Chapter 3.20
SALES AND USE TAX

Sections:

3.20.010    Intent.

3.20.020    Definitions.

3.20.030    License—Required.

3.20.040    License—Issuance requirements.

3.20.050    License—Expiration and renewal.

3.20.060    License—Denial.

3.20.070    License—Cancellation.

3.20.080    License—Suspension.

3.20.090    License—Revocation.

3.20.100    Notification of adverse action—Right to a hearing.

3.20.110    Fees.

3.20.120    Violation of licensing requirements.

3.20.130    Property and services subject to sales tax.

3.20.140    Sales tax exemptions.

3.20.150    Property and services subject to use tax.

3.20.160    Collection of use tax.

3.20.170    Use tax exemptions.

3.20.180    Proration of use tax for certain construction equipment.

3.20.190    Exemption claims—Disputes and refunds.

3.20.200    Rate schedule.

3.20.210    Collection—Liability of vendors.

3.20.220    Reporting period—Collection provisions—Report forms—Deductibles.

3.20.230    Recomputation—Payment adjustments.

3.20.240    Sale of business—Obligation of purchaser/seller.

3.20.250    Recordkeeping—Exemption claims—Audits.

3.20.260    Inability to establish exact tax due—Estimate—Penalties.

3.20.270    Limitation of actions.

3.20.280    Deficiency notice—Taxpayer’s remedies.

3.20.290    Unpaid tax—Lien—Additional remedies of city—Distribution of estates.

3.20.300    Violation—Penalties—Period of limitations.

3.20.310    Claims for recovery.

3.20.320    Notice of tax ordinance amendment.

3.20.330    Participation in simplification meetings.

3.20.010 Intent.

H.B. 1007, enacted by the Fifty-fifth Colorado General Assembly and approved by the Governor on June 6, 1985, set forth procedures for the collection of sales and use taxes by home rule cities. This chapter contains provisions which are consistent with some of those set forth in H.B. 1007. The City Council finds that Article XX of the Colorado Constitution grants plenary power to home rule cities to levy and collect taxes within the city limits. The City Council does not endorse restrictions on the taxing power of home rule cities. Thus, it is the intent of the City Council in enacting provisions consistent with H.B. 1007 to assist the business community, but not in any way to prejudice the city’s right to fully exercise its constitutional authority to levy and collect taxes within its boundaries. (Ord. 2004-5 (part))

3.20.020 Definitions.

As used in this chapter, the following words and phrases 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.

“Admissions” means every person who pays to gain admission to any place or event in the city that is open to the public, or to gain access to a performance, stage show, place, concert, or to a sport or recreation event, or to a motion picture, or regular or miniature golf, or swimming or bowling in the city, shall pay the tax imposed by this chapter; and every person, whether owner, lessee or operator, who charges or causes to be charged admission to any of the forenamed places or events, shall collect the tax imposed by this chapter.

“Alarm and security systems” means the entire service charge for any alarm or security system. This includes, but is not limited to, monitoring, maintenance, rental, lease, material, equipment and installation, if not separately stated.

“Auction” 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” means all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect.

“Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavoring in the form of bars, drops or pieces.

“Capital lease” means lease with characteristics of a purchase, including without limitation a lease term corresponding to the useful life of property, the lessee’s payment of costs of property incidental to ownership, or the lessee’s option to purchase for less than fair value.

“Charitable organization” means any 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 (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.

“City” means the municipality of Glendale, Colorado.

“City code” shall mean the code of ordinances of the city of Glendale, Colorado.

“City Manager” means the manager of the city, or other person, or agent, designated by him.

“Computer software” means the internalized instruction code which controls the basic operations (i.e., arithmetic and logic) of the computer, causing it to execute instructions contained in system programs, as an integral part of the computer. It is not normally accessible or modifiable by the user. A software program is one in which instructions and routines (programs) are determined necessary to program the customer’s electronic data processing equipment to enable the customer to accomplish specific functions with his EDP system.

“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.

“Construction project” means the erection, installation, alteration, repair, or remodeling of a building or structure upon real estate, and any other activity for which a building permit is required under the city code.

“Consumer” means any (1) individual person, or (2) 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.

“Consumer access service” means any direct charge by local telephone exchange companies to the consumer.

“Consumer deductions” means those items that may be deducted from gross taxable sales or gross taxable services.

“Drugs dispensed in accordance with a prescription” means drugs dispensed in accordance with any order in writing, dated and signed by a licensed practitioner of the healing arts, or given orally by a practitioner, and immediately reduced to writing by the pharmacist, assistant pharmacist, or pharmacy intern, specifying the name and address of the person for whom the medicine, drug or poison is offered and directions, if any, to be placed on the label.

“Engaged in business in the city” means performing or providing services or selling, leasing, renting, delivering or installing tangible personal property for storage, use or consumption within the city. “Engaged in business in the city” includes, but is not limited to, any one of the following activities by a person:

A.    Directly, indirectly, or by a subsidiary maintains a building, store, office, salesroom, warehouse, or other place of business within the city;

B.    Sends one or more employees, agents or commissioned salespersons 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;

C.    Maintains one or more employees, agents or commissioned salespersons on duty at a location within the taxing jurisdiction;

D.    Owns, leases, rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or

E.    Makes more than one (1) delivery into the taxing jurisdiction within a twelve (12) month period.

“Exempt commercial packaging materials” means containers, labels and shipping cases sold to 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: (1) is used by the manufacturer, compounder, wholesaler, jobber, retailer, packager, distributor or bottler to contain or label the finished product; (2) is transferred by such person along with and as a part of the finished product to the purchaser, and (3) is not returnable to such person for reuse.

“Farm closeout sale” means 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 Director” means the Finance Director of the city 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 USC 2012(g) as amended for purposes of the federal food stamp program as defined in 7 USC 2012(h), as amended, except that “food” does not include carbonated water marketed in containers; chewing gum; candy; soft drinks; 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 noncoin-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.

“He” shall include “she” or “it” as the gender or nature of the referenced person may require.

“License” means a city 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 exchange company” means any person who provides public telephone or telecommunications exchange access lines, mobile telecommunications or channels necessary to effect the transfer of two (2) way voice or data grade information between the final use and the local telecommunications network.

“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, mobilehome, auto camp, or trailer court and park, or similar establishment, for a period of less than thirty (30) days under any concession, permit, right of access, license to use, or other agreement, or otherwise.

“Medical supplies” means drugs dispensed in accordance with a prescription; insulin in all its forms dispensed pursuant to the direction of a licensed physician; glucose useable 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 part of professional services provided to a patient; and corrective eyeglasses, contact lenses or hearing aids. “Medical supplies” does not include medical marijuana in any form or equipment for its use.

“Mobile machinery and self-propelled construction equipment” means those vehicles, self-propelled or otherwise, which are not designed primarily for the transportation of persons or cargo over the public highways, and those motor vehicles which may have originally been designed for the transportation of persons or cargo but which have been redesigned or modified by the mounting thereon of special equipment or machinery, and which may be only incidentally operated or moved over the public highways. This definition includes, but is not limited to, wheeled vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches.

“Municipality” means any municipal corporation or similar form of local government in Colorado, or another state, except counties, school districts, or special districts, and the municipality of Glendale, including any city, town, and city and county, whether organized pursuant to charter, constitution or statute.

“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 listing, publications that include an updating or revision service, or books or pocket editions of books.

“Nonessential articles and containers” means articles or containers that are primarily used for the convenience of the consumer and are not necessary to effectuate the sale of food. Nonessential articles or containers include, but are not limited to, nonreusable: utensils; skewers; napkins and towelettes; bibs; serving trays, platters, and dome lid covers to plates or platters; placemats, tray liners, and tablecloths; sacks; grocery bags; bags for grocery bulk produce or bread; bag ties; carryout containers for leftovers of food sold for immediate consumption; straws; toothpicks; stirring sticks; cup lids and cup sleeves; portion dividers; single-use baking dishes; film wrap, plastic wraps, wax paper, foils, butcher paper; and carryout containers used by a consumer to carry leftover meals from the restaurant.

“Nonresident vendor” means any retailer/vendor whose place of business is outside the city.

“Open to the public” means any place or event to which admission or access is open to members of the public upon the payment of a charge or fee. This term includes, without limitation, the following places or events when a charge or fee for admission to such places and events is imposed upon members of the public:

A.    Any performance of a motion picture, stage show, play, concert or other manifestation of the performing arts;

B.    Any sporting or athletic contest, exhibit or event, either amateur or professional;

C.    Any lecture, rally, speech or dissertation;

D.    Any showing, display or exhibition of any type, including art exhibitions; and

E.    Any restaurant, tavern, lounge or club, whether the admission is called a “cover charge,” “door charge,” or any other such term.

“Pay television” shall include, but not be limited to, cable, microwave or other television service for which a charge is imposed.

“Peddler” is any person, whether as volunteer, owner, agent, consignee or employee, who engages in a temporary business of selling and delivering goods within the city, and who, in furtherance of such purpose, leases, uses or occupies, any tent, temporary structure, stand, or outdoor location, on private property, for the exhibition and sale of such goods. This definition shall not include an individual who holds a retail sales tax license from the city and operates in full compliance with the zoning code of the city. A person so engaged shall not be relieved from complying with the provisions of this chapter merely by reason of associating temporarily with any local dealer, trader, merchant or auctioneer, or by conducting such transient business in connection with, as a part of, or in the name of any local dealer, trader, merchant or auctioneer.

“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.

“Point of destination” means the address to which an item is delivered by the seller to the purchaser whether by common carrier, mail, or conveyed by the seller.

