(A) Purpose. The purpose of this section is to impose a sales tax on the sale of tangible personal property at retail and the furnishing of services within the town and a use tax on the privilege of using or consuming within the Town any construction and building materials and motor and other vehicles on which registration is required, purchased at retail, pursuant to C.R.S. Title 29, Art. 2, as amended.
(Prior Code, § 723.1)
(B) Definitions. For the purpose of this section, the meanings of words herein contained shall be as defined in C.R.S. § 39-26-102, as amended, and said definitions are incorporated herein.
(Prior Code, § 723.2)
(C) Sales tax levied. There is hereby levied and there shall be collected and paid a tax equal to 2% of gross receipts from all sales of tangible personal property at retail and the furnishing of services within the town. The sales of tangible personal property and the furnishing of services taxable under this section shall be the same as those taxable pursuant to C.R.S. § 39-26-104, as amended.
(Prior Code, § 723.3)
(D) Sales tax - non-applicability. The town’s sales tax shall not apply to the sale of construction and building materials, as the term is used in C.R.S. § 29-2-109, as amended, if such materials are picked up by the purchaser, and if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the town, including a certificate of use on a form provided by the town, evidencing that a local use tax has been paid.
(Prior Code, § 723.4)
(E) Sales tax collection and schedules.
(1) The collection, administration and enforcement of this sales tax shall be performed by the Executive Director of the Department of Revenue of the state (hereinafter the “Executive Director”) in the same manner as the collection, administration and enforcement of the state sales tax. The provisions of C.R.S. Title 39, Art. 26, as amended, and all rules and regulations promulgated there under by the Executive Director shall govern the collection, administration and enforcement of this sales tax.
(2) The sales tax on individual sales levied by this section shall be collected in accordance with schedules set forth in a separate ordinance or code enacted by the Board of Trustees of the town, or if no such separate ordinance or code is enacted, in accordance with schedules set forth in the rules and regulations promulgated by the Executive Director under C.R.S. Title 29, Art. 2, or Title 39, Art. 26, as amended.
(3) If any vendor, during any reporting period, shall collect as a sales tax under this section an amount in excess of 2% of his or her total taxable sales for that period, he or she shall remit to the Executive Director the full amount of this sales tax and also such excess.
(Prior Code, § 723.5)
(F) Sales tax exemptions.
(1) All sales of personal property on which a specific ownership tax has been paid or is payable shall be exempt from this sales tax when such sales meet both of the following conditions:
(a) The purchaser is a non-resident of or has his or her principal place of business outside the limits of the town; and
(b) Such personal property is registered or required to be registered outside the limits of the town under the laws of the state.
(2) Occasional sales by a charitable organization recognized as sales and use tax exempt by the state, as specified in C.R.S. § 39-26-718(1)(b), as amended. OCCASIONAL SALES means retail sales of tangible personal property, including concessions, for fund-raising purposes if:
(a) The sale of tangible personal property or concessions by the charitable organization takes place no more than 12 days, whether consecutive or not, during any one calendar year;
(b) The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization’s charitable service; and
(c) The funds raised by the charitable organization through these sales do not exceed $25,000 during any one calendar year.
(3) Sales related to a school recognized as sales and use tax exempt by the state as specified in C.R.S. §§ 39-26-718(1)(c) and 39-26-725, as amended.
(a) SCHOOL means a public or nonpublic school for students in kindergarten through twelfth grade or any portion thereof.
(b) A sale that benefits a Colorado school shall be exempt from town sales tax if the sale is made by any of the following:
1. A school;
2. An association or organization of parents and school teachers;
3. A booster club or other club, group or organization whose primary purpose is to support a school activity; or
4. A school class or student club, group or organization.
(4) All sales and purchases of farm equipment as exempted by C.R.S. § 39-26-716(1)(d), as well as:
(a) Any farm equipment under lease or contract, if the fair market value of the equipment is at least $1,000 and the equipment is rented or leased for use primarily and directly in any farm operation as exempted by C.R.S. § 39-26-716(4)(f)(I); and
(b) The lessor or seller of such farm equipment shall obtain a signed affidavit from the lessee, renter or purchaser affirming that the farm equipment will be used primarily and directly in a farm operation as exempted by C.R.S. § 39-26-716(4)(f)(II).
