(A) Combine records. Any taxpayer licensed in the town pursuant to § 4-3-2 of this chapter and holding a similar sales tax license in at least four other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein.
(B) Time limitation stayed. Within 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 town, 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 this town’s right to recover tax owed by the vendor for the audit period.
(C) One year time frame. 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 the town’s statute of limitations found in § 4-3-1-11 of this chapter, may be audited by the town during the 12 months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.
(D) Cooperation between municipalities. If this town desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to subsection (C )of this section, the Finance Director shall so notify the Finance Director of the municipality whose notice of audit prompted the taxpayer’s request within ten days after receipt of the taxpayer’s request for a coordinated audit. The Finance Director 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 the coordinated audit.
(E) Municipality calling audit responsible. If the taxpayer’s request for a coordinated audit was in response to a notice of audit issued by this town, this town’s Finance Director shall facilitate arrangements between this town and other municipalities participating in the coordinated audit unless and until an official from some other participating municipality agrees to assume this responsibility. The Finance Director 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.
(F) Taxpayer notified. If the taxpayer’s request for a coordinated audit was in response to a notice of audit issued by this town, this town’s Finance Director shall, once arrangements for the coordinated audit between the town 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 Finance Director shall also propose a schedule for the coordinated audit.
(G) Exception to audit procedure. The coordinated audit procedure set forth in this section shall not apply:
(1) When the proposed audit is a jeopardy audit;
(2) To audits for which a notice of audit was given prior to the effective date hereof;
(3) When a taxpayer refuses to promptly sign a waiver of the town’s statute of limitations found in § 4-3-1-11 of this chapter; and
(4) When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in subsection (B) of this section.
(Ord. 45(1991) § 1)