“Preprinted newspaper supplements” shall mean inserts, attachments or supplements circulated in newspapers that: (1) are primarily devoted to advertising; and (2) the distribution, insertion, or attachment of which is commonly paid for by the advertiser.

“Prescription drugs for animals” means drugs dispensed in accordance with any order in writing, dated and signed by a practitioner, or given orally by a practitioner, specifying the animal for which the medicine or drug is offered and directions, if any, to be placed on the label.

“Price” or “purchase price” means the price to the consumer, exclusive of any direct tax imposed by the federal government or by this chapter, 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:

A.    Such exchanged property is to be sold thereafter in the usual course of the retailer’s business; or

B.    Such exchanged property is a vehicle and is exchanged for another vehicle and both 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:

A.    The amount of money received or due in cash credits;

B.    Property at fair market values taken in exchange but not for resale in the usual course of the retailer’s business;

C.    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;

D.    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;

E.    Installation labor included in the purchase price and not separately stated;

F.    Transportation and other charges to effect delivery of tangible personal property to the purchaser;

G.    Indirect federal manufacturers’ excise taxes, such as taxes on automobiles, tires and floor stock;

H.    The gross purchase price of articles sold after manufacturing or 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:

A.    Any sales or use tax imposed by the state of Colorado or by any political subdivision thereof;

B.    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;

C.    Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reporting gross sales.

“Private communications services” means telecommunications services furnished to a subscriber, which entitles the subscriber to exclusive or priority use of any communication channel or groups of channels, or to the exclusive or priority use of any interstate intercommunications system for the subscriber’s stations.

“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 described auditory, ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances, oxygen concentrators and oxygen with related accessories.

“Purchaser” means any person to whom a taxable service has been rendered or who has leased or purchased at retail tangible personal property which is used, stored, distributed or consumed in the city upon which a tax is imposed by this chapter.

“Retail sales” means all sales except wholesale sales.

“Retailer” means any person selling, leasing or renting tangible personal property or services at retail. Retail shall include any:

A.    Auctioneer;

B.    Salesperson, representative, peddler, or canvasser, who makes sales as a director indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer;

C.    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.

“Return” means the sales and use tax reporting form used to report sales and use tax.

“Sale” or “sale and purchase” means the conveyance acquisition for any consideration by any person of tangible personal property or taxable 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:

A.    Transfer, either conditionally or absolutely, of the title or possession or both to tangible personal property;

B.    A lease, lease-purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property or taxable services, the utilization of coin-operated devices, except coin-operated telephones, which do not vend articles or tangible personal property shall be considered short-term rentals of tangible personal property;

C.    Performance of taxable services; or

D.    Barter or exchange for other property or services including coupons.

The terms “sale” and “sale and purchase” do not include:

A.    A division of partnership assets among the partners according to their interests in the partnership;

B.    The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation’s outstanding stock, except qualifying shares, in proportion to the assets contributed;

C.    The transfer of assets of shareholders in the formation or dissolution of professional corporations;

D.    The dissolution and the pro rata distribution of the corporation’s assets to its stockholders;

E.    A transfer of a partnership interest;

F.    The transfer in a reorganization qualifying under Section 368(a)(1) of the “Internal Revenue Code of 1954,” as amended;

G.    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;

H.    The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder;

I.    The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;

J.    The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent (80%) 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;

K.    The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, 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 that there is an increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. To such an extent any transfer referred to in this subsection K shall constitute a sale. For the purposes of this subsection, a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent (80%) of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent (80%) 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 code.

“Security system services” means electronic security system services. Such term does not include nonelectronic security services such as consulting or human or guard dog patrol services.

“Soft drinks” means nonalcoholic beverages that contain natural or artificial sweeteners. Soft drinks do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes or beverages that contain fifty percent (50%) or more vegetable or fruit juice by volume.

“Solicitor” means any person, whether as volunteer, owner, agent, consignee or employee, who travels by foot, wagon, motor vehicles, pushcart or any other method of transportation from house to house or street selling or offering to sell services, food, beverages, goods or merchandise, distributing goods or information, or soliciting funds or other forms of assistance.

“Sound system services” means sound system services involving provision of broadcast or prerecorded 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.

“Storage” or “storing” means any keeping or retention of, or exercise of dominion or control over, or possession of tangible personal property under lease or purchase at retail within or without the city from a vendor.

“Tangible personal property” means corporeal personal property.

“Tax” means the sales tax due from a retailer.

“Tax deficiency” means any amount of tax that is not reported or not paid on or before the due date.

“Tax Inspector” means the City Manager, or other person, or agent, designated by him, and shall likewise refer to the sales tax administrator, or Finance Director.

“Taxable sales” means gross sales less any exemptions and deductions specified in this code.

“Taxable services” means services subject to tax pursuant to this code.

“Taxpayer” means any person obligated to collect and/or pay tax under the terms of this code.

“Telecommunications service” means the transmission of any two (2) 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 combination 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 telecommunications service, specialized mobile radio and two (2) way pagers and paging service, including any form of mobile two-way communication. “Telecommunications service” does not include separately stated nontransmission services which constitute computer processing applications used to act on the information to be transmitted.

“Theater operator” means any person, whether owner, operator, lessee or any other person, who charges or causes to be charged admission to a performance or show at a theater open to the public.

“Therapeutic device” means devices, appliances, or related accessories that are sold to correct or treat a human physical disability or surgically created abnormality; if such device, appliance or related accessory has a retail value of more than one hundred dollars ($100.00), it must be sold in accordance with a written recommendation from a licensed doctor to qualify as a “therapeutic device” for purposes of this code.

“Total tax liability” means the total of all tax, penalties or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales.

“Use” means the exercise, for any length of time, by any person within the city of any right, power, or dominion over tangible personal property by lease or purchase.

“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.

“Wats/800 Service” means any outbound or inbound interstate wide area telecommunications service or other similar service which entitles the subscriber, upon payment of a periodic charge, based upon a flat amount and/or usage, to make or receive a large volume of telephonic communications to or from persons having telephone or radio stations in specified areas which are outside the telephone system area in which the subscriber’s station is located.

“Wholesale sales” means sales to licensed retailer merchants, jobbers, dealers or wholesalers for resale, and not for storage, consumption, or distribution. Sales by wholesalers to consumers are not wholesale sales. Sales by wholesalers to nonlicensed retailers are not wholesale sales.

“Wholesaler” means any person selling to retailers, jobbers, dealers, or other wholesalers, for resale, and not for storage, use, consumption or distribution. (Ord. 2010-4 § 1 (part); Ord. 2005-4 § 1 (part); Ord. 2004-5 (part))

3.20.030 License—Required.

A.    It is declared to be the intent of the City Council that no person may engage in business involving the retail sale of tangible personal property, as defined in Section 3.20.020, within the city unless he obtains a valid retail sales tax license issued pursuant to this chapter, except as otherwise provided in this code.

B.    The provisions of this chapter shall apply to and govern the application for issuance, regulation, suspension and revocation of sales tax licenses, except that:

1.    The requirement of any ordinance relating to any license or licensed activity shall be complied with and enforced in addition to the requirements of this chapter;

2.    The provisions of this chapter shall be construed to effect the purposes of providing orderly procedures, observation of the requirements of due process of law, and implementation of the purposes of the ordinances of the city.

C.    An application for a license shall be made on forms prescribed by the Tax Inspector and filed at the city offices, in compliance with the provisions of this chapter.

D.    Application shall be made prior to the commencement of retail business within the city, or in the event of a renewal, prior to January 1st of the calendar year for which the license is sought. A thirty (30) day grace period after the application deadline shall be permitted.

E.    A retail sales tax license shall be required in addition to all other licenses required by this code or state statutes, except that contractors subject to licensing pursuant to Chapter 5.12 of this code shall not be required to apply for a sales tax license.

F.    Unless otherwise provided by law, if an application for a license has been timely filed, the applicant may continue in retail business within the city unless or until the application is denied. (Ord. 2004-5 (part))

3.20.040 License—Issuance requirements.

A.    No license shall be issued unless the Tax Inspector finds, after investigation, that:

1.    All applicable provisions of this code and state statutes have been met by the applicant;

2.    The required fees and previously assessed penalties, if any, have been paid.

B.    Any license issued in error may be canceled.

C.    Upon issuance, the license shall be mailed to the licensee at the address stated in the application.

D.    Every license shall show upon its face:

1.    The trade name of the business to which such license has been issued;

2.    The time period for which the license is issued;

3.    The street address, if any, where such business is regularly carried on;

4.    Such other information deemed necessary by the Tax Inspector.

E.    A separate license shall be required for each separate location within the city.

F.    No license shall be transferred from one (1) person or business or location to another. Any change of ownership, nature of business or location shall require a new application and sales tax license, including the applicable fees.

G.    The license for a particular retail business location shall be posted at all times it is in effect in the principal room or office of the business. No expired or invalid license shall remain posted. The license shall be exhibited upon request of any law enforcement officer or city official.

H.    City inspectors and investigators shall be permitted access to the licensed premises at all reasonable times for the purpose of performing their duties under city and state law. Such inspections and investigations at reasonable times shall not be hindered in any manner.

I.    Record of all licenses issued shall be kept at the city offices, including the name of each licensee and retail business and the location of the business. (Ord. 2004-5 (part))

3.20.050 License—Expiration and renewal.

A.    All licenses shall expire on December 31st of each calendar year.

B.    A renewal notice shall be sent to each licensee prior to the expiration of the license. The license may be renewed by filing a new application and paying applicable fees as required by this chapter. (Ord. 2004-5 (part))

3.20.060 License—Denial.

A.    If the Tax Inspector finds that the applicant has not satisfied the prerequisites of this chapter, the application for a license shall be denied.

