HomeMy WebLinkAbout03450 3 -13 -71 0\ 11
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ORDINANCE NO. 3450 ?AAA CO
*7II1
AN ORDINANCE AMENDING CHAPTER 25 OF THE CODE
OF ORDINANCES OF PUEBLO, COLORADO THE SAME
BEING ORDINANCE NO. 2189 ADOPTED BY POPULAR
VOTE NOVEMBER 8, 1955 AS PREVIOUSLY AMENDED
BY ORDINANCE NO. 3160, ADOPTED BY VOTE OF
THE PEOPLE ON NOVEMBER 7, 1967 ALL RELATING
TO SALES AND USE TAX LAWS OF THE CITY OF
PUEBLO, COLORADO.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, COLORADO,
that: (Brackets indicate material to be deleted; underscoring
indicates new material to be added)
SECTION 1.
Chapter 25 of the Code of Ordinances of Pueblo, Colorado,
under the titled section numbers of that Chapter, is hereby amended
in the following particulars:
(A) Section 25 -1 is hereby amended by adding thereto
the following:
"Sec. 25 -1. Definitions.
* * *
(m) Director of Finance or Director means the Director
of Finance of the City of Pueblo or his designee. Duties
of the Director may be performed by his designee.
(n) The term "business" shall include all activities .
engaged or caused to be engaged in with the object of gain,
benefit or advantage, direct or indirect.
(o) "Doing business in this city ", for the purposes
of this Chapter means the selling, leasing, or delivering
in this city, or any activity in this city in connection with
the sellin g, leasing, , or delivering in this city, of tangible
personal property by retail sale as defined in this section,
for use, storage, distribution, or consumption within the
city. This term shall include, but shall not be limited to,
the following acts or methods of transacting business:
1. The maintaining within this city, directly or in-
directly or by a subsidiary, an office, distributing
house, salesroom or house, warehouse or other place
of business.
2. The soliciting, either by direct representatives,
indirect representatives, manufacturers agents, . or by
distribution of catalogues or other advertising, or
by use of any communication media, or by the use of
the newspaper, radio, or television advertising media,
or by any other means whatsoever, of business from
persons residing in this city, and by reason thereof
receiving orders from, or selling or leasing tangible
personal property to such persons residing in this
city for use, consumption, distribution, and storage
for use or consumption in this city.
(p) The term "sale" or "sales and purchases" in addition
to the items included in subsection (b) of this section, includes
the transaction of furnishing rooms or accommodations by any
person, partnership, association, corporation, estate, receiver,
trustee, assignee, lessee, or any person acting in a representa-
tive capacity or any combination of individuals by whatever
name known to a person or persons who, for a consideration,
uses, possesses, or has the right to use or possess any room
or rooms in a hotel, apartment hotel, lodging house, motor
hotel, guest house, guest ranch, mobile homes, auto camps,
trailer courts and parks, under any concession, permit, right
of access, license to use or other agreement, or otherwise.
(q) "Auction sale" means any sale conducted or transacted
at a permanent place of business operated by an auctioneer or
a sale conducted and transacted at any location where tangible
personal property is sold by an auctioneer when such auctioneer
2 -
is acting as agent for the owner of such personal property
or is in fact the owner thereof. For purposes of this ordi-
nance the auctioneer at any sale defined herein, except when
acting as an agent for a duly licensed retailer or vendor or
when selling only tangible personal property which is exempt
under the ,provisions of 25 -13(n) and (o) is a retailer or
vendor, as defined in subsection (e) of this section and the
sale made by him is a retail sale as defined in subsection (f)
of this section, and the business conducted by said auctioneer
in accomplishing such sale is the transaction of a business
as defined by subsection (n) of this section."
(B) Section 25 -2 is hereby amended to read as follows:
"Sec. 25 -2. Administration.
The administration of the licensing provisions of this
[article] chapter is hereby vested in the [city clerk] Director
of Finance and the administration of all the other provisions
of this [article] chapter 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] chapter for the making of returns, for the ascertain-
ment, assessment, and collection of the taxes imposed hereunder,
and for the proper administration and enforcement hereof.
Rules and regulations adopted or amended by the Director
of Finance under the provisions of this chapter may be rescinded
by the Director of Finance and all such rules and regulations
adopted, amended or rescinded shall be effective in the manner
and at the time prescribed by the Director.
The Director shall appoint such persons to make such
examinations, require such reports, make such investigations,
make such expenditures and take such other action as he deems
necessary or suitable to that end. The Director shall determine
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Revised 5 -6 -71
his own organization and methods of procedure in accordance
with the provisions of this chapter. Subject to the provisions
of this chapter the Director of Finance is authorized to appoint
and prescribe the duties and powers of such officers, accountants,
experts, and other persons as may be necessary in the performance
of his duty. The Director of Finance may delegate to any such
person so appointed, such sower and authority as he deems
reasonable and proper for the effective administration of this
chapter and shall bond in a sufficient amount, any person
handling money under this chapter."
(C) Section 25 -4 is hereby amended to read as follows:
"Sec. 25 -4. License for sale at retail -- Required; application.
It shall be unlawful for any person to engage in the busi-
ness of selling at retail [as the same is] or in contracting
service or other business which engages in transactions giving
rise to liability for use tax imposed on the use, storage or
consumption of tangible personal property, defined in this
[article] chapter, without first having obtained a license
therefor, which license shall be granted and issued by the
[city clerk] Director of Finance and shall be in force and
effect until rezoked.
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4 -22 -71
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
by the Director of Finance.
In case business is transacted at two or more separate
places by one person, as defined in this chapter, a separate
license for each place of business shall be required."
(D) Section 25 -7 is hereby amended to read as follows:
"Sec. 25-7. Same -- Revocation; hearing; reissuance, bond.
The [city clerk] Director may on a reasonable notice and
after full hearing, revoke the license of any person, as defined
in this chapter, found by the [city clerk] Director to have
violated any provision of this [article] chapter or to have
violated the provisions of any ordinance or provision of this
Code of the City of Pueblo, which require registration, a
license, a permit or the posting of bond or evidence of insur-
ance with the Director of Finance of the City.
