts, computed on a share-by-share basis, when
a tax imposed by this chapter was paid by the transferor corporation at the
time it acquired such assets, except to the extent provided by Section 3.01.140(A).
For the purposes of this paragraph, a closely held subsidiary corporation is
one in which the parent corporation owns stock possession at least eighty percent
of the total combined voting power of all classes of stock entitled to vote
and owns at least eighty percent of the total number of shares of all other
classes of stock.
"Sales tax" means the tax to be collected and remitted by a retailer
on sales taxed under this chapter.
"School" means an educational institution having a curriculum comparable
to grade, grammar, junior high, high school, or college, or any combination
thereof, requiring daily attendance and charging a tuition fee.
"Security system services" means electronic security system services.
Such term does not include non-electronic security services such as consulting
or human or guard dog patrol services.
"Sound system services" means sound system services involving provision
of broadcast or pre-recorded audio programming to a building or 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.
"State" means the State of Colorado.
"Storage" or "storing" means any keeping or retention of,
or exercise of dominion or control over, tangible personal property in the city.
"Tangible personal property" means corporeal personal property.
"Tax" means the use tax due from a consumer or the sales tax due from
a retailer or the sum of both due from a retailer who also consumes.
"Taxable sales" means gross sales less any exemptions and deductions
specified in this chapter.
"Taxable services" means services subject to tax pursuant to Section
3.01.120 of this chapter.
"Tax deficiency" means any amount of tax that is not reported or not
paid on or before the due date.
"Taxpayer" means any person obligated to collect and/or pay tax under
the terms of this chapter.
"Telecommunications service" means the transmission of any two-way
interactive electromagnetic communications including but not limited to voice,
image, data and any other information, by the use of any means but not limited
to wire, cable, fiber optical cable, microwave, radio wave or any combinations
of such media. "Telecommunications service" includes but is not limited
to basic local exchange telephone service, toll telephone service and teletypewriter
service, including but not limited to residential and business service, directory
assistance, cellular mobile telephone or telecommunication service, specialized
mobile radio and two-way pagers and paging service, including any form of mobile
two-way communication. "Telecommunications services" does not include
separately stated nontransmission services which constitute computer processing
applications used to act on the information to be transmitted.
"Use tax" means the tax paid or required to be paid by a consumer
for using, storing, distributing or otherwise consuming tangible personal property
or taxable services inside the city.
"Wholesaler" means any person selling to retailers, jobbers, dealers,
or other wholesalers, for resale, and not for storage, use, consumption, or
distribution.
"Wholesale sale" means a sale by wholesalers to retail merchants,
jobbers, dealers, or other wholesalers for resale and does not include a sale
by wholesalers to users or consumers not for resale; the latter types of sales
shall be deemed to be retail sales and shall be subject to the provisions of
this chapter. (Ord. O-2008-27 § 1, 2008; Ord. O-2003-4 § 1, 2003; Ord. O-93-26 § 1 & 3,
1993; Ord. O-91-61 § 1 & 39, 71, 72, 1991; Ord. O-86-104 § 1 &
4, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.030 Confidential nature of returns.
A. Except in accordance with judicial order or as otherwise provided herein,
the City Manager, the Finance Director, and their agents, clerks and employees
shall not divulge any information gained from any return filed under the provisions
of this chapter.
B. The city officials charged with the custody of returns filed pursuant to
this chapter shall not be required to produce such returns or evidence of any
matters contained therein in any action or proceeding in any court, except on
behalf of the Finance Director in an action under the provisions of this chapter
to which the Finance Director is a party, or on behalf of any party to an action
or proceeding under the provisions of this chapter or to punish a violator thereof
or pursuant to any judicial order in which event the court may require the production
of and may admit in evidence so much of such returns or of the facts shown thereby
as are pertinent to the action or proceeding and no more.
C. No provision of this section shall be construed to prohibit the delivery
to a taxpayer or to his duly authorized representative of a copy of any return
or report filed in connection with his tax, nor to prohibit the publication
of statistics so classified as to prevent the identification of particular reports
or returns and the information contained therein, nor to prohibit the inspection
of the City Attorney or any other legal representative of the city of the report
or return of any taxpayer who shall bring an action to set aside or review the
tax based thereon or against whom an action or proceeding is contemplated or
has been instituted under this chapter.
D. The provisions of this section shall not preclude the City Manager, the Finance
Director, and their agents, clerks and employees from divulging any information
gained from any return or audit to the federal government, the State, the Department
of Revenue, the city or any other municipality, the City Attorney, the City
Manager, or the Finance Director, nor shall the City Manager, the Finance Director,
and their agents, clerks, or employees be liable to any person, firm or corporation
for such disclosure made for the purpose of computing or collecting the tax
due and owing from any person, firm or corporation, or for the purpose of verifying
compliance with this chapter or for the purpose of investigating any criminal
or illegal activity.
E. Any city officer or employee, or any agent thereof, who shall divulge any
information classified by this chapter as confidential in any manner except
in accordance with proper judicial order or as otherwise provided herein or
by other law shall be guilty of a violation of this chapter and shall be punished
in the manner provided by state law. (Ord. O-86-104 § 5, 1986; Ord. O-85-137
§ 1 (part), 1985).
3.01.040 Tax cannot be absorbed.
It is unlawful for any retailer to advertise or hold out or state to the public
or to any customer, directly or indirectly, that the tax or any part thereof
imposed by this chapter shall be assumed or absorbed by the retailer or that
it shall not be added to the selling price of the property sold or the services
tendered, or, if added, that it or any part thereof shall be refunded. (Ord.
O-85-137 § 1 (part), 1985).
3.01.050 Excess tax-Remittance.
If any vendor, during any reporting period, collects as a tax an amount in excess of three percent of his total taxable sales, then he shall remit to the Finance Director the full net amount of the tax imposed in this chapter and also such excess amount. The retention by the retailer or vendor of any excess amount of tax collections over the three percent of the total taxable sales of such retailer or vendor or the intentional failure to remit punctually to the Finance Director the full amount required to be remitted by the provisions of this chapter is declared to be a violation of this chapter and shall be recovered, together with interest, penalties and costs, as provided in Section 3.01.260. (Ord. O-2005-26 § 3,4 2005; Ord. O-85-137 § 1 (part), 1985).
3.01.060 License and tax additional.
The license and tax imposed by this chapter shall be in addition to all other
licenses and taxes imposed by law, except as otherwise provided in this chapter.
(Ord. O-85-137 § 1 (part), 1985).
3.01.065 Duty to keep records.
It is the duty of every taxpayer to keep and preserve suitable records and such
other books or accounts as may be necessary to determine the amount of tax for
the collection of which he is liable under this chapter. It is the duty of every
such taxpayer to keep and preserve for a period of three years all invoices
of goods and merchandise purchased. All such books, invoices, and other records
shall be open for examination and audit at any time by the Finance Director
or his duly authorized agent. The taxpayer shall produce all such records, if
required by the Finance Director, at the Lakewood Municipal Center, 480 S. Allison
Parkway, Lakewood, Colorado 80226-3127. Taxpayers licensed with the city under
this chapter, and holding a similar sales tax license in at least four other
Colorado municipalities that administer their own sales tax collection, may
request a coordinated audit as provided for in the city sales and use tax rules
and regulations in this section. (Ord. O-93-26 § 4, 1993; Ord. O-91-61
§ 40, 1991; Ord. O-86-104 § 6, 1986).
3.01.070 Administration.
The City Council shall adopt rules and regulations in conformity with this chapter
for the proper administration and enforcement of this chapter. The administration
of this chapter is vested in and shall be exercised by the City Manager. The
Finance Director shall assist the City Manager in the administration of this
chapter to the extent provided herein and in the rules and regulations promulgated
hereunder. (Ord. O-85-137 § 1 (part), 1985).
3.01.075 Notice of sales and use tax ordinance amendment.
A. In order to initiate a central register local sales tax collection, the Finance
Director of the city shall file with the Colorado Municipal League prior to
the effective date of this section a copy of the city sales and use tax ordinance
reflecting all provisions in effect on the effective date of this section.
B. In order to keep current the central register of sales and use tax ordinances
for municipalities that administer local sales tax collection, the Finance Director
of the city shall file with the Colorado Municipal League prior to the effective
date of any amendment a copy of each sales and use tax ordinance amendment enacted
by the city.
C. Failure of the city to file such ordinance or ordinance amendment pursuant
to this section shall not invalidate any provision of the sales and use tax
ordinance or any amendment thereto. (Ord. O-91-61 § 41, 1991).
3.01.076 Participation in simplification meetings.
The Finance Director shall cooperate with and participate on an as needed basis
with a permanent statewide sales and use tax committee convened by the Colorado
Municipal League, which is composed of state and municipal sales and use tax
officials and business officials. Said committee will meet for the purpose of
discussing and seeking resolution to sales and use tax problems which may arise.
(Ord. O-91-61 § 42, 1991).
3.01.080 Receipts-Disposition.
The moneys received by the Finance Director from the tax imposed and collected
pursuant to this chapter shall be deposited in the general fund of the city.
One-half cent of every dollar of such moneys shall be applied as follows:
A. To the next maturing payment of the principal of, premium, if any, and interest
on the city's outstanding general obligation bonds; and
B. To the extent currently available after application to such purpose, to defray
directly the cost of capital improvements of the city and the operation and
maintenance of such capital improvements. (Ord. O-85-137 § 1 (part), 1985).
3.01.085 Economic Development Assistance.
A. Upon application to the City Manager, the City Manager may refund an amount
not to exceed seventy-five percent (75%) of the sales and use tax actually paid
to the City by the applicant in the construction or renovation of one or more
buildings within the City, pursuant to Section 3.01.220, if such refund, based
on findings by the City Manager, will further the economic goals of the City
as set forth in Section 3.26.010 of the Lakewood Municipal Code. Said findings
shall be made in writing.
B. Upon application to the City Manager, the City Manager may refund an amount
not to exceed thirty percent (30%) of the use tax on tangible personal property
actually paid to the City by the applicant for a period not to exceed six (6)
years, pursuant to Section 3.01.220, if such refund, based on findings by the
City Manager, will further the economic goals of the City as set forth in Section
3.26.010 of the Lakewood Municipal Code. Said findings shall be made in writing.