B.    A license may be denied for any reason it could be canceled, suspended or revoked.

C.    A license may not be denied solely on the grounds that the licensee has previously had a license denied, canceled, suspended, or revoked, so long as the prerequisites of this chapter are met and the city code does not otherwise require denial. (Ord. 2004-5 (part))

3.20.070 License—Cancellation.

A license shall be canceled by the Tax Inspector:

A.    When it appears that issuance of the license was illegal; or

B.    The license was mistakenly issued to the wrong person or premises or the wrong license was issued; or

C.    When any fee or penalty is unpaid; or

D.    Upon grounds provided by ordinance or by statute. (Ord. 2004-5 (part))

3.20.080 License—Suspension.

A.    A license may be suspended, with or without conditions, by the Tax Inspector:

1.    When any activity conducted pursuant to such license violates an ordinance or statute; or

2.    Upon any grounds which would authorize revocation of a license except grounds which make relocation mandatory; or

3.    Upon any grounds of suspension provided by this code.

B.    A license may be conditionally suspended upon any grounds authorizing suspension thereof. (Ord. 2004-5 (part))

3.20.090 License—Revocation.

A license may be revoked by the Tax Inspector:

A.    When it appears that the license was obtained by fraud or misrepresentation or false statements within the application; or

B.    When it appears that the activity conducted pursuant to such license is a public nuisance as defined by ordinance or by statute; or

C.    Upon any grounds of revocation provided by this code. (Ord. 2004-5 (part))

3.20.100 Notification of adverse action—Right to a hearing.

A.    When grounds exist therefor, a license may be canceled, suspended or revoked by the Tax Inspector upon the expiration of a reasonable period of time, not less than ten (10) days, as stated in notice given by certified mail, return receipt requested, to the address of the licensee as shown on the records of the Tax Inspector. Notice of denial shall be given in the same manner and shall include a reasonable time period within which the applicant may request a hearing. All references to “licensee” in this section shall also apply to applicants who have been denied a license. Within the period of notice, the licensee may either:

1.    Perform any act or cure any default necessary to avoid the adverse action; or

2.    Request a hearing, in which event the license shall not be denied, canceled, suspended or revoked, except as provided by subsection B of this section.

B.    Except as otherwise provided in this section, no license shall be denied, canceled, suspended or revoked without affording opportunity for a hearing before the City Manager.

C.    A licensee shall be deemed to have been afforded opportunity for a hearing if notice of the proposed adverse action, and the grounds therefor, is given in the manner provided in this section, and:

1.    The notice is not delivered because the licensee has moved from the address stated in the license or application therefor; or

2.    The notice is not delivered because the address stated in the license or application therefor is false or nonexistent; or

3.    The notice is not delivered because the licensee refuses to accept the certified mail; or

4.    The licensee, having received a notice that an adverse action will be taken unless a hearing is requested, fails to request a hearing as provided in this section; or

5.    The licensee, having received notice of hearing, fails without good cause to attend such hearing in person or by counsel; or

6.    The licensee, having requested a hearing, fails without good cause to attend such hearing in person or by counsel.

D.    Within ten (10) days of receipt of notice of adverse action, the licensee may request, in writing, a hearing before the City Manager. Such hearing shall be informal with no transcript, and shall be held within thirty (30) days of the request for hearing, with the City Manager’s decision to be issued within ten (10) days from the date of the hearing. Failure of the City Manager to hold the hearing or issue his decision within the time periods prescribed shall result in a decision in favor of the licensee.

E.    The City Manager may nominate another official or employee of the city to sit as a hearing officer to conduct any hearing requested by a licensee, but no final adverse action shall be taken except by the City Manager after reviewing the recommendations of the hearing officer.

F.    Any appeal of the City Manager’s decision shall be pursuant to Section 3.20.280. The licensee shall have no right to any form of appeal if he has not requested a hearing within the time period provided in subsection D of this section.

G.    Nothing in this chapter shall authorize adverse action against a licensee based upon consumer complaints against a business.

H.    Notwithstanding the procedures set forth in this section, the City Manager may enter an order for immediate suspension of a license, pending further investigation for a period not to exceed ten (10) days, upon a finding that probable cause exists for revocation of a license of a business regulated and controlled under the police power of the city or the state.

I.    Any surrender of a license shall not affect the civil or criminal liability of the licensee nor entitle the licensee to a refund of any fees paid prior to surrender.

J.    No revocation, suspension or surrender of a license shall impair or affect the obligation of any lawful contract between the licensee and third parties, unless the contract so requires. (Ord. 2004-5 (part))

3.20.110 Fees.

A.    The annual license fee shall be ten dollars ($10.00).

B.    A nonrefundable application fee of five dollars ($5.00) shall be paid at the time of filing an application.

C.    The license fee shall be paid at the time of filing an application, which fee shall be refunded in the event of denial of the license or withdrawal of the application prior to issuance of the license.

D.    Fees may be paid in cash or by check, bank draft or money order. Fees paid in any form except cash will be accepted by the Tax Inspector subject to collection.

E.    Whenever any check, bank draft or other instrument received by the Tax Inspector for payment of any fee or penalty is returned unpaid or uncollectable, such fee or penalty shall be deemed unpaid. Any license issued while a required fee or penalty assessed pursuant to the city code remains unpaid shall be canceled.

F.    In the event a license is sought for a time period between August 31st and December 31st of a calendar year, the full application fee and one-half (1/2) of the license fee shall be paid.

G.    A fifty dollar ($50.00) late application fee shall be assessed, in addition to the regular application and license fees, for any application received more than thirty (30) days after commencement of business within the city or, in the case of a renewal, for any application received after January 30th of the calendar year for which the license is sought. This late application fee shall be in addition to all other fees and penalties that may be assessed pursuant to this code.

H.    The Tax Inspector may issue a replacement for a lost or damaged license upon payment of a five dollar ($5.00) fee. (Ord. 2004-5 (part))

3.20.120 Violation of licensing requirements.

It is a violation of this code to conduct business within the city without a valid retail sales tax license or without an application filed in a timely manner with the Tax Inspector unless specifically exempted from the provisions of this chapter. Each day that a business is conducted in violation of this section shall be a separate offense. It shall be a misdemeanor to violate any provision of this chapter and any person found guilty of such violation in the municipal court of the city shall be subject to a fine of up to nine hundred ninety-nine dollars ($999.00), and/or imprisonment up to three hundred sixty (360) days. (Ord. 2004-5 (part))

3.20.130 Property and services subject to sales tax.

A.    Sales and Services. There is levied and there shall be collected and paid sales tax in the amount stated in Section 3.20.200 on all sales and services including, but not limited to, the following:

1.    The sale, purchase, lease, rental, or grant of license for use of tangible personal property, and any subsequent lease, rental, or sale of tangible personal property by any person to any consumer or purchaser, regardless of whether the person purchasing, leasing, renting or selling the personal property paid the tax imposed on his initial purchase and use of the property so acquired which is subsequently leased, rented, or sold. When a retail sale involves the exchange or trade-in of property, the tax shall be collected on the purchase price paid or charged, including the fair market value of the property exchanged or traded-in at the time and place of exchange of trade-in;

2.    Upon the sale of telecommunications services, whether furnished by public or private corporations or enterprises for all intrastate, interstate and international telecommunications service charged to an apparatus, telephone, or account in Glendale, or to a customer location within Glendale, or to a person residing in Glendale, without regard to where the bill for such service is physically received. For purposes of this section, “telecommunications service” includes the installation of any telecommunications equipment or apparatus. A credit shall be allowed for any telecommunications services subject to the tax that are also subject to a municipal sales tax outside of this city and properly assessed by and paid to such other municipal jurisdiction;

3.    Upon the charge within the city for electrical energy and natural or manufactured gas sold for domestic or commercial consumption and not for resale;

4.    Upon the amount paid for food or drink served 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.

a.    On the selling price of food or drink, whether sold to the public or to employees,

b.    On the cost of food or drink which is given to employees in return for their labor or services rendered or otherwise given away,

c.    Food or drink provided to employees of the places mentioned in this subsection at no charge or at a reduced charge and which is considered part of their salary, wages, or income shall be exempt from taxation under the provisions of this chapter;

5.    Pay, cable or subscription television services sold, purchased, leased, rented or furnished, including charges for service connections, installations, connection charges and all and any other similar charges made for such services. Sales tax is due on all pay, cable or subscription television services sold to the full amount of the charge for such services rendered;

6.    On the purchase price paid for sales of tangible personal property at retail to national banking associations and banks organized and chartered under the laws of the state for use within the city;

7.    Machinery, machine tools and specific processing equipment and repair parts and replacements thereof, exclusively and directly used in manufacturing or processing tangible personal property;

8.    Upon “used merchandise” which has previously been purchased and which has been remanufactured or rebuilt and, as so remanufactured or rebuilt, been sold to a subsequent owner;

9.    On the design, development, writing, translation, fabrication, maintenance, lease, or sale of computer program (software) services, which includes electronic downloads, software licenses, and software maintenance agreements;

10.    On the total lease or rental charges for storage lockers/units;

11.    On the purchase price paid or charged on the lease, rental or on the transaction of furnishing rooms or accommodations to any person who for a consideration uses, possesses, or has the right to use or possess, any room or rooms or other accommodations in any hotel, apartment hotel, guest house, guest ranch, mobile home, auto camp, trailer court or park, or any other place furnishing rooms and accommodations under any concession, permit, right of access, license to use or other agreement or otherwise, regardless of the duration of the rental period.

