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HomeMy WebLinkAbout08850ORDINANCE NO. 8850 AN ORDINANCE AMENDING SECTION 87 OF CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO PAYMENT AND COLLECTION OF TAXES AND AUTHORITY OF DIRECTOR TO REQUIRE PREPAYMENT ON AN ESTIMATED PERCENTAGE BASIS BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 87 of Chapter 4 of Title XIV of the Pueblo Municipal Code is amended to read as follows: Sec. 14-4-87. Payment; collection. The following provisions shall apply to the payment and collection of the tax on storage, consumption and use of tangible personal property: (1) Motor Vehicles. a. Any resident of the City who shall purchase any automobile or other vehicle required to be registered under the Colorado Uniform Motor Vehicle Law for use within the City, on which purchase City sales tax has not been paid or collected for any reason, including falsification of the affidavit required by Section 14-4-76(1) hereof, shall, prior to registering and obtaining a license therefor, make a return showing such transaction to the Director of Finance and thereupon pay to him or her the use tax applicable thereto as provided for in Sections 14-4-63 and14-4-77 hereof, and failure to do so shall constitute a violation of this Code. All vehicles purchased by residents of the City shall be registered with the County Clerk and Recorder at the address of the principal place of residence or business of the purchaser within the City. b. Any person who registers a motor vehicle in violation of the provisions of this Subsection (1) shall be assessed a civil penalty of five hundred dollars ($500.00) by the Director, which civil penalty shall become due and payable ten (10) days after written notice and demand by the Director, subject only to judicial review pursuant to Rule 106(a)(4) of the Colorado Rules of Civil Procedure and Sections 14-4-32 and 14-4-33 of this Title. (2) Contractors; Owners or Lessees of Realty Method of Paying. Every person who shall build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure, or improvement to real property including all work performed on Federal, State, County, City, exempt institution and private construction job sites in this City and who shall purchase fixtures, or construction materials as defined in Section 14-4-21 above and every owner or lessee of realty situate in the City and of improvements and structures located upon realty situate in the City, upon which any article or articles of tangible personal property acquired from sources within or without the City are attached or affixed and which contractor, owner or lessee has not paid the tax imposed by this Chapter thereon, to a vendor required or authorized to collect the same, shall pay the City sales and use tax in either of two (2) ways: a. Payment on Estimated Basis. By paying the tax on the "Estimated Percentage Basis" based on a percentage of the total valuation of construction contract and paid, either through the owner, lessee or the general contractor or separately, if he or she is a subcontractor electing to do so, at the time a building permit is issued, in the manner prescribed by the Director of On all contracts for City improvements, the Director of Finance Finance. may require and any such contract may provide for prepayment of the tax on an “Estimated Percentage Basis.” b. Payment on Actual Basis. Contractors, owners or lessees not electing the first alternative must license with the City and monthly make reports and returns remitting the tax and showing all information as prescribed on the City Consumer Use Tax Return. (3) Construction Improvements; Liens, etc. a. Lien for Unpaid Taxes on Personal Property Affixed to Real Property. The full amount of unpaid taxes arising from and required to be reported on personal property affixed to real property under this Chapter, together with interest and penalties as herein provided, shall be and constitute a first and prior lien, which lien shall have precedence over all other liens of whatsoever kind and nature, except as to liens for general taxes created by state law, and except as to pre-existing claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights shall have attached prior to the filing of the notice of tax lien on the property of the taxpayer, other than on the goods, stocks in trade and business fixtures of such taxpayer. b. No Final Inspection or Certificate of Occupancy Unless Tax Paid. No final inspection shall be made by the City Building Inspector or no Certificate of Occupancy shall be issued unless all taxes due as provided herein on all fixtures, and any construction materials as defined in Section 14- 4-21 above, used in or connected with the construction, reconstruction, alteration, expansion, modification or improvement of any building, dwelling or other structure or improvement to real property within the City have been paid or arrangements therefor made with the Director of Finance. SECTION 2. The officers of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED: _ February 23, 2015 BY: Chris Nicoll PASSED AND APPROVED: March 9, 2015 City Clerk’s Office Item # R-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: February 23, 2015 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Deb Morton, Finance Director SUBJECT: AN ORDINANCE AMENDING SECTION 87 OF CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO PAYMENT AND COLLECTION OF TAXES AND AUTHORITY OF DIRECTOR TO REQUIRE PREPAYMENT ON AN ESTIMATED PERCENTAGE BASIS SUMMARY: The proposed Ordinance clarifies the authority of the Director of Finance to require prepayment of City sales and use tax on projects for City improvements. PREVIOUS COUNCIL ACTION: Not applicable. BACKGROUND: Without prepayment of sales and use tax, the City will lose and not collect sales tax paid to other jurisdictions for materials and fixtures incorporated into the project. Although the City is the party contracting for such improvements and has the authority to require prepayment of sales and use tax, objections have been raised that such authority is not expressly set forth in Ordinance. The proposed Ordinance expressly declares such authority exists in the Director of Finance. FINANCIAL IMPLICATIONS: An estimate of the financial impact cannot be quantified at this time. It is the staff’s opinion that this process will prevent loss of revenue to other jurisdictions. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: City Council could choose to not pass and approve the Ordinance. The effect would be that each contract for public improvements requiring prepayment of sales and use tax could be subject to objection leading to potential doubt and uncertainty in the bid and contracting process. RECOMMENDATION: Approval of this Ordinance.