(5) All sales and purchases of agricultural compounds that are consumed by, administered to or otherwise used in caring for livestock are exempt as exempted by C.R.S. § 39-26-716(4).
(6) All sales and purchases of pesticides that are registered by the Commissioner of Agriculture for use in the production of agricultural and livestock products pursuant to the provisions of the Pesticide Act, C.R.S. Title 35, Art. 9, and offered for sale by dealers licensed to sell such pesticides pursuant to C.R.S. § 35-9-115.
(7) All sales and purchases drugs and medical and therapeutic devices exempted by C.R.S. § 39-26-717.
(8) All sales and purchases sales of coins and precious metal bullion exempted by C.R.S. § 39-26-706(4).
(Prior Code, § 723.6)
(G) Sales tax - credit for sales or use taxes previously paid to another municipality.
(1) The town’s sales tax shall not apply to the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of 2%.
(2) A credit shall be granted against the town’s sales tax with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed 2%.
(Prior Code, § 723.7)
(H) Sales tax general provisions.
(1) All retail sales shall be considered consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to a destination outside the limits of the town or to a common carrier for delivery to a destination outside the limits of the town.
(2) Gross receipts from sales shall include delivery charges when such charges are subject to the state sales and use tax imposed by C.R.S. Title 39, Art. 26, as amended, regardless of the place to which delivery is made.
(3) In the event a retailer has no permanent place of business in the town, or more than one place of business, the place or places at which the retail sales are consummated for the purpose of this sales tax shall be determined by the provisions of C.R.S. Title 39, Art. 26, as amended, and by the rules and regulations promulgated thereunder by the Executive Director.
(4) Gross receipts shall not include the state sales and use tax imposed by C.R.S. Title 39, Art. 26, as amended.
(Prior Code, § 723.8)
(I) Sales tax vendor’s fee. The vendor shall be entitled, as collection agent for the town, to withhold a collection fee in the amount designated by state statute, currently 3-1/3%, from the total amount of the sales tax remitted by the vendor to the state’s Department of Revenue each month or at a frequency stipulated for their account. If any vendor is delinquent in remitting said tax, penalties shall be assessed as provided by statute and shall be paid promptly by any such delinquent vendor.
(Prior Code, § 723.9)
(J) Use tax levied. There is hereby levied and there shall be collected and paid a use tax upon the privilege of using or consuming within the town, any construction and building materials, and motor and other vehicles on which registration is required, which are purchased at retail, in an amount equal to 2% of the retail cost thereof.
(Prior Code, § 723.10)
(K) Use tax exemptions. There shall be an exemption to the imposition of a use tax applicable as follows:
(1) To the storage, use or consumption of any tangible personal property, the sale of which is subject to a retail sales tax imposed by the town;
(2) To the storage, use or consumption of any tangible personal property purchased for resale in the town, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business;
(3) To the storage, use or consumption of tangible personal property brought into the town by a non-resident thereof for his own storage, use, or consumption while temporarily within the town; however, this exemption does not apply to the storage, use or consumption of tangible personal property brought into the state by a non-resident to be used in the conduct of a business in the state;
(4) To the storage, use or consumption of tangible personal property by the United States government or the state, or its institutions or political subdivisions, in their governmental capacities only or by religious or charitable corporations in the conduct of their religious or charitable functions;
(5) To the storage, use or consumption of tangible personal property by a person engaged in the business of manufacturing or compounding for sale, profit or use any article, substance or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded or furnished and the container, label or the furnished shipping case thereof;
(6) To the storage, use or consumption of tangible personal property and household effects acquired outside of the town and brought into it by a non-resident acquiring residency;
(7) To the storage or use of a motor vehicle if the owner is or was, at the time of purchase, a non-resident of the town and he or she purchased the vehicle outside of the town for use outside of the town and actually so used it for a substantial and primary purpose of which it was acquired and he or she registered, titled and licensed said motor vehicle outside of the town;
(8) To the use or consumption of any construction and building materials and motor and other vehicles on which registration is required if a written contract for the purchase thereof was entered into prior to 7-27-1978;
(9) To the use or consumption of any construction and building materials required or made necessary in the performance of any construction contract bid, let, or entered into at any time prior to 7-27-1978; and
(10) To the use or consumption of any construction and building materials for which a building permit is issued after 8-1-1996 by any business that shows proof of a valid town Sales Tax Account with the state’s Department of Revenue.
