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HomeMy WebLinkAbout02189 r , ORDINANCE NO. 2189 AN ORDINANCE TO LEVY A CITY RETAIL SALES AND USE TAX WITHIN THE CITY OF PUEBLO, COLORADO BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. NAME OF TAX. This article may be known and cited as the City Retail Sales and Use Tax Ordinance. SECTION 2. WORDS AND PHRASES DEFINED. When not clearly otherwise indicated by the context, the following words and phrases, as used in this article, shall have the following meanings; 2 -1. The term "person" includes any individual, firm, co- partnership, joint adventure, corporation, estate or trust, or any group or combination acting as a unit, and the plural as well as the singular number. 2 -2. The term "City Clerk" shall mean the City Clerk of the City of Pueblo. The term "Director of Finance" shall mean the Director of Finance of the City of Pueblo. 2 -3. The term "sale" or "sale and purchase" includes installment and credit sales, and the exchange of property, as well as the sale thereof for money, and every such transaction, conditional or otherwise, for a consideration constituting a sale, and also includes the sale or furnishing of electrical energy, gas, telephone, or telegraph services taxable hereunder. 2 -4. The term "wholesaler" means a person doing a regularly recognized wholesale or jobbing business, and known to the trade as such, and selling to retail merchants, jobbers, dealers, or other wholesalers, for the purpose of resale. 2 -5. The term "wholesale sale" means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale (and does not include a sale by wholesalers to users or customers not for resale), and such sales shall be deemed retail sales, and subject to the provisions of this article. 2 -6. The term "retailer" or "vendor" means a person doing a retail business, known to the trade and public as such, and selling to the user or consumer, and not for resale. 2 -7. A "retail sale" includes any sale made within the City of Pueblo except•a wholesale sale. 2.8. The term "City" shall mean Pueblo, a Municipal Corporation. 2-96 The term "taxpayer" shall mean any person obligated to account to the Director of Finance for taxes collected or to be collected under the terms of this article. 2 -10. The term "tax" means either the tax payable by the purchaser of a commodity or service subject to tax or the aggregate: amount of taxes due from the vendor of such commodities or services during the period for which he is required to report his collections, as the text may require. l l. Te term hi 'tangible. person property" shall mean corporeal personal property. shall not be construed mean newspapers as legally defined by 1953 Colorado Revised Statutes, Section 109 -1 -2. 2 - 12. The term "purchase price" means the price to the consumer exclusive of any direct tax imposed by the federal government or by the State of Colorado 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 time and place of the exchange; provided, such exchanged property is to be sold thereafter in the usual course of the retailer's business. ' m • 213. The term "farm auction closeout sale" means a regularly advertised and conducted sale at public auction of all the tangible personal property of a farmer or rancher previously used by him in carrying on his farming or ranching operations. Unless said farmer or rancher is making or attempting to make full and final disposition at the auction sale of all property used in'his farming or ranching operations and is abandoning said operations on the premises whereon they were previously conducted, such sale shall not be deemed a "farm auction closeout sale" within the meaning of this article. 2 -114. The term "gross taxable sales" shall mean the total amount received in money, credits, property (excluding the fair market value of exchanged property which is to be sold thereafter in the usual course of the retailer's business) or other consideration valued in money from sales and purchases at retail within the City, and embraced within the provisions of this article; 2 -14 (1) Provided, that the taxpayer may take credit in his report of gross sales for an amount equal to the sale price of property returned by the purchaser when the full sale price thereof is refunded, either in cash or by credit; 2 -14 (2). And provided, further, that on all sales at retail valued in money, when such sales are made under conditional sales contracts, or under other forms of sale, where the payment of the principal sum thereunder be extended over a period longer than sixty days from the date of sale thereof, only such portion of the sale amount thereof may be counted for the purpose of imposition of the tax imposed by this article as has actually been received in cash by the taxpayer daring the period for which the tax imposed by this article is due and payable; 2 -14 (3). And provided, further, that taxes paid on gross sales represented by accounts found to be worthless and actually charged off for income tax purposes may be credited upon a subsequent payment of the tax herein provided, but if any such accounts are thereafter collected by the taxpayer, a tax shall be paid upon the amounts so collected. 2 -14 M. And provided, further, that the fair market value of any exchanged property which is to be sold thereafter in the usual course of the retailer's business, if included in the full price of the new article, shall be excluded from the gross sales; 2 -15. Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, 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 which is manufactured, compounded or furnished or the container, label, or the furnished shipping case thereof, shall be deemed to be wholesale sales and shall be deemed to be exempt from taxation under this article. 2-16. 1 Sales and urchases of electricit gas, coal, fuel oil or coke y g P > > s coke, for use in processing, manufacturing, mining, refining, irrigation, telegraph, telephone and radio communication, street and railroad transportation services and all industrial uses, and newsprint and printers' ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales and shall be exempt from taxation under the provisions of this article, except that electricity, gas, coal, fuel oil or coke used for lighting or space heating in these operations shall not be exempt. 2 -17. When right to continuous possession or use of any article of tangible personal property is granted under a lease or contract and such transfer of possession would be taxable under this article if an outright sale were made, such lease or contract shall be considered the sale of such article and the tax shall be computed as each payment is made and paid as in the case of an outright sale taxable hereunder. 2 -18. 