(Ord. O-98-33 § 1, 1998).
3.01.090 Applicability to banks.
The provisions of this chapter shall apply to national banking associations
and to banks organized and chartered under state law. (Ord. O-85-137 §
1 (part), 1985).
3.01.100 Statute of limitations.
The taxes for any period, together with interest thereon and penalties with
respect thereto, imposed by this chapter shall not be assessed, nor shall any
notice of lien be filed, or distraint warrant issued, or suit for collection
be instituted, nor any other action to collect the same be commenced, more than
three years after the date on which the tax was or is payable, nor shall any
lien continue after such period, except for taxes assessed before the expiration
of such period, notice of lien with respect to which has been filed prior to
the expiration of such period, in which cases such lien shall continue only
for one year after the filing of notice thereof. The statute of limitations
period as set forth hereinabove in this section shall not apply if: (i) a taxpayer
files a false or fraudulent return with the intent to evade the tax imposed
by this chapter; or (ii) if a taxpayer fails to file a return as required by
Section 3.01.130. In the case of a false or fraudulent return with the intent
to evade the tax imposed by this chapter, the tax, together with interest and
penalties thereon, may be assessed, or proceedings for the collection of such
taxes may be begun at any time. In the case of failure to file a return, the
tax, together with interest and penalties thereon, may be assessed and collected
at any time. Before the expiration of such period of limitation, the taxpayer
and the Finance Director may agree in writing to an extension thereof, and the
period so agreed on may be extended by subsequent agreements in writing. (Ord.
O-86-104 § 7, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.110 Licenses-Fees-Revocation.
A. 1. A sales tax license shall be required for any person to engage in the
business of selling at retail in the city tangible personal property or services
that are taxable hereunder which are purchased in the city and are subject to
sales tax pursuant to this chapter. A use tax license may be required for tangible
personal property that is stored, used or consumed in the city and is subject
to use tax pursuant to this chapter. Such sales and use tax licenses shall be
granted and issued by the Finance Director and shall be in force and effect
until the earlier of: (i) revocation of such license; or (ii) sale or termination
of the business, if any, relating to such license. Such licenses shall be granted
only upon application stating the name and address of the person desiring such
license, the name of such business, if any, and the location, including the
street number of such business, if any, and such other facts as the Finance
Director may require. No license issued pursuant to this section shall be transferable.
2. For each sales tax license application submitted, a fee of fifteen dollars
shall accompany such application, which fee is nonrefundable. For each use tax
license application submitted, no fee shall accompany such application.
B. In case business is transacted at two or more separate places by one person,
a separate license for each place of business shall be required.
C. Each license shall be numbered and shall show the name of the licensee and
the place of business of the licensee and shall be posted in a conspicuous place
at the place of business for which it is issued. If the licensee does not have
a place of business, then the license shall show the mailing address of such
licensee.
D. The Finance Director, after reasonable notice and a full hearing, may revoke
the license of any person found by him to have violated any provision of this
chapter.
E. Any finding and order of the Finance Director revoking the license of any
person shall be subject to review by the District Court upon application of
the aggrieved party. The procedure for review shall be, as nearly as possible,
the same as provided for the review of findings as provided by proceedings in
the nature of certiorari.
F. No license shall be required for any person engaged exclusively in the business
of selling commodities which are exempt from taxation under this chapter. (Ord.
O-86-104 § 8, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.120 Property and services taxed.
There is levied, and there shall be collected and paid a sales tax in the amount
stated in Section 3.01.140 as follows:
A. On the purchase price paid or charged upon all sales and purchases of tangible
personal property at retail;
B. In the case of retail sales involving the exchange of property, on the purchase
price paid or charged, including the fair market value of the property exchanged
at the time and place of the exchange, excluding, however, from the consideration
of the purchase price, the fair market value of the exchanged property, provided
that such exchanged property is to be sold thereafter in the usual course of
the retailer's business;
C. 1. Upon telecommunication services, including access services sold by local
telephone exchange companies to providers of telecommunication services for
use in providing such services, whether furnished by public or private corporations
or enterprises, for all intrastate telecommunication services originating from
or received on telecommunication equipment in the city if the charge for the
service is billed to a person in the city or billed to an affiliate or division
of such person in the city on behalf of a person in the city.
a. Mobile Telecommunications. On or after August 1, 2002, mobile telecommunications
service shall be subject to the tax imposed by this Section only if the service
is provided to a customer whose place of primary use is within the City and
the service originates and terminates within the City. (Reference 4 U.S.C. Sections.
116 to 126)
2. Upon access services sold by local telephone exchange companies to providers
of telecommunication services for use in providing such services, whether furnished
by public or private corporations or enterprises for all interstate telecommunication
services originating from or received on telecommunication equipment in the
city if the charge for the service is billed to a person in the city, or billed
to an affiliate or division of such person in the city on behalf of a person
in the city;
D. 1. For gas and electric service, whether furnished by municipal, public,
or private corporations or enterprises, for gas and electricity furnished and
sold for commercial consumption and not for resale, upon steam when consumed
or used by the purchaser and not resold in original form whether furnished or
sold by municipal, public, or private corporations or enterprises,
2. All sales and purchases of electricity, coal, wood, gas, fuel oil, or coke
sold, but not for resale, to occupants of residences, whether owned, leased,
or rented by said occupants, for the purpose of operating residential fixtures
and appliances which provide light, heat, and power for such residences. For
the purposes of this subdivision (2), "gas" includes natural, manufactured
and liquefied petroleum gas;
E. 1. Upon all sales of food, prepared food, or food for immediate consumption,
2. Except as provided in Section 3.01.180(32) and (34), of this chapter, upon
the amount paid for food and drink serviced or furnished in or by restaurants,
cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs,
cabarets, resorts, snack bars, caterers, 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;
F. On the entire amount charged to any person for rooms or accommodations, or
lodging services as defined in Section 3.01.020 of this chapter;
G. On the purchase price paid or charged for pay television services sold, purchased,
leased, rented, furnished or used;
H. If the owner of an automotive vehicle for which registration, licensing or
titling is required by the state pursuant to Section 40-6-137(2) of the Colorado
Revised Statutes is required to register, license or obtain a certificate of
title for such automotive vehicle at an address located within the city, then
on the purchase price paid or charged for such automotive vehicle;
I. When the right to possession or use of any tangible personal property is
granted under a lease or contract, and such transfer of possession would be
taxable under this chapter if an outright sale were made, then such lease or
contract shall be considered the sale of such article, and the tax shall be
computed and imposed on each individual lease or contract payment as they occur
as though an outright sale taxable under this chapter were occurring upon each
payment. When the right to possession or use of any tangible personal property
is granted under a lease or contract where the lessor or contracting party is
located outside the city, and such tangible personal property is not delivered
within the city by the lessor or contracting party but is picked up by the lessee
or other contracting party and used within the city for a period exceeding thirty
days, and such transfer of possession would be taxable under this chapter if
an outright sale were made by a lessor or contracting party located within the
city, then such lease or contract shall be taxed as follows: (i) a sales tax
shall be imposed on the first thirty days of such lease or contract and shall
be payable to the taxing jurisdiction, through the lessor or contracting party,
in which such lessor or contracting party is located; and (ii) a sales tax shall
be imposed on the remaining term of such lease or contract and shall be payable
to the city through the lessor or contracting party. Such sales tax shall be
computed and imposed on each individual lease or contract payment as they occur
as though an outright sale taxable under this chapter were occurring upon each
payment. The payment of the sales tax shall be made to the lessor or contracting
party by the lessee or other contracting party. Except as hereinabove otherwise
provided, the lessor, as trustee, shall make payment of any sales tax obligation
to the city in the manner provided by Section 3.01.130;
J. On the entire amount paid or charged for security system and sound system
services, whether purchased or leased;
K. On the entire amount paid or charged for linen services;
L. On the entire amount paid or charged for warranty and maintenance services
relating to tangible personal property, whether included in the cost of the
tangible personal property relating thereto or sold separately;
M. On the entire amount paid or charged for modified or customized computer
program services;
N. On the price paid to gain admission or access to a performance of a motion
picture or to an establishment which is licensed to serve malt, vinous or spirituous
liquors in the city which is open to the public upon payment of a charge or
fee. (Ord. O-2003-4 § 2, 2003; Ord. O-91-61 § 43, 46, & 73, 1991;
Ord. O-86-104 § 9 & 11, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.130 Collection of sales tax.
A.Every retailer, also called "vendor" in this chapter, shall, irrespective of the provisions of Section 3.01.140, be liable and responsible for the payment of an amount equal to three percent of all sales made by him of commodities or services as specified in Section 3.01.120 and shall before the twentieth day of each month make a return to the Finance Director for the preceding calendar month and remit an amount equal to said three percent on such sales to said Finance Director. Such returns of the taxpayer or his duly authorized agent shall be furnished by the Finance Department. The city shall use the standard municipal sales and use tax reporting form and any subsequent revisions thereto adopted by the executive director of the Department of Revenue by the first full month commencing one hundred twenty days after the effective date of the regulation adopting or revising such standard form.
B. If the accounting methods regularly employed by the vendor in the transaction
of his business or other conditions are such that returns of sales made on a
calendar month basis shall impose unnecessary hardship, the Finance Director,
upon written request of the vendor, may accept returns at such intervals as
shall, in his opinion, better suit the convenience of the taxpayer and shall
not jeopardize the collection of the tax. The Finance Director may permit taxpayers
whose monthly collected tax is less than three hundred dollars to make returns
and pay taxes at intervals not greater than every three months.
C. The Finance Director may extend the date for making a return and paying the
taxes due under such reasonable rules and regulations as may be prescribed therefor,
but no such extension shall be for a greater period than as provided in subsection
(B) of this section.
D. The burden of proving that any retailer is exempt from collecting the tax
on any goods or services sold and paying the same to the Finance Director, or
from making such returns, shall be on the retailer or vendor under such reasonable
requirements of proof as set forth in the rules and regulations prescribed therefor.