The term “room” means, in addition to a regular sleeping room or unit, a meeting room, a display room, a banquet room or any special purpose room for which a charge is made. The term “accommodations” includes the furnishing of a space in any auto camp, trailer court or park under any concession, permit, right of access, license to use, or any other agreement, by or through which any of the above rooms or accommodations may be used or occupied.

Governmental and “exempt” organizations shall not transfer their exemption status to any person who rents rooms or accommodations from or through them. Any such organizations which rent rooms or accommodations to their members or guests, regardless of how the charge is made, must apply for and obtain a license and must collect and remit the tax due, regardless of whether the rooms or accommodations are paid for by drafts on government or “exempt” institution funds;

12.    Upon tangible personal property used in motor vehicle repairs performed substantially within the boundaries of the city, including extended warranty.

B.    Rental Property. If tangible personal property is purchased for use exclusively in the rental or leasing business and is not at any time used for the purchaser’s general business or personal use, a sales tax is due upon the rental or leasing of tangible personal property used in the rental or leasing business, regardless of whether a sales tax has been paid upon a previous purchase of the property.

C.    Vending Machine Property. Every retailer or vendor vending items of tangible personal property through coin-operated vending machines shall pay sales tax at the rate specified in Section 3.20.160 on the tangible personal property sold or vended in the coin-operated machine unless the sale shall be otherwise exempt as provided in this chapter. Owners of vending machines that vend articles of tangible personal property and other coin-operated devices are subject to sales tax on the cost of the vending or coin-operated devices. (Ord. 2010-4 § 1 (part); Ord. 2007-19 § 1 (part): Ord. 2004-5 (part))

3.20.140 Sales tax exemptions.

A.    There are exempt from taxation under the provisions of this chapter the following items and services, including, but not limited to:

1.    All direct sales to the United States government, to the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;

2.    All direct sales, except of building materials and supplies, to charitable corporations, as defined in Section 3.20.020, in the conduct of their regular religious, charitable and eleemosynary functions and activities;

3.    All sales which the city is prohibited from taxing under the Constitutions or laws of the United States or the state of Colorado;

4.    All sales of cigarettes;

5.    All sales of food for domestic home consumption, as food is defined in Section 3.20.020, Definitions, of this chapter, including food purchased with food stamps or WIC (women, infant and children) vouchers;

6.    Motor fuel upon which there has been accrued or has been paid either the gasoline tax or special fuel tax required by Article 27 of Title 39, C.R.S., and which is not subject to refund;

7.    Consideration received for labor or services sold, except those specific services defined as taxable, if such services are separately stated from the tangible personal property sold. Manufacturing or fabrication labor is not exempt;

8.    Newspapers as defined in Section 3.20.020;

9.    Construction and building materials 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 on the materials;

10.    Tangible personal property or the furnishing of services if the transaction was previously subjected to a sales tax, lawfully imposed on the purchaser or user by another municipality, equal to or in excess of the rate established pursuant to Section 3.20.200. A credit shall be granted against the city’s tax with respect to such transaction equal to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous municipality. The amount of the credit shall not exceed the rate established pursuant to Section 3.20.200;

11.    The sale price of property returned by the purchaser when the full sale price including the tax levied is refunded, either in cash or by credit;

12.    Discounts from the original selling price if such discount or decrease in purchase price and the corresponding decrease in sales tax due is actually passed on to the consumer. An anticipated cash discount to be allowed for payment on or before a given date is not an allowable adjustment to the selling price in determining gross taxable sales on any vendor’s return prior to the date when the customer actually receives the discount. Any adjustments in sale price such as allowable discounts, rebates, and credits cannot be anticipated and the tax must be based upon the original selling price unless such adjustments have actually been made prior to the filing of the return wherein such sale is reported; except that, if the price upon which the tax was computed and paid to the city by the vendor is subsequently readjusted, prior to the payment of the tax by the purchaser, a proper credit may be taken against the tax due on the next subsequent return.

B.    Additional provisions of exemption from the tax under this chapter:

1.    All sales of tangible personal property if both the following conditions exist: (a) the sales are to those who reside or do business outside the city for their use outside the city; and (b) the article or commodity is delivered to the purchaser by common carrier, by mail or conveyed by the seller;

2.    All sales of tangible personal property to a public utility doing business both within and outside the city, for use in its business outside the city, even though sale and/or delivery thereof is made within the city;

3.    Rental of a dwelling or a dwelling unit in residential use in compliance with Title 17, and is secured by a written agreement. For purposes of this exemption, “dwelling,” “dwelling unit,” and “residential use” are defined by Section 17.60.030;

4.    All permits, licenses, service charges, fines and assessments, for benefit or penalty, charged by and in accordance with the city;

5.    All sales of personal property; provided, that such sales do not exceed four (4) three (3) day periods per year, that the sale occurs at the residence of the owner, and that the property to be sold was originally purchased for use by members of the household (i.e., garage sales, yard sales, etc.);

6.    All wholesale sales or sales of tangible personal property purchased for resale;

7.    Sales of tangible personal property to a person engaged in manufacturing for sale shall be deemed a wholesale sale when it meets all of the following conditions:

a.    The property is transformed in fact by the process of manufacture,

b.    The property becomes by the manufacturing process a necessary and recognized ingredient, component and constituent part of the finished product, and

c.    The physical presence of the property in the finished product is essential to the use thereof in the hands of the ultimate consumer;

8.    Commercial packaging materials as defined in Section 3.20.020;

9.    The fair market value of any exchanged or traded-in property which is to be resold thereafter in the usual course of the retailer’s business, if included in the full price of an article sold;

10.    All medical supplies and prescription drugs for animals as defined in Section 3.20.020.

C.    The exemptions stated in this section shall not include natural gas and/or electricity used in the processing or manufacturing of goods or commodities or substances.

D.    The list of exemptions shall not be increased by implication or similarity. (Ord. 2007-19 § 1 (part): Ord. 2004-5 (part))

3.20.150 Property and services subject to use tax.

There is imposed and shall be collected from every person in this city a use tax at the rate of three and three-quarters percent (3.75%) 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 schedules and systems set forth in this code. (Ord. 2004-5 (part))

3.20.160 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 3.20.150, 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 3.20.150 to the Tax Inspector for the preceding period covered by the remittance on forms prescribed by the Tax Inspector, 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 3.20.150 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 3.20.170, 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 3.20.150, then at the time that such storage, use, or consumption becomes taxable under Section 3.20.150, collect the tax imposed by Section 3.20.150 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 3.20.150 shall make returns on forms provided by the Tax Inspector 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 3.20.130. 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 3.20.130.

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 3.20.150 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 3.20.150, then the Tax Inspector shall collect such use tax in the manner set forth in this code.

2.    The Mayor and the City Manager 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 Tax Inspector.

D.1.     For construction materials, the use tax imposed pursuant to Section 3.20.150 shall be collected by the Tax Inspector as hereinafter provided in this subsection and shall be collected in the amount of three and three-quarters percent (3.75%) of the sale value of the construction materials. For purposes of this subsection, sixty percent (60%) of the estimated general contract costs and/or sixty percent (60%) 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 and shall on or before the tenth day of each succeeding month following the start of such construction file a return with the Tax Inspector to which he shall attach such statements and invoices from both the general and subcontractors along with a summary sheet for the lumber, fixtures, materials and other supplies purchased the previous month and shall thereupon pay to the Tax Inspector the full amount of the use tax due thereon for the preceding month or months. Any failure to preserve such statements and invoices and to make such return 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 Tax Inspector 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 Tax Inspector 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, may at such person’s election 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 (3) 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. If the taxpayer elects this basis for estimating the use tax and providing a deposit to insure the use tax payment when due, then the provisions of subsection (D)(2) of this section which provide for the filing of a tax return supported by related invoices shall be waived. Upon payment of such deposit to the Tax Inspector, which is computed on the basis of three and three-quarters percent (3.75%) of sixty percent (60%) of the estimated general contract costs and/or sixty percent (60%) 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 due must be received by the Tax Inspector within thirty (30) days of such determination. If it is determined by the city that the deposit is sufficient to pay for the use tax due, then the deposit shall be used to pay the amount of the use tax due, and any excess amount of the deposit shall be returned by mail to the person who made the deposit within thirty (30) 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 Tax Inspector within sixty (60) days directly following the determination by the city of the use tax due, which determination shall be made within three (3) 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 Tax Inspector 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 (60) days after such application shall have been received by the Tax Inspector. 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 3.20.150. 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 3.20.150. (Ord. 2005-4 § 1 (part); Ord. 2004-5 (part))

3.20.170 Use tax exemptions.

The use tax imposed pursuant to Section 3.20.150 is declared to be supplementary to the sales tax imposed pursuant to Section 3.20.130 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 3.20.130;

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;

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 subsection (F)(1) of this section 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: (i) is a chemical, solvent, agent, mold, skin casing, or other material; (ii) 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 (iii) 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, telecommunications 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.    To 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 3.20.160(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 (30) 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 (30) 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 (30) 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 (30) 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 (90) days;

R.    Essential articles or containers which include, but are not limited to, nonreusable: plates, cups, or bowls on, or in which, unwrapped or unpackaged hot or prepared food is served to the consumer; cups used in vending machines dispensing beverages; disposable containers or packaging material on, or in which, food is transferred to the consumer (e.g., pizza delivery box), including baskets, boxes, sleeves for French fries, buckets or other containers if the retailer cannot transfer the food to the consumer without such article or container. Nonessential articles or containers are not exempt and are subject to the use tax;

S.    (Intentionally left blank);

T.    To the storage, use or consumption of all sales, except of building materials and supplies, to charitable corporations, as defined in Section 3.20.020, in the conduct of their regular religious, charitable and eleemosynary functions and activities;

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.    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 (3) years after the most recent sale of the property if, within the three (3) 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. (Ord. 2010-4 § 1 (part); Ord. 2004-5 (part))

3.20.180 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 (30) 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 (30) 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 (1) and the denominator of which is twelve (12), and the result shall be multiplied by the amount of the use tax imposed pursuant to Section 3.20.150.