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 of materials used and service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this article. The sales price is the gross value of all the materials, labor, service, and the profit thereon, included in the price charged to the user or consumer. -2- SECTION 3. LICENSES MANDATORY FOR RETAILS SELLERS: RENEWAL. ammumwoeusor 3 -1. It shall be unlawful for any person to engage in the business of selling at retail, as the same is defined in this article, on and after January 1, 1956 without first having obtained a license therefor, which license shall be granted and issued by the City Clerk and shall be in force and effect until revoked. 3 -2. Application; Content. Such license shall be granted only upon application stating the name and address of the person desiring such license, the name of such business and the location including the street number of such business and such other facts as may be required. SECTION L. EACH RETAIL ESTABLIS ' a TO BE LICENSED. In case business is transacted at two or more separate places by one person, a separate license for each place of business shall be required. SECTION 5. FORM OF LICENSE; LICENSE NON - TRANSFERABLE. Each license shall be numbered and shall show the name, residence, and place and character of business of the licensee and shall be posted in a conspicuous place in the place of business for which it is issued. No license shall be transferable. SECTION 6. SALE AT RETAIL WITHOUT LICENSE. Any person engaged in the business of selling at retail in the City, without having secarei a license therefor, except as specifically provided herein, shall be guilty of a violation of this article and shall be punished accordingly. SECTION 7. REVOCATION OF LICENSE BY CITY CLERK. The City Clerk may on a reasonable notice and after full hearing, revoke the license of any person found by the City Clerk to have violated any provision of this article. 7 -1. Before a sales tax license may be issued to a person whose license has been previously revoked, the violation shall have been cured and a cash bond in an amount equal to the licensee's estimated sales tax payment for a two month's period must be posted with the City Clerk. In the event that no violations occur within 12 months after the issuance of the sales tax license, the bond shall be refunded to the licensee. SECTION 8. APPEAL FROM CITY CLERK'S ORDER. Any finding and order of the City Clerk revoking the license of any person shall be subject to review by the City Council upon appeal by the licensee. Within 20 days after the filing of an appeal by a licensee the City Council shall hold a hearing on the case. At the close of the hearing the City Council shall confirm the City Clerk's finding or overrule the City Clerk and reinstate the license. SECTION 9. WHEN LICENSE NOT REQUIRED. No license shall be required for any person engaged exclusively in the business of selling commodities which are exempt from taxation under this article. SECTION 10. TAXABLE ITEMS. On and after January 1, 1956 there is hereby levied and there shall be collected and paid a tax in the amount stated in Section 13 hereof, as follows: 10 -1. On the purchase price paid or charged upon all sales and purchases of tangible personal property at retail. 10 -2. Upon the amount paid for the use of the facilities and accomodations of a hotel, apartment hotel, cottage camp, motor court, trailer -3- park or camp operated for the accommodation of the general public for charge and having facilities for more than ten (10) occupants. 10 -3. Upon telephone services for all Pueblo local exchange service receipts and upon telegraph services for all intrastate service originating in the City. 10 -14. For gas and electric service, for gas and electricity furnished and sold for domestic or commercial consumption and not for resale. 10 -5. Upon the amount paid for all meals or food, furnished in or from any restaurant, eating house, hovel, drug store, club, resort, stand or vehicle or other such place at which meals or food are regularly sold to the public. • ..3p.. 10 -6. For steam or other heating service furnished and sold for domestic or commercial use. SECTION 11. ITEMS EXEMPT FROM TAXATION. The following classes of tangible personal property are exempt from taxation under this article: 11:1 Class 1 -- Motor vehicles, trailers, and semi - trailers registered outside of the City of Pueblo. CAVEAT.: The purchase of any motor vehicle, trailer, or semi - trailer outside the City of Pueblo by a resident of the City of Pueblo for use in Pueblo, shall be subject to tax hereunder, which tax shall be payable at the time the registration license is issued by the County Clerk and Recorder of Pueblo County. If any resident of the City of Pueblo shall register his motor vehicle, trailer, or semi - trailer in any other county of Colorado, he shall be guilty of a violation of this article and punished as provided in Section 65 hereof. 11 -2. Class 2 -- Farm implements used for commercial farming. 11 -3. Class 3 -- Parts and accessories for articles in Classes 1 and 2 above. 11 -4. Sales under conditional sales contracts made prior to the effective date of this article. 11 -5. Sales of tangible personal property shall be exempted from the operation of this Article if both the following conditions exist: (1) The sales are to those who are residents of or doing business in the State of Colorair outside the City of Pueblo; and, (2) The articles purchased are to be delivered to the purchaser outside the City of Pueblo by common carrier or by the conveyance of the seller or by mail. 11 -6. Sales of fuel used for the operation of internal combustion engines. 11.7. Sales of tangible personal property shall be exempted from the operation of this Article if all the following conditions exist: (1) The sales are made to a purchaser engaged in manufacturing, processing, mining, construction: or railroading; (2) The articles sold are to be used by the purchaser in the conduct of his manufacturing, processing, mining, construction, or railroading business outside the City; (3) Delivery of the articles sold is to be made to the purchaser at a point outside the city or to a carrier for delivery of the articles to a purchaser at a point outside the City, or the railroad, in case the railroad is the purchaser, or to a truck of the construction company in case of a sale to a construction company. 11 -8. Sales of food, food products, and drinks for human consumption, in the usual and ordinary meaning of these terms, including candies, ice cream and other frozen delicacies, and confections, but not including preparations sold as tonics or dietary supplements, or meals and food covered by Sec. 10 -5. 11 -9. Medicine sold under prescription of a physician. 11 -10. Sales of alcoholic beverages whether sold for consumption on premises or off the premises of the retailer. 