It shall be a violation of this chapter for any seller to fail to collect, or any purchaser to fail to pay a tax levied by this chapter, and on sales on which exemption is disputed.
Should a dispute arise between the purchaser and seller as to whether or not any such sale is exempt from taxation hereunder, nevertheless, the seller shall collect and the purchaser shall pay such tax; the purchaser thereafter may apply to the town clerk for a refund of such taxes paid as provided herein.
The purchase and sale of articles of tangible personal property not otherwise exempt are subject to the sales tax imposed herein as well as those specific services cited as taxable in section 3-2-6 of this chapter, the list of exempt commodities or articles cannot be increased by implication or similarity. In all cases, the burden of proof is upon the taxpayer to establish that a sale is tax exempt.
A. Nontaxable Service Sales: The amount equal to the consideration received for labor or services sold, if the consideration for such services are separately stated from the consideration received for the tangible personal property in the retail sale, or that proportionate percentage approved by the town manager of the town on combined sales of services and tangible personal property, that is deductible as the service or labor portion of that total sale, or the total amount paid on the sale or purchase of exclusively nontaxable services.
B. Sales For Taxable Resale (Wholesale):
1. Component Parts: The purchase price paid or charged on the sales to and purchase of tangible personal property by a person engaged in manufacturing or compounding for use, profit or sale, shall be deemed a wholesale sale when it meets all of the following conditions:
a. Is actually and factually transformed by the process of manufacture;
b. Becomes by the manufacturing processes a necessary and recognizable ingredient, component and constituent part of the finished product; and
c. Its physical presence in the finished product is essential to the use thereof in the hands of the ultimate consumer.
2. Exempt Commercial Packaging Materials: The sales to and purchases of tangible personal property for use as commercial packaging materials by a person engaged in manufacturing or compounding for sale, profit or use, shall be deemed a wholesale sale. See section 3-2-5 of this chapter for definition of "exempt commercial packaging materials".
3. Newsprint, Printer's Ink: The sales to and purchases of newsprint and printer's ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales.
4. Other Licensed Retailers: The sale by wholesalers or retailers to a licensed retailer, jobber, dealer or other wholesaler for purposes of taxable resale, and not for the retailer's, jobber's, dealer's or wholesaler's own consumption, use, storage or distribution, shall be deemed to be wholesale sales.
C. Interstate And Intrastate Sales:
1. Interstate Commerce Sales; Shipments Out Of State: The sales of tangible personal property shall be exempted from the operation of this chapter if both the following conditions exist:
a. The sales are to those who reside or do business outside the state; and
b. The articles purchased are to be delivered to the purchaser outside the state by common, contract, or commercial carrier, who is employed to effect delivery by the seller, or by the conveyance of the seller, or by mail, provided, however, that the article so purchased and so delivered is to be used, stored, distributed or consumed outside the state.
2. Intrastate Sales; Deliveries To Nonresident Outside Town: The sales of tangible personal property shall be exempted from the operation of this chapter if both the following conditions exist:
a. The sales are to those who reside or do business outside the town; and
b. The articles purchased are to be delivered to the purchaser outside the town by common, contract, or commercial carrier who is employed to effect delivery by the seller, or by the conveyance of the seller, or by mail provided however, that the article so purchased and so delivered is to be used, stored, distributed or consumed outside the town.
D. Bad Debts Charged Off: The amount of gross sales which are represented by accounts not secured by conditional sale 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 of Colorado may be credited upon a subsequent payment of the tax herein. However, if any such accounts are hereafter 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 sale contract, 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.
E. Trade Ins For Taxable Resale: The amount equal to 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.
F. Gasoline And Cigarettes:
1. Sales Of Gasoline: The purchase price paid or charged on commodities or motor fuel which has accrued or has been paid the motor fuel tax prescribed by the Colorado motor fuel tax law of 1933, article 27 of title 39, Colorado Revised Statutes 1973.
2. Sales Of Cigarettes: The sale or purchase of cigarettes.
G. Government, Religious And Charitable Organizations:
1. Sales To The Federal Government, The State, And Its Subdivisions: The purchase price paid or charged on direct sales to, and direct purchases by the United States government; to the state of Colorado, its departments or institutions, and the political subdivisions thereof, including Winter Park in their governmental function and activities only.