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 and use tax payment for a two month period or
a minimum of twenty five dollars, whichever amount shall be the
5 -
greater, must be posted with the [city clerk] Director. Revo-
cation of a sales tax license of any person shall apply to the
person and the conditions of issue of a license to a new busi-
ness or for a new location, where the ownership or the manage-
ment is vested, in whole or in part, with that person, shall be
subject to this section. In the event that no violations occur
within twelve months after the issuance of the sales tax license,
and upon the application for refund to the Director of Finance
filed by the person, the bond shall be refunded to the licensee."
(E) Section 25 -9 is hereby amended to read as follows:
"Sec. 25 -9.. Same -- Appeal from revocation order.
Any finding and order of the [city clerk] Director revok-
ing the license of any person shall be subject to review by
the City Council upon appeal by the licensee. Within twenty
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]
Director's finding or overrule the [city clerk] Director and
reinstate the license.
Any finding and order of the Director or the City Council
revoking the license of any person shall be subject to review
by the District Court of the Tenth Judicial District of the
State of Colorado. The procedure for review shall be, as
nearly as possible, the same as now provided for the review of
findings as now provided by writ of certiorari."
(F) Section 25 -10 is hereby amended by amending subsection
(a), (b) and (e) and by adding a new subsection to be designated
subsection (g), which subsections shall read as follows:
"Sec. 25 -10. Items taxable.
There is hereby levied and there shall be collected and
paid a tax in the amount stated in Section 25 -13 hereof, as
follows:
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(a) On the purchase price paid or charged upon all sales
and purchases of tangible personal property at retail
[.] , and in the case of retail sales involving the
exchange of property, on the purchase price paid or
charged, including the fair market value of the pro -
perty exchanged at the time and place of the exchange,
excluding however, from the consideration or purchase
price, the fair market value of the exchanged property,
provided such exchanged property is to be sold there -
after in the usual course of the retailer's business.
(b) Upon the entire amount paid or charged to any person
for the use of the facilities and accommodations [of
a hotel, apartment hotel, cottage camp, motor court,
trailer park or camp operated for the accommodation
of the general public for charge and having facilities
for, more than ten occupants] as defined in section
25 -1 (p) herein.
* * *
(e) Upon the amount paid for all meals or food, and cover
charges, if any, furnished in or from any restaurant,
eating house, hotel, drug store, club, resort, stand
or vehicle or other such place at which meals or food
are regularly sold to the public.
* * *
(g) 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
and the seller shall thereupon issue to the purchaser
a receipt, or certificate, on forms prescribed by the
Director, showing the names of the seller and purchaser,
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• 4 -22 -71
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 for a refund of such taxes, and it shall
then be the duty of the Director to determine the
question of exemption, subject to review by the
courts as provided in this chapter. It shall be a
violation of this Code punishable as provided in
Section 1 -8,for any seller to fail to collect, or
purchaser to fail to pay the tax levied by this chap -
ter, and on sales on which exemption is disputed."
(G) Section 25 -11 is hereby amended by repealing subsec-
tions (b)_, Cc) and (g) and by amending subsections (d) , (f) , (h) ,
Ci) , cm, (1) , Ch), CP) and (q) and by adding new subsections
Cr) and (s) all of which shall read as follows:
"Sec. 25 -11. Items exempt.
The following classes of tangible personal property are
exempt from taxation under this article:
* * *
(b) [Class 2 - -Farm implements used for commercial farming.]
(c) [Class 3-- Parts and accessories for articles in
Classes 1 and 2 above-]
Cd) Sales under conditional sales contracts made prior
to the [effective date of the ordinance from which
this article was derived] January 1, 1956.
* * *
Cf) [Sales of fuel used for the operation of internal
combustion engines.] :All commodities which are taxed
under the provisions of sections 1382 -5 to 138 - - 23,
'Colorado Revised Statutes, 1963, and all commodities
whi'cli are taxed under said provisions and the tax
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refunded, and all sales and purchases of aviation
fuel upon which no Pueblo sales tax was in fact
collected and retained prior to July 1, 1963, shall
be exempt from taxation under this chapter and the
storage, use, or consumption of such aviation fuel
shall additionally be exempt from taxation under
this chapter.
(g) [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; s`
(2) The articles sold are to be used by the pur-
chaser in the conduct of his manufacturing,
processing, mining, construction, or railroad-
ing 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 pur-
chaser 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.]
(h) Sales of food, food products, and soft drinks for
human consumption, in the usual and ordinary meaning
of these terms, including candies, ice cream and
other frozen delicacies, and confections which are
to be consumed off the premises of the vendor unless
prepared by the vendor at the place of sale for
the immediate consumption by the purchaser, but not
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4 -22 -71
including preparations sold as tonics or dietary
supplements [or meals and food covered by subsec-
tion (e) of section 25 -10 hereof].
(i) [Medicine sold under prescription of a physician.]
All sales of drugs dispensed in accordance with a
prescription and all sales of prosthetic devices.
* * *
(k) Sales to the United States Government; to the State
of Colorado, its departments or institutions, and
the political subdivisions thereof, in their govern-
mental capacities only and provided that where
delivery is to be made within the City of Pueblo
that at the time of sale or purchase, present satis-
factory evidence of being issued a current sales tax
license for the City of Pueblo to the vendor or re-
tailer and he shall record such license number in
document relating to the transaction in support of
the exemption claimed.
(1) Sales to religious, charitable and eleemosynary corp-
orations, in the conduct of their regular religious,
charitable and eleemosynary functions and activities
which organizations, at the time of sale or purchase,
present satisfactory evidence of being issued a
current sales tax license for the City of Pueblo to
the vendor or retailer and he shall record such
license number in document relating to the trans-
action in support of the exemption claimed.
* * *
(n) Sales and purchases of [meat, cattle] neat cattle,
sheep, lambs, swine and goats; and all sales and
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Amended 5 -10 -71
purchases of mares and stallions for breeding
purposes; and all farm auction close -out sales.
* * *
(p) Sales of [all forms of tobacco] cigarettes.