11 -11. Sales to the United States Government; to the State of Colorado, its departments or institutions, and the political subdivisions thereof, in them governmental capacities only; and all sales to the City and any department thereof, 11 -12. Sales to religious, charitable, and eleemosynary corporations, in the conduct of their regular religious, charitable, and eleemosynary function and activities. 11 -13. Sales which the City is prohibited from taxing under the Constitution or laws of the United States, or the State of Colorado, shall be exempt hereunder. -4- 11:14 Sales and purchases of meat, cattle, sheep, lambs, swine and goats; all sales and purchases of mares and stallions for breeding purposes; and all farm auction close -out sales shall be exempt from taxation hereunder. 11 -15. Sales and purchases of feed for livestock or poultry, all sales and purchases of seeds, and all sales and purchases of orchard trees shall be exempt from taxation hereunder. 11 -16. Sales of all forms of tobacco. 11 -17. Sales of newspapers and periodical magazines. SECTION 12. RETAILER RESPONSIBLE FOR PAYMENT OF TAX. Every retailer (also herein called 'ivendoril) shall, irrespective of the provisions of Section 13, be liable and responsible for the payment of an amount equivalent to one per cent (1%) of all sales made by him of commodities or services specified in Section 10, and shall before the fifteenth (15th) day of each month make a return to the Director of Finance for the preceding calendar month and remit an amount equivalent to said one per cent (1 %) of such sales to said Director of Finance, less five per cent (5%) of such tax to cover the vendor's expense in the collection and remittance of said tax. 12 -1 Return; Content, Form, Etc. Such returns of the taxpayer, or his duly authorized agent, shall contain such information and be made in such manner and upon such forms as the Director of Finance may prescribe and said Director of Finance may extend the time for making returns and paying the taxes due under such reasonable rules and regulations as he may prescribe, but no such . extension shall be for a greater period than is provided in Section 16. 12 -2. Exemption; Burden of Proof. The burden of proof that any retailer is exempt from collecting a tax upon any goods sold and paying same to the Director of Finance, or from making such returns, shall be on the retailer or vendor under such reasonable requirements of proof as the Director of Finance may prescribe. SECTION 13. RETAILERS TO COLLECT TAX. 13-1 There are hereby imposed upon all sales of commodities and services specified in Section 10, taxes in accordance with the following schedule: 13 -1 (1). On sales amounting to LL to and including $1.18, a tax of one cent ($.01). 13 -1 (2). On sales amounting to $1.19 to and including $2.18, a tax of two cents ($0.02). 13 -1 (3). And on all higher sales, one cent ($0.01) shall be added in each bracket for one dollar ($1.00) of additional selling price,. 13 -2. Retailers shall add the tax imposed hereby, 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. IECTION 14. DIRECTOR OF FINANCE FORMULATES RULES. To provide uniform methods of adding the tax, or the average equivalent thereof, to the selling price, it shall be the duty of the Director of Finance to formulate and promulgate, after hearing, appropriate rules and regulations to effectuate the purpose of this article. SECTION 15. UNLAWFUL TO ASSUME OR ABSORB TAX. It shall be unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this article will be assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold, or, if -5- added, that it or any part thereof will be refunded. Any person violating any provision of this article shall be subject to the penalties herein provided. SECTION 16. SPECIAL A.000TJNTING BASIS FOR REMITTANCE OF TAX. If the accounting methods regularly employed by the vendor in the transaction of his business, or other conditions, are such that reports of sale made on a calendar month basis will impose unnecessary hardship, the Director of Finance may, upon request of the vendor, accept reports at such intervals as will, in his opinion, better suit the convenience of the taxpayer, and will not jeopardize the collection of the tax. SECTION 17. CONSOLIDATION OF RETURNS. A retailer doing business in two or more places or locations taxable hereunder, may file one return covering all such business activities in the City. SECTION 18. TAX ON CREDIT SALES ETC. In case of a sale upon credit, a contract for sale (wherein is provided that the price shall be paid in installments and title does not pass until a future date), chattel mortgage, or conditional sale, there shall be pai. upon each payment upon the account of purchase price, that portion of the total tax which the amount paid bears to the total purchase price. The Director of Finance may authorize a retailer doing business wholly or partly on a. credit basis to make returns on the basis of cash actually received. Thereafter the retailer shall make returns and pay taxes on that basis until further order of the Director of Finance. =lag. FAILURE TO REMIT COLLECTIONS. Failure to remit punctually to the Director of Finance the full amount Squired to be remitted by the provisions of this article, is hereby declared tq be a violation of this article. SECTION 20. TAX ON STORAGE CONSUMPTION, AND USE. There is hereby levied and there shall be collected from every person, firm, or corporation in the City a tax or excise for the privilege of storing, using, or consuming in this City any articles of tangible personal property purchased at retail from sources outside the corporate limits of Pueblo, sub4equent to the effective date of this ordinance. Such tax shall be payable to *Id shall be collected by the Director of Finance in accordance with the following schedule: 20 -1(1). On storage or acquisition charges or costs from 414 to $1.18, both inclusive, a tax of one cent ($0.01). • 20 -1(2). On storage or acquisition charges :or costs from $1.19 to $2.18, both inclusive, a tax of two cents ($0.02). 20 -1(3). On all storage or acquisition charges or costs higher than $2.18, one cent ($0.01) shall be added for each bracket of one dollar($1.00) of such higher charges or costs. 20 -2. Items Exempt from Tax on Storage, Consumption and Use. This tax or excise on the storage, consumption, and use of tangible personal property is hereby declared to be supplementary to the City tax on retail sales as provided inAhis ordinance and shall not apply: 20 -2(1). To the storage, use, or consumption of any tangible personal property the sale of which is subject to the City Retail Sales Tax as provided herein. 20- 2 -(2). To the storage, use or consumption of any tangible personal property purchased for re -sale in this City, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business. -6- • 20 -2(3). To the storage, use or consumption of motor fuel upon which there has accrued or has been paid the motor fuel tax prescribed by the Colorado Motor Fuel Tax Law of 1933. 