HomeMy WebLinkAbout08362ORDINANCE NO. 8362
AN ORDINANCE AMENDING SECTION 14-4-76 OF
CHAPTER 4, TITLE XIV OF THE PUEBLO MUNICIPAL
CODE RELATING TO EXEMPT TRANSACTIONS AND
ELIMINATING CERTAIN EVIDENTIARY REQUIREMENTS
WITH RESPECT TO SALES TO GOVERNMENT ENTITIES
WHEREAS, the current provisions of the Sales and Use Tax Code (the "Code")
requires an exempt government entity, whether located within the City or not, to obtain
and present a city sales and use tax license in order for a retailer to forego collection
of sales tax at the time of sale;
WHEREAS, this requirement is not required by the State of Colorado and
generally not required by other home rule municipalities;
WHEREAS, the Director of Finance has determined that this requirement is
unnecessary and unduly burdensome. The Director of Finance has prescribed other
reasonable requirements of proof to assure compliance with the Code; and
WHEREAS, Ordinance No. 3160, passed and approved by a vote of the people
on November 6, 1967, empowers the City Council to enact by ordinance procedures
relative to the payment, collection, settlement of disputes over payment, refund and
enforcement of the Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new
matter being added)
SECTION 1.
Subsection 14-4-76(7) of Chapter 4 of Title XIV of the Pueblo Municipal Code,
as amended, is hereby amended to read as follows:
Sec. 14-4-76. Items exempt.
The following classes of tangible personal property are exempt from
taxation under this Chapter:
(7) Sales to the United States government; to the State, its
departments or institutions and the political subdivisions thereof, in their
[
governmental capacities only, and provided that where delivery is to be made
within the City at the time of sale or purchase, present satisfactory evidence of
being issued a current sales tax license for the City to the vendor or retailer, and
he or she shall record such license number in documents relating to the
]
transaction in support of the exemption claimed.
SECTION 2.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: June 13, 2011
BY: Judy Weaver
COUNCILPERSON
PASSED AND APPROVED: June 27, 2011
Background Paper for Proposed
ORDINANCE
DATE: June 13, 2011AGENDA ITEM # R-2
DEPARTMENT:
Finance Department
Sam Azad, Director of Finance
TITLE
AN ORDINANCE AMENDING SECTION 14-4-76 OF CHAPTER 4, TITLE XIV OF THE
PUEBLO MUNICIPAL CODE RELATING TO EXEMPT TRANSACTIONS AND
ELIMINATING CERTAIN EVIDENTIARY REQUIREMENTS WITH RESPECT TO
SALES TO GOVERNMENT ENTITIES
ISSUE
Should the City Council pass and approve the proposed Ordinance amending Section
14-4-76 of the Pueblo Municipal Code?
RECOMMENDATION
City staff recommends approval.
BACKGROUND
In order for a retailer to forego collection of City sales and use tax with respect to a sale
to an exempt government entity, the exempt entity, whether located within the City or
not, must obtain a city sales and use tax license, submit a copy of such license at the
time of purchase, and the retailer must keep a record of such license. This is generally
not required in other Colorado home rule municipalities and is not required by the State
of Colorado. The Director of Finance has deemed such a requirement as unduly
burdensome and unnecessary given other evidentiary requirements prescribed by the
Director of Finance.
FINANCIAL IMPACT
None.