E. If a dispute arises between the purchaser and seller as to whether or not
any sale, service, or commodity is exempt from taxation under Section 3.01.180,
nevertheless the seller shall collect, and the purchaser shall pay the tax,
and the seller shall thereupon issue to the purchaser a receipt or certification,
on forms furnished by the Finance Department, showing the names of the seller
and the purchaser, the items purchased, the date, price, amount of tax paid,
and a brief statement of the claim of exemption. The purchaser thereafter may
apply to the Finance Director for a refund of such taxes, and it is then the
duty of the Finance Director to determine the question of exemption. The purchaser
may request a hearing pursuant to Section 3.01.330(A), and the final determination
of the Finance Director may either be appealed to the District Court pursuant
to Section 3.01.340 or the Department of Revenue pursuant to Section 3.01.350.
F. The city's sales tax shall not apply to the sale of tangible personal property
at retail or the furnishing of services if the transaction was previously subject
to a sales or use tax lawfully imposed on the purchaser or user by another statutory
or home rule municipality equal to or in excess of the sales tax required to
be paid pursuant to Section 3.01.140. A credit shall be granted against the
city's sales tax with respect to such transaction equal in amount to the lawfully
imposed local sales or use tax previously paid by the purchaser or user to the
previous statutory or home rule municipality. The amount of the credit shall
not exceed the amount of the sales tax required to be paid pursuant to Section
3.01.140. (Ord. O-2005-26 § 3,4 2005; Ord. O-96-46 § 1, 1996; Ord. O-86-104 § 12, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.140 Sales tax base-Schedule of sales tax.
A. Except as otherwise provided in this subsection, the sales tax is imposed
on the full purchase price of articles sold after manufacture or after having
been made to order and includes the full purchase price for material used and
the service performed in connection therewith, excluding, however, such articles
as are otherwise exempted in this chapter. In connection with the transaction
referred to in subdivision (11) under the definition for "`sale' or `sale
and purchase' excludes," in Section 3.01.020, the sales tax is imposed
only on the amount of any increase in the fair market value of such assets resulting
from the manufacturing, fabricating, or physical changing of the assets by the
transferor corporation. Except as otherwise provided in this subsection, the
sales price is the gross value of all materials, labor, and service, and the
profit thereon, included in the price charged to the user or consumer.
B. There is imposed upon all sales of commodities and services specified in Section 3.01.120, except “food” as defined in Section 3.01.020, a tax at the rate of two percent of the amount of the sale, to be computed in accordance with the schedules or systems set forth in the rules and regulations prescribed therefore. Said schedules or systems shall be designed so that no such tax is charged on any sale of twenty-four cents or less.
C. 1. Except as provided in subsection (C)(2) of this section, retailers shall add the tax imposed, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added, such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts. The retailer shall be entitled, as collecting agent of the city, to apply and credit the amount of his collections against the three percent rate to be paid by him under the provisions of Section 3.01.130, remitting any excess of collection over said three percent to the Finance Director in the retailer's next monthly sales tax return.
2. Any retailer selling malt, vinous, or spirituous liquors by the drink may
include in his sales price the tax levied under this chapter, except that no
retailer shall advertise or hold out to the public in any manner, directly or
indirectly, that such tax is not included as part of the sales price to the
consumer. The schedule referred to in subsection (B) of this section shall be
used by such retailer in determining amounts to be included in such sales price.
No such retailer shall gain any benefit from the collection or payment of such
tax, except as permitted in Section 3.01.130(A), nor shall the use of the schedule
referred to in subsection (B) of this section relieve such retailer from liability
for payment of the full amount of the tax imposed pursuant to Section 3.01.120.
D. There is imposed upon all sales of commodities and services specified in Section 3.01.120, except food, as defined in Lakewood Municipal Code section 3.01.020, a tax, in addition to that tax imposed in section 3.01.140 B, at the rate of one percent of the amount of the sale, to be computed in accordance with the schedules or systems set forth in the rules and regulations prescribed therefor. Said schedules or systems shall be designed so that no such tax is charged on any sale of twenty-four cents or less. At least fifty percent (50%) of said one percent tax shall be utilized for public safety purposes, maintenance and construction of streets, and parks and recreation purposes and the balance of the additional one percent tax to be used to maintain City services and emergency fund balance. Section 3.01.080 of the Lakewood Municipal Code shall not apply to said one percent tax increase. (Ord. O-2008-11 § 1, 2008; Ord. O-2005-26 § 3, 2005; Ord. O-96-46 § 2, 1996; Ord. O-85-137 § 1 (part), 1985).
3.01.150 Retailer-Multiple locations.
A retailer doing business in two or more places or locations may file a single
return covering all such business activities engaged within the city. (Ord.
O-85-137 § 1 (part), 1985).
3.01.160 Credit sales.
A. In the case of a sale upon credit, or a contract for sale where the price
is paid in installments, and title does not pass until a future date, or a sale
secured by a chattel mortgage or a conditional sale, there shall be paid upon
each payment that portion of the total tax which the amount paid bears in relation
to the total purchase price.
B. If a retailer transfers, sells, assigns, or otherwise disposes of an account
receivable, then he shall be deemed to have received the full balance of the
consideration for the original sale and shall be liable for the remittance of
the sales tax on the balance of the total sale price not previously reported,
except that such transfer, sale, assignment, or other disposition of an account
receivable by a retailer to a closely held subsidiary, as defined in subdivision
(11) under the definition for "`sale' or `sale and purchase' excludes,"
in Section 3.01.020, shall not be deemed to require the retailer to pay the
sales tax on the credit sale represented by the account transferred prior to
the time that the customer makes payment on said account. (Ord. O-86-104 §
13, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.170 Bad debt charge-offs.
Taxes paid on gross taxable sales represented by accounts found to be worthless
and actually charged off for income tax purposes may be credited upon a subsequent
payment of the tax provided in this chapter, but if any such accounts are thereafter
collected by the taxpayer, then a tax shall be paid upon the amounts so collected.
(Ord. O-85-137 § 1 (part), 1985).
3.01.180 Exemptions.
The following goods and services shall be exempt from sales tax under the provisions
of this chapter:
1. All sales to the United States government and to the state, its department
and institutions, and the political subdivisions thereof in their governmental
capacities only;
2. All sales made to charitable organizations in the conduct of their regular
charitable functions and activities;
3. All sales which the city is prohibited from taking under the constitution
or laws of the United States, the state, or the city's Charter;
4. All sales of cigarettes;
5. All sales of medical supplies;
6. All sales of prescription drugs and prosthetic devices for humans and animals;
7. All sales and purchases of commodities and services under the provisions
of the definition for "rooms or accommodations" or "lodging services"
in Section 3.01.020 to any occupant who is a permanent resident of any hotel,
inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel,
guesthouse, guest ranch, trailer court, mobile home, auto camp, or trailer court
or park, and who enters into or has entered into a written agreement for occupancy
of a room or accommodations or lodging services of a period of at least thirty
consecutive days during the calendar year or preceding year;
8. All sales made to schools, other than schools held or conducted for private
or corporate profit;
9. Any sale of a new or used trailer, semi-trailer, truck, truck-tractor or
truck body manufactured within the city if such vehicle is purchased from the
manufacturer for use exclusively outside the city or in interstate commerce
and is delivered by the manufacturer to the purchaser within the city, if the
purchaser drives or moves such vehicle to any point outside the city within
thirty days after the date of delivery, and if the purchaser furnishes an affidavit
to the manufacturer that such vehicle shall be permanently licensed and registered
outside the city and shall be removed from the city within thirty days after
the date of delivery;
10. Any sale of a new or used trailer, semi-trailer, truck, truck-tractor or
truck body if such vehicle is purchased for use exclusively outside the city
or in interstate commerce and is delivered by the manufacturer or licensed dealer
to the purchaser within the city, if the purchaser drives or moves such vehicle
to any point outside the city within thirty days after the date of delivery,
and if the purchaser furnishes an affidavit to the seller that such vehicle
shall be permanently licensed and registered outside the city and shall be removed
from the city within thirty days after the date of delivery;
11. All sales of construction materials to a common carrier by rail operating
in interstate or foreign commerce for use by such common carrier in construction
and maintenance of its railroad tracks;
12. All sales of construction materials, if such materials are picked up by
the purchaser, and if the purchaser of such materials presents to the retailer
a building permit or other documentation acceptable to the city evidencing that
a local use tax has been paid or is required to be paid;
13. The transfer of tangible personal property without consideration (other
than the purchase, sale, or promotion of the transferor's product) to a vendee
located outside the city for use outside the city in selling products normally
sold at wholesale by the transferor;
14. The sale of tangible personal property for testing, modification, inspection,
or similar type of activities in the city if the ultimate use of such property
in manufacturing or similar type of activities occurs outside the city, and
if the test, modification, or inspection period does not exceed ninety days;
15. All commodities which are taxed under the provisions of Article 27, Title
39 of the Colorado Revised Statutes, and all commodities which are taxed under
such provisions and for which the tax is refunded, and the sale of special fuel,
as defined in Section 39-27-201(8) of the Colorado Revised Statutes, used for
the operation of farm vehicles when such vehicles are being used on farms and
ranches;
16. Any sale of any article to a retailer or vendor of food, meals, or beverages,
which article is to be furnished to a consumer or user, together with the food,
meals, or beverages purchased, and if a tax is paid on the retail sale as required
by Section 3.01.120(A) or (E);
17. Any sale of any container or bag to a retailer or vendor of food, meals,
or beverages which container or bag is to be furnished to a consumer or user
for the purpose of packaging or bagging articles of tangible personal property
purchased at retail, if a separate charge is not made for the container or bag
to the consumer or user, if such container or bag becomes the property of the
consumer or user, together with the food, meals, or beverages purchased, and
if a tax is paid on the retail sale as required by Section 3.01.120(l) or (5);
18. All transactions specified in Section 3.01.120(B) in which the fair market
value of the exchanged property is excluded from the consideration or purchase
price as provided in Section 3.01.120(B), and in which, because there is no
additional consideration involved in the transaction, there is no purchase price
within the meaning of the definition for "price" or "purchase
price" as found in Section 3.01.020;
19. a. All sales of construction materials to contractors and subcontractors
for use in the building, erection, alteration, or repair of structures, highways,
roads, streets, and other public works owned or used by:
i. The United States Government, the state, its departments and institutions,
and the political subdivisions thereof in their governmental capacities only,
ii. Charitable organizations in the conduct of their regular charitable functions
and activities, or
iii. Schools, other than schools held or conducted for private or corporate
profit.
