When not clearly otherwise indicated by the context, the following terms, words and phrases as used in this City Tax Code, shall have the following meanings:
AIRCRAFT PART: Any tangible personal property that is intended to be permanently affixed or attached as a component part of an aircraft.
AUCTION: 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: 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, semitrailers, or mobile homes. Automotive vehicle shall not include devices moved by human power or used exclusively upon stationary rails or tracks.
AUXILIARY MACHINES OR AUXILIARY EQUIPMENT: Includes, but is not limited to, machinery or equipment that receives, weighs, sorts, distributes, stores, cleans or transports and which assists or aids in the manufacturing of tangible personal property.
BUSINESS: All activities engaged in or caused to be engaged in with the object of gain, benefit or advantage, direct or indirect.
CHARITABLE ORGANIZATION: Any entity which: a) has been certified as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code, and b) is an organization which exclusively, and in a manner consistent with existing laws and for the benefit of an indefinite number of persons or animals, freely and voluntarily ministers to the physical, mental or spiritual needs of persons or animals, and which thereby lessens the burden of government.
CHIEF FINANCIAL OFFICER; DIRECTOR: The Chief Financial Officer of the City or the Chief Financial Officer's authorized representative(s), including employee(s), staff, clerk(s), agent(s) or any other person(s) designated or engaged by the Chief Financial Officer or the Municipality to act on behalf of the Chief Financial Officer. For purposes of this article, references to the "Director" or "Director of Finance" shall mean "Chief Financial Officer".
COMMERCIAL PACKAGING MATERIALS: Containers, labels, and/or cases, that become part of the finished product to the consumer, used by or sold to a person engaged in manufacturing, compounding, wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit or use, and is not returnable to said person for reuse. Commercial Packaging Materials does not include Commercial Shipping Materials.
COMMERCIAL SHIPPING MATERIALS: Materials that do not become part of the finished product to the consumer which are used exclusively in the shipping process. Commercial Shipping Materials include but are not limited to containers, labels, pallets, banding material and fasteners, shipping cases, shrink wrap, bubble wrap or other forms of binding, padding or protection.
CONSTRUCTION AND BUILDING MATERIALS: Tangible personal property incorporated into, attached to, or affixed to real property by contractors in the performance of a lump sum improvement to real property contract, and when combined with other tangible personal property loses its identity to become an integral, inseparable, and permanent part of the real property, and if removed would cause substantial damage to the real property or article itself.
The above materials when used in other forms or do not remain as an integral, inseparable, and permanent part of a completed structure are not construction and building materials.
CONSUMER: Any person who, within the City, purchases, uses, stores, distributes or otherwise consumes tangible personal property or taxable services, purchased from sources inside or outside the City.
CONSUMPTION: The act or process of consuming; it includes waste, destruction or use. Consumption is the normal use of property for the purpose for which it was intended.
COVER CHARGE: A charge paid to a club or similar entertainment establishment which may, or may not, entitle the patron paying such charge to receive tangible personal property, such as food and/or beverages.
DEFICIENCY NOTICE: Where used in this City Tax Code, deficiency notice includes a written notice of determination, assessment, and demand for payment and includes a jeopardy assessment.
DIGITAL PRODUCT: Means an electronic product including, but not limited to: a) "digital images" which means works that include, but are not limited to, the following that are generally recognized in the ordinary and usual sense as "photographs", "logos", "cartoons", or "drawings", b) "digital audio-visual works" which means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any, c) "digital audio works" which means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones. For purposes of the definition of "digital audio works", "ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication, and d) "digital books" which means works that are generally recognized in the ordinary and usual sense as "books".
DIRECTLY AND EXCLUSIVELY: "Directly" means machinery or equipment that transforms the raw material and causes a change in the item being produced. The change must be as a result of the work conducted by the machinery or equipment. "Exclusively" means the machinery or equipment must be used only for producing a product for sale.
DISTRIBUTION: The act of distributing any article of tangible personal property for use or consumption which may include, but shall not be limited to, the distribution of advertising gifts, shoppers' guides, catalogs, directories, or other property given as prizes, premiums or for goodwill or in conjunction with the sales of other commodities or services.