(q) Sales of newspapers [and periodical magazines] as
legally defined in Colorado Revised Statutes 109 -1 -2,
(1963) .
(r) All sales and purchases of straw and other bedding
for use in the care of livestock shall be exempt
from taxation under this chapter, and the storage,
use or consumption of straw and other bedding for
use in the care of livestock shall be exempt from
taxation under this chapter.
(s) All sales and purchases of accommodation services
under the provisions of this chapter to any occupant
who is a permanent resident of any hotel, apartment
hotel, lodging house, motor hotel, guest house,
guest ranch, mobile home, auto camp, trailer court
or park, 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
consecutive days during the calendar year or preced-
ing year."
(H) Section 25 -12 is hereby amended to read as follows:
"Sec. 25 -12. Responsibility for payment; return; remittance;
allowance.
Every retailer, also herein called vendor, shall, irres-
pective of the provisions of section 25 -13 be liable and
responsible for the payment of an amount equivalent to two
per cent of all sales made by him of commodities or services
specified in section 25 -10 and shall before the [fifteenth day]
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Amended 5 -10 -71
twentieth day of each month make a return to the Director of
Finance for the preceding calendar month and remit an amount
equivalent to such two per cent of such sales to the Director
of Finance, less [five] three and three - tenths per cent of
such tax to cover the vendor's expense in the collection
and remittance of such tax.
(a) Return; content, form, etc. Such returns of the tax-
payer, 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 the 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 25 -16.
(b) 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 re-
quirements of proof as the Director of Finance may
prescribe.
(c) Every retailer or vendor conducting a business in
which the transaction between the vendor and the con-
sumer consists of the supplying of tangible personal
property and services in connection with the mainte-
nance or servicing of same, shall be required to pay
the taxes levied under this chapter upon the full con-
tract price unless application is made to the Director
for permission to use a percentage basis of reporting
the tangible personal property sold and the services
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4 -22 -71
supplied under such contract. The Director is
hereby authorized to determine the percentage based
upon the ratio of the tangible personal property
included in the consideration as it bears to the
total of the consideration paid under said combina-
tion contract or sale which shall be subject to the
sales tax levied pursuant to the provisions of this
chapter. This section shall not be construed to
include items upon which the sales tax is imposed on
the 'full purchase price as defined in section 25 -3
or otherwise in this chapter.
(d) Every vendor vending individual items of personal
property through coin - operated vending machines shall
be exempt from the provisions of Sections 25 -12 and
•25 -13 of this chapter, but nevertheless such vendor
shall pay a sales or use tax of two per cent on the
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ANNIMORIIMIMI
4 -22 -71
personal property sold in excess of ten cents so
vended in the coin - operated machines unless the
sale shall be otherwise exempt under the provisions
of this chapter.
(e) Excess Collections - Failure to Remit Collections.
If any vendor shall, during any reporting period,
collect as a tax an amount in excess of two per cent
(2 %) of his total taxable sales he shall remit to
the Director of Finance the full net amount of the
tax herein imposed and also such excess. If record
of City and State Sales Tax collections are kept
separately, the vendor will remit excess of City
Tax and State Tax collections and if it is not
possible to determine the excess to be remitted to
each, the vendor shall remit two - fifths (2 /5ths) of
such excess to the City of Pueblo. The rentention
by the vendor of any excess of tax collections over
'two per cent (2O) of the total taxable sales of such
• vendor, or the intentional failure to remit punctually
to the Director of Finance the full amount required to
be remitted by the provisions of this chapter, is
hereby: declared to be a violation of this chapter."
(I) Subsections (c) and (h) of Section 25 -21 are hereby
amended to read as follows and in addition section 25 -21 is amended
by the addition of new subsections (i) through (1), which new sub-
sections shall read as follows:
"Sec. 25 -21. Same - -Items exempt.
This tax or excise on the storage, consumption, and use
of tangible personal property is hereby declared to be supple-
mentary to the city tax on retail sales as provided in this
[article] :chapter and shall not apply:
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* * *
(c) 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, Colorado Revised Statutes
138, Article 2.
* * *
(h) To the storage and use of [meat, cattle] 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.
(i) To the storage, use or consumption of printers ink
and newsprint.
(j) Payment of Other Colorado Municipality Tax - No Pueblo
Use Tax Due. The use, storage, distribution or con-
sumption in the City of tangible personal property
and upon the sale of which a retail sales tax at a
rate equal to or greater than two per cent (2 %) has
been imposed, collected, and remitted to a municipal
corporation organized and existing under the authority
of the Constitution of the State of Colorado is exempt
from the levy of the Puelo Use Tax. If the rate of
retail sales tax paid to such Colorado municipal
corporation is less than two per cent (2 %) the net
.difference between the tax due under this Code and
the tax computed at the rate of such other retail
sales tax shall be computed in accordance with the
formula set forth in Section 25 -12(f) of this Code,
and shall be paid to the Director of Finance. This
exemption will be denied if a tax paid another
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Colorado municipal corporation was not legally
due under the laws of such municipal corporation
or the laws of the Colorado municipal corporation
are not compatible with those of the City of Pueblo
as to specific taxation and exemption as applied
to the transaction in question. This exemption
shall also be denied for subsequent transactions
within the City including but not limited to rentals
and leases.
(k) Payment of Other States Sales Tax - No Pueblo Use
Tax Due. The use, storage, distribution, or consump-
tion in the City of tangible personal property and
upon the sale of which any other state or any other
state in combination with any subdivision thereof
has imposed and collected a retail sales tax at a
rate equal to or greater than five per cent (5 %) is
exempt from the levy of the Pueblo Use Tax. If the
rate of retail sales tax paid to such other state
and /or its political subdivisions thereof is three
per cent (3 %) or less, then the full two per cent
(2 %) City of Pueblo Use Tax is due. If the rate of
retail sales tax paid the other state and /or its
political subdivisions thereof is more than three
per cent ( :3 %) but less than five per cent (5 %) then
the City of Pueblo Use Tax will be .due on net dif-
ference between that tax paid in excess of three per
cent (3 %) and the combined City of Pueblo and State
of Colorado tax rate of five per cent (5%). In no
instance will the City of Pueblo tax credit nor charge
exceed two per cent (2 %) .