b. On application by a purchaser or seller, the Finance Director shall issue
to a contractor or subcontractor a certificate or certificates of exemption
indicating that the contractor's or subcontractor's purchase of construction
materials is for a purpose stated in paragraph (a) of this subsection and is,
therefore, free from sales tax. The Finance Director shall provide forms for
such application and for such certificate and shall have the authority to verify
that the contractor or subcontractor is, in fact, entitled to the issuance of
such certificate prior to such issuance;
20. All sales of aircraft used or purchased for use in interstate commerce by
a commercial airline;
21. a. Sales to and purchases of tangible personal property by a person engaged
in the business of manufacturing, compounding for sale, profit or use, any article,
substance, or commodity, which tangible personal property enters into the processing
of or becomes an ingredient or component part of the product or service which
is manufactured, compounded, or furnished, and commercial packaging materials
thereof, shall be deemed to be wholesale sales and shall be exempt from taxation
under this chapter.
b. As used in paragraph (a) of this subsection with regard to food products,
tangible personal property enters into the processing of such products, and,
therefore, is exempt from taxation when:
i. It is intended that such property become an integral or constituent part
of a food product which is intended to be sold ultimately at retail for human
consumption, or
ii. Such property, whether or not it becomes an integral or constituent part
of a food product, is a chemical, solvent, agent, mold skin casing, or other
material, issued for the purpose of producing or inducing a chemical or physical
change in a food product or is used for the purpose of placing a food product
in a more marketable condition and is directly utilized and consumed, dissipated,
or destroyed, to the extent it is rendered unfit for further use, in the processing
of a food product which is intended to be sold ultimately at retail for human
consumption;
22. All sales and purchases of electricity, coal, gas, fuel oil, coke, or nuclear
fuel, for use in mining, refining, irrigation, construction, telecommunication
services and street and railroad transportation services;
23. All sales and purchases of cattle, sheep, lambs, poultry, swine, and goats,
all sales and purchases of mares and stallions for breeding purposes, all sales
and purchases of live fish for stocking purposes, and all farm close-out sales;
24. All sales and purchases of feed for livestock, including horses, or poultry,
all sales and purchases of seeds, and all sales and purchases of orchard trees;
25. a. Every vendor vending individual items or personal property through coin-operated vending machines, and who otherwise complies with the provisions of this subsection, shall be exempt from the provisions of Sections 3.01.130 and 3.01.140, except as hereinafter provided, but nevertheless such vendor shall pay a sales tax of three percent on the personal property sold in excess of thirty cents so vended in the coin-operated machines unless the sale is otherwise exempt under the provisions of this chapter.
b. To be eligible for the exemption provided for in this subsection, each vendor
shall:
i. Be licensed under Section 3.01.110,
ii. Maintain a record of the identification number, ownership, location, and
disposition of every coin-operated vending machine used by him in his operation
as a vendor, and
iii. Within sixty days after commencing business as such vendor, submit to the
Finance Department an accurate list containing the information required under
subparagraph (ii) of this paragraph and submit such list annually thereafter
on January 1, commencing in 1986;
26. All sales and purchases of straw and other bedding for use in the care of
livestock or poultry;
27. Forty-eight percent of the purchase price of factory-built housing, as such
housing is defined in Section 24-32-703(3) of the Colorado Revised Statutes,
shall be exempt from taxation under this chapter, except that the entire purchase
price in any subsequent sale of a mobile home, as such vehicle is defined in
Section 42-1-102(82)(b) of the Colorado Revised Statutes, after such mobile
home has been subject to the payment of sales tax by virtue of Section 3.01.120(H),
shall be exempt from taxation under this chapter;
28. The purchase price of electric-powered automotive vehicles, including both
the original and all subsequent purchases of such vehicles, and the purchase
of batteries and controls required for the operation and maintenance of such
vehicles;
29. In any case in which a sales tax has been imposed under this chapter on
lubricating oil used other than in automotive vehicles, the purchase thereof
shall be entitled to a refund equal to the amount of the sales tax paid on that
portion of the sale price thereof which is attributable to the federal excise
tax imposed on the sale of such lubricating oil. The refund allowed under this
subsection shall be paid by the Finance Director upon receiving evidence that
the purchaser has received under Section 6425 of the Internal Revenue Code of
1954, as amended, a refund of the federal excise tax paid on the sale of such
lubricating oil. The claim for a refund shall be made upon forms furnished by
the Finance Department;
30. All sales and purchases of refractory materials and carbon electrodes used
by a person manufacturing iron and steel for sale or profit and all sales and
purchases of inorganic chemicals used in the processing of vanadium-uranium
ores;
31. All sales and purchases of newsprint and printer's ink for use by publishers
of newspapers and commercial printers and all sales and purchases of newspapers;
32. Meals provided to employees of the places described in Section 3.01.120(E)(2)
at no charge or at a reduced charge and which are considered as part of their
salary, wages or income;
33. All sales of tangible personal property purchased or sold within the city
if delivered outside the city to the purchaser;
34. All sales and purchases of food, as specified in 7 U.S.C. Section 2012(g),
as such section existed on October 1, 1987, or is thereafter amended, which
is purchased with food stamps pursuant to the federal food stamp program, or
sales and purchases of food, as specified in 42 U.S.C. Section 1786, as such
section existed on October 1, 1987, or is thereafter amended, which is purchased
with WIC vouchers or checks pursuant to the federal special supplemental program
for women, infants, and children.
35. In accordance with the Mobile Telecommunications Sourcing Act, 4 U.S.C.
Sections 116 to 126, as amended, on or after August 1, 2002, mobile telecommunications
service provided to a customer whose place of primary use is outside the boundaries
of the City.
36. All sales made to, billed directly to, and paid for directly by, a qualified hospital organization as defined in Section 3.01.020, provided that the property or service purchased by the qualified hospital organization is employed in furtherance of an exempt function, excepting sales tax on the purchase of construction materials used by contractors who perform contracts for the qualified hospital organization. The foregoing exception shall apply notwithstanding any other exemption granted to the qualified hospital organization pursuant to this Chapter. As used in this Section, “employed in furtherance of an exempt function” means employed by a qualified hospital organization in an activity from which none of the proceeds are treated as unrelated business income. As used in this Section, "unrelated business income" means gross income derived from any unrelated trade or business within the meaning of section 512 of the United States Internal Revenue Code of 1986, as amended.
If the purchase and sale of any property or service would be exempt under this section but for the fact that the property or service is employed in an activity from which a portion of the proceeds is treated as unrelated business income, the director of finance is authorized to approve written formulas or methodologies (including formulas or methodologies of individual qualified hospital organizations) as may be appropriate and reasonable to determine, based on the evidence available, the percentage of the proceeds from such activity that is not treated as unrelated business income. This calculated percentage shall be the percentage of the cost of such property or service that will be exempt under this section. The director of finance may condition approval of formulas and methodologies on receipt of such information as is reasonably deemed necessary for proper implementation of such formulas and methodologies. (Ord. O-2008-27 § 2, 2008; Ord. O-2003-4 § 3, 2003;Ord. O-96-46 § 1, 1996, Ord. O-93-26 § 5, 1993; Ord. O-91-61 § 47, 57, & 74, 1991; Ord. O-86-104 § 14 &15, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.200 Map or location guide of city boundaries.
The Finance Department shall make available to any requesting vendor a map or
location guide showing the boundaries of the city. The requesting vendor may
rely on such map or location guide and any update thereof available to such
vendor in determining whether to collect a sales or use tax or both. No penalty
shall be imposed or action for deficiency maintained against a vendor who in
good faith complies with the most recent map or location guide available to
such vendor. (Ord. O-93-26 § 6, 1993; Ord. O-85-137 § 1 (part), 1985).
3.01.205 Electronic Database.
A. Any retailer that collects and remits sales tax to the Finance Director as provided in this Section may use an electronic database of state addresses that is certified by the state department of revenue pursuant to § 39-26-105.3, C.R.S., to determine the jurisdictions to which tax is owed.
B. Any retailer that uses the data contained in an electronic database certified by the state department of revenue pursuant to § 39-26-105.3, C.R.S., to determine the jurisdictions to which tax is owed shall be held harmless for any tax, penalty, or interest owed the city that otherwise would be due solely as a result of an error in the electronic database, provided that the retailer demonstrate that it used the most current information available in such electronic database on the date that the sale occurred. Each retailer shall keep and preserve such records as prescribed by the manager of revenue to demonstrate that it used the most current information available in the electronic database on the date that the sale occurred. Notwithstanding the above, if the error in collecting and remitting is a result of a deceptive representation, a false representation, or fraud, the provisions of this section shall not apply.
C. The provisions of this Section shall not apply to use tax. (Ord. O-2008-22 § 1, 2008).
3.01.210 Property and services taxed.
There is imposed and shall be collected from every person in this City a use
tax at the rate of three per cent for the privilege of storing, using, or consuming
in the City any articles of tangible personal property or taxable services purchased
at retail. Such use tax shall be computed in accordance with the schedules or
systems set forth in the rules and regulations prescribed therefor. At least
fifty percent (50%) of the additional one percent tax shall be utilized for
public safety purposes, maintenance and construction of streets, and parks and
recreation purposes and the balance of the additional one percent tax to be
used to maintain City services and emergency fund balance. Section 3.01.080
of the Lakewood Municipal Code shall not apply to said one percent tax increase.
(Ord. O-2005-26 § 4, 2005; Ord. O-91-61 § 75, 1991; Ord. O-86-104
§ 17, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.220 Collection of use tax.