C.    Where the provisions of subsection B of this section are utilized, the credit provisions of Section 3.20.160(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 3.20.150.

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 Tax Inspector an equipment declaration on a form provided by the Tax Inspector. 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 (90) 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 (90) days’ duration, no later than ten (10) 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 ($2,500).

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 ($2,500) 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 3.20.150 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. 2004-5 (part))

3.20.190 Exemption claims—Disputes and refunds.

A.    Should a dispute arise between the seller and purchaser as to whether or not any purchase of a service or commodity is exempt under this chapter, nevertheless the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser an appropriate receipt showing the details of the transaction. Refunds may be applied for by submittal to the Tax Inspector on forms prescribed and furnished by the city within sixty (60) days of the date of purchase in instances of dispute, unintentional payment of tax on exempt purchases, or an overpayment of taxes reported and paid by any taxpayer to the Tax Inspector. The Tax Inspector shall forthwith, after receipt of the application for refund, determine applicability. The Tax Inspector shall disburse to the applicant a refund when such has been approved by the City Manager, or notify the applicant in instances of disapproval.

B.    An application for refund of sales tax paid by a person who establishes that a tax was paid by another on a purchase made on behalf of a person entitled to an exemption and that a refund has not been granted to the person making the purchase, storage, use, or consumption, or of tax moneys paid in error or by mistake, shall be made within three (3) years after the date of purchase, storage, use or consumption of the goods for which the refund is claimed. (Ord. 2004-5 (part))

3.20.200 Rate schedule.

There is imposed a tax on all sales of commodities and services specified in Sections 3.20.130 and 3.20.150, and not otherwise exempted in Sections 3.20.140 and 3.20.170, in the amount of three and three-quarters percent (3.75%) of the purchase price. (Ord. 2004-5 (part))

3.20.210 Collection—Liability of vendors.

A.    Every retailer, vendor and wholesaler shall be liable for the collection of the tax provided for in this chapter for sales at retail to the user or consumer by adding the tax imposed by this chapter or the average equivalent to the sale price or charge as separate and distinct item, and when added, such tax shall constitute a part of such total price or charge and shall be a debt from the consumer or user to the vendor until paid and shall be recoverable at law in the same manner as other debts.

B.    Except as provided in subsections (B)(1) and (2) of this section, it is unlawful for any retailer to advertise or hold out or state to the public or to any consumer, directly or indirectly, that the Glendale sales tax or any part thereof shall be assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold, or if added, that it or any part thereof shall be refunded. Any person violating any provision of this section shall be subject to the penalties provided in this chapter.

1.    Nothing contained in this section shall be deemed to prohibit any retailer selling malt, vinous or spirituous liquors by the drink from including in his sales price any Glendale sales tax.

2.    Nothing contained in this section shall be deemed to prohibit any owner or operator of vending machines or coin-operated devices from including in his sales price any Glendale sales tax.

3.    No retailer shall advertise or hold out to the public in any manner, directly or indirectly, that the tax levied by this chapter is not considered as an element in the sales price to the consumer.

C.    The amount of gross sales represented by accounts not secured by a conditional sales contract or chattel mortgage and which are found to be worthless and are actually and properly charged off as bad debts for the purpose of the income tax imposed by the laws of the state or federal government may be credited upon a subsequent payment of the tax. However, if any such accounts are thereafter collected by the taxpayer the tax shall be paid upon the amount so collected; provided, such credit shall not be allowed with respect to any account or item therein arising from the sale of any article under a conditional sales contract or other title retention agreements for all or part of the purchase price or from the sale of any article when the seller takes a chattel mortgage on the tangible personal property to secure all or part of the purchase price.

D.    The amounts paid by the purchaser as, or in the nature of, interest or finance charges on credit extended in connection with the sale of any tangible personal property, if the interest or finance charges are separately stated from the consideration received for the tangible personal property transferred in the retail sale, and if included in the report of gross sales and services, are deductible from the gross sales and services.

E.    Every retailer or vendor conducting a business in which the transaction between the vendor and the consumer or purchaser consists of the supply of tangible personal property and services in connection with the maintenance or servicing of the same, shall be required to pay the tax levied under this chapter upon the full contract price, unless application is made to the City Manager for permission to use a percentage basis of reporting the tangible personal property sold and the services supplied under such contract. The City Manager is authorized to determine the percentage based upon the ratio of the tangible personal property included in the consideration as it bears to the total of the consideration paid under the combination contract or sale. This subsection shall not be construed to include the terms upon which the tax is imposed on the full purchase price as defined in this chapter, nor shall it be construed as an allowance for the vendor to fail to itemize to the customer the taxable and nontaxable portions of the bill.

F.    On instances of sale of property with maintenance agreement thereon, no deduction for labor or service portion of that total agreement from the tax base may be made without the express written approval of the City Manager.

G.    If a vendor, during any reporting period, collects as tax an amount in excess of the percentages set forth in Section 3.20.190 of his total taxable sales, he shall remit to the Tax Inspector the full net amount of the tax imposed by this chapter, and also such excess. The retention by the retailer or vendor of any excess tax collections or the intentional failure to remit punctually to the Tax Inspector the full amount required to be remitted by the provisions of this chapter is declared to be a violation of this chapter. (Ord. 2004-5 (part))

3.20.220 Reporting period—Collection provisions—Report forms—Deductibles.

A.    Every vendor shall be liable as a taxpayer and responsible for the reporting to the City Manager and paying the tax at the rate of three and three-quarters percent (3.75%) of the net total of taxable sales or charges for service during the reporting period, plus any overage of collections of tax on sales or charges for service resulting from the use of the bracket system prescribed in this chapter. A reporting period shall be monthly for vendors who exceed a sixty dollar ($60.00) tax liability per month, quarterly for a vendor with less than one hundred dollars ($100.00) in tax liability per quarter, and annually only upon approval of the Tax Inspector. A report shall be made and tax paid under the provisions of this chapter on or before the twentieth day of the month following the reporting period. Timely filing shall be evidenced by the postmark date. A report shall be made for each place of business if more than one (1) location is used in the business of sales at retail within the city. A report shall be made for the reporting period previously established whether or not tax is due for that period. A vendor’s failure to timely file a tax return when one is due for the reporting period as provided in this chapter shall be assessed a penalty of one hundred dollars ($100.00). A one hundred dollar ($100.00) penalty shall be assessed for every month said tax return remains unfiled to a maximum of five hundred dollars ($500.00) for each return.

B.    All moneys paid by the purchaser to the retailer as taxes imposed by this chapter shall be and remain the property of the city while in the hands of the retailer. Until paid to the Tax Inspector, the moneys shall be held in trust by the retailer for the sole use and benefit of the city. Failure by the retailer to pay the moneys to the City Manager shall be a violation of this chapter.

C.    Every vendor required or permitted to collect the tax shall collect the tax imposed by the provisions of this chapter notwithstanding the following, if the property purchased is intended to be brought into the city for use, storage, or consumption in the city:

1.    That the purchaser’s order or the contract of sale is delivered, mailed, or otherwise transmitted by the purchaser to the vendor at a point outside of the city as a result of solicitation by the vendor through the medium of a catalogue or other written advertisement, or by any other means; or

2.    That the purchaser’s order or contract of sale was made or closed by acceptance or approval outside of the city or before said tangible personal property enters the city; or

3.    That the purchaser’s order or contract of sale provides that the property shall be, or it is in fact, procured or manufactured at a point outside the city, and shipped directly to the purchaser from a point of origin; or

4.    That the property is mailed to the purchaser in the city from a point outside the city or delivered to a carrier at a point outside the city, F.O.B., or otherwise, and directed to the purchaser in the city, regardless of whether the cost of transportation is paid by the vendor or by the purchase; or

5.    That the property is delivered directly to the purchaser at a point outside the city.

D.    Every retailer or vendor engaged in business in Glendale, even though not maintaining an office in Glendale, and making sales of tangible personal property or taxable services subject to a sales or use tax of another jurisdiction inappropriately assessed, must collect and remit such tax to Glendale in like manner as Glendale retailers collect and remit sales tax.

E.    The city shall use the standard municipal tax reporting form and any subsequent revisions thereto adopted by the City Manager by the first full month commencing one hundred twenty (120) days after the effective date of the regulation adopting or revising such standard form. The city shall furnish each vendor collecting/remitting city sales and/or use tax such tax return form, which form shall be filled out by the vendor, or his duly authorized agents, and shall be submitted to the Tax Inspector along with the tax payment.