20- 2(1.). To the storage, use or consumption of tangible personal property brought into this city by a non- resident thereof for his own storage, use or consumption while temporarily within this city, nor to the personal property of a resident if such personal property was purchased prior to becoming a resident of this city. 20 -2(5). To the storage, use or consumption of tangible personal property of the United States government, or the state of Colorado or its institutions, or its political subdivisions in their governmental capacities only; or by religious or charitable corporations in the conduct of their regular religious or charitable functions. 20 -2(6). To the storage, use or consumption of tangible personal property by a person engaged in the business of manufacturing, 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. 20 -2(7). To the storage, use or consumption of electricity, coal, coke, fuel oil or gas for use in processing, manufacturing, mining, refining, irrigation, telegraph, telephone and radio communication, street and railroad transportation services and all industrial uses, except that electricity, gas, coal, fuel oil or coke used for lighting or space heating in these operations shall not be exempt. 20 -2(8). To the storage and use of neat cattle,. sheep, lambs, swine and goats within this City; or to the storage and use within this City of mares and stallions kept, held and used for breeding purposes only. SECTION 21. PROVISIONS RELATIVE TO PAYMENTS AND COLLECTION. The following p:.�o iv sions shall apply to` tie ua� yc"�'nrie t and collection of the tax on storage, consumption, and use of tangible personal property: 21 -1. Motor Vehicles and Trailers. Any resident person, who shall purchase any motor vehicle, trailer, or semi - trailer, whether new or used, outside the corporate limits of the City of Pueblo for use within this City shall immediately, and prior to registering and obtaining a license therefor, make a return showing such transaction to the Director of Finance of Pueblo and thereupon pay to him the use tax applicable thereto as provided for in Section 20 hereof, and failure so to do shall constitute a violation of this ordinance. All such motor vehicles, trailers, or semi - trailers purchased outside the corporate limits of Pueblo for use in this City, shall be registered with the County Clerk and Recorder of Pueblo County, Colorado, and any person who shall register any such motor vehicle, trailer or semi- trailer in any other county in this state or elsewhere shall be deemed in violation of this ordinance and any such registration shall constitute prima facie evidence of an attempt to evade payment of such tax. 21 -2. Building Materials and Supplies. Any person, who shall build, construct, or improve any building, dwelling or other structure or improvement to realty whatsoever within the City of Pueblo, and who shall purchase the necessary lumber, fixtures, materials, or any other supplies needed therefor from any source outside the corporate limits of Pueblo shall keep and preserve all invoices and statements showing such purchases and shall on or before the tenth day of each succeeding month following the start of such construction file a return with the Director of Finance of Pueblo to which he shall attach such statements and invoices for the lumber, fixtures, materials and other supplies purchased the previous month and shall thereupon pay to said Director of Finance the full amount of the use tax due thereon for the preceding month or months. Any failure to preserve such statements, and invoices and to make such return and payment of this tax shall be deemed a violation of this ordinance and any person so offending shall be subject to the penalties and punishment provided herein. It shall be the duty of the City building inspectors and the contractors and sub - contractors who are hired to construct any such improvements to furnish the Director of Finance such information as he may require as to any purchases of lumber, fixtures, materials,,apd supplies for such improvements -7- which were obtained from sources outside the corporate limits of Pueblo. The full amount of any use tax due and not paid for lumber, fixtures, materials, and supplies purchased from such outside sources, together with penalties and interest thereon as herein provided,shall be and constitute a lien upon the real property benefited by such improvement, and the Director of Finance is hereby authorized to file a notice of such lien with the County Clerk and Recorder of Pueblo County. 21 -3. Every person who shall become subject to the payment of an excise tax for the privilege of storing, using, or consuming within the City of Pueblo any articles of tangible personal property purchased at retail from sources outside the corporate limits of the City, shall, unless a different timf be otherwise specifically provided herein, promptly file a return with the Director of Finance and pay to him the full amount of the tax due thereon; and any undue delay, or effort to evade the payment of such tax, shall subject such person, to such penalties and punishment as provided herein. SECTION 22. COLLECTION AND REFUND OF DISPUTED TAX. Should a dispute arise between the purchaser and seller as to whether or not any sale or commodity or service is exempt from taxation hereunder, never less the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser a receipt or certificate, on form -; prescribed by the Director of Finance, showing the names of the seller and purchaser, the items purchased,the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser thereafter may apply to the Director of Finance for a refund of such taxes, and it shall be the duty of the Director of Finance to determine the question of exemption, subject to review by the courts , as herein provided. SECTION 23. REFUNDS; PROCEDURE. A refund shall be made, or credit allowed, for the tax so paid under dispute by any purchaser who has an exemption as in this article set out. Such refund shall be made by the Director of Finance after compliance with the following conditions precedent: 23 -1. Application. Applications for refund must be made within sixty (60) days after the purchase of the goods on which the exemption is claimed and must be supported by the affidavit of the purchaser accompanied by the original paid invoice or sales receipt and a certificate issued by the seller, and be made upon such forms as shall be prescribed and furnished by the Director of Finance, which forms shall contain such information as said Director of Finance shall prescribe. 23 -2. Decisions. Upon receipt of such application, the Director of Finance shall examine the same with all due speed and shall give notice-to the applicant by an order in writing of his decision thereon. 