This exemption will be denied if a tax paid another
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state and /or its subdivisions thereof was not legally
due under the laws of such other state and its sub-
divisions, or the laws of that state and /or its sub-
divisions are not compatible with those of the City
of Pueblo as to specific taxation and exemption as
applied to' the transaction in question. This exemp-
tion shall also be denied for subsequent transactions
within the City including but not limited to rentals
and lea's'es.
(1) To the storage or use of a motor vehicle if: a) the
owner is or was, at the time of purchase, a nonresident
of Pueblo, and b) he purchased the vehicle outside of
this state for use outside this state and actually so
used it for a substantial and primary purpose for which
it was acquired, and c) he registered, titled and
licensed 's'aid motor vehicle outside of Pueblo."
(J) Subsection (b) of Section 25 -22 is hereby amended to
read as follows:
"Sec. 25 -22. Same -- Payment and collection.
* * *
[(b) 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 and who shall purchase the necessary lumber, fixtures,
materials, or any other supplies needed therefor from any
source outside the corporate limits of the city 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 to which such person shall attach such
.statements and invoices for the lumber, fixtures, materials
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and other supplies purchased the previous month and shall
thereupon pay to the 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 article 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, and supplies for such improvements which
were obtained from sources outside the corporate limits of
the city. 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.]
(b) Contractors - Owners or Lessees of Realty - Method
of Paying. Every person who shall build, construct, recon-
struct, alter, expand modify, or improve any building, dwelling
or other structure, or improvement to real property including
all work performed on Federal, State, County, City, exempt
institution and private construction job sites in this City and
who shall purchase lumber, fixtures, or any other building
materials and supplies used therefor and every owner, or
lessee of realty situate in the City and of improvements and
structures located upon realty, situate in the City, upon
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which any article or articles of tangible personal property
acquired from sources within or without the City, are attached
or affixed and which contractor, owner or lessee has not paid
the tax imposed by this chapter thereon, to a vendor required
or authorized to collect the same, shall pay the Pueblo Sales
and Use Tax in either of two ways:
(l) Payment on Estimated Basis.
By paying the tax on the "Estimated Percentage
Basis" based on a percentage of the total valua-
tion of construction contract and paid, either
through the owner, lessee or the general con -
tractor, or separately, if he is a subcontractor
electing to do so, at the time a building permit
is issued, in the manner prescribed by the
Director of Finance.
(2) Payment on Actual Basis.
Contractors, owners or lessees not electing
first alternative, must license with the City
of Pueblo and monthly make reports and returns
remitting the tax and showing all information as
prescribed on Pueblo Consumer Use Tax Return.
(c) Construction Improvements - Liens, etc.
(1) Lien for Unpaid Taxes on Personal Property
Affixed to Real Property. The full amount of
•unpaid taxes arising from and required to be
reported on personal property affixed to real
property: under this chapter together with
interest and penalties as herein provided shall
''be and constitute a first and prior lien, which
lien shall have precedence over all other liens
of whatsoever kind and nature, except as to
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liens for general taxes created by state law,
and except as to pre- existing 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 of
tax lien on the property of the taxpayer, other
than on the goods, stocks in trade and business
fixtures of such taxpayer.
(2) No Final Inspection or Certificate of Occupancy
Unless Tax Paid. No final inspection shall be
made by the City Building Inspector, or, no
Certificate of Occupancy shall be issued unless
all taxes due as provided in the City of Pueblo
Retail Sales and Use flax Ordinance on all lumber,
fixtures, and any other building materials and
supplies used in or connected with the construc-
tion, reconstruction, alteration, expansion,
modification or improvement of any building,
dwelling or other structure or improvement to
real property_ within the City have been paid or
arrangements therefor made with the Director of
Finance."
(K) Section 25 -25 is hereby amended to read as follows:
"Sec. 25 -25. Same -- Refund 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 condi-
tions precedent:
(a) Application. Applications for refund must be made
within sixty days after the purchase of the goods on
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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 certifi-
cate 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 the director of finance shall prescribe.
(b) 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.
(c) Hearing. An aggrieved applicant may, within ten days
after such decision is mailed to him, petition the
director of finance for a hearing on the claim in
the manner provided hereinafter.
If the Director discovers from the examination of a return
within the time periods provided for the filing of refunds, or
upon claim duly filed by the taxpayer, or upon final judgment
of a court, that the tax, penalty, or interest paid by any tax-
payer is in excess of the amount due or has been illegally or
erroneously collected, then the Director shall rule in favor of
the taxpayer for refund of such illegally collected tax, penalty,
or interest, regardless of whether or not such sum was paid
under protest, together with interest provided herein. The
Director shall issue a check for the payment to the taxpayer,
out of the reserve of the City General Fund provided therefor;
provided, that the Director shall keep in his files a duplicate
of said voucher and also a statement which shall set forth the
reason why such refund shall have been ordered.
Whenever it is established that any taxpayer has for any
period open under the statutes, overpaid a tax imposed by this
- 21 -
Code, and that there is an unpaid balance of tax and interest
accrued according to the records of the Director, owing by
such taxpayer for any other period, so much of the overpayment
of tax plus interest allowable thereon as does not exceed the
amount of such unpaid balance, shall be credited thereto and
any excess of the overpayment shall be refunded.
Interest shall be allowed and paid upon any overpayment in
respect of any sales or use tax at the rate of six per cent (6 %)
per annum. Such interest shall be allowed and paid from the
date of filing of a claim for refund except that if any over-
payment of sales or use tax is refunded within ninety (90) days
after the last date prescribed for filing the return of such
tax, determined without regard to any extension of time for
filing the return, no interest shall be allowed."
(L) Section 25 -30 is amended by adding thereto a new
paragraph, which paragraph shall read as follows:
"Sec. 25 -30. Information confidential -- Limitation; destruction
of records.