F.    If included in reported gross sales, the following are deductible from gross sales:

1.    Refunds. The price of tangible personal property or taxable services returned by a purchaser when the price and the sales tax collected are refunded in cash or by credit;

2.    Bad Debts. Taxable Glendale sales which are found to be worthless and are actually and properly charged off as bad debts for federal or state income tax purposes. Any amount so deducted and subsequently collected by the taxpayer shall be subject to the tax;

3.    Interest and Finance Charges. The amount of interest or finance charges on credit extended in connection with any sale, if the interest or finance charges are separately stated from the price;

4.    Effective July 1, 2004, the amount of three and one-third percent (3.33%) of the sales tax collected from taxpayers, on or before the twentieth day of the month following the reporting period (not to exceed two hundred dollars ($200.00) per reporting period), shall be paid by the city to the Greater Glendale Chamber of Commerce to assist in the funding of economic development within the city for the purpose of attracting visitors and/or additional business activity to the city. (Ord. 2005-4 § 1 (part); Ord. 2004-5 (part))

3.20.230 Recomputation—Payment adjustments.

A.    The Tax Inspector shall, as soon as practical after receipt of a taxpayer’s report, recompute the tax by the use of known and visible factors and if the resulting recomputed tax is less than that shown and paid by the taxpayer, the excess shall be credited toward the taxpayer’s obligation for the next reporting period. If the recomputed tax is more than that shown and paid by the taxpayer, the difference shall be recorded as a deficiency. The taxpayer shall be notified of the deficiency as provided in Section 3.20.280.

B.    Wilful disregard of the requirements for reporting and remittance of tax due, failure to pay the deficiency within fifteen (15) days of receipt of the Tax Inspector’s notice of deficiency, unless appealed, shall, in addition to constituting a violation of this chapter, subject the taxpayer to penalties and interest provided in Section 3.20.260(D). (Ord. 2004-5 (part))

3.20.240 Sale of business—Obligation of purchaser/seller.

A.    Any retailer who shall sell out his business or stock of goods or shall quit business shall be required to file a final return within ten (10) days of the date of the sale of his business or stock of goods or of quitting business.

B.    The purchaser of any business shall be responsible for determining whether any sales tax, including penalties and interest, is owed for that business and shall withhold a sufficient amount from the purchase money to cover the amount of all outstanding sales tax due the city, including any penalties and interest, until such time as the former owner shall produce a receipt from the Tax Inspector showing that the taxes, and any penalties and interest, have been paid or a certificate that no taxes, penalties or interest are due. If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in this section, and the taxes, penalties or interest are due and unpaid after the ten (10) day period allowed, he, as well as the vendor, shall be personally liable for the payment of the taxes, penalties and interest unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by a retailer under lease, installment sales contract, or other contract arrangement, by purchase, foreclosure sale, or otherwise, shall be liable for the payment of all delinquent sales taxes on the value of property so taken or acquired.

C.    The seller or his agent will be held liable for tax remittance on the sale of business in the event the purchaser fails to remit the tax due on the purchase. (Ord. 2004-5 (part))

3.20.250 Recordkeeping—Exemption claims—Audits.

A.    The burden of proving that any person is exempt from taxation or any article or commodity is exempt under the provisions of this chapter shall be upon the person asserting the claim for exemption. It is the duty of every person engaging or continuing in business within the city or otherwise subject to the tax under the provisions of this chapter, or a person requiring a license under Section 3.20.030 of this chapter, to keep and preserve suitable records of all sales and transactions as may be necessary to determine the applicability of the provisions of this chapter thereto, and to keep such invoices, sales memoranda, books and records for a period of three (3) years and they shall be open at any time for examination by the Tax Inspector or his agents. Failure to keep and preserve suitable records as required by this section shall be a violation of this chapter.

B.    Required records need not be stored or kept within the city, but if they are not, they must be, upon request of the Tax Inspector, produced for inspection either at the taxpayer’s place of business within the city or at the Glendale Municipal Building, no later than fourteen (14) days from the date of request. The taxpayer and the Tax Inspector may agree in writing to extend the period.

C.    In the event the City Manager determines there is a logistics or security problem, it is permissible for the Tax Inspector, or his agents, to travel to the location where the records are kept. The taxpayer is liable for all costs incurred throughout an audit.

D.    When the Tax Inspector has scheduled an audit or examination of the records not less than fourteen (14) days in advance, and has so notified the vendor or taxpayer, and the taxpayer fails to make available the records required in subsection A of this section at the appointed time, the City Manager may apply to any judge of the District Court in the county of Arapahoe, Colorado, for a subpoena to require the taxpayer to appear before City Manager, produce any of the foregoing information in the taxpayer’s possession and testify under oath before the City Manager. If the City Manager is unable to secure from the taxpayer information relating to the correctness of the taxpayer’s return or the amount of the taxpayer’s taxable sales, the City Manager may apply to any judge of the District Court in and for Arapahoe County for subpoenas to such other persons as the City Manager believes may have knowledge of the taxpayer’s return or income. If any of the persons so served with subpoenas fail to respond thereto, the city may apply to the Court for such relief as provided by law.

E.    If the city provides written notice to the taxpayer prior to the expiration of the audit period that the latter’s records will be audited pursuant to this chapter, such audit period shall be extended ninety (90) days after the date of expiration of the audit period. “Audit period” is the thirty-six (36) month reporting period preceding the date of the notice of audit.

F.    Performance of an audit does not constitute a statute of limitations or preclude additional audits of the same period within the parameters of this section.

G.    Except in accordance with judicial order or as otherwise provided by law, the City Manager and agents, clerks, and employees thereof shall not divulge any information gained from any return filed under the provisions of this chapter. The officials charged with the custody of returns filed 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 City Manager in an action or proceeding under the provisions of this chapter to which the City Manager is 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.

H.    No provision in 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.

I.    The provisions of this section shall not preclude the City Manager, his agents, clerks or 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 or the City Manager, nor shall the City Manager, and his 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.

J.    Any taxpayer licensed in the city pursuant to Section 3.20.030, and holding a similar tax license in at least four (4) other Colorado municipalities that administer their own tax collection, may request a coordinated audit as provided herein.

1.    Within fourteen (14) days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the taxpayer may provide to the Finance Director of this city, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those Colorado municipalities utilizing local collection of their sales tax in which the taxpayer holds a current sales tax license and a declaration that the taxpayer will sign a waiver of any passage-of-time based limitation upon the city’s right to recover tax owed by the vendor for the audit period.

2.    Except as provided in subsection G of this section, any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of subsection E of this section may be audited by the city during the twelve (12) months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.

3.    If the city desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to this subsection, the Tax Inspector shall so notify the Finance Director of the municipality whose notice of audit prompted the taxpayer’s request within ten (10) days after receipt of the taxpayer’s request for a coordinated audit. The Tax Inspector shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of coordinated audit.

4.    If the taxpayer’s request for a coordinated audit was in response to a notice of audit issued by the city, the city’s Tax Inspector shall facilitate arrangements between the city and other municipalities participating in the coordinated audit unless and until an official from some other participating municipality agrees to assume this responsibility. The Tax Inspector shall cooperate with other participating municipalities to, whenever practicable, minimize the number of auditors that will be present on the taxpayer’s premises to conduct the coordinated audit on behalf of the participating municipalities. Information obtained by or on behalf of those municipalities participating in the coordinated audit may be shared only among such participating municipalities.

5.    If the taxpayer’s request for a coordinated audit was in response to a notice of audit issued by the city, the city’s Tax Inspector shall, once arrangements for the coordinated audit between the city and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities will be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit. The Tax Inspector shall also propose a schedule for the coordinated audit.

6.    The coordinated audit procedure set forth in this section shall not apply:

a.    When the proposed audit is a jeopardy audit;

b.    To audits for which a notice of audit was given prior to the effective date of the ordinance codified in this section;

c.    When a taxpayer refuses to promptly sign a waiver of subsection E of this section; or

d.    When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in subsection B of this section. (Ord. 2004-5 (part))

3.20.260 Inability to establish exact tax due—Estimate—Penalties.

A.    The Tax Inspector may, in any reasonable manner possible, estimate the amount of tax due, to which penalties and interest will be added, in the event any taxpayer prohibits the establishment by the Tax Inspector of an accurate and exact amount of tax due by:

1.    Refusing to report in accordance with the provisions of this chapter;

2.    As the seller of a business, failing to file the report and remit the taxes required by this chapter;

3.    Intending to leave the city without paying any taxes which are lawfully owed;

4.    Removing, or intending to remove, property subject to tax under this chapter from the city, or to sell any such property with the intent to remove the proceeds of sale from the city without paying tax thereon; or

5.    Engaging or intending to engage in any activity which the Tax Inspector reasonably believes will jeopardize collection of taxes authorized by this chapter.

B.    When an estimate of taxes is made, the Tax Inspector shall serve notice thereof on the taxpayer by personal service, first class, certified or registered mail to the taxpayer’s last known address, or by leaving a copy with the person in charge at the taxpayer’s business establishment or last known address. In the event the taxpayer cannot be found at its last known address or notices sent by the city are returned by the post office, no further attempts at providing notice shall be required. The burden shall at all times be on the taxpayer to inform the city of the taxpayer’s current address. Unless the taxpayer files a written demand for an administrative hearing and determination of tax liability, as provided in Section 3.20.280 of this chapter, within ten (10) days from the date of receipt of such notice, he shall conclusively be deemed to have accepted the estimate as a fair and accurate determination of his tax obligation and shall thereby waive the right to contest that determination.

C.    In any case where it appears that collection of revenues from taxes lawfully imposed by this chapter is in jeopardy, the Tax Inspector may immediately issue demand for payment. Upon issuance of such demand for payment, the tax required therein shall be due and payable, and the Tax Inspector may proceed forthwith to collect the taxes by any lawful means, including, not by the way of limitation, filing of liens upon the property subject to tax, issuance and execution of distraint warrants, or filing of summons and complaint in any competent court; provided, however, that collection under this section may be stayed upon the provision by taxpayer to the Tax Inspector of such security as, in the opinion of the Tax Inspector, shall be satisfactory to insure payment to the city of all taxes lawfully owed by taxpayer.