23 -3. Hearing. An aggrieved applicant may, within ten (10) days after such decision is mailed to him, petition the Director of Finance for a hearing on the claim in the manner provided hereinafter. SECTION 24. REFUNDS NOT ASSIGNABLE. The right of any person to a refund under this article shall not be assignable, and application for refund must be made by the same person who purchased the goods and paid the tax thereon as shown in the invoice of the sale thereof. SECTION 25. PENALTY.FOR.VIOLATING. REFUND PROVISIONS. Any applicant for refund under the provisions hereinabove, or any other person, who shall make any false statement in connection with an application for a refund of any tax shall be deemed guilty of a violation of this article and punished as hereinafter provided. SECTION 26. VIOLATIONS OF REFUND PROVISIONS TO BE USED AS EVIDENCE OF FRAUDULENT INTENT. If any person be convicted under the provisions of Section 25, such -g- conviction shall be prima facie evidence that all refunds received by such person during the current year were obtained. unlawfully, and the Director of Finance is hereby empowered and directed to bring appropriate action for recovery of such refund. A brief summary of the above mentioned penalties shall be printed on each form application for refund. SECTION 27. BURDEN OF PROOF. The burden of proof that sales and commodities, and services on which tax refunds are claimed, are exempt from taxation hereunder, or where not at retail, shall be on the one making such claim under such reasonable requirements of proof as the Director of Finance may prescribe. SECTION 28. SALES TAX INFORMATION TO BE CONFIDENTIAL. 28 -1. Except in accordance with judicial order or as otherwise herein provided, the Director of Finance, his agents, clerks, and employes shall not divulge any information gained from any return filed under the provisions of this article. 28 -2. The officials charged with the custody of such returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the Director of Finance in an action under the provisions of this article to which he is a party, or on behalf of any party to an action or proceeding under the provision_;-, of this article or to punish a violator thereof when the report of facts shown by such report is directly involved in such action or proceeding, in either of which events the court may require the production, of, and may admit in evidence, so much of said returns, or of the facts shown thereby, as are pertinent to the action or proceeding and no more. 28 -3. Nothing contained in this article shall be construed to prohibit the delivery to a person, or his duly authorized representative, of a copy of any return or report filed in connection with his tax, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, nor to prohibit the inspection by the City Attorney of the City or any other legal representative of the City of the report or return of any person who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding is contemplated or has been instituted under this article. 28 -4. Reports and returns shall be preserved for three years and thereafter until the Director of Finance orders them destroyed. • SECTION 29. DUTY TO KEEP BOOKS AND RECORDS. It shall be the duty of every person engaged or continuing in business in the City, for the transaction of which a license is required hereunder, to keep and preserve suitable records of all sales made by him, and such other books or accounts as may be necessary to determine the amount of tax for the collection of which he is liable hereunder. It shall be the duty of every such person to keep and preserve for a period of three years all invoices of goods and merchandise purchased for resale, and all such books, invoices, and other records shall be open for examination at any time by the Director of Finance or his duly authorized agents. SECTION 30. PENALTY FOR WRONGFULLY DIVULGING SALES TAX INFORMATION. Any City officer or employe, or any member of the office of, or officer, or employe of the Director of Finance who shall divulge any information classified herein as confidential, in any manner, except in accordance with proper judicial order, or as otherwise provided by law, shall be guilty of a violation hereof, SECTION 31. EXAMINATION OF RETURNS1 REFUNDS, CREDITS, AND DEFICIENCIES. As soon as practicable after the return is filed, the Director of Finance shall examine it. 31 -1. If it then appears that the correct amount of tax to be remitted is greater or less than that shown in the return, the tax shall be recomputed. -9- 31 -2. If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the same person. 31 -3. If the amount paid is less than the amount due, the difference, together with interest thereon at the rate of one -half of one per cent per me,kt"1 from the time the return was due, shall be paid by the vendor within ten days after written notice and demand to him from the Director of Finance. SECTION 32. PENALTY FOR DEFICIENCIES CAUSED BY. DISREGARD nF RULES. If any part of the deficiency is due to negligence or intentional disregard of authorized rules and regulations with knowledge thereof, but wit^ :. intent to defraud, there shall be added ten per cent (10%) of the total amour. of the deficiency; and in such case interest shall be collected at the rate c' one per cent (1 %) per month on the amount of the deficiency from the time the return was due, from the person required to file the return, which interest a:c. addition• shall become due and payable within ten days after written notice an'1 demand by the Director of Finance. SECTION 33• PENALTIES FOR DEFICIENCY CAUSED PY FRAU D If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added fifty per cent (50%) of the total amount of the deficiency, and in such case the whole amount of the tax unpaid, including the additions, shall become due and payable ten days after written notice and demand by the Director of Finance and an additional one per cent (1 %) per month on said amounts shall be added from the date the return was due until paid. SECTION 34. INVESTIGATION OF RETAILERS' BOOKS. For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any person, the Director of Finance, or his duly authorized deputies, may hold investigations and hearings concerning any matters covered by this article, and may examine any relevant books, papers, records,or memoranda, of any such person and may require the attendance of such person, or any officer or employe of such person, or of any person having knowledge of such sales, and may take testimony and require proof for his information. The Director of Finance and his duly authorized deputies, shall have power to administer oaths to such persons. SECTION 35. HEARINGS SUBPOENAS. AND WITNESS FEES. a, All subpoenas issued