* * *
Notwithstanding the provisions of this section, the
Director of Finance in his discretion, may furnish to the tax -
ing officials of any other state and its political subdivisions,
to the State of Colorado and its political subdivisions, and to
the United States any information contained in tax returns and
related schedules and documents filed pursuant to this chapter,
investigation audit or ati
on made with respect
in
or in a report of an and g
thereto provided that said jurisdiction enters into an agree-
ment with the Director to grant similar privileges to the City
and provided further, that such information is to be used for
tax purposes only."
(M) Section 25 -34 is hereby amended to read as follows:
- 22 -
"Sec. 25 -34. Subpoenas; witness fees.
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 sub-
poenaed 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.
If any taxpayer shall refuse voluntarily to furnish any
books and records, as required by this chapter, when requested
by the Director or his employee, agent, or representative, the
Director, by subpoena issued under his hand, may require the
attendance of the taxpayer and the production by him of any of
the required information in his possession, and may administer
an oath to him and take his testimony. If the taxpayer fails
or refuses to respond to said subpoena and give testimony, the
Director may apply to any judge of the Municipal Court of the
City of Pueblo for an attachment against such taxpayer as for
contempt, and said judge may cause arrest of such person, and
upon hearing said judge shall have for the purpose of enforcing
obedience to the requirements of said subpoena, power to make
such order as in his discretion he deems consistent with the
- 23 -
law for punishment of contempts.
If the Director is unable to secure from the taxpayer in-
formation relating to the correctness of the taxpayer's return
or the amount of the income of the taxpayer, the Director may
apply to any judge of the Municipal Court of the City of Pueblo
for the issuance of subpoenas to such other persons as the
Director believes may have knowledge in the premises, and upon
making a showing satisfactory to the court, that the taxpayer
cannot be found, or evades service of subpoena, or fails or
refuses to produce his records or give testimony, or is unable
to furnish such records or testimony, the judge shall have
power, after service of summons upon the persons named in the
petition of the Director, and after hearing, to cause the
issuance of subpoenas under the seal of the Court to the persons
sought to be so summoned requiring them or any of them to appear
before said Director and give testimony relating to said tax-
payer's return or income; and in case any of said persons so
served with subpoena shall fail to respond thereto, the judge
may proceed against such persons as in cases of contempt."
(N) Section 25 -38 is amended to read as follows:
"Sec. 25 -38. Deficiencies -- Disregard of rules; penal sum;
interest.
If any part of the deficiency is due to negligence or
intentional disregard of authorized rules and regulations with
knowledge thereof, but without intent to defraud, there shall
be added ten per cent of the total amount of the deficiency;
and in such case interest shall be collected at the rate of
one per cent 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 and addition shall become due and
payable within ten days after written notice and demand by
the director of finance.
- 24
If any person, firm or corporation liable for the pay-
ment of any tax covered by this chapter has repeatedly failed,
neglected, or refused to pay the same within the time specified
for such payment, and the Director of Finance has been required
to exercise his enforcement proceedings three or more times by
the issuance of a distraint warrant or court summons to enforce
collection of any taxes due from such taxpayer, the Director
is hereby authorized to assess and collect the amount of such
taxes due, together with all interest and penalties thereon
provided by law, and also an additional amount equal to fifteen
per cent (15 %) of the delinquent taxes, interest, and penalties
due, or the sum of twenty -five dollars ($25.00) , whichever
amount is greater, said additional amount being imposed to
compensate the department for administrative and collection
costs incurred in collecting such delin.uent taxes.
If any person, firm or corporation liable for the payment
of a tax imposed by this chapter has repeatedly failed, neg-
lected or refused to pay the same within the time specified for
such payment, and the Department of Finance has been required
to exercise its enforcement proceedings through the issuance
and service of a 'summons or distraint warrant to enforce collec-
tion of any such taxes due, the Director of Finance is hereby
authorized to assess and collect the amount of such taxes due
together with all the interest and penalties thereon provided
by law and also an additional amount in the amount of fifteen
dollars ($15.00) or actual cost where ascertainable for each
such service of a distraint warrant or summons' required and
issued under this section to compensate the Department of
Finance for administrative and collection costs incurred in
collecting such delinquent taxes 'due."
(0) Section 25 -45 is amended to read as follows:
25 .,.
"Sec. 25 -45. Lien -- Unpaid tax constitutes.
The tax imposed by this [article] chapter shall be a first
and prior lien upon the 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 except as to pre- existing 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 on property of the taxpayer, other than the goods,
stock in trade and business fixtures of such taxpayer. Upon
default of payment thereof the Director of Finance after demand
upon the person owing such tax, may bring an action in his
name as Director of Finance in attachment, and seize any
property to secure the payment of said tax, interest and
penalties.
The remedies provided in this section shall be in addi-
tion to all other remedies."
(P) Section 25 -46 is amended by adding hereto the follow-
ing:
"Sec. 25 -46. Same -- Notice; levy.
* * *
If the Director finds that collection of the tax will be
jeopardized by delay, in his discretion he may declare the
taxable period immediately terminated, determine the tax, and
issue notice and demand for payment thereof; and, having done
so, the tax shall be due and payable forthwith, and the Director
may proceed immediately to collect such tax as provided in this
section regardless of provision for hearing and appeal contained
in this chapter.
- 26 -
Collection under this section may be stayed if the taxpayer
gives such security for payment as shall be satisfactory to
the Director.
The Director of Finance or his duly authorized agent may,
at the discretion of the Director, summons to Pueblo Municipal
Court any person who may be in violation of the chapter as set
forth in Section 25 -64 and elsewhere herein."
(Q) Section 25 -47 is amended to read as follows:
"Sec. 25 -47. Same -- Satisfaction; sale; 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
such 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.
(a) Distraint Seizure Advertisement of Sale —Owner
Recovers Seized Property by Purchase.
