HomeMy WebLinkAbout08802ORDINANCE NO. 8802
AN ORDINANCE AMENDING SECTION 90 OF CHAPTER 4 OF
TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO
REFUNDS OF TAX MONEY AND ENLARGING CERTAIN
LIMITATION PERIODS FOR REFUND CLAIMS
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate
matter being deleted, underscoring indicates new matter being added)
SECTION 1.
Section 14-4-90 of the Pueblo Municipal Code is hereby amended to read as follows:
Sec. 14-4-90. Dispute over liability; collection and refund.
(a) Should a dispute arise between the purchaser and seller as to whether
or not any sale, service or commodity is exempt from taxation under this Chapter,
nevertheless the seller shall collect and the purchaser shall pay the tax, and the seller
shall thereupon issue to the purchaser a receipt or certificate, on forms prescribed by
the Director, showing the name of the seller and the purchaser, the items purchased,
the date, price and 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 is
then the duty of the Director to determine the question of exemption. The purchaser
may request a hearing pursuant to Section 14-4-28, and the final determination of the
Director may be appealed to the District Court pursuant to Section 14-4-33.
(b) A refund shall be made, or a credit allowed, for the tax so paid under
dispute by any purchaser who has an exemption as provided in this Chapter. Such
refund shall be made by the Director after compliance with the following conditions
precedent: Applications for refund must be made within sixty (60) days after the
purchase of the goods whereon an exemption is claimed, and must be supported by
the affidavit of the purchaser accompanied by the original paid invoice or sales receipt
and certificate issued by the seller, and be made upon forms as shall be prescribed
and furnished by the Director, which forms shall contain such information as the
Director prescribes.
(c) Upon receipt of an application, the Director shall examine the same with
due speed and shall give notice to the applicant by order in writing of his or her
decision thereon. Aggrieved applicants, within thirty (30) days after such decision is
mailed to them, may petition the Director for a hearing on the claim in the manner
provided in Section 14-4-28 and may appeal to the District Court in the manner
provided in Section 14-4-33.
(d) A refund shall be made or a credit allowed by the Director to any person
entitled to an exemption where such person establishes: That a tax was paid by
another on or before July 1, 1991, on a purchase made on behalf of such person; or
that a tax was paid by an independent contractor on or before July 1, 1991, on tangible
personal property incorporated into reality for the sole use, benefit and ownership of
any person entitled to an exemption; that a refund has not been granted to the person
making the purchase; and that the person entitled to the exemption paid or reimbursed
the purchaser for such tax. No such refund shall be made or credit allowed in an
amount greater than the tax paid less the expense allowance on such purchase
retained by the vendor pursuant to Section 14-4-86.
(e) Such application for refund under Subsection (d) above shall be made
within three (3) years after the date of purchase and shall be made on forms
prescribed and furnished by the Director, which form shall contain, in addition to the
foregoing information, such pertinent data as the Director 14-53 prescribes. Upon
receipt of such application and proof of the matters contained therein, the Director
shall give notice to the applicant by order in writing of his or her decision thereon.
Aggrieved applicants, within thirty (30) days after such decision is mailed to them, may
petition the Director for a hearing on the claim in the manner provided in Section 14-4-
28 and may appeal to the District Court in the manner provided in Section 14-4-33.
(f) Claims for tax moneys paid in error or by mistake may be processed for
\[\] (d)
refund in accordance with regulations of the Director under Subsection (b) above;
except that proceeds of any such claim for refund shall first be applied by the Director
to any tax deficiencies or liabilities existing against the claimant before allowance of
such claim by the Director; and further, except that if such excess payment of tax
moneys in any period is discovered as a result of audit by the Department of Finance,
and deficiencies are discovered and assessed against the taxpayer as a result of such
audit, such excess moneys shall first be applied against any deficiencies outstanding
Tax
to the date of assessment but shall not be applied to any future tax liabilities.
moneys paid in error or mistake shall not include nor apply to any claim of
exemption; provided, however, a credit may be allowed within three (3) years
after the date of purchase in the following circumstances:
(1) where a retailer licensed pursuant to the requirements of
this Chapter remits as sales tax that which was not owed under any
provision of this Chapter and which was never paid by the purchaser or,
if paid, has been returned by the retailer to the purchaser; or
(2) where a person engaged in business in the City and
licensed pursuant to the requirements of this Chapter remits as use tax
that which was not owed under any provision of this Chapter.
No refund shall be made or credit allowed under any provision of this
Subsection (f) in an amount greater than the tax paid less the expense allowance
on such purchase retained by the vendor pursuant to Section 14-4-86.
SECTION 2.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Ordinance and the attached award to effectuate the policies and
procedures described herein.
SECTION 3.
This Ordinance shall become effective immediately upon final passage.
INTRODUCED: November 24, 2014
BY: Eva Montoya
PASSED AND APPROVED: December 8, 2014
City Clerk’s Office Item # R-4
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE:
November 24, 2014
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Deborah Morton, Finance Director
SUBJECT:AN ORDINANCE AMENDING SECTION 90 OF CHAPTER 4 OF TITLE XIV OF
THE PUEBLO MUNICIPAL CODE RELATING TO REFUNDS OF TAX MONEY
AND ENLARGING CERTAIN LIMITATION PERIODS FOR REFUND CLAIMS
SUMMARY:
This ordinance is the framework for those taxpayers seeking a refund from the City of Pueblo in
a purchaser or remitter capacity. There are timelines set for both initiation and resolution of a
refund claim.
:
PREVIOUS COUNCIL ACTION
None
BACKGROUND:
The current ordinance has restrictive timelines which are, from a taxpayer’s perspective,
unrealistic and problematic to meet when applying for a tax refund. Extending the timelines will
allow for a more equitable process for the business community and make the City’s refund
provisions more consistent with other home rule municipalities.
FINANCIAL IMPLICATIONS:
Extending the timeline in which a taxpayer can seek a refund may increase the dollar amount of
future refunds in comparison to past years.
BOARD/COMMISSION RECOMMENDATION:
N/A
STAKEHOLDER PROCESS:
N/A
ALTERNATIVES:
Council does not approve this Ordinance, and the existing refund requirements and timelines
remain in effect.
RECOMMENDATION:
Staff recommends approval of this Ordinance. Based on staff experience, the restrictive nature
of the existing code is inconsistent with how other jurisdictions treat refund limitations, creates
confusion among taxpayer and corresponding appeals and litigation.
:
Attachments
Proposed Ordinance