under the terms of this article may be served by any person of full age. The fees of witnesses for attendance and trial shall be the same as the fees of witnesses before the District Court, such fees to be paid when the witness is excused from further attendance. When the witness is subpoenaed at the instance of the Director of Finance, such fees shall be paid in the same manner as other expenses under the terms of this article, and when a witness is subpoenaed at the instance of any party to any such proceeding, the Director of Finance may require that the cost of service of the subpoena and the fee of the witness be borne by the party at whose instance the witness is summoned. In such case, the Director of Finance, in his discretion, may require a deposit to cover the cost of such service and witness fees. A subpoena issued as aforesaid shall be served in the same manner as a subpoena issued out of a court of record. SECTION $6. JUDGE COMPELS ATTENDANCE. Any judge of the District Court of the Tenth Judicial District of the State of Colorado, either in term time or vacation, upon the application of Director of Finance, may compel the attendance of witnesses, the production of books, papers, records, or memoranda, and the giving of testimony before the Director of Finance or any of his duly authorized deputies, by an attachment for contempt, or otherwise, in the same manner as production of evidence may be compelled before said Court. _SECTION 37. DEPOSITIONS. The Director of Finance or any party in an investigation or hearing before the Director of Finance may cause the deposition of witnesses residing -10- • within or without the State to be taken in the manner prescribed by law for like depositions in civil actions in courts of this State and to that end compel the attendance of witnesses and the production of books, papers, records, or memoranda. SECTION 38. UNPAID TAX A PRIOR LIEN. The tax imposed by this ordinance shall be a first and prior lien upon t! goods and business fixtures of or used by any retailer under lease, title - retaining contract, or other contract arrangement, excepting stock of goods sold or for sale in the ordinary course of business, and shall take precedence on all such property over other liens or claims of whatsoever kind or nature. SECTION 39. SALE OF BUSINESS. Any retailer who shall sell out his business or stock of goods or shall quit business, shall be required to make out a return as provided in this article within ten days after the date he sold out his business or stock of gootts. or quit business, and his successor in business shall be required to withhold sufficient of the purchase money to cover the amount of said tax due and unpaid until such time as the former owner shall produce a receipt from the Director of Finance showing that the taxes have been paid, or a certificate that no taxes are due. SECTION 140. PURCHASES SUBJECT TO TAX LIEN. If the purchaser of a business or stock of goods shall fail to withhold the purchase money as above provided, and the tax shall be due and unpaid after the ten -day period allowed, he, as well as the vendor, shall be personally liable for the payment of the taxes unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by any retailer under lease, title - retaining contract, or other contract arrangement, by purchase, foreclosure sale, or otherwise, takes same subject to the lien for any delinquent sales taxes owed by such retailer, and shall be liable for the payment of all delinquent sales taxes of such prior owner, not, however, exceeding the value of the property so taken or acquired. SECTION 41. STATUS OF UNPAID TAX IN BANKRUPTCY AND RECEIVERSHIP. Whenever the business or property of any taxpayer subject to this article shall be placed in receivership, bankruptcy, or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties, and interest imposed by this article and for which said retailer is in any way liable under the terms of this article shall be a prior and preferred lien against all the property of said taxpayer, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights shall have attached prior to the filing of the notice as hereinafter provided on the property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer, and no sheriff, receiver, assignee, or other officer shall sell the property of any person subject to this article under process or order of any court, without first ascertaining from the Director of Finance the amount of any taxes due and payable under this article, and if there be any such taxes due, owing., and unpaid, it shall be the duty of such officer to first pay the amount of said taxes out of the proceeds of such sale before making, payment of any moneys to any judgment creditor or other claimants of whatsoever kind or nature, except the costs of the proceedings and other pre- existing claims or liens as above provided. For the purpose of this ordinance the term "taxpayer" shall include "retailer ". SECTION 42. TRUST STATUS OF TAX IN POSSESSION OF RETAILER. All sums of money paid by the purchaser to the retailer as taxes imposed by this article shall be and remain public money, the property of the City, in the hands of such retailer, and he shall hold the same in trust for the sole use and benefit of the City until paid to the Director of Finance as herein provided, and for failure so to pay to the Director of Finance, such retailer shall be punished for a violation hereof. -11- • SECTION 43. REFUSAL TO MAKE RETURN; ESTIMATE OF TAXES1 PENALTY; NOTICE; ASSESSMENT. 43 -1. If any person neglects or refuses to make a return in payment of the taxes as required by this ordinance, the Director of Finance shall make an estimate, based upon such information as may be available, of the amount of the taxes due for the period or periods for which the taxpayer is delinquent; and upon the basis of such estimated amount, compute and assess in addition there'•- a penalty equal to ten per cent (10%) thereof, together with interest on such delinquent taxes at the rate of one per cent (1 %) per month from the date when due, 43 -2. Promptly thereafter the Director of Finance shall give to the delinquent taxpayer written notice of such estimated taxes, penalty, and interest which notice must be served personally or by certified or registered mail. 43 -3. Such estimate shall thereupon become an assessment, and such assessment shall be final and due and payable from the taxpayer to the Director of Finance ten days from the date of service of the notice or the date of mailing by certified or registered mail; provided, however, that within said ten day period such delinquent taxpayer may petition the Director of Finance for a revision or modification of such assessment, and shall, within such ten day period, furnish the Director of Finance the facts and correct figures showing the correct amount of such taxes. 