The agent charged with the collection shall make or cause
to be made an account of the goods or effects distrained, a
copy of which, signed by the agent making such distraint, shall
be left with the owner or possessor, or at his usual place of
abode with some member of his family over the age of eighteen
(18) years, or at his usual place of business with his steno-
grapher, bookkeeper, or chief clerk, or if the taxpayer is a
corporation, shall be left with any officer, manager, general
agent, or agent for process, with a note of the sum demanded
and the time and place of sale; and shall forthwith cause to
be published a notice of the time and place of sale, together
27
with a description of the property to be sold, in some news-
paper within the county wherein distraint is made, or, in lieu
thereof and in the discretion of the Director, the agent shall
cause such notice to be publicly posted at the City Hall of the
city wherein such distraint is made, and copies thereof to be
posted in at least two other public places within said city_.
The time fixed for the sale shall not be less than ten (10)
days nor more than sixty (60) days from the date of such noti-
fication to the owner or possessor of the property and the
publication or posting of such notices. Said sale may be
adjourned from time to time by said agent if he deems it
advisable, but not for a time to exceed in all ninety (90)
days from the date first fixed for the sale. When any per-
sonal property is advertised for sale under distraint as afore-
said, the agent making the seizure shall proceed to sell such
property at public auction, offering the same at not less than
a fair minimum price, including the expenses of making the
seizure and of advertising the sale, and if the amount bid for
the property at the sale is not equal to the fair minimum price
so fixed, the agent conducting the sale may declare the same to
be purchased by him for the City. The property so purchased
may be sold by the agent under such regulations as may be pre-
scribed by the Director. In any case of distraint for the pay-
ment of taxes, the goods, chattels, or effects so distrained
shall be restored to the owner or possessor, if prior to the
sale the amount due is paid, together with the fees and other
charges or may be redeemed by any person holding a chattel
mortgage or other evidence of right of possession.
OD) Certificate of Sale - Evidence of Pux'chase.
In all cases of sale, the agent making the sale shall issue
a certificate of sale to each purchaser, and such certificate
- 28 -
shall be prima facie evidence of the right of the agent to
make such sale, and the conclusive evidence of the regularity
of his proceedings in making the sale; and shall transfer to
the purchaser all right, title and interest of such delinquent
in and to the property sold; and where such property consists of
certificates of stock in the possession of the agent the certi-
ficate of sale shall be notice, when received, to any corpora-
tion, company or association of said transfer and said certi-
ficate of such sale shall be authority for such corporation,
company or association to record the transfer on its books and
records; and where the subject of sale is securities or other
evidences of debt, in the possession of the agent the certifi-
cate of sale shall be good and valid evidence of title in the
person holding the same, as against any other person. Any
surplus remaining above the taxes, penalties, interest, costs,
and expenses of making the seizure and of advertising the sale,
shall be returned to the owner, or such other person having a
legal right thereto, and on demand the Director shall render
an account in writing of the sale.
(c) Filing and Release of Lien.
Any employee, agent, or representative of the Director to
Whom 'a warrant has been issued may file a notice of lien in
such forms as the Director may prescribe with the person in
possession of any personal property or rights to property be-
longing to the taxpayer, and if not previously recorded, the
filing of such notice of lien shall operate from the date of
such filing. The Director may release said lien as to any part
or all of the property or rights to property covered by any
such lien upon such terms as he may deem proper."
(R) Section 25-49 is amended to read as follows:
"Sec. 25 -49. Suit at law.
- 29 -
The director of finance may treat any such taxes, penalties,
or interest due and unpaid, as a debt due the city from the
vendor retailer.
In case of failure to pay the taxes, or any portion there-
of, or any penalty or interest thereon, when due, the director
of finance may recover at law the amount of such taxes, penal-
ties, 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.
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.
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 re-
quired 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.
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.
(a) In any case where there has been a refusal or neglect
to pay any tax due the City of Pueblo and a statement or notice
shall have been filed which, under law, creates a lien upon any
- 30 -
real property for such tax, the Director of Finance may cause a
civil action to be filed in any court of competent jurisdiction
of the county in which is situated any real property which is
subject to said lien, to enforce the lien of the City of Pueblo
for such tax upon the real property situate in that county or
in any other county in the state which may be subject to such
lien or to subject any real property or any right, title or
interest in real property to the payment of such tax.
(b) Any person having a lien upon or any interest in any
real estate referred to in this section under or by virtue of
any instrument which shall have been duly filed of record in
the office of the County Clerk and Recorder of the county in
which such real estate is located prior to the filing of the
statement or notice which created a lien upon such real property
for such taxes, or any person purchasing such real estate at
a sale to satisfy such prior lien or interest may make a written
request to the Director of Finance to file a civil action as
provided in this section. If no such civil action shall have
been commenced as provided within two (2) months after receipt
by the Director of Finance of such written request, such person
or purchaser may file a civil action in the District Court of
any county where any such real property is situate asking for
a final determination of all claims of the City of Pueblo to
and all liens of the City �f Pueblo upon the real estate in
question. Service of the process in such action upon the City
of Pueblo shall be made upon the Director of Finance or upon
one of his deputies. Permission is hereby given for the City
of Pueblo to be so 'sued.' The court shall in such civil action
adjudicate the matters involved therein in the same manner as
in the case of civil actions filed by the City under this
section.
31 -
(c) If any property, real or personal, under the law,
shall be subject to a lien for the payment of any tax due the
City of Pueblo, the Director of Finance may issue a certificate
of discharge of any part of the property subject to the lien if
he finds that the fair market value of that part of such
property remaining subject to the lien is at least double the
amount of the liability remaining unsatisfied in respect to
such tax and the amount of all prior liens upon such property.
(d) If any property, real or personal, under the law, shall
be subject to a Tien for the payment of any tax due the City of
Pueblo, the Director of Finance may issue a certificate of dis-
charge of any part of the property subject to the lien if there
be paid over to the Director of Finance in part satisfaction of
the liability in respect to such tax an amount determined by
the Director of Finance, which shall not be less than the
value, as determined by him of the interest of the City of
Pueblo in the part to be so discharged. In determining such
values, the Director of Finance shall give consideration to
the fair market value of the part to be so discharged and to
such lien thereon as have priority to the lien of the City of
Pueblo.
A certificate of release or of partial discharge issued
under this section shall be held conclusive that the lien of
the City of Pueblo upon the property released therein is extin-
guished, but shall not extinguish, nor release, any portion of
the lien nor property not specified in the release."