(Prior Code, § 723.11)
(L) Use - tax credit for sales or use taxes previously paid to another municipality. The town’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 legally imposed sales or use tax of another statutory or home rule municipality equal to or in excess of 2%. A credit shall be granted against the town’s use tax with respect to a person’s storage, use or consumption in the town of tangible personal property purchased by him or her in a previous statutory or home rule municipality. The amount of the credit shall be equal to the tax paid by him or her by reason of the imposition of a sales or use tax of the previous statutory or home rule municipality on his or her purchase or use of the property. The amount of the credit shall not exceed 2%. It shall be the obligation of the person or entity claiming the credit to furnish receipts or other written proof of the tax paid by such person or entity to the previous statutory or home rule municipality.
(Prior Code, § 723.12)
(M) Motor and other vehicle use tax collection.
(1) The 2% use tax provided for herein shall be applicable to every motor vehicle for which registration is required by the laws of the state, and no registration shall be made of any motor or other vehicle for which registration is required, and no certificate of title shall be issued for such vehicle by the Department of Revenue of the state or its authorized agents until any tax due upon the use, storage, or consumption thereof pursuant to this section has been paid.
(2) This use tax shall be collected by the authorized agent of the Department of Revenue of the state in the county.
(3) The proceeds of this use tax shall be paid to the town periodically in accordance with an agreement entered into by and between the town and the authorized county agent of the Department of Revenue of the state.
(Prior Code, § 723.13)
(N) Construction and building materials use tax collection.
(1) The collection of this use tax for construction and building materials shall be administered by the Board of Trustees of the town or its authorized representatives.
(2) Any person, partnership or corporation who shall build, construct or improve any building, dwelling or other structure or improvement to realty whatsoever within the town shall upon application for a building permit, pay as a deposit for payment of the tax levied by this section an amount equal to 2% of 50% of the estimated cost of the improvement, or 2% of 50% of the total contract price, if there is a contract for the building construction or improvement; provided, however, that, if the estimated cost of the improvement or the total contract price is in excess of $200,000, the Board of Trustees, or its designated agents, in its discretion and upon proper application, may authorize a waiver of said deposit and accept the payment of said tax on a monthly, quarterly or other basis, based upon actual purchases of materials, supplies and equipment for which such tax may be due, subject to such rules and regulations as the Board may from time to time adopt. In all cases where the deposit required by the provisions of this section is made, if it is determined at the time of the completion of the building, dwelling or other structure of improvement from the invoices and statements reflecting the purchase therefor, that the deposit made as herein required, together with the actual payments to the town as a sales tax, is in excess of the actual tax due therefor, the person making said deposit or paying said tax may make application to the Board of Trustees or its designated agents for refund of any amount paid in excess of the actual taxes due, in which event it shall be the duty of the person making such application to furnish all necessary bills and invoices evidencing over-payment of the tax and, if the Board or its designated agent, is satisfied that there has been such overpayment, the sum shall be refunded to the taxpayer.
(Prior Code, § 723.14)
(O) Refund procedure; decisions.
(1) Refunds.
(a) A refund shall be made or credit allowed for any tax paid under protest by any purchaser or user, who has or claims to have, an exemption as provided in this section and who meets the following procedure and requirements: applications for refund must be made within 180 days after the completion of a construction project or within 30 days of the issuance of a certificate of occupation as issued by the Building Department whichever event first occurs. All other requests for refund which do not involve a construction project shall be made within 90 days after the purchase or use of the goods on which the exemption is claimed. Such application must be supported by the affidavit of the contractor, purchaser or user accompanied by the original paid invoices or sales receipts and a certificate issued by the seller, together with such further information as may be requested by the town or its designated agents.
(b) An application for refund of sales or use tax paid under dispute by a purchaser or user who claims an exemption pursuant to this section shall be made within 60 days after the purchase, storage, use or consumption of the goods, or services whereon an exemption is claimed.
(c) An application for refund of tax moneys paid in error or by mistake, shall be made within three years after the date of purchase, storage, use or consumption of the goods for which the refund is claimed.
(2) Decisions. Upon receipt of such application and accompanying information, the Director shall examine the same with all due speed and shall give notice to the applicant by an order in writing of his or her decision thereon.