D.    Penalty for Negligence. When a sales tax deficiency exists from underreporting or failure to pay due to negligence or a knowing, intentional disregard of the provisions of this chapter or rules and regulations promulgated in this chapter without the intent to defraud, penalty and interest shall be assessed as follows:

1.    The penalty shall be ten percent (10%) of the delinquent tax or deficiency, or fifteen dollars ($15.00), whichever is greater.

2.    The annual rate of interest assessed pursuant to this section shall be the rate established by the City Manager and approved by City Council. The rate shall be set at eighteen percent (18%) per year until such time it is changed in accordance with the provisions of this chapter.

E.    Penalty for Fraud. If any part of delinquent tax or deficiency is due to fraud with the intent to evade the tax, the penalty shall be one hundred percent (100%) of the total amount of the deficiency. The Tax Inspector shall mail a written notice of assessment to the taxpayer. The amount of the tax due, including the penalty and interest, shall become due and payable within ten (10) days after the notice of assessment is mailed by the Tax Inspector. Interest shall be assessed at the rate specified in subsection (D)(2) of this section.

F.    Special Penalty for Enforcement Proceedings. When any person liable for the payment of tax has repeatedly failed, neglected or refused to pay the tax within the time specified for such payments, and the Tax Inspector has been required to exercise enforcement proceedings against the taxpayer three (3) or more times to collect such taxes due, the Tax Inspector is authorized to assess and collect the amount of such taxes due together with all the interest and penalties thereon provided by law and also an additional amount equal to fifteen percent (15%) of the delinquent taxes or deficiency, interest and penalties due, or the sum of twenty-five dollars ($25.00), whichever amount is greater.

G.    For good cause shown, the Tax Inspector is authorized to waive any penalty assessed under this chapter. For purposes of this chapter, interest shall never be deemed a penalty. (Ord. 2004-5 (part))

3.20.270 Limitation of actions.

A.    No tax, or interest thereon or penalties with respect thereto, shall be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced, more than three (3) years after the date on which the tax was or is payable, nor shall any lien continue after such period, except for actual or estimated taxes assessed before the expiration of such period, provided notice of lien has been filed prior to the expiration of such period.

B.    In the case of a false or fraudulent return with intent to evade tax, or in the case of a failure to file a return, the tax together with interest and penalties thereon may be assessed, or proceedings for the collection of such taxes may be begun, at any time.

C.    Before the expiration of such period of limitation, the taxpayer and the City Manager may agree in writing to an extension thereof and the period so agreed upon may be extended by subsequent agreements in writing.

D.    The period of limitation provided in this section shall not run against the city for an audit period if written notice is given to the taxpayer prior to the expiration of the statute of limitations that the latter’s records will be audited pursuant to this chapter. (Ord. 2004-5 (part))

3.20.280 Deficiency notice—Taxpayer’s remedies.

A.    When the city asserts that taxes are due in an amount greater than the amount paid by a taxpayer, the city shall mail a deficiency notice to the taxpayer by certified mail. The deficiency notice shall state the additional taxes due, and shall state, in clear and conspicuous type, that the taxpayer has the right to demand an administrative hearing to protest the deficiency.

B.    In the event the taxpayer disputes the tax liability imposed by any deficiency notice, he shall file a written demand with the City Manager for an administrative hearing and determination of tax liability by the City Manager within thirty (30) calendar days of receipt of the deficiency notice, which demand will stay the sale under any distraint warrant until the conclusion of the hearing. This demand shall include the name, business address and license number of the taxpayer, a copy of the notice sent by the city, the taxable periods and the amounts of tax which are being disputed, and a statement of the grounds upon which the taxpayer bases his claim. In the event it is determined at the hearing that the taxpayer’s liability is less than the amount in the possession of the City Manager, such excess shall be paid to the taxpayer forthwith. Failure to demand an administrative hearing and determination of tax liability shall constitute a waiver of the right to contest such liability; however, when such determination is requested or when a request for a refund is timely made, the decision rendered therein shall be appealable as provided in this section.

C.    The hearing provided in subsection B of this section shall be informal and no transcript, rules of evidence, or filing of briefs shall be required, but the taxpayer may elect to submit a brief, in which case the city may submit a brief. The City Manager shall hold such hearing and issue the decision thereon within ninety (90) days after receipt of the taxpayer’s written demand therefor, except the city may extend such period if the delay in holding the hearing or issuing the decision thereon was occasioned by the taxpayer, but, in any such event, the City Manager shall hold such hearing and issue the decision thereon within one hundred eighty (180) days of the taxpayer’s demand in writing therefor.

D.    If the dispute was not resolved by the informal hearing within thirty (30) days of the City Manager’s decision the taxpayer may request, in writing, a formal hearing on the record before the City Council or its appointed hearing officer, which shall be held within sixty (60) days of the taxpayer’s request. Any appeal from the decision rendered after such formal hearing shall be pursuant to Rule 106 of the Colorado Rules of Civil Procedure.

The City Council is aware that H.B. 1007 provides for an appeal to the state pursuant to C.R.S. 29-2-106.1(3)(a). However, the City Council is satisfied that this chapter provides sufficient safeguards to afford a vendor substantive, as well as procedural, due process in appealing any disputed tax. Therefore, the City Council has elected to delete such state hearing from the taxpayer’s administrative remedies as written and explained in this chapter.

E.    The taxpayer shall have no right to any form of appeal if he has not exhausted his administrative remedies or if he fails to request a hearing within the time period provided in subsection B of this section. For purposes of this subsection, “exhaustion of administrative remedies” means:

1.    The taxpayer has timely requested in writing a hearing before the City Manager and the City Manager has held such hearing and issued a decision thereon; or

2.    The taxpayer has timely requested in writing a hearing before the City Manager and the City Manager failed to hold such hearing or issue a decision thereon within the time periods provided in subsection C of this section.

F.    In the event of appeal under Rule 106, C.R.C.P, the taxpayer shall post a bond in twice the amount of the taxes, interest and other charges stated in the City Council’s decision which are contested on appeal, or the taxpayer may, at his option, deposit the disputed amount with the City Manager in lieu of posting bond as a condition precedent to exercising his right to appeal. (Ord. 2010-4 § 1 (part); Ord. 2004-5 (part))

3.20.290 Unpaid tax—Lien—Additional remedies of city—Distribution of estates.

A.    Any tax imposed by this chapter, together with the interest and penalties provided and the cost of collection which may be incurred by the city, shall be and, until paid, remain a first and prior lien upon: (1) the goods, stock-in-trade and business fixtures owned or used by the retailer under license, installment agreement, title-retaining contract or other contractual arrangement; and (2) the real and personal property owned or leased by retailer and shall take precedence on all such property over other claims and mortgages.

B.    A notice of lien shall be served on the taxpayer and a copy of such notice shall be filed in the real estate records of Arapahoe County prior to the issuance of a distraint warrant.

C.    The lien provided in this section may be foreclosed by seizing under distraint warrant and selling at public auction so much of the property covered by the lien as may be necessary to discharge the lien. Such distraint warrant may be issued by the Tax Inspector whenever the taxpayer is in default on the payment of tax, interest and penalty, and may be served and the goods or property subject to such liens seized and sold by the Tax Inspector or any member of the City Police Department.

1.    A signed inventory of the property distrained shall be made by the city or its agent. Prior to the sale the owner or possessor shall be served with a copy of the inventory, a notice of the sum of the tax due and the related expenses incurred to date, and the time and place of sale.

2.    A notice of the time and place of the sale, together with a description of the property seized and to be sold, shall be published not less than two (2) times in a newspaper of general circulation within the county where distraint is made.

3.    The time fixed for the sale shall not be less than ten (10) days nor more than sixty (60) days from the date of distraint. The sale may be postponed by the city or agent for no more than ninety (90) days from the date originally fixed for the sale.

4.    The property shall be sold at public auction for not less than a fair minimum price, and if the amount bid for the property is less than the fair minimum price so fixed, the property may be declared to be purchased by the city and the city shall file a release of lien thereon. If the property is purchased by the city, such property may be disposed of in the same manner as other city property.

5.    The property may be offered first by bulk bid, then subsequently for bid singularly or by lots, and the city or its agent may accept the higher bid.

6.    The property offered for sale may be redeemed if the owner or possessor or other person holding an unperfected chattel mortgage or other right of possession, pays the tax due and all accrued collection costs no less than twenty-four (24) hours before the sale.

7.    The city or its agent shall issue to each purchaser a certificate of sale which shall be prima facie evidence of its right to make the sale and transfer to the purchaser all right, title, and interest of the taxpayer in and to the property sold.

a.    When the property sold consists of certificates of stock, the certificate of sale shall be notice to any corporation, company, or association to record the transfer on its books and records.

b.    When the property sold consists of securities or other evidences of debt, the certificate of sale shall be good and valid evidence of title.

8.    Any surplus remaining after satisfaction of the tax due plus any costs of making the distraint and advertising the sale may be distributed by the city first to other jurisdictions which have filed liens or claims of sales and use or personal property ad valorem taxes, and then to the owner or such other person having a legal right thereto.

D.    The taxpayer or any person who claims an ownership interest or right of possession in the distrained property may petition the City Manager, or the Municipal Court if the property was seized pursuant to a warrant used by the court, for the return of the property.

1.    The grounds for return of the property shall be that the person has a perfected interest in such property which is superior to the city’s interest or that the property is exempt from the city’s lien.