(S) Section 25 -51 is hereby amended to read as follows:
"Sec. 25 -51. Complaints as to assessment -- Petition; hearing,
notice.
1 If any person, having made a return and paid the tax pro-
vided for in this article, feels aggrieved by the assessment
-- 32 -
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 correc-
tion 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 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.
(a) Any taxpayer may request a hearing on any proposed
tax by reason of Notice of Final Determination -- Assessment and
Demand for Payment or by reason of denial of his claim for refund
by application to the Director of Finance within ten (10)
days of the mailing of a notice of assessment or denial of
refund. The request for hearing shall set forth the taxpayer's
reasons for, and the amount of, the requested changes in the
assessment or denial of refund.
(b) The Director of Finance shall notify the taxpayer
in writing of the time and place for such hearing thirty (30)
days prior thereto.
(c) After a hearing under this section, the taxpayer
shall not be entitled to a second hearing before the Director
on the matters set forth in his previous request for hearing.
(d) The hearing shall be held before the Director or his
deputy. The Director or deputy are hereby authorized to ad-
minister oaths and take testimony. At the hearing, the tax-
pa 'er a assert any facts, make any arguments and file an
briefs and affidavits he believes pertinent to his cause.
- 33
(e) In lieu of the request for hearing within the time
provided by this section the taxpayer may, at his election,
request an extension of time for hearing. The written request
for such extension to be filed within said ten (10) days from
Notice of Final Determination -- Assessment and Demand for Pay-
ment or Final Denial of Refund, or file a written brief and
such other written materials or documents as he shall deem
appropriate and request that the Director of Finance reconsider
the deficiency without a hearing. The Director shall proceed
to reconsider the deficiency in the same manner as if the
written material submitted had been presented at a hearing
pursuant to this section. The submission of written material
shall be considered for all purposes the same as a request for
and submission of the material at a hearing.
(f) Based on the evidence presented at any hearing or
filed in support of the taxpayer's contentions at any hear -
ing, the Director may modify or abate in full the tax, penalty
and interest questioned at the hearing or may approve a refund.
CO After the expiration of ten (10) days from the mail-
ing of the Notice of Final Determination -- Assessment and Demand
for Payment or Denial of Refund, if the tax has not been paid
or if no request for hearing, or extension for hearing has
been requested, or no written brief has been filed by the tax -
payer, then the Notice of Final Determination Assessment and
Demand for Payment previously mailed, shall constitute a final
assessment of the amount of the tax specified, together with
interest, additions to tax and penalties or shall constitute a
final denial of refund, as the case may be except only for such
amounts as to which the taxpayer has filed a protest with the
Director."
- 34 -
(T) Section 25 -52 is amended to read as follows:
"Sec. 25 -52. Same -- Director's decision; notice.
Every decision of the director of finance shall be in
writing, and notice thereof shall be mailed to the vendor with-
in 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
within said time for review thereof as herein provided.
Upon rejection, in whole or in part, of the claim for refund
or upon the finding by the Director that, on hearing the evidence,
an assessment in whole or in part has been made against taxpayer
validly, the Director shall send a Hearing Determination Notice
to the taxpayer setting forth the amount of claim for refund
denied or the amount of deficiency assessment of taxes found
due, stating therein the grounds for allowance or rejection in
whole or in part.
Unless an appeal be taken as provided in this article
the tax, together with interest thereon and penalties, if any,
shall be paid within thirty (30) days after mailing of the
Hearing Determination Notice to taxpayer.
This section shall not prevent a taxpayer from suing for
a refund or a taxpayer appealing the Director's determination
as provided for herein."
(U) Section 25 -53 is amended to read as follows:
"Sec. 25 -53. Same -- Review of decision.
Should the petitioner be aggrieved at the final decision
of the Director of Finance, he may proceed to have same reviewed
by the courts in the manner provided for review of other deci-
sions of the Director of Finance hereunder, such review to be
in the District Court of the Tenth Judicial District of the
State of Colorado. /
- 35 -
The taxpayer may appeal the Hearing Determination Notice
of the Director issued pursuant to Section 25 -52 within thirty
(30) days of the mailing of such determination.
Duties of the Director of Finance herein provided may be
performed by any qualified deputy."
(V) Section 25 -54 is amended to read as follows:
"Sec. 25 -54. Same -- Review bond; filing.
Before making application to the District Court under
Rule 106 (a) (4) 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 deci-
sion 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.
Within fifteen (15) days after filing of the notice of
appeal, the taxpayer shall file with the District Court a bond
in twice the amount of the taxes, interest, and other charges
stated in the final determination by the Director which are
contested on appeal; provided, that the taxpayer may at his
option deposit the disputed amount with the Director of Finance
in lieu of posting bond. If such amount is so deposited, no
further interest shall accrue on the deficiency contested
during the pendency of the action. At the conclusion of the
action, after appeal to the Supreme Court of Colorado or the
time for such appeal has expired, the :funds deposited shall be,
at the direction of the Court, either retained by the Director
and applied' against the deficiency or returned in whole or in
part to the taxpayer with interest as prescribed herein, at
one - per cent (1 /2 %) per month. No claim for refund of
- 36 -
amounts so deposited with the Director of Finance need be made
by the taxpayer in order for such amounts to be repaid in accord-
ance with the direction of the Court."
(W) Section 25 -55 is amended to read as follows:
"Sec. 25 -55. Same -- Review by District Court; petition; writ.
(a) The District Court of the Tenth Judicial District of
the State of Colorado shall have original jurisdiction in pro-
ceedings to review all questions of law and fact determined by
the Director of Finance in administering the provisions of
this chapter [article by writ under Rule 106 (a) (4) of the
Colorado Rules of Civil Procedure].
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.
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 such Court.
The procedure thereunder shall be in conformity with the
Rules of Civil Procedure of the State of Colorado.
(b) Appeal to the District Court shall be taken by filing
with the Clerk of the District Court a copy of the Hearing
Determination Notice received by the taxpayer, together with
a written notice stating that the taxpayer appeals to the
District Court and alleging the pertinent facts upon which
such appeal is grounded.
