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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.