HomeMy WebLinkAbout08377ORDINANCE NO. 8377
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV
OF THE PUEBLO MUNICIPAL CODE RELATING TO
SALES AND USE TAX AND EXEMPTING THEREFROM
NONPROFIT SCHOOLS.
WHEREAS, the State of Colorado and other Colorado home rule municipalities
have enacted specific exemptions to the payment of sales and use tax by nonprofit
schools; and
WHEREAS, the creation of a specific but limited tax exemption with respect to
the payment of sales and use taxes for nonprofit schools would be in the best interest
of the City and its citizens; and
WHEREAS, the granting of the sales and use tax exemption set forth in this
Ordinance makes uniform the provisions of said Chapter 4 with the laws of the State
of Colorado in accordance with the authority granted to City Council pursuant to
Section 4 of Ordinance No. 3160, passed and approved by a vote of the people on
November 6, 1967.
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 14-4-21(29) of Chapter 4 of Title XIV of the Pueblo Municipal Code,
as amended, is amended to read as follows:
Sec. 14-4-21. Definitions.
When not clearly otherwise indicated by the context, the following words and
phrases, as used in this Chapter, shall have the following meanings:
. . .
(29) Retailer means any person selling, leasing or renting tangible personal
property or services at retail. Retailer shall include any:
a. Auctioneer;
b. Salesperson, representative, peddler or canvasser, who makes
sales as a direct or indirect agent of or obtains such property or services
sold from a dealer, distributor, supervisor or employer;
, school
c. Charitable organization, or government entity which
makes sales of tangible personal property to the public, notwithstanding
the fact that the merchandise sold may have been acquired by gift or
, school
donation or that the proceeds are to be used for charitable, or
governmental purposes.
. . .
SECTION 2.
Section 14-4-21 of Chapter 4 of Title XIV of the Pueblo Municipal Code, as
amended, is amended by the addition of a new subsection (31.5) to read as follows:
Sec. 14-4-21. Definitions.
When not clearly otherwise indicated by the context, the following words and
phrases, as used in this Chapter, shall have the following meanings:
. . .
(31.5) means an educational institution not held or conducted for
School
private gain or profit, having a curriculum comparable to grade, grammar, junior
high, high school, or college, or any combination thereof, requiring daily
attendance, having an enrollment of at least forty students, and charging a
tuition fee.
. . .
SECTION 3.
Section 14-4-76 of Chapter 4 of Title XIV of the Pueblo Municipal Code, as
amended, is amended by the addition of a new subsection (20) to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from taxation
under this Chapter:
. . .
(20) Sales to schools in the conduct of their educational functions and
activities, which schools, at the time of sale or purchase, present satisfactory
evidence of being issued a current tax exempt 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 4.
Section 14-4-77 of Chapter 4 of Title XIV of the Pueblo Municipal Code, as
amended, is amended by the addition of a new subsection (16) to read as follows:
Sec. 14-4-77. Items exempt from use tax.
This tax or excise of the storage, consumption and use of tangible personal
property is hereby declared to be supplementary to the City tax on retail sales as
provided in this Chapter and shall not apply:
. . .
(16) To the storage, use, or consumption of tangible personal property
by schools in the conduct of their educational functions and activities.
SECTION 5.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: July 25, 2011
BY: Leroy Garcia
COUNCILPERSON
PASSED AND APPROVED: August 8, 2011
Background Paper for Proposed
ORDINANCE
DATE: AGENDA ITEM # R-4
July 25, 2011
DEPARTMENT:
Finance Department
Sam Azad, Director of Finance
TITLE
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO
MUNICIPAL CODE RELATING TO SALES AND USE TAX AND EXEMPTING
THEREFROM NONPROFIT SCHOOLS.
ISSUE
Should an exemption from sales and use tax for nonprofit schools be enacted?
RECOMMENDATION
City staff recommends that the proposed Ordinance creating an exemption for nonprofit
schools be passed and approved.
BACKGROUND
The State of Colorado and other Colorado home rule municipalities have enacted
specific exemptions to the payment of sales and use tax by nonprofit schools. This
exemption would extend to schools which, although nonprofit, may not meet the
definitional requirements to qualify for exemption as a charitable organization. The
scope of the exemption would be limited to educational institutions which:
(a) are not held or conducted for private gain or profit;
(b) have a curriculum comparable to grade, grammar, junior high, high school,
or college, or any combination thereof;
(c) have daily attendance
(d) have an enrollment of at least forty students; and
(e) charge a tuition fee as opposed to an hourly fee or other form of time
billing arrangement for services.
The proposed exemption would not extend to the purchase or use of tangible personal
property by a qualifying school for purposes other than the school's educational
functions and activities and would not extend to sales of tangible personal property
made by the qualifying school to the public.
The proposed Ordinance would require a qualifying school to obtain a City exempt
license and present same when making purchases. This requirement is also imposed
upon exempt charitable organizations and is deemed necessary by the Finance Director
to assure compliance with the sales and use tax code of the City (the “Code”).
The granting of this exemption is permitted by and consistent with Section 4 of
Ordinance No. 3160 which empowers City Council to amend any portion of the Code in
order to make uniform the provisions of the Code with the laws of the State of Colorado.
FINANCIAL IMPACT
None