(c) The District Court shall try the case de novo,
reviewing all questions of law and fact, such review being
- 37 -
conducted in accordance with the Colorado Rules of Civil Pro-
cedure. The taxpayer shall present his case in the same
manner as the plaintiff in other civil actions, and the normal
rules of evidence shall apply. The taxpayer shall have the
burden of proof with respect to the issues raised in the notice
of appeal except to the issue of whether the taxpayer has been
guilty of fraud with intent to evade tax. The burden of proof
shall be upon the Director of Finance or his delegate to show
that a petitioner is liable as a transferee of property of a
taxpayer but not to show that the taxpayer was liable for the
tax. The District Court may affirm, modify, or reverse the
determination of the Director, and may enter judgment on its
findings.
(d) Upon filing of the Notice of Appeal, the Director of
Finance shall be deemed to be a party to such appeal; and the
Clerk of the District Court shall: docket the cause as a civil
action. The appellant shall cause summons to be issued, and
cause the same to be served upon the Director of Finance, in
accordance with the manner now provided by law in civil cases.
Notice of the date of trial shall be mailed to the taxpayer and
to the Director of Finance at least twenty (20) days prior
thereto.
(e)` The 'f decision made in such appeal shall be
entered as a judgment as in other civil cases against the tax -
payer or against the Director of Finance as the case may be."
SECTION 2.
The Code of Ordinances of Pueblo, Colorado is hereby
amended by the addition of two new sections to be numbered Section
25-59.1 and 25 -59.2, which said sections shall read as follows:
"Section 25- 59.1. Closing Agreements.
(a) Satisfaction of Liability. For the purpose of
- 38 -
facilitating the settlement and distribution of estates, trusts,
receiverships, other fiduciary relationships, and corporations
in the process of dissolution or which have been dissolved,
the Director may agree with the fiduciary or surviving Direc-
tors upon the amount of taxes due from the decedent, or from
the decedent's estate, the trust, receivership, or other
fiduciary relationship, or corporation, for any of his or its
taxable periods, under the provisions of the taxes covered by
this Code and except upon a showing of fraud, malfeasance or
misrepresentation of a material fact, payment in accordance
with such agreement shall be full satisfaction of the taxes
for the taxable' periods to which the agreement related.
(b) Personal Liability. Excerpt as provided in Subsection
(d) of this section, any personal representative of a decedent,
or of the estate of a decedent, or any trustee, receiver, or
other person acting in a fiduciary capacity, or any Director
of a corporation in the process of dissolution or which has
been dissolved, who distributes the estate or fund in his
control without having first paid any taxes covered by this
Code: due from such decedent, decedent's estate, trust estate,
receivership, or corporation, covered by this Code and which
may be assessed within the time limited by this Code, shall be
personally liable to the extent of the property so distributed,
for any unpaid taxes of the decedent, decedent's estate, trust
estate, ' receivership, or corporation, covered by this Code and
which may be assessed within the time limited by this Code.
(c) Notif'ication of Liability. The distributee of a
decedent's estate, or a trust estate or fund or the stockholder
of any dissolved c'orporation who receives any of the property
of such decedent's estate, 'trust estate, fund, or corporation,
- 39
shall be liable to the extent of the decedent, trust estate,
fund, or corporation, covered by this Code and which may be
assessed within the time limited by this Code. Notice to such
distributee or stockholder shall be given in the same manner
and within the time limit which would have been applicable had
there been no distribution.
(d) Limitation of Liability.
(1) In case tax covered by this Code is due from a dece-
dent, or of his estate, or by a corporation, in
order for personal liability under Subsection (b)
of this section to remain in effect, determination
of the tax due shall be made and notice and demand
therefor shall issue within eighteen (18) months
after written request for such determination, filed
after the filing of the decedent's final return or
filed after the filing of the return of the decedent's
estate with respect to which such request is applicable,
by any personal representative of such decedent, or
by the corporation, filed after the filing of its
return; but a request under this provision shall
not extend the period of limitation otherwise appli-
cable.
(2) This Subsection (d) will not apply in the case of a
corporation unless:
(i) Such request notifies the Director that the
corporation contemplates dissolution at or
before the expiration of such eighteen • (18)
Month ' period.
(ii) The dissolution is begun in good faith before
the expiration of such eighteen (18) month
period; and,
40 --
(iii) The dissolution is completed.
(3) Upon the expiration of said eighteen (18) month
period, without determination being made and notice
and demand being issued, the personal representative
or representatives of the decedent, and the directors
of the corporation no longer will be liable under
the provisions of Subsection (b). of this section.
Sec. 25 -59.2. Compromise.
(a) Compromise Limitation. The Director or his delegate
may compromise to the extent of Five Hundred Dollars ($500.00)
any civil or 'criminal case arising under the Sales and Use Tax
Code, prior to reference to the City Attorney's Office for pro -
secution or defense; and the City Attorney or his delegate shall,
upon the written direction of the Director, compromise any such
case after reference to the City Attorney's Office for prosecu-
tion or defense.
(b) Compromise Record. Whenever a compromise, in value
or valuation, of Five Hundred Dollars ($500.00) or less is made
by the Director or his delegate in any case, there shall be
placed on file in the office of the Director or his delegate
the opinion of the Director with his reasons therefor, which
may include financial inability of the taxpayer to pay a
greater amount with a statement of:
(1) The amount of tax assessed;
(2) The amount of interest, additional amount, addition
to the tax or assessable penalty imposed by law on
the person against whom the tax is assessed; and,
(3) The amount paid in accordance with the terms of the
compromise."
SECTION 3.
Nothing in this amending ordinance shall be construed to
41 -
limit any right accrued or to revive any liability barred by any
statute at the date this Ordinance becomes effective.
SECTION 4.
This Ordinance shall become effective July 1, 1971.
INTRODUCED April 26 , 1971
BY DONALD E. ABRAM
Councilman
APPROVED: /((/
President of the (, • ncil
ATTEST:
Cy •e/
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