43 -4. Such petition shall be in writing and the facts and figures submitted shall be submitted either in writing or orally, and shall be given under oath of said taxpayer. 43 -5. Thereupon the Director of Finance shall modify such assessment in accordance with the facts submitted, which facts he deems correct. Such assessment shall be considered the final order of the Director of Finance, and may be reviewed under Rule 106 (a) (4) of the Colorado Rules of Civil Procedure as provided in this article, provided, that the taxpayer gives written notice to the Director of Finance of such intention within five days after receipt of the final order of assessment. SECTION 44. NOTICE OF TAX LIEN. 44 -1. If any taxes, penalty, or interest imposed by this ordinance shown due by returns filed by the taxpayer, or as shown by assessments duly made as provided herein, are not paid within five days after the same are due, the Director of Finance shall issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties, and interest, the date of the accrual thereof, and that the City claims a first and prior lien therefor on the real and tangible personal property of the taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights shall have attached prior to the filing of the notice as hereinafter provided on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer. 44 -2. Such notice shall be on forms prepared by the Director of Finance, and shall be verified by him or his duly qualified deputy, or any duly qualified agent of the Director of Finance, whose duties are the collection of such tax, and may be filed in the office of the Clerk and Recorder of any county in this state in which the taxpayer owns real or tangible personal property, and the filing of such notice shall create such lien on such property in that county and constitute a notice thereof. 44 -3. After said notice has been filed, or concurrently therewith, or at any time when taxes due are unpaid, whether such notice be filed or not, the Director of Finance may issue a warrant under his official seal directed to any duly authorized revenue collector, or the sheriff of any county in this state, commanding him to levy upon, seize and sell sufficient of the real and personal property of the tax debtor found within his county for the payment of the amount due, together with interest, penalties, and costs, as now or hereafter provided by ordinance, subject to valid preexisting claims or liens as above provided. .12- d I c SECTION 45. S OF LIEN BY LEVY, SALE, AND GARNISHMENT. Such revenue collector or the sheriff shall forthwith levy upon sufficient of the property of the taxpayer, or any property used by such taxpayer in conducting his retail business, and said property so levied upon shall be sold in all respects, with like effect and in the same manner as is prescribed by law in respect to executions against property upon judgment of a court of record, and the remedies of garnishments shall apply. The sheriffs shall be entitled to such fees in executing such warrant, as are allowed by law for similar services. SECTION 46. RELEASE OF LIEN. Any lien for taxes as shown on the records of the county clerks and recorders as herein provided shall, upon the payment of all taxes, penalties, and interest covered thereby, be released by the Director of Finance in the same manner as mortgages or judgments are released. SECTION 47. RECOVERY OF UNPAID TAX BY ACTION AT LAW. 47 -1. The Director of Finance may also treat any such taxes, penalties, or interest due and unpaid, as a debt due the City from the vendor retailer. 47 -2. In case of failure to pay the taxes, or any portion thereof, or any penalty or interest thereon, when due, the Director of Finance may recover at law the amount of such taxes, penalties, and interest in any justice, county, or district court of the county wherein the taxpayer resides or has his principal place of business having jurisdiction of the amounts sought to be collected. 47 -3. The return of the taxpayer or the assessment made by the Director of Finance, as herein provided, shall be prima facie proof of the amount due. 47 -4. Such actions may be actions in attachments, and writs of attachment may be issued to the constable or sheriff, as the case may be, and in any such proceeding no bond shall be required of the Director of Finance, nor shall any constable or sheriff require of the Director of Finance an indemnifying bond for executing the writ of attachment, or writ of execution upon any judgment entered in such proceedings; and the Director of Finance may prosecute appeals or writs of error in such cases without the necessity of providing bond therefor. 47 -5. It shall be the duty of the City Attorney of the City, when requested by the Director of Finance, to commence action for the recovery of taxes due under this article, and this remedy shall be in addition to all other existing remedies, or remedies provided in this article. SECTION 48. CITY A PARTY TO TITLE ACTIONS FOR DETERMINATION OF LIEN. In any action affecting the title to real estate or the ownership or rights to possession of personal property, the City may be made a party defendant for the purpose of obtaining a judgment or determination of its lien upon the property involved therein. .SECTION 149. DIRECTOR OF FINANCE MAY WAIVE PENALTY. The Director of Finance is hereby authorized to waive, for good cause shown, any penalty assessed as in this article provided ;and any interest imposed in excess of six per cent (6%) per annum shall be deemed a penalty. SECTION 50. PETITIONS BY AGGRIEVED TAXPAYERS TO SET HEARINGS. If any person, having made a return and paid the tax provided for in this article, feels aggrieved by the assessment made upon him by the Director of Finance, he may apply to the Director of Finance by petition in writing within ten days after the notice is mailed to him, for a hearing and a correction of the amount of the tax so assessed, in which petition he shall set forth the reasons why such hearing should be granted, and the amount by which such tax should be reduced. The Director of Finance shall notify the petitioner in writing of the -13- c r time and place fixed by him for such hearing. After such hearing, the Director of Finance shall make such order in the matter as is just and lawful and shall furnish a copy of such order to the petitioner. SECTION 51. DECISIONS OF DIRECTOR OF FINANCE. NOTICE• WHEN FINAL. Every decision of the Director of Finance shall be in writing, and notice: thereof shall be mailed to the vendor within ten days, and all such decisions shall become final upon the expiration of thirty days after notice of such decision shall have been mailed to the vendor, unless proceedings are begun Id thin said time for review thereof as herein provided. SECTION 52. REVIEW OF DIRECTOR OF FINANCE'S DECISION. Should the applicant for refund be aggrieved at the final decision of thy: Director of Finance, he may proceed to have same reviewed by the courts in the manner provided for review of other decisions of the Director of Finance here- under, such review to be in the District Court of the Tenth Judicial District of the State of Colorado. 