A. 1. Except as otherwise provided in this section, every person who uses, stores,
or consumes tangible personal property or service, which property or service
is purchased either inside or outside the city and is subject to the use tax
imposed pursuant to Section 3.01.210, and who has not paid the sales or use
tax imposed by this chapter to a retailer, shall make a return and remit the
use tax imposed by Section 3.01.210 to the Finance Director for the preceding
period covered by the remittance on forms prescribed by the Finance Director,
showing in detail the tangible personal property or service stored, used or
consumed by such person within the city in the preceding period covered by the
remittance and on which property the sales or use tax has not been paid. Every
person subject to the provisions of Section 3.01.210 shall maintain monthly
records of the amount of use tax due. Such person shall make a return and remit
the use tax due before the twentieth day of the following month.
2. Any such return shall be subscribed by the taxpayer or his authorized agent
and shall contain a written declaration that it is made under the penalties
of perjury.
B. Except as otherwise provided in this section, every retailer doing business
in this city and making sales of tangible personal property for the storage,
use, or consumption in the city which are not exempt from taxation as provided
in Section 3.01.230, shall, at the time of making such sales or taking the orders
therefor, or if the storage, use or consumption of such tangible personal property
is not then taxable under Section 3.01.210, then at the time that such storage,
use, or consumption becomes taxable under Section 3.01.210, collect the tax
imposed by Section 3.01.210 from the purchaser and give the purchaser a receipt
therefor, which receipt shall identify the property taxed, the date that such
property was sold or ordered, and the amount of tax collected and paid. The
tax required to be collected by such retailer from such purchaser shall be displayed
separately from the advertised price listed on the forms or advertising matter
on all sales checks, orders, sales slips, or other proof of sales. The tax required
to be collected by any retailer or his authorized agent shall be remitted to
the city in like manner as otherwise provided in this chapter for the remittance
of sales taxes collected by retailers, and all such retailers or agents collecting
the use tax imposed by Section 3.01.210 shall make returns on forms provided
by the Finance Director at such times and in such manner as is provided for
the making of returns in the payment of the sales tax imposed pursuant to Section
3.01.120. The procedure for assessing and collecting use taxes from such retailers
or agents, or from the use when not paid to a retailer or agent, shall be the
same as provided in this chapter for the collection of sales tax imposed pursuant
to Section 3.01.120.
C. 1. If the owner of an automotive vehicle for which registration, licensing
or titling is required by the state pursuant to Section 42-6-137(2) of the Colorado
Revised Statutes is required to register, license or obtain a certificate of
title for such automotive vehicle at an address located within the city, then
the use tax imposed pursuant to Section 3.01.210 shall be collected by the authorized
agent of the Department of Revenue in the county pursuant to an agreement or
agreements entered into between the city and the authorized agent of the Department
of Revenue in the county. The proceeds of such use tax shall be paid to the
city periodically in accordance with such agreement or agreements. If the authorized
agent of the Department of Revenue in the county fails to collect any use tax
imposed pursuant to Section 3.01.210, then the Finance Director shall collect
such use tax in the manner set forth in Section 3.01.260.
2. The Mayor and the City Clerk are authorized to enter into and execute on
behalf of the city any agreement or agreements necessary for the administration
and enforcement of this section, and the form of such agreement or agreements
shall be approved by the city, the City Attorney and the Finance Director.
D. 1. For construction materials, the use tax imposed pursuant to Section 3.01.210 shall be collected by the Finance Director as hereinafter provided in this subsection and shall be collected in the amount of three percent of the sale value of the construction materials. For purposes of this subsection, fifty percent of the estimated general contract costs and/or fifty percent of the estimated mechanical contract costs shall be deemed to be the sale value of such construction materials.
2. Any person who shall build, construct or improve any building, dwelling or other structure or improvement to realty whatsoever, including underground improvements, within the city, and who shall purchase the necessary lumber, fixtures, materials or any other supplies needed therefor from any source inside or outside the corporate limits of the city shall keep and preserve all invoices and statements from both the general and subcontractors along with a summary sheet showing such purchases. Any failure to preserve such statements and invoices and payment of such use tax shall be deemed a violation of this chapter, and any offending persons shall be subject to the penalties and punishment provided in this chapter. It shall be the duty of the City Building Inspector and the contractors and subcontractors who are hired to construct any such improvement to furnish the Finance Director with such information as he may require as to any purchase of lumber, fixtures, materials and supplies for such improvements which were obtained from sources inside and outside the city. The full amount of any use tax due and not paid for lumber, fixtures, materials and supplies purchased from such inside or outside sources, together with penalties and interest thereon as herein provided, shall be and constitute a lien upon the real property benefited by such improvements, and the Finance Director is authorized to file a notice of such lien with the County Clerk and Recorder.
3. Any person who shall build, construct or improve any building, dwelling or other structure or improvement to realty whatsoever, including underground improvements, within the city, and who shall purchase the necessary lumber, fixtures, material or any other supplies needed therefor from any source either within or without the corporate limits of the city, shall remit a deposit to the city prior to the issuance of any building permit, such deposit to insure and indemnify the city for the amount of use tax due within three years from the date of issuance of the certificate of occupancy for the project or the date of the final inspection of the project by the city. The amount of the deposit shall be based upon an estimate of the use tax to be payable on the lumber, fixtures, materials and supplies needed therefor at the time that the respective building permit is obtained. The estimate of the cost of such lumber, fixtures, materials and supplies for a particular project structure shall be determined by the City Building Official, and this estimate shall be subject to adjustment if the actual cost of such lumber, fixtures, materials or supplies needed for the project is either less than or greater than such estimate. Upon payment of such deposit to the Finance Director, which is computed on the basis of three percent of fifty percent of the estimated general contract costs and/or fifty percent of the estimated mechanical contract costs, the taxpayer shall be issued a receipt identifying the property that is the subject of this deposit and the building permit number. Within three years from the date of issuance of the certificate of occupancy for the project or the date of the final inspection by the city of the project, if it is determined by the city that the actual cost of the lumber, fixtures, materials, and supplies needed for the project is greater than the estimate therefor and that the amount of the use tax deposit is not sufficient to provide for full payment of the use tax, then the additional use tax along with additional fees due must be received by the Finance Director within thirty days of such determination. If it is determined by the city that the deposit is sufficient to pay for the use tax and fees due, then the deposit shall be used to pay the amount of the use tax and fees due, and any excess amount of the deposit shall be returned by mail to the person who made the deposit within thirty days of such determination. If the taxpayer purchases such lumber, fixtures, materials, or supplies from city vendors possessing a valid city retail sales tax license, then he may submit invoices or statements reflecting the purchase therefor and make application to the Finance Director within sixty days directly following the determination by the city of the use tax due, which determination shall be made within three years from the date of issuance of the certificate of occupancy for the project or date of the final inspection by the city of the project, for credit or refund of any amount paid as sales taxes to the city, in which event it shall be the duty of the person making such application to furnish all necessary bills and invoices evidencing the payment of the tax. If the Finance Director is satisfied that there has been such payment, then he shall either credit the account of the taxpayer if the use tax has not been levied or refund the amount if the use tax levy has been paid through such deposit within sixty days after such application shall have been received by the Finance Director. The amount of any use tax due and not paid constitutes a lien upon the real property benefited by the use of such lumber, fixtures, materials, or supplies.
E. The city's use tax shall not apply to the storage, use, or consumption of
any article of 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 the use tax
required to be paid pursuant to Section 3.01.210. 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 the amount of the use tax required
to be paid pursuant to Section 3.01.210. (Ord. O-2011-1 § 1 & 2, 2011; Ord. O-2005-26 §3,4 2005; Ord. O-91-61 § 58, 59, 76 & 78, 1991; Ord. O-86-104 § 18, & 19, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.230 Exemptions.
The use tax imposed pursuant to Section 3.01.210 is declared to be supplementary
to the sales tax imposed pursuant to Section 3.01.120 and shall not apply:
A. To the storage, use, or consumption of any tangible personal property, the
sale of which is subject to the sales tax imposed pursuant to Section 3.01.120;
B. To the storage, use, or consumption of any tangible personal property purchased
for resale in the city, either in its original form or as an ingredient of a
manufactured or compounded product, in the regular course of a business;
C. To the storage, use or consumption of gasoline which is taxed under the provisions
of Part 1, Article 27, Title 39 of the Colorado Revised Statutes and all gasoline
which is taxed under such provisions and for which the tax is refunded, and
to the storage, use or consumption of special fuels, as defined in Section 39-27-201(8)
of the Colorado Revised Statutes, used for the operation of farm vehicles when
the same are being used on farms or ranches;
D. To the storage, use, consumption, or loan of tangible personal property brought
into the city by a nonresident thereof for his own storage, use, or consumption
while temporarily within the city;
E. To the storage, use, consumption, or loan of tangible personal property by
or to the United States government, the state, or its institutions, or its political
subdivisions in their governmental capacities only, or any charitable organizations
in the conduct of its regular charitable functions and activities;
F. 1. To the storage, use, or consumption of tangible personal property by a
person engaged in the business of manufacturing, compounding for sale, profit,
or use, any article, substances, or commodity, which tangible personal property
enters into the processing of or becomes an ingredient or component part of
the product or service which is manufactured, compounded, or furnished, and
the container, label, or the furnished shipping case.
