(A) Full purchase price taxable. Except as otherwise provided in this subsection, the sales tax is imposed on the full purchase price of articles sold after manufacture or after having been made to order, and includes the full purchase price for material used and the service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this chapter. In connection with the transaction referred to in § 4-3-1-2 of this chapter, definition of “purchase or sale”, the sales tax is imposed only on the amount of any increase in the fair market value of such assets resulting from the manufacturing, fabricating or physical changing of the assets by the transferor corporation. Except as otherwise provided in this subsection (A), the sales price is the gross value of all materials, labor and service, and the profit thereon, included in the price charged to the user or consumer.
(B) Percentage of tax. There is imposed upon all sales of commodities and services specified in § 4-3-3-1, a tax at the rate of 4.5% of the amount of the sale, to be computed in accordance with the schedules or system set forth in the rules and regulations prescribed therefor. Said schedules or systems shall be designed so that no such tax is charged on any sale of $0.24 or less.
(C) Tax distinct from price; exceptions. Except as provided in subsection (C)(1) of this section, retailers shall add the tax imposed, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added, such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts.
(1) Any retailer selling malt, vinous or spirituous liquors by the drink may include in his or her sales price the tax levied under this chapter, except that no retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer. The schedule referred to in subsection (B) of this section shall be used by such retailer in determining amounts to be included in such sales price. No such retailer shall gain any benefit from the collection or payment of such tax, nor shall the use of the schedule referred to in subsection (B) of this section relieve such retailer from liability for payment of the full amount of the tax imposed pursuant to § 4-3-3-1 of this § 4-3-3.
(2) Any retailer of food may include in such sales price the tax levied under this chapter, except that no retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer. All menus or menu boards shall state “Sales Tax included”.
(D) Charitable organization exempted; special accounting sales by charitable organizations. Charitable organizations selling taxable “tangible personal property” or services as defined by this code must collect sales tax and purchasers must pay sales tax on such sales, subject to the conditions set forth below. It is the desire of the Town Council that the taxes collected by charitable organizations be retained by that organization as a contribution of additional funds to be used in the course of that organization’s charitable service to the community. Therefore, organizations are not required to remit or report sales tax collections to the town provided that the organization meets the following criteria:
(1) The organization has been authorized in writing by the Internal Revenue Service as a § 501(c)(3) organization or has been approved in writing by the Finance Director as being a voluntary, not for profit organization whose fundraising activities are primarily for the providing of services in Vail;
(2) The town sales tax shall be included in the stated selling price and the total proceeds of the sale of taxable tangible personal property or services shall be retained and expended by the qualifying organization to provide charitable services;
(3) The activity at which taxable tangible property or service is being sold is an occasional business activity specifically held for fundraising; and
(4) The organization applies to the Town Finance Director on an annual basis for a special license to be conspicuously displayed at all eligible fundraising events and provides access to any financial records or documents necessary to determine compliance with this subsection.
(Ord. 45(1991) § 1; Ord. 32(2002) § 7; Ord. 27(2005) § 7; Ord. 2(2019) § 4: Ord. 26(2021) §5)
Editor’s note:
The effective date of Ordinance 27(2005) is January 1, 2006.