|
|
 |
O-2008-27
AN ORDINANCE
AMENDING CHAPTER 3.01 OF THE LAKEWOOD MUNICIPAL CODE RELATING TO SALES AND USE TAX BY THE ADDITION OF A NEW DEFINITION FOR QUALIFIED HOSPITAL ORGANIZATION AND CERTAIN EXEMPTIONS RELATING THERETO
WHEREAS, the City of Lakewood is authorized to collect taxes on the use and consumption of property and on the sale of property and services, and is likewise authorized to provide for exemptions from sales and use taxes; and
WHEREAS, the City Council has adopted Chapter 3.01 of the Lakewood Municipal Code, which provides for the collection of sales and use taxes and for certain exemptions therefrom; and
WHEREAS, the City Council desires to amend Chapter 3.01 to add a definition for "qualified hospital organization" and certain exemptions thereto.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Lakewood, Colorado, that:
SECTION 1. Section 3.01.020 of the Lakewood Municipal Code is amended by the addition of a new definition for the term "qualified hospital organization" to read as follows:
"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.
SECTION 2. Section 3.01.180 of the Lakewood Municipal Code is amended by the addition of a new exemption, number 36, for a qualified hospital organization to read as follows:
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.
SECTION 3. Section 3.01.230 of the Lakewood Municipal Code is amended by the addition of a new exemption, letter Z, for a qualified hospital organization to read as follows:
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.
SECTION 4. This ordinance shall take effect thirty days after final publication.
I hereby attest and certify that the within and foregoing ordinance was introduced and read on first reading at a regular meeting of the Lakewood City Council on the 13th day of October, 2008; published by title in the Rocky Mountain News and in full on the City of Lakewood's website, www.lakewood.org., on the 16th day of October, 2008; set for public hearing on the 27th day of October, 2008; read, finally passed and adopted by the City Council on the 27th day of October, 2008, and signed, and approved by the Mayor on the 28th day of 2008.
Bob Murphy, Mayor
ATTEST:
Margy Greer, City Clerk
APPROVED AS TO FORM:
Tim Cox, City Attorney
 |
||
Home
| Search
| Contact Us | Privacy
Policy© City of Lakewood, 480 S. Allison Pkwy., Lakewood, CO 80226, 303-987-7000 |