ECONOMIC NEXUS: The connection between the City and a person not having a physical nexus in the State of Colorado, which connection is established when the person or marketplace facilitator makes retail sales into the City, and:
A. In the previous calendar year, the person, which includes a marketplace facilitator, has made retail sales into the state exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended; or
B. In the current calendar year, 90 days has passed following the month in which the person, which includes a marketplace facilitator, has made retail sales into the state exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended.
ENGAGED IN BUSINESS IN THE CITY: Performing or providing services or selling, leasing, renting, delivering or installing tangible personal property, products, or services 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 taxing jurisdiction;
B. Sends one or more employees, agents or commissioned salespeople 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 salespeople 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
E. Retailer or vendor in the state of Colorado that makes more than one delivery into the taxing jurisdiction within a twelve month period;
F. Makes retail sales sufficient to meet the definitional requirements of economic nexus as set forth in this Section 2.7.104.
FOOD: Food for domestic home consumption as defined in 7 USC section 2012(k)(2014) as amended, for purposes of the supplemental nutrition assistance program, or any successor program, as defined in 7 USC section 2012(t), as amended, except that "food" does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in sealed containers or cups that are vended by or through machines or non-coin- operated coin-collecting food and snack devices on behalf of a retailer.
GARAGE SALES: The sales of tangible personal property, except automotive vehicles, occurring at the residence of the seller, where property to be sold was originally purchased for use by members of the household where such sale is being conducted. The term includes, but is not limited to, yard sales, estate sales, and block sales.
GROSS SALES: 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.
LICENSE: A City Sales and Use Tax license.
LODGING SERVICES: The furnishing of rooms or accommodations by any person, partnership, association, corporation, estate, representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, or 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.
MACHINERY: Any machine used directly and exclusively to produce an article of tangible personal property for sale. The term includes both the basic unit and any attachments purchased as part of the basic unit to accomplish its designed function. Under this definition, machinery includes machinery that transports the tangible personal property for sale to the next manufacturing operation within the same facility and is attached to the machinery and permanently in place between manufacturing operations.
A. Replacement and spare parts or components are not considered machinery, nor are purchases of modifications to improve the speed, efficiency or accuracy of the original machinery or quality of the product unless purchased at the same time as the original machine.
B. Machinery does not include dies, molds, jigs, masks and tooling unless purchased as part of the original machinery, nor does it include any auxiliary machines or auxiliary equipment.
MADE TO ORDER: Tangible personal property customized, created, or produced to supply a specific or an individual demand.
MANUFACTURING: The operation of producing, in an industrial use, an item of tangible personal property different from and having a distinctive name, character, or use from raw or prepared materials and which is an integrated series of operations which place the tangible personal property in a form, composition, or character different from that in which it was acquired. For example:
A. Fabricating is illustrative of one type of operation which may result in a change mentioned above although any operation which creates these types of changes may be considered manufacturing.
B. Slight changes in physical properties are not sufficient to be classified as manufacturing. Heating, slicing, separating into smaller units for sale, cooling or freezing are not manufacturing.
MARKETPLACE: A physical or electronic forum, including, but not limited to, a store, a booth, an internet website, a catalog, or a dedicated sales software application, where tangible personal property, taxable products, or taxable services are offered for sale.
MARKETPLACE FACILITATOR:
A. A person who:
1. Contracts with a marketplace seller or multichannel seller to facilitate for consideration, regardless of whether or not the consideration is deducted as fees from the transaction, the sale of the marketplace seller's tangible personal property, products, or services through the person's marketplace;
2. Engages directly or indirectly, through one or more affiliated persons, in transmitting or otherwise communicating the offer or acceptance between a purchaser and the marketplace seller or multichannel seller; and
3. Either directly or indirectly, through agreements or arrangements with third parties, collects payment from the purchaser on behalf of the seller.
B. "Marketplace Facilitator" does not include a person that exclusively provides internet advertising services or lists products for sale, and that does not otherwise meet this definition.
MARKETPLACE SELLER: means a person, regardless of whether or not the person is engaged in business in the city, which sells on its own platform or has an agreement with a marketplace facilitator and offers for sale tangible personal property, products, or services through a marketplace owned, operated, or controlled by a marketplace facilitator.
