HomeMy WebLinkAbout08475ORDINANCE NO. 8475
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV
OF THE PUEBLO MUNICIPAL CODE RELATING TO
SALES AND USE TAX AND EXEMPTING FROM SALES
TAX THE SALE OF CONSTRUCTION AND BUILDING
MATERIALS USED IN THE CONSTRUCTION AND
MAINTENANCE OF RAILROAD TRACKS
WHEREAS, the State of Colorado has enacted a sales tax exemption with
respect to the sale of construction and building materials used in the construction and
maintenance of railroad tracks; and
WHEREAS, the creation of a specific but limited tax exemption with respect to
the sale of construction and building materials used in the construction and
maintenance of railroad tracks 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.
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 (21) to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from
taxation under this Chapter:
. . .
(21) Sales of construction and building materials to a common
carrier by rail operating in interstate or foreign commerce for use by the
common carrier in construction and maintenance of its railroad tracks;
however, any actual use of such construction and building materials
shall, at the time of the actual use, be subject to the use tax imposed
pursuant this Chapter.
SECTION 2.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: April 9, 2012
BY: Leroy Garcia
COUNCIL PERSON
PASSED AND APPROVED: April 23, 2012
Background Paper for Proposed
ORDINANCE
DATE: April 9, 2012 AGENDA ITEM # R-3
DEPARTMENT: Department of Finance
Sam Azad, Director
Law Department
Thomas J. Florczak, City Attorney
TITLE
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO
MUNICIPAL CODE RELATING TO SALES AND USE TAX AND EXEMPTING FROM
SALES TAX THE SALE OF CONSTRUCTION AND BUILDING MATERIALS USED IN
THE CONSTRUCTION AND MAINTENANCE OF RAILROAD TRACKS
ISSUE
Should a sales tax exemption be enacted with respect to the sale of construction and
building materials used in the construction and maintenance of railroad tracks?
RECOMMENDATION
Approve the Ordinance.
BACKGROUND
The State of Colorado provides for a sales tax exemption with respect to the sale of
construction and building materials used in the construction and maintenance of railroad
tracks. The proposed Ordinance adopts the state exemption and furthers the same
policy considerations underlying the state exemption. 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
Any tax exemption has the potential to reduce the amount of general funds revenue.
The exact amount associated with this exemption is indeterminable.