2. As used in subdivision (1) of this subsection with regard to food products,
tangible personal property enters into the processing of such products and,
therefore, is exempt from taxation when:
a. It is intended that such property become an integral or constituent part
of a food product which is intended to be sold ultimately at retail for human
consumption, or
b. Such property, whether or not it becomes an integral or constituent part
of a food product: (A) is a chemical, solvent, agent, mold, skin casing, or
other material; (B) is used for the purpose of producing or inducing a chemical
or physical change in a food product or is used for the purpose of placing a
food product in a more marketable condition; and (C) is directly utilized and
consumed, dissipated, or destroyed, to the extent that it is rendered unfit
for further use, in the processing of a food product which is intended to be
sold ultimately at retail for human consumption;
G. To the storage, use or consumption of electricity, coal, coke, fuel oil,
nuclear fuel, or gas for use in mining, refining, irrigation, building construction,
telecommunication services and street and railroad transportation services;
H. To the storage and use of cattle, sheep, lambs, swine, and goats within the
city, or to the storage and use within the city of mares and stallions kept,
held and used for breeding purposes only;
I. To the storage, use or consumption of newsprint and printer's ink for storage,
use or consumption by publishers of newspapers and commercial printers and to
the storage, use or consumption of newspapers, as such term is defined in Section
24-70-102 of the Colorado Revised Statutes;
J. To the storage, use or consumption of cigarettes;
K. The storage, use, or consumption of tangible personal property acquiring
residency;
L. To the storage or use of an automotive vehicle for which registration, licensing
or titling is required by the state pursuant to Section 42-6-137(2) of the Colorado
Revised Statutes if the owner is or was, at the time of purchase, a nonresident
of the city, and he purchased such automotive vehicle outside the city for use
outside the city, and actually so used it for a substantial and primary purpose
for which it was acquired, and he registered, licensed and titled such automotive
vehicle outside the city;
M. To the storage, use or consumption of a mobile home, as such vehicle is defined
in Section 42-1-102(82)(b) of the Colorado Revised Statutes, after such mobile
home has been subject to the payment of use tax by virtue of Section 3.01.220(C);
N. To the storage or use of a new or used trailer, semi-trailer, truck, truck-tractor
or truck body manufactured within the city if such vehicle is purchased from
the manufacturer for use exclusively outside the city or in interstate commerce
and is delivered by the manufacturer to the purchaser within the city, if the
purchaser drives or moves such vehicle to any point outside the city within
thirty days after the date of delivery, and if the purchaser furnishes an affidavit
to the manufacturer that such vehicle shall be permanently licensed and registered
outside the city and shall be removed from the city within thirty days after
the date of delivery;
O. To the storage or use of a new or used trailer, semi-trailer, truck, truck-tractor
or truck body if such vehicle is purchased for use exclusively outside the city
or in interstate commerce and is delivered by the manufacturer or licensed dealer
to the purchaser within the city, if the purchaser drives or moves such vehicle
to any point outside the city within thirty days after the date of delivery,
and if the purchaser furnishes an affidavit to the seller that such vehicle
shall be permanently licensed and registered outside the city and shall be removed
from the city within thirty days after the date of delivery;
P. To the storage, use or consumption of tangible personal property which is
thereafter transferred to a vendee located outside the city without consideration
(other than the purchase, sale, or promotion of the transferor's product) for
use outside of the city in selling products normally sold at wholesale by the
person storing, using, or consuming such property;
Q. To the testing, modification, inspection, or similar type activities of tangible
personal property acquired for ultimate use outside the city in manufacturing
or similar type of activities if the test, modification, or inspection period
does not exceed ninety days;
R. To the storage, use, or consumption of any article by a retailer or vendor
of food, meals, or beverages, which article is to be furnished to a consumer
or user for use with articles of tangible personal property purchased at retail,
if: (A) a separate charge is not made for the article to the consumer or user;
(B) such article becomes the property of the consumer or user, together with
the food, meals, or beverages purchased; and (C) a tax is paid on the retail
sale as required by Section 3.01.120(A) or (E);
S. To the storage, use, or consumption of any container or bag by a retailer
or vendor of food, meals, or beverages, which container or bag is to be furnished
to a consumer or user for the purpose of packing or bagging articles of tangible
personal property purchased at retail, if: (A) a separate charge is not made
for the container or bag to the consumer or user; (B) such container or bag
becomes the property of the consumer or user, together with the food, meals,
or beverages purchased; and (C) a tax is paid on the retail sale as required
by Section 3.01.120(A) or (E);
T. To the storage, use or consumption of food or meals that are provided to
employees of the places described in Section 3.01.120(E) if such food or meals
are provided to such employees at no charge or at a reduced charge and are considered
as part of their salary, wages, or income;
U. To the storage, use, or consumption by a contractor or subcontractor of construction
and building materials for use in the building, erection, alteration, or repair
of structures, highways, roads, streets, and other public works owned and used
by:
1. The United States government, the State, its departments and institutions,
and the political subdivisions thereof in their governmental capacities only,
2. Charitable organizations in the conduct of their regular charitable functions
and activities, or
3. Schools, other than schools held or conducted for private or corporate profit;
V. To the storage, use or consumption of aircraft used or purchased for use
in interstate commerce by a commercial airline;
W. To the storage of construction materials;
X. The city's use tax shall not be imposed with respect to the use or consumption
of tangible personal property within the city which occurs more than three years
after the most recent sale of the property if, within the three years following
such sale, the property has been significantly used within the state for the
principal purpose for which it was purchased;
Y. To the storage, use or consumption of food, as specified in 7 U.S.C. Section
2012(g), as such section existed on October 1, 1987, or is thereafter amended,
which is purchased with food stamps pursuant to the federal food stamp program,
or the storage, use or consumption of food, as specified in 42 U.S.C. Section
1786, as such section existed on October 1, 1987, or is thereafter amended,
which is purchased with WIC vouchers or checks pursuant to the federal special
supplemental program for women, infants, and children.
Z. To the storage, use or consumption of tangible personal property by or to a qualified hospital organization, provided that the property used or consumed by the qualified hospital organization is employed in furtherance of an exempt function, excepting use tax on the use or consumption of construction materials used by contractors who perform contracts for the qualified hospital organization. The foregoing exception shall apply notwithstanding any other exemption granted to the qualified hospital organization pursuant to this Chapter. As used in this Section, “employed in furtherance of an exempt function” means employed by a qualified hospital organization in an activity from which none of the proceeds are treated as unrelated business income. As used in this Section, "unrelated business income" means gross income derived from any unrelated trade or business within the meaning of section 512 of the United States Internal Revenue Code of 1986, as amended.
If the use or consumption of any property would be exempt under this section but for the fact that the property is employed in an activity from which a portion of the proceeds is treated as unrelated business income, the director of finance is authorized to approve written formulas or methodologies (including formulas or methodologies of individual qualified hospital organizations) as may be appropriate and reasonable to determine, based on the evidence available, the percentage of the proceeds from such activity that is not treated as unrelated business income. This calculated percentage shall be the percentage of the cost of such property or service that will be exempt under this section. The director of finance may condition approval of formulas and methodologies on receipt of such information as is reasonably deemed necessary for proper implementation of such formulas and methodologies.
(Ord. O-2008-27 § 3, 2008; Ord. O-93-26 §
7, 1993; Ord. O-91-61 § 60 & 63, 1991; Ord. O-86-104 § 20, &
21, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.240 Proration of use tax for certain construction
equipment.
A. Construction equipment that is located within the boundaries of the city
for a period of more than thirty consecutive days shall be subjected to the
full applicable use tax of the city.
B. Construction equipment that is located within the boundaries of the city
for a period of thirty consecutive days or less shall be subjected to the city's
use tax in an amount that 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 the amount of the use tax imposed pursuant to Section 3.01.210.
C. Where the provisions of subsection (B) of this section are utilized, the
credit provisions of Section 3.01.220(E) shall apply at such time as the aggregate
sales and use taxes legally imposed by and paid to other statutory and home
rule municipalities on any such equipment equal the amount of the use tax imposed
pursuant to Section 3.01.210.
D. In order to avail himself of the provisions of subsection (B) of this section,
the taxpayer shall comply with the following procedure:
1. Prior to or on the date that the equipment is located within the boundaries
of the city, the taxpayer shall file with the Finance Director an equipment
declaration on a form provided by the Finance Director. Such declaration shall
state the dates on which the taxpayer anticipates that the equipment shall be
located within and removed from the boundaries of the city, shall include a
description of each such anticipated piece of equipment, shall state the actual
or anticipated purchase price of each such anticipated piece of equipment and
shall include such other information as reasonably deemed necessary by the city.
2. The taxpayer shall file an amended equipment declaration with the city reflecting
any changes in the information contained in any previous equipment declaration
no less than once every ninety days after the equipment is brought into the
boundaries of the city or, for equipment that is brought into the boundaries
of the city for a project of less than ninety days' duration, no later than
ten days after substantial completion of such project.
3. The taxpayer need not report on any equipment declaration any equipment for
which the purchase price was under two thousand five hundred dollars.
E. If the equipment declaration is given as provided in subsection (D) of this
section, then as to any item of construction equipment for which the customary
purchase price is less than two thousand five hundred dollars that was brought
into the boundaries of the city temporarily for use on a construction project,
it shall be presumed that the item was purchased in a jurisdiction having a
local sales or use tax as high as the use tax imposed pursuant to Section 3.01.210
and that such local sales or use tax was previously paid. In such case, the
burden of proof in any proceeding before the city, the executive director of
the Department of Revenue or the District Court shall be on the city to prove
that such local sales or use tax was not paid.
F. If the taxpayer fails to comply with the provisions of subsection (D) of
this section, then the taxpayer may not avail himself of the provisions of subsection
(B) of this section and shall be subject to the provisions of subsection (A)
of this section. Substantial compliance with the provisions of subsection (D)
of this section shall allow the taxpayer to avail himself of the provisions
of subsection (B) of this section. (Ord. O-91-61 § 79, 1991; Ord. O-85-137
§ 1 (part), 1985).
3.01.250 Refunds.
A. A refund shall be made, or a credit allowed, for the sales or use tax so
paid under dispute by any purchaser or user who claims an exemption pursuant
to Sections 3.01.180 or 3.01.230. Such refund shall be made by the Finance Director
after compliance with the following conditions precedent: applications for refund
shall be made within sixty days after the purchase, storage, use or consumption
of the goods or services whereon an exemption is claimed and must be supported
by the affidavit of the purchaser or user accompanied by the original paid invoice
or sales receipt and certificate issued by the seller and shall be made upon
such forms as shall be prescribed therefor.