2. Sales To Religious, Charitable, And Quasi-Governmental Organizations: The purchase price paid or charged on direct sales to, and direct purchases by religious, charitable, and quasi- governmental corporations, in the conduct of their regular religious, charitable, and quasi-governmental capacities only, provided that the said organizations and corporations have applied for, been assigned, and do furnish to the vendor their state of Colorado exempt institution license number. In the event no such exempt number is furnished, the vendor is to charge the tax. All sales shall be reported to the town by affidavit of nontaxable sale.
H. Returns; Discounts:
1. Returned Goods: The amount equal to the sale price of property returned by the purchaser when the full sale price including tax levied is refunded, either in cash or by credit.
2. Discounts And Allowances: The amount of discount 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 discount, rebates, and credits cannot be anticipated and the tax must be based upon the original price unless such adjustments have actually been made prior to the filing of the return wherein such sale is reported. Provided, if the price upon which the tax was computed and paid to the town 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.
I. Prescription Drugs, Prosthetic Devices And Medical Supplies: The sale or purchase of medical supplies for human consumption and prescription drugs for animals.
J. Food Stamp Or Federal Special Supplement Program Sales: The sales and purchases of food, as specified in 7 USC section 2012(g), as such section exists on October 1, 1987, or is thereafter amended, which is purchased with food stamps pursuant to the federal food stamp program; and
The sales and purchases of food, as specified in 42 USC section 1786, as such section exists on October 1, 1987, or is thereafter amended, which is purchased with WIC vouchers or checks pursuant to the federal special supplemental program for woman, infants, and children are exempt from the Winter Park sales tax.
K. Other Deductions:
1. Monthly Rentals Of Rooms: The sales and purchases of commodities and services under the provisions of subsection 3-2-6E of this chapter to any occupant who is a permanent resident of any hotel, apartment-hotel, lodging house, motor hotel, guesthouse, guest ranch, mobile home, auto camp, trailer court or park, or any other place and who enters into or has entered into a written agreement for occupancy of a room or rooms or accommodations for a period of at least thirty (30) consecutive days during the calendar year or preceding year. This exemption shall not apply to the sale or sales of any goods, services or commodities other than the furnishing of rooms and accommodations, unless such goods, services or commodities are otherwise exempt from the tax as provided herein.
2. Finance Charges: The amount paid by any purchaser as, or in the nature of, interest or finance charges on account of 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 report of gross sales and services are deductible therefrom.
3. Newspapers: The amount paid or charged for newspapers as legally defined by the Colorado Revised Statutes, 1973, section 24-70-102.
4. Cattle, Sheep, And Other Animals: The sale or purchase of cattle, sheep, lambs, swine and goats and purchases of mares and stallions for breeding purposes; and all farm close out sales.
5. Construction Materials: The sale of 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, wallboard, 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 materials do not include carpet, draperies and appliances, etc., when these products are sold or delivered within the town limits. These products when sold or delivered are taxable prior to installation in a building by a contractor and/or property owner. However, these products are not taxable after installation in a building when they are sold as a part of the resale of real estate.
6. Vending Machines: The sale of personal property through coin operated vending machines with an individual selling price of fifteen cents ($0.15) or less are exempt from the tax of this section.
7. Consumable Items For Food Vendors: Any sale of any article, container or bag to a retailer or vendor of food, meals, or beverages, which is to be furnished to a consumer or user for use with other articles of tangible personal property which have been purchased at retail; such articles, containers or bags are exempt if:
a. A separate charge is not made for the article, container or bag to the consumer or user, together with the food, meals or beverages purchased; and
b. Sales tax is paid on the retail purchase.
8. Commercial Linen Services: The lease or rental by commercial linen services of linen are exempt from the tax of this section.
9. Nonvending Coin Operated Devices: The gross sales from the use of nonvending, coin operated devices are exempt from the tax of this section.
10. Minor-Operated Businesses: Sales made by minor-operated businesses, as defined in Section 3-1-3, are exempt from the tax of this section.
(Ord. 225, Series of 1994; amd. Ord. 604, Series of 2023)