2.    The fact finder shall receive evidence on any issue of fact necessary to the decision of the petition. If the fact finder determines by a preponderance of the evidence in favor of the taxpayer or other petitioner, the property shall be returned.

E.    In lieu of seizure of property pursuant to a distraint warrant, the Tax Inspector may cause a civil action to be filed in the District Court of Arapahoe County to enforce the city’s lien for tax upon the real property situated in that county or in any other county in the state which may be subject to such lien, or to subject the real property or any right, title, or interest therein to the payment of such tax. The court shall adjudicate all matters involved in such action and may decree a sale of the real property and distribute the proceeds of such sale according to the findings of the court in respect to the interest of the parties and of the city. The proceedings in such action and the manner of sale, the period for and manner of redemption from such sale, and the execution of a deed of conveyance shall be in accordance with the laws and practice regulations relevant to foreclosures of mortgages upon real property.

F.    The Tax Inspector may also treat any such taxes, penalties or interest due and unpaid as a debt due the city from the taxpayer and may recover at law the amount of such taxes, penalties, interest and costs of collection in any county or district court having jurisdiction of the amounts sought to be collected in the county wherein the taxpayer resides or has his principal place of business.

1.    The return of the taxpayer or the assessment made by the city, as in this chapter, shall be prima facie proof of the amount due.

2.    No such civil action may be filed by the city until the time for the taxpayer to exercise his administrative remedies or to file an appeal has expired.

3.    This remedy shall be in addition to all other existing remedies available to the city.

G.    Whenever the business or property of any taxpayer subject to this chapter is subject to receivership, bankruptcy or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties and interest imposed by this chapter and for which the taxpayer is in any way liable shall be a prior and preferred lien against all the property of the taxpayer. No sheriff, receiver, assignee or other officer shall sell the property of any person subject to this chapter under process or order of any court without first ascertaining from the Tax Inspector the amount of any taxes due under this chapter. If any tax is due, the officer shall pay the amount of the taxes out of the proceeds less costs before making payment to any judgment creditor or other claimants. For the purpose of this section, the term “taxpayer” includes “retailer.”

H.    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, and in any such action, service of summons upon the City Manager or any person in charge of the City Manager’s office is sufficient service upon the city.

I.    For the purpose of facilitating settlement and distribution of estates, trusts, receivership, other fiduciary relationships and the assets of corporations in the process of dissolution or that have been dissolved, the City Manager may agree with the fiduciary or surviving corporate directors upon an amount of taxes due from the decedent or from the decedent’s estate, the trust, receivership or other fiduciary relationship, or corporation for any periods of tax liability under this chapter. Payment in accordance with such agreement fully satisfies the tax liability for the periods the agreement covers, unless the taxpayer has committed fraud or malfeasance or misrepresented a material fact regarding the tax or liability therefor.

1.    Except as provided in subsection (I)(3) of this section, any personal representative of a decedent or the estate of a decedent, any trustee receiver, or other person acting in a fiduciary capacity, or any director of a corporation in the process of dissolution or that has been dissolved who distributes the estate or fund under such person’s control without having first paid any taxes due from such decedent, decedent’s estate, trust estate, receivership, or corporation and assessed within the periods authorized by this chapter, is personally liable to the extent of the property distributed by such person for any unpaid taxes of the decedent, decedent’s estate, trust estate, receivership, or corporation imposed by, due and assessed within the periods authorized by this chapter.

2.    The distributee of a decedent’s estate, a trust estate, or fund and the stockholder of any dissolved corporation who receives any of the property of such decedent’s estate, trust estate, funds or corporation is liable under this chapter to the same extent that the decedent, trust estate, fund or corporation is liable under this chapter.

3.    If a tax under this chapter is due from a decedent or the decedent’s estate, personal liability of the persons set forth in this section remains in effect only if a determination of the tax due is made and notice and demand therefor issued within eighteen (18) months after the decedent’s personal representative files with the City Manager a written request for such determination. A request for determination under this subsection does not extend the otherwise applicable period of limitation.

4.    If a tax under this chapter is due from a corporation that is in the process of dissolution or has been dissolved, personal liability of directors or stockholders as provided in this section remains in effect only if a determination of the tax due is made and notice and demand therefor issued within eighteen (18) months after the corporation files with the City Manager a written request for such determination, but only if the request states that the dissolution was begun in good faith before the expiration of the eighteen (18) month period and the dissolution is completed. A request for determination under this subsection does not extend the otherwise applicable period of limitation. (Ord. 2004-5 (part))

3.20.300 Violation—Penalties—Period of limitations.

A.    It is a violation of this chapter to refuse to make any return provided to be made in this chapter, or to make any false or fraudulent return, or any false statement in any return, or to fail or refuse to make timely payment to the City Manager or his authorized agent of any taxes collected or due to the city, or in any manner to evade the collection and timely payment of the tax, or any part thereof, imposed by this chapter, or for any person or purchaser to fail or refuse to pay such tax or evade the timely payment thereof, or to aid or abet another in any attempt to evade the timely payment of such tax.

1.    In his discretion the City Manager may direct the issuance of a complaint and summons to appear before the Glendale Municipal Court to any person who may be in violation of any of the provisions of this chapter or the rules and regulations promulgated by the City Manager to enforce this chapter.

2.    Any person, corporation, partnership, company, association or other entity which violates Section 3.20.220 of this chapter shall be guilty of a misdemeanor and, upon conviction of such violation, shall be subject to a fine of not more than nine hundred ninety-nine dollars ($999.00), or imprisonment not to exceed three hundred sixty (360) days, or both such fine and imprisonment; provided, however, that no person under the age of eighteen (18) years shall be subjected to such imprisonment; and provided further, that issuance of a summons and complaint by the city, and subsequent conviction of a violation of this chapter in the Municipal Court, shall not prohibit the Court from requiring payment of all taxes, penalties and interest found to be due under this chapter in addition to any fine imposed by the Court. Each and every twenty-four (24) hour period of violation shall constitute a separate violation of this chapter.

3.    Nothing contained in this section shall preclude the City Manager from instituting a legal or equitable action in the Arapahoe County District Court for the purposes of enforcing the provisions of this chapter. In the event such an action is undertaken, the city shall be entitled to recover its attorneys’ fees and costs of litigation expended in the action as a portion of its judgment rendered therein.

B.    Unless the limitation period has been extended as provided in this section, the statute of limitations for provisions contained in this chapter shall be as follows:

1.    Refunds. Any claim for refund for disputed tax shall be submitted to the city on or before sixty (60) days from the date of such purchase.

a.    Any claim for refund resulting from a notice of overpayment shall be submitted to the city on or before thirty (30) days after the date of such notice of overpayment.

b.    Any other claim for refund shall be filed on or before three (3) years after the date such overpayment was paid to the city.

c.    Assessments. No notice of assessment shall be issued more than three (3) years after the due date of the tax due, or, for a construction project which requires a city building permit, the date the final certificate of occupancy was issued for such project.

2.    No notice of lien shall be issued more than three (3) years after the due date of the tax due. If the limitation period is extended, a notice of lien may be filed on or before thirty (30) days from the date of the notice of assessment issued for such extended period.

3.    Returns. When a taxpayer fails or refuses to file a return, the tax due may be assessed and collected at any time. In the case of a false or fraudulent return filed with the intent to evade tax, the tax due may be assessed, or proceedings for the collection of such tax due may be begun at any time.

4.    The period of limitation may be extended before its expiration.

5.    No protest of a notice of assessment or denial of a claim for refund shall be valid if submitted to the City Manager in other than written form or after the period allowed in this chapter. (Ord. 2005-4 § 1 (part); Ord. 2004-5 (part))

3.20.310 Claims for recovery.

The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipality. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to correctly pay, collect, and remit taxes to the city.

A.    As used herein, “claim for recovery” means a claim for reimbursement of taxes paid to the wrong taxing jurisdiction.

B.    When it is determined by the Tax Inspector of the city that tax owed to the city has been reported and paid to another municipality, the city shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances.

C.    The city may make a written claim for recovery directly to the municipality that received tax and/or penalty and interest owed to the city, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a claim for a recovery lies in the sole discretion of the city. Any claim for recovery shall include a properly executed release of claim from the taxpayer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the claim, and a request that the municipality approve or deny in whole or in part, the claim within ninety (90) days of its receipt. The municipality to which the city submits a claim for recovery may, for good cause, request an extension of time to investigate the claim, and approval of such extension by the city shall not be unreasonably withheld.

D.    The city may deny a claim on the grounds that it has previously paid a claim for recovery arising out of an audit of the same taxpayer.

E.    The period subject to a claim for recovery shall be limited to the thirty-six (36) month period prior to the date the municipality that was wrongly paid the tax receives the claim for recovery. (Ord. 2004-5 (part))

3.20.320 Notice of tax ordinance amendment.

A.    In order to initiate a central register of sales and use tax ordinances for municipalities that administer local sales and use tax collection, the Tax Inspector of the city shall file with the Colorado Municipal League prior to the effective date of the ordinance codified in this chapter a copy of the city sales and use tax ordinance reflecting all provisions in effect on the effective date of the ordinance codified in this chapter.

B.    In order to keep current the central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the Sales Tax Inspector of the city shall file with the Colorado Municipal League prior to the effective date of any amendment a copy of each sales or 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 sales or use tax ordinance or any amendment thereto. (Ord. 2004-5 (part))

3.20.330 Participation in simplification meetings.

The Tax Inspector 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. The committee will meet for the purpose of discussing and seeking resolution to sales and use tax problems which may arise. (Ord. 2004-5 (part))