B. Upon receipt of an application, the Finance Director shall examine the same with due speed and shall give notice to the applicant by order in writing of his decision thereon. Aggrieved applicants, within thirty days after such decision is mailed to them, may petition the Finance Director for a hearing on the claim in the manner provided in Section 3.01.330(A) and may either appeal to the District Court in the manner provided in Section 3.01.340 or to the Department of Revenue in the manner provided in Section 3.01.350. The right of any person to a refund under this chapter shall not be assignable, and except as provided in subsection (D) of this section, such application for refund must be made by the same person who purchased the goods or services and paid the tax thereon as shown in the invoice of the sale thereof.
C. A refund shall be made or a credit allowed by the Finance Director to any
person entitled to an exemption where such person establishes that: (i) a tax
was paid by another person, the purchaser, on a purchase made on behalf of the
person entitled to an exemption; (ii) a refund has not been granted to such
purchaser; and (iii) the person entitled to the exemption paid or reimbursed
such purchaser for such tax. The burden of proving that sales, services, and
commodities on which tax refunds are claimed are exempt from taxation under
this chapter or were not at retail shall be on the person making such claim
under such reasonable requirements of proof as set forth in the rules and regulations
prescribed therefor. No such refund shall be made or credit allowed in an amount
greater than the tax paid less the expense allowance on such purchase retained
by the vendor pursuant to Section 3.01.130(A).
D. Such application for refund under subsection (C) of this section shall be
made on forms furnished by the Finance Department. Upon receipt of such application
and proof of the matters contained therein, the Finance Director shall give
notice to the applicant by order in writing of his decision thereon. Aggrieved
applicants, within twenty days after such decision is mailed to them, may petition
the Finance Director for a hearing on the claim in the manner provided in Section
3.01.330(A) and may either appeal to the District Court in the manner provided
in Section 3.01.340 or to the Department of Revenue in the manner provided in
Section 3.01.350. Any applicant for a refund under the provisions of this subsection,
or any other person, who makes any false statement in connection with an application
for a refund of any taxes is guilty of a violation of this chapter and shall
be punished in the manner provided by state law.
E. 1. Claims for tax moneys paid in error or by mistake shall be made within
three years after the date of purchase, storage, use or consumption of the goods
or services for which the refund is claimed and shall be processed for refund
in accordance with the rules and regulations prescribed therefor under subsection
(D) of this section, except that the proceeds of any such claim for a refund
shall first be applied by the Finance Department to any tax deficiencies or
liabilities existing against the claimant before allowance of such claim by
the Finance Department, and further except that if such excess payment of tax
moneys in any period is discovered as a result of an audit by the Finance Department,
and deficiencies are discovered and assessed against the taxpayer as a result
of such audit, then such excess moneys shall be first applied against any deficiencies
outstanding to the date of the assessment but shall not be applied to any future
tax liabilities.
E. 2. In accordance with the Mobile Telecommunications Sourcing Act, all refunds
for charges of mobile telecommunications service shall be made in accordance
with the City's Rules and Regulations adopted in conformity with this chapter.
F. If any person is convicted under the provisions of this section, such conviction
shall be prima facie evidence that all refunds received by such person during
the current year were obtained unlawfully, and the Finance Director is empowered
to bring appropriate action for recovery of such refunds. A brief summary statement
of the above-described penalties shall be printed on each form application for
a refund. (Ord. O-2011-1 § 3, 2011; Ord. O-2003-4 § 4, 2003; Ord. O-91-61 § 64 & 65, 1991;
Ord. O-85-137 § 1 (part), 1985).
3.01.260 Recovery of taxes, penalty and interest.
A. All sums of money paid by the purchaser to the retailer as taxes imposed
by this chapter shall be and remain public money, the property of the city,
in the hands of such retailer, and he shall hold the same in trust for the sole
use and benefit of the city until paid to the Finance Director, and for failure
to so pay to the Finance Director, such retailer shall be punished as provided
herein.
B. 1. If a person neglects or refuses to make a return in payment of the sales
tax or to pay any sales tax as required by this chapter, then the Finance Director
shall make an estimate, based upon such information as may be available, of
the amount of taxes due for the period for which the taxpayer is delinquent
and shall add thereto a penalty equal to the sum of fifteen dollars for such
failure or ten percent thereof and interest on such delinquent taxes at the
rate imposed under Section 3.01.290 plus one-half percent per month from the
date when due, not exceeding eighteen percent in the aggregate.
2. If a person neglects or refuses to make a return in payment of the use tax
or to pay any use tax as required by this chapter, then the Finance Director
shall make an estimate, based upon such information as may be available, of
the amount of taxes due for the period for which the taxpayer is delinquent
and shall add thereto a penalty equal to ten percent thereof and interest on
such delinquent taxes at the rate imposed under Section 3.01.290, plus one-half
percent per month from the date when due.
3. Promptly thereafter, the Finance Director shall give to the delinquent taxpayer written notice of such estimated taxes, penalty, and interest, which notice shall be sent by first-class mail directed to the last address of such person on file with the Finance Department. Such estimate shall thereupon become a notice of deficiency. Within thirty days after the notice of deficiency is mailed, the taxpayer may petition the Finance Director for a hearing in the manner provided in Section 3.01.330(A) and either may appeal to the District Court as provided in Section 3.01.340 or to the Department of Revenue as provided in Section 3.01.350.
C. 1. If any taxes, penalty, or interest imposed by this chapter and shown due
by returns filed by the taxpayer or as shown by assessments duly made as provided
in this section are not paid within five days after the same are due, then the
Finance Director shall issue a notice, setting forth the name of the taxpayer,
the amount of the tax, penalties and interest, the date of the accrual thereof,
and that the city claims a first and prior lien therefor on the real and tangible
personal property of the taxpayer except as to preexisting claims or liens of
a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights
have attached prior to the filing of the notice as provided in this section
on property of the taxpayer, other than the goods, stock in trade, and business
fixtures of such taxpayer.
2. Said notice shall be on forms furnished by the Finance Department and shall
be verified by the City Manager or by the Finance Director or any duly qualified
agent of the City Manager or the Finance Director, whose duties are the collection
of such tax, and may be filed in the office of the county clerk and recorder
in which the taxpayer owns real or tangible personal property, and the filing
of such notice shall create a lien on such property in that county and constitute
notice thereof. After said notice has been filed, or concurrently therewith,
or at any time when taxes due are unpaid, whether such notice shall have been
filed or not, the Finance Director may issue a warrant directed to any duly
authorized revenue collector, or to the sheriff of the county, commanding him
to levy upon, seize, and sell sufficient of the real and personal property of
the amount due together with interest, penalties, and costs, as may be provided
by law, subject to valid preexisting claims or liens.
D. Such revenue collector or the sheriff shall forthwith levy upon sufficient
of the property of the taxpayer or any property used by such taxpayer in conducting
his retail business, except property made exempt from the tax lien pursuant
to the provisions of Section 3.01.270(A)(2), and said property so levied upon
shall be sold in all respects with like effect and in the same manner as is
prescribed by law with respect to executions against property upon judgment
of a court of record, and the remedies of garnishment shall apply. The sheriff
shall be entitled to such fee in executing such warrants as are allowed by law
for similar services.
E. Any lien for taxes as shown on the records of the county clerks and recorders
as provided in this section, upon payment of all taxes, penalties, and interest
covered thereby shall be released by the Finance Director in the same manner
as mortgages and judgments are released.
F. 1. The Finance Director may also treat any such taxes, penalties, or interest
due and unpaid as a debt due the city from the vendor. The return of the taxpayer
or the assessment made by the Finance Director, as provided in this chapter,
shall be prima facie proof of the amount due.
2. To recover such taxes, penalties or interest due, the Finance Director may
bring an action in attachment, and a writ of attachment may be issued to the
sheriff. In any such proceedings, no bond shall be required of the Finance Director,
nor shall any sheriff require of the Finance Director an indemnifying bond for
executing the writ of attachment or writ of execution upon any judgment entered
in such proceedings. The Finance Director may prosecute appeals in such cases
without the necessity of providing bond thereof. It is the duty of the City
Attorney, when requested by the Finance Director, to commence action for the
recovery of taxes due under this chapter, and this remedy shall be in addition
to all other existing remedies or remedies provided in this chapter.
G. In any action affecting the title to real estate or the ownership or rights
to possession of personal property, the city may be made a party defendant for
the purpose of obtaining an adjudication or determination of its lien upon the
property involved therein. In any such action, service of summons upon the Finance
Director or any person in charge of the office of the Finance Director shall
be sufficient service and shall be binding upon the city.
H. The Finance Director is authorized to waive, for good cause shown, any penalty
assessed as provided in this chapter, and any interest imposed in excess of
the rate determined pursuant to subsection (B) of this section shall be deemed
a penalty.
I. If a taxpayer pays for any tax imposed pursuant to this chapter by check for which there are insufficient funds to cover such check, then the Finance Director may assess a penalty against such taxpayer. The Finance Director may require such taxpayer to pay all tax payments, whether due or to be due in the future, by certified funds, cashier’s check or cash. The penalty imposed by this subsection is in addition to all other penalties imposed pursuant to this chapter.
J. The city is a participant in the intergovernmental agreement with other cities
in Colorado concerning intercity claims for the recovery of sales and use taxes
paid to the wrong taxing jurisdiction as authorized by city resolution 90-134.
The intent and procedure for filing a "Claim for Recovery" is set
forth in the city sales and use tax rules and regulations set out in this section.
K. The Finance Director may issue summons and complaints for violations of this
chapter as set forth in the Lakewood Municipal Code. (Ord. O-2011-1 § 4 & 5, 2011; Ord. O-91-61 § 66
& 68, 1991; Ord. O-86-104 § 22, 1986; Ord. O-85-137 § 1 (part),
1985).
3.01.270 Tax lien-Exemption from lien.
A. 1. The sales tax imposed pursuant to Section 3.01.120 shall be a first and
prior lien upon the tangible personal property and business fixtures of or used
by any retailer under lease, title retaining contract, or other contract arrangement,
excepting stock of goods sold or for sale in the ordinary course of business
and shall take precedence on all such property over other liens or claims of
whatsoever kind or nature. The use tax imposed by Section 3.01.210 shall be
a first and prior lien on the tangible personal property stored, used, or consumed,
subject only to any valid mortgage or other liens of record on and prior to
the recording of notice as set forth in Section 3.01.260(C)(2), which lien shall
have precedence over all other liens of whatsoever kind or nature, except as
to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor,
or purchaser whose rights have attached prior to the filing of the notice on
such tangible personal property.