(3) Hearing. An aggrieved applicant may, within ten days after such decision is mailed to him or her, petition the town for a hearing on the claim in which case the town, or its designated agents, shall, upon notice to the applicant, hold a hearing upon such application, taking such information or evidence as may be material, and shall, thereafter, render its final decision upon such application. The decision of the town must be issued within 90 days of the hearing. If the applicant remains aggrieved, he or she is entitled to request or participate in the alternative dispute resolution procedure as set forth below.
(Prior Code, § 723.15)
(P) Use tax - alternative dispute resolution procedure; deficiency notice or claim for refund.
(1) The taxpayer may elect a state hearing on the town’s final decision on a deficiency notice or claim for refund pursuant to the procedure set forth in this section.
(2) As used in this section, the term STATE HEARING means a hearing before the Executive Director of the Department of Revenue or delegate thereof as provided in C.R.S. Title 29, Art. 2, § 106.1(3), as amended.
(3) When the town asserts that use taxes are due in an amount greater than the amount paid by a taxpayer, the town shall mail a deficiency notice to the taxpayer by certified mail. The deficiency notice shall state the additional use taxes due. The deficiency notice shall contain notification, in clear and conspicuous type, that the taxpayer has the right to elect a state hearing on the deficiency pursuant to C.R.S. § 29-2-106.1(3), as amended. The taxpayer shall also have the right to elect a state hearing on the town’s denial of such taxpayer’s claim for a refund of use tax paid.
(4) The taxpayer shall request the state hearing within 30 days after the taxpayer has exhausted all local remedies. The taxpayer shall have no right to such hearing if he or she has not exhausted local remedies or if he or she fails to request such hearing within the time period provided for in this section. EXHAUSTION OF LOCAL REMEDIES shall mean:
(a) The taxpayer has timely requested in writing a hearing before the town and such town has held such hearing and issued a final decision thereon in accordance with division (O) above. Such hearing 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 town may submit a brief. The town shall hold such hearing and issue the final decision thereon within 90 days after the town’s receipt of the taxpayer’s written request therefor, except the town 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 town shall hold such hearing and issue the decision thereon within 180 days of the taxpayer’s request in writing therefor; or
(b) The taxpayer has timely requested in writing a hearing before the town and the town has failed to hold such hearing or has failed to issue a final decision thereon within the time periods prescribed in division (P)(4)(a) above.
(5) If a taxpayer has exhausted his local remedies as provided above, the taxpayer may request a state hearing on such deficiency notice or claim for refund, and such request shall be made and such hearing shall be conducted in the same manner as set forth in C.R.S. § 29-2-106.1(3) through (7), as amended.
(6) If the deficiency notice or claim for refund involves only the town, in lieu of requesting a state hearing, the taxpayer may appeal such deficiency notice or denial of a claim for refund to the County District Court as provided in C.R.S. § 29-2-106.1(8), as amended; provided that, the taxpayer complies with the provisions set forth in division (P)(4) above.
(7) If the town reasonably finds that the collection of the use tax will be jeopardized by delay, the town may utilize the procedures set forth in C.R.S. § 39-21-111, as amended.
(Prior Code, § 723.16)
(Q) Election. Before the sales and use taxes levied by this section shall become effective, they shall be submitted to and receive the approval of a majority of the qualified electors of the town voting at a special election which shall be held solely for that purpose on 8-29-1978.
(Prior Code, § 723.17)
(R) Amendments.
(1) The Board of Trustees of the town may amend, alter or change this code, except as to the 2% rate of sales and use taxes herein imposed, subsequent to its adoption.
(2) Such amendment, alteration or change need not be submitted to the qualified electors of the town for their approval.
(Prior Code, § 723.18)
(S) Effective date of sale and use taxes. Upon adoption of this section and subsequent approval of these sales and use taxes by the qualified electors of the town these sales and use taxes shall apply to all retail sales, unless exempt, made on or after 1-1-1979.
(Prior Code, § 723.20)
(Ord. 251, passed 7-27-1978; Ord. 301, passed 8-1-1996; Ord. 395, passed 1-4-1996; Ord. 411, passed 1-2-1997; Ord. 556, passed 7-5-2012) Penalty, see § 36.999