MULTICHANNEL SELLER: A retailer or vendor that offers for sale tangible personal property, commodities, or services through a marketplace owned, operated, or controlled by a marketplace facilitator, and through other means.
NEWSPAPER: A publication, printed on newsprint, intended for general circulation, and published regularly at short intervals, containing information and editorials on current events and news of general interest. The term newspaper does not include: magazines, trade publications or journals, credit bulletins, advertising inserts, circulars, directories, maps, racing programs, reprints, newspaper clipping and mailing services or listings, publications that include an updating or revision service, or books or pocket editions of books.
ORTHOPEDIC DEVICE OR APPLIANCE: Any appliance or device designed specifically for use in the correction or prevention of deformities, functional impairments, defects or chronic diseases of the musculoskeletal system.
PERSON: Any individual, firm, business, partnership, joint venture, corporation, governmental entity, LLC, 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.
PREPRINTED NEWSPAPER SUPPLEMENTS: Inserts, attachments or supplements circulated in newspapers that: a) are primarily devoted to advertising; and b) the distribution, insertion, or attachment of which is commonly paid for by the advertiser.
PRESCRIPTION DRUGS FOR ANIMALS: A drug which, prior to being dispensed or delivered, is required by the Federal Food, Drug, and Cosmetic Act, 21 USC section 301, et seq., as amended, to state at a minimum the symbol "Rx Only", and is dispensed in accordance with any order in writing, dated and signed by a licensed veterinarian specifying the animal for which the medicine or drug is offered and directions, if any, to be placed on the label.
PRESCRIPTION DRUGS FOR HUMANS: A drug which, prior to being dispensed or delivered, is required by the Federal Food, Drug, and Cosmetic Act, 21 USC section 301, et seq., as amended, to state at a minimum the symbol "Rx Only", and is dispensed in accordance with any written or electronic order dated and signed by a licensed practitioner and immediately reduced to writing by the pharmacist, assistant pharmacist, or pharmacy intern, specifying the name and any required information of the patient for whom the medicine, drug or poison is offered and directions, if any, to be placed on the label.
PRICE OR PURCHASE PRICE: The aggregate value measured in currency paid or delivered or promised to be paid or delivered in consummation of a sale, without any discount from the price on account of the cost of materials used, labor or service cost, and exclusive of any direct tax imposed by the Federal government or by this article, and, in the case of all retail sales involving the exchange of property, also exclusive of the fair market value of the property exchanged at the same time and place of the exchange, if: 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.
A. "Price" or "purchase price" includes:
1. The amount of money received or due in cash and credits.
2. Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business.
3. Any consideration valued in money, whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other media of exchange.
4. The total price charged on credit sales including finance charges which are not separately stated at the time of sale. 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 at the time of sale is not part of the purchase price.
5. Installation, applying, remodeling or repairing the property, delivery and wheeling-in charges included in the purchase price and not separately stated.
6. Transportation and other charges to effect delivery of tangible personal property to the purchaser.
7. Indirect Federal manufacturers' Excise Taxes, such as taxes on automobiles, tires and floor stock.
8. The gross purchase price of articles sold after manufacturing or after having been made to order, including the gross value of all the materials used, labor and service performed and the profit thereon.
9. Any reimbursement to the seller for expenses, such as cutting charges, handling charges, incoming freight, dealer prep charges, delivery charges, etc., incurred by the seller prior to passing title to the property.
B. "Price" or "purchase price" shall not include:
1. Any sales or Use Tax imposed by the State of Colorado or by any political subdivision thereof.
2. The fair market value of property exchanged if the property is to be sold thereafter in the retailer's usual course of business. This is not limited to exchanges in Colorado. Out of State trade- ins are an allowable adjustment to the purchase price.
3. Discounts from the original price if the discount and the corresponding decrease in Sales Tax due is actually passed on to the purchaser, and the seller is not reimbursed for the discount by the manufacturer or someone else. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reporting gross sales.
PROSTHETIC DEVICES FOR ANIMALS: Any artificial limb, part, device or appliance for animal use which replaces a body part or aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular patient; and is prescribed by a licensed veterinarian. Prosthetic devices include, but are not limited to, prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances, and oxygen concentrators with related accessories.