2. The real or personal property of an owner who has made a bona fide lease
to a retailer or to any taxpayer owing a use tax shall be exempt from the lien
created in subsection (A)(1) of this section if such property can reasonably
be identified from the lease description, and if the lessee is given no right
to become the owner of the leased property. This exemption shall be effective
from the date of the execution of the lease if the lease is recorded with the
county clerk and recorder of the county where the property is located or based
or if a memorandum of the lease is filed with the Finance Department within
ten days after the execution of the lease. Motor vehicles which are properly
registered in the city, showing the lessor as the owner thereof, shall be exempt
from the lien created in subsection (A)(1) of this section, except that said
lien shall apply to the extent that the lessee has an earned reserve, allowance
for depreciation not to exceed fair market value, or similar interest which
is or may be credited to the lessee. Where the lessor and the lessee are blood
relatives or relatives by law or have twenty-five percent or more common ownership,
a lease between such lessee and such lessor shall not be considered as bona
fide for purposes of this section.
3. Any retailer who is in possession of property under the terms of a lease,
which property is exempt from the tax lien as provided in this section, may
be required by the Finance Director to remit taxes collected at more frequent
intervals than monthly, but no more frequently than semimonthly, or may be required
to furnish security for the proper payment of taxes whenever the collection
of taxes appears to be in jeopardy.
4. Any retailer who sells out his business or stock of goods, or quits business,
shall be required to make out the return as provided in this chapter, within
ten days after the date he sold his business or stock of goods, or quit business,
and his successor in business shall be required to withhold sufficient purchase
money to cover the amount of said taxes due and unpaid until such time as the
former owner produces a receipt from the Finance Director showing that the taxes
have been paid or a certificate that no taxes are due.
5. If the purchaser of a business or stock of goods fails to withhold the purchase
money as provided in of subsection (A)(4) of this section, and the taxes are
due and unpaid after the ten-day period allowed, he, as well as the vendor,
shall be personally liable for the payment of the taxes unpaid by the former
owner. Likewise, anyone who takes any stock of goods or business fixtures of
or used by any retailer under lease, title retaining contract, or other contract
arrangement, by purchase, foreclosure sale, or otherwise, takes the same subject
to the lien for any delinquent sales taxes owed by such retailer and shall be
liable for the payment of all delinquent sales taxes of such prior owner, not,
however, exceeding the value of property so taken or acquired.
B. Whenever the business or property of any taxpayer subject to this chapter
shall be placed in receivership, bankruptcy, or 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 said retailer is in any way
liable under the terms of this chapter shall be a prior and preferred claim
against all the property of said taxpayer, except as to preexisting claims or
liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose
rights shall have attached prior to the filing of the notice as provided in
Section 3.01.260(C)(2) on the property of the taxpayer, other than the goods,
stock in trade, and business fixtures of such 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 Finance Director the amount of any taxes due and payable under this
chapter, and if there are any such taxes due, owing, or unpaid, it is the duty
of such officer to first pay the amount of said taxes out of the proceeds of
said sale before making payment of any moneys to any judgment creditor or other
claims of whatsoever kind or nature, except the costs of the proceedings and
other preexisting claims or liens as provided in this section. For the purposes
of this subsection, "taxpayer" includes "retailer." (Ord.
O-85-137 § 1 (part), 1985).
3.01.280 Tax deficiency.
If the deficiency in payment of the sales or use tax occurs without intent to defraud, there shall be added ten percent of the total amount of the deficiency, and interest in such case shall be collected at the rate imposed under Section 3.01.300 on the amount of such deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable thirty days after written notice and demand to such person by the Finance Director. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added one hundred percent of the total amount of the deficiency, and in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable thirty days after written notice and demand by the Finance Director, and an additional three percent per month on said amount shall be added from the date that the return was due until paid. (Ord. O-2011-1 § 6, 2011; Ord. O-91-61 § 69, 1991; Ord. O-85-137 § 1 (part),
1985).
3.01.290 Interest rate on delinquent taxes.
When interest is required or permitted to be charged under Sections 3.01.260(B),
3.01.280, 3.01.300(A), or 3.01.310, the annual rate of interest shall be that
rate of interest established by the State Commissioner of Banking pursuant to
Section 39-21-110.5 of the Colorado Revised Statutes. (Ord. O-85-137 §
1 (part), 1985).
3.01.300 Interest on underpayment, overpayment, nonpayment
or extensions of time for payment of tax.
A. If any amount of sales or use tax is not paid on or before the last date
prescribed for payment, then interest on such amount at the rate imposed under
Section 3.01.290 shall be paid for the period from such last date to the date
paid. The last date prescribed for payment shall be determined without regard
to any extension of time for payment and shall be determined without regard
to any notice and demand for payment issued, by reason of jeopardy, prior to
the last date otherwise prescribed for such payment. In the case of a tax in
which the last date for payment shall be deemed to be the date that the liability
for the tax arises, and in no event shall such date be later than the date that
notice and demand for the tax is made by the Finance Director.
B. Interest prescribed under this section and Sections 3.01.260(B), 3.01.280
and 3.01.310 shall be paid upon notice and demand and shall be assessed, collected,
and paid in the same manner as the tax to which such interest is applicable.
C. If any portion of a tax is satisfied by credit of an overpayment, then no
interest shall be imposed under this section on the portion of the tax so satisfied
for any period during which, if the credit had not been made, interest would
have been allowed with respect to such overpayment.
D. Interest prescribed under this section and Sections 3.01.260(B), 3.01.280
and 3.01.310 on any sales or use tax may be assessed and collected at any time
during the period within which the tax to which such interest relates may be
assessed and collected. (Ord. O-85-137 § 1 (part), 1985).
3.01.310 Penalty interest on unpaid use tax.
Any use tax due and unpaid shall be a debt to the city and shall draw interest
at the rate imposed under Section 3.01.290, in addition to the interest provided
by Section 3.01.300, from the time when due until paid. (Ord. O-85-137 §
1 (part), 1985).
3.01.320 Other remedies.
A. No provision of this chapter shall preclude the City from utilizing any other lawful penalties or other remedies applicable to the collection of sales or use taxes. If the City must utilize other lawful penalties or other remedies for the collection of the sales or use taxes, the City shall be entitled to recover its attorney’s fees, costs of litigation and any other legal fees associated with any legal action undertaken to collect the sales and/or use taxes due. The Finance Director shall have the authority to make a compromise settlement of any claim for sales or use tax due under this chapter.
B. The Finance Director shall have the power to issue subpoenas to require the presence of persons and the production of papers, books and records necessary to the determination of any matter which the Finance Director is authorized to determine. It is unlawful for any person to fail to comply with any subpoena issued by the Finance Director.
C. A subpoena shall be served in the same manner as a subpoena issued by the District Court of the state. Upon failure of any witness to comply with such subpoena, the City Attorney shall, at the direction of the Finance Director:
1. Petition any judge of the Municipal Court of the city, setting forth that due notice has been given of the time and place of attendance of the witness and the service of the subpoena, that the court after hearing evidence in support of or contrary to the petition, enter its order compelling the witness to attend and testify or produce books, records or other evidence, under penalty of punishment for contempt in case of willful failure to comply with such order of court; or
2. Petition the District Court in and for the county, setting forth that due notice has been given of the time and place of attendance of the witness and the service of the subpoena, that the court after hearing evidence in support of or contrary to the petition, enter its order as in other civil actions, compelling the witness to attend and testify or produce books, records or other evidence, under penalty of punishment for contempt in case of willful failure to comply with such order of court. (Ord. O-2011-20 § 1, 2011; Ord. O-2011-1 § 7, 2011; Ord. O-91-61
§ 80, 1991; Ord. O-85-137 § 1 (part), 1985).
3.01.330 Hearings by Finance Director.
A. If any person contests any deficiency notice or denial of refund received from the Finance Director, then he may apply to the Finance Director by petition in writing within thirty days after such deficiency notice or denial of refund is mailed to him for a hearing and a correction of the amount of the tax so assessed or refund requested, in which petition he shall set forth the reasons why the amount by which such tax should be reduced or the amount of the refund requested should be granted. The Finance Director shall notify the petitioner in writing of the time and place fixed by him for such hearing. After such hearing, the hearing officer shall make such order in the matter as is just and lawful and shall furnish a copy of such order to the petitioner.
B. Every decision of the hearing officer shall be in writing, and notice thereof shall be mailed to the petitioner within thirty days after such hearing, and all such decisions shall become final and all amounts due shall be paid upon the expiration of thirty days after notice of such decision shall have been mailed to the petitioner, unless proceedings are begun within such time for review thereof as provided in Sections 3.01.340 or 3.01.350. (Ord. O-2011-1 § 8, 2011; Ord. O-91-61 §
70, 1991; Ord. O-86-104 § 23, 1986; Ord. O-85-137 § 1 (part), 1985).
3.01.340 Review by District Court.
If the petitioner or if an applicant for a refund is aggrieved at the final
decision of the hearing officer, then he may proceed to have same reviewed by
the District Court. The procedure of review may be in accordance with Colorado
Rules of Civil Procedure 106 or by the method of appeals set forth in Section
29-2-106, Colorado Revised Statutes, as amended. (Ord. O-93-26 § 8, 1993;
Ord. O-91-61 § 81, 1991; Ord. O-85-137 § 1 (part), 1985).
3.01.350 Alternate review by Department of Revenue.
In lieu of the procedure provided for in Section 3.01.340, the taxpayer may
elect to appeal to the Executive Director of the Department of Revenue as set
forth in Section 29-2-106, Colorado Revised Statutes, as amended. (Ord. O-93-26
§ 9, 1993; Ord. O-91-61 § 82, 1991; Ord. O-85-137 § 1 (part),
1985).
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