52 -1. Duties of the Director of Finance herein provided may be performed by any qualified deputy. SECTION 53. REVIEW BOND FILED WITH DIRECTOR OF FINANCE. Before making application to the District Court under Rule 106 (a) (l,) of the Colorado Rules of Civil Procedure, the party making such application shall file with the Director of Finance a bond in twice the amount of the taxes, interest, and other charges audited and stated in the determination and decision of the Director of Finance, with surety as is now provided in other cases of appeal, or at his option may deposit lawful money of the United States in the same manner as herein provided. SECTION 54. REVIEW IN DISTRICT COURTS. 54-1. The District Court of the Tenth judicial District of the State of Colorado shall have original jurisdiction in proceedings to review all questions of law and fact determined by the Director of Finance in administering the provisions of this article by writ under Rule 106 (a) (4) of the Colorado Rules of Civil Procedure. 54-2. Such writs shall be issued by the Clerk of the Court upon a verified petition of the taxpayer, filed within twenty days after notice of the decision of the Director of Finance in any such matter. 54 -3. The writ shall be served within five days after its issuance and shall be returnable, at such time as the Court may determine, not less than ten days nor more than twenty days after the date when the writ was issued. The Director of Finance shall forthwith certify the record of his proceedings to said Court. 54 -4. The procedure thereunder shall be in conformity with the Rules of Civil Procedure of the State of Colorado. SECTION 55. REVIEW OF DISTRICT COURT DECISIONS BY SUPREME COURT. The decision of the District Court may be reviewed in the Supreme Court upon writ of error by any party. SECTION 56. NOTICES TO BE SENT CERTIFIED OR REGISTERED MAIL. All notices required to be given to the retailer or vendor, under the provisions of this article, shall be in writing and if mailed postpaid by certified or registered mail "return receipt requested" to him at his last known address, shall be sufficient for the purpose of this article. SECTION 57. HEARINGS. TO BE HELD IN CITY. Every hearing before the Director of Finance shall be held in the City of Pueblo. -14- SECTION 58. LICENSE AND TAX; IN ADDITION TO ALL OTHER TAXES. The license and tax imposed by this article shall be in addition to all other licenses and taxes imposed by law, except as herein otherwise provided. SECTION 59. ADMINISTRATION OF ARTICLE BY DIRECTOR OF FINANCE. The administration of the licensing provisions of this article is hereby vested in the City Clerk; and the administration of all the other provisions of this article is hereby vested in and shall be exercised by the Director of Finance, who shall prescribe forms and reasonable rules and regulations in conformity with this article for the making of returns, for the ascertainment, assessment,and collection of the taxes imposed hereunder, and for the proper administration and enforcement hereof. SECTION 60, PURPOSE OF TAXI PROCEEDS TO GENERAL FUND. The Council of the City hereby declares that the purpose of the levy of the taxes imposed by this article is for the raising of funds for the payment of the expenses of operating the City; and in accordance with this purpose all of the proceeds of said tax shall be placed in and become a part of the general fund of the City. SECTION 61. STATUTE OF LIJIITATIONS. 61 -1, The taxes for any period, together with interest thereon and penalties with respect thereto, imposed by this article shall not be assessed, nor shall any notice of lien be filed, or distraint warrant be issued, or suit for collection be instituted, or any other to collect the same be commenced, more than three years after the date on which the tax was or is payable. Nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period; in which cases such lien shall continue only for one year after the filing of notice thereof. 61 -2. In case of a false or fraudulent return with intent to evade tax, the tax, together with interest and penalties,thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. 61 -3. Before the expiration of such period of limitation, the taxpayer and the Director of Finance may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing. SECTION 62. SEVERABILITY. If any section, subsection, paragraph, sentence, clause, or phrase of this article is for any reason held or decided to be unconstitutional, such decision shall not affect the validity of the remaining portions of this article. The City Council hereby declares that it would: have passed this article and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses, or phrases might be declared unconstitutional. SECTION 63. EXPIRATION OF SALES TAX. This ordinance shall be null and void upon final adoption by the City Council of a tax levy ordinance which sets the mill levy for all municipal purposes, excluding water bonds, at a rate in excess of 19.75 mills for each $1.00 of assessed valuation. This ordinance shall be null and void upon final adoption of an ordinance which amends this section. SECTION 61p. VIOLATIONS1 EVASION OF COLLECTION OR PAYMENT OF TAX. It shall be a violation of this article for any retailer, vendor, or purchaser of tangible personal property outside of Pueblo for storage, use, or consumption within the City to refuse to make any return provided to be made in this article, or to make any false or fraudulent return, or any false statement in any return, or to fail or refuse to make payment to the Director of Finance of any taxes collected or due the City, or in any manner to evade the collection and payment of the tax, or any part thereof, imposed by this article, or for any person or purchaser to fail or refuse to pay such tax or evade the payment -15- • thereof, or to aid or abet another in any attempt to evade the payment of the tax imposed by this article. Any corporation making a false return or a return containing a false statement shall be guilty of a violation of this article. 61t -1. Penalty. Any person who shall violate any of the provisions of this article shall be guilty of a violation hereof and shall be punished by a fine not to exceed $300.00 or by imprisonment in the City Jail not to exceed 90 days. 64-2. Each and every twenty -four (24) hours continuation of any violation shall constitute a distinct and separate offense. 'TRODUCED 1955 BY f` APPROVED '2'es .en o e ounci ATTEST City Clerk it 0 zAAAP---4.11 c • -16-