PROSTHETIC DEVICES FOR HUMANS: Any artificial limb, part, device or appliance for human use which replaces a body part or aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular patient; and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include, but are not limited to, prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances, and oxygen concentrators with related accessories.
PURCHASE OR SALE:
A. The acquisition for any consideration by any person of tangible personal property, other taxable products or taxable services that are purchased, leased, rented, sold, used, stored, distributed, or consumed. These terms include capital leases, installment and credit sales, and property and services acquired by:
1. Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property, other taxable products, or taxable services;
2. A lease, lease-purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property, other taxable products, or taxable services;
3. Performance of taxable services; or
4. Barter or exchange for other tangible personal property, other taxable products or services.
B. The terms "purchase" and "sale" do not include:
1. A division of partnership assets among the partners according to their interests in the partnership;
2. The transfer of assets of shareholders in the formation or dissolution of professional corporations, if no consideration including, but not limited to, the assumption of a liability is paid for the transfer of assets;
3. The dissolution and the pro rata distribution of the corporation's assets to its stockholders, if no consideration including, but not limited to, the assumption of a liability is paid for the transfer of assets;
4. A transfer of a partnership interest:
5. 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;
6. The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder.
REBATE: Payment to a consumer by a manufacturer or a manufacturer's representative who is not acting as a retailer.
RESIDENT: A person who resides or maintains one or more places of business within the City, regardless of whether that person also resides or maintains a place of business outside of the City.
RETAIL SALES: All sales except wholesale sales.
RETAILER OR VENDOR: Any person selling, leasing, renting or granting a license to use tangible personal property or services at retail. Retailer shall include, but is not limited to, any:
A. Auctioneer;
B. Salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer;
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.
D. Retailer-contractor, when acting in the capacity of a seller of building supplies, construction and building materials, and other tangible personal property;
E. Marketplace facilitator, marketplace seller, or multichannel seller.
SCHOOL: An educational institution having a curriculum comparable to a grade, grammar, junior high, high school or college, or any combination thereof, requiring daily attendance having an enrollment of at least forty (40) students, and charging a tuition fee.
STORAGE: Any keeping or retention of, or exercise of dominion or control over, or possession, for any length of time, of tangible personal property when leased, rented or purchased at retail from sources either within or without the City from any person or retailer.
TANGIBLE PERSONAL PROPERTY: Personal property that can be one or more of the following: seen, weighed, measured, felt, touched, stored, transported, exchanged, or that is in any other manner perceptible to the senses.
TAX: The Use Tax due from a consumer or the Sales Tax due from a retailer or the sum of both due from a retailer who also consumes.
TAX DEFICIENCY: Any amount of tax that is not reported or not paid on or before the due date.
TAXABLE SALES: Gross sales less any exemptions and deductions specified in this City Tax Code.
TAXABLE SERVICES: Services subject to tax pursuant to this City Tax Code.
TAXPAYER: Any person obligated to collect and/or pay tax under the terms of this City Tax Code.
THERAPEUTIC DEVICE: Devices, appliances, or related accessories that correct or treat a human physical disability or surgically created abnormality.
TOTAL TAX LIABILITY: The total of all tax, penalties or interest owed by a taxpayer and shall include Sales Tax collected in excess of the tax computed on total sales.
USE: The exercise, for any length of time, by any person within the City, of any right, power or dominion over tangible personal property or services when rented, leased or purchased at retail from sources either within or without the City, from any person or vendor or used in the performance of a contract in the City whether such tangible personal property is owned or not owned by the taxpayer. Use includes possession, storage, consumption, distribution, and the withdrawal of items from inventory for use by the person making the withdrawal.
WHOLESALE SALES: Sales to licensed retailers, jobbers, dealers or wholesalers for resale. Sales by wholesalers to consumers are not wholesale sales. Sales by wholesalers to nonlicensed retailers are not wholesale sales.
WHOLESALER:
Any person doing an organized wholesale or jobbing business and selling to retailers, jobbers, dealers, or other wholesalers, for the purpose of resale, and not for storage, use, consumption, or distribution. (Ord. 91-161; Ord. 93-176; Ord. 98-255; Ord. 01-42; Ord. 11-27; Ord. 19-20; Ord. 20-47; Ord. 23-36)