HomeMy WebLinkAbout09172As Amended
September 25, 2017
ORDINANCE NO. 9172
AN ORDINANCE AMENDING SECTION 14-4-76 OF THE
PUEBLO MUNICIPAL CODE RELATING TO SALES AND
USE TAX AND EXEMPTING FROM SALES TAX
OCCASIONAL SALES BY STATE QUALIFYING
CHARITABLE ORGANIZATIONS AND QUALIFYING SALES
BY AND FOR PARENT/TEACHER ORGANIZATION
FUNDRAISING ACTIVITIES
WHEREAS, pursuant to Section 39-26-718, C.R.S., the State of Colorado has
enacted sales tax exemptions with respect to occasional sales by nonprofit organizations
which meet the State’s definition of charitable organization and to qualifying sales by and
for parent/teacher organization fundraising activities; and
WHEREAS, the creation of such specific but limited tax exemptions within the
City’s Sales and Use Tax Code would be in the best interest of the City and its citizens;
and
WHEREAS, the granting of the sales and use tax exemptions set forth in this
Ordinance makes uniform the provisions of the City’s Sales and Use Tax Code with the
laws of the State of Colorado for such exemptions and 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 the Pueblo Municipal Code, is amended by the addition of a
new subsection (22) to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from
taxation under this Chapter:
. . .
(22) Effective January 1, 2018, occasional sales by an organization
which is certified by and meets the requirements of the State of Colorado as
a charitable organization pursuant to Section 39-26-102(2.5), C.R.S. For the
purpose of this exemption, “occasional sales” means retail sales of tangible
personal property, including concessions, for fund-raising purposes if:
a. The sale of tangible personal property or concessions by
such charitable organization takes place no more than twelve days,
whether consecutive or not, during any one calendar year;
b. The funds raised by such charitable organization through
these sales are retained by the organization to be used in the course
of the organization's charitable service; and
c. The funds raised by such charitable organization through
these sales do not exceed twenty-five thousand dollars during any one
calendar year.
SECTION 2.
Section 14-4-76 of the Pueblo Municipal Code, is amended by the addition of a
new subsection (23) to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from
taxation under this Chapter:
. . .
(23) Sales by an association or organization of parents and teachers
of public school students to the extent the following conditions are satisfied:
a. The organization or association has a sales tax license
with the City and is certified by and meets the requirements of the
State of Colorado as a charitable organization pursuant to Section 39-
26-102(2.5), C.R.S.; and
b. The association or organization uses the funds raised
through the sale for the benefit of a public school or an organized
public school activity or to pay the reasonable expenses of the
association or organization.
SECTION 3.
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 4.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED September 11, 2017
BY: Ed Brown
PASSED AND APPROVED: September 25, 2017
City Clerk’s Office Item # R-2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: September 11, 2017
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Roni Kimbrel, Director of Finance,
Valerie Palumbo, Tax Audit Manager,
Robert Jagger, Sr. Asst. City Attorney
SUBJECT: AN ORDINANCE AMENDING SECTION 14-4-76 OF THE PUEBLO MUNICIPAL
CODE RELATING TO SALES AND USE TAX AND EXEMPTING FROM SALES
TAX OCCASIONAL SALES BY STATE QUALIFYING CHARITABLE
ORGANIZATIONS AND QUALIFYING SALES BY AND FOR PARENT/TEACHER
ORGANIZATION FUNDRAISING ACTIVITIES
SUMMARY:
The proposed ordinance makes uniform the provisions of the City’s Sales and Use Tax Code with
the laws of the State of Colorado with respect to exemptions for sales by State qualifying
charitable organizations.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
Presently, the non-profit community is dealing with two different sets of rules with respect to how
sales are to be recognized for the purposes of collecting/remitting State and local sales tax. This
presents a very challenging and difficult process for these organizations whose primary purpose
is charitable work. In addition, some of these organization are smaller organizations which have
limited resources for administering two different processes. Alignment of the Pueblo Municipal
Code with the State of Colorado minimizes such challenges and provides consistency in the
treatment of taxation on sales by charitable organizations.
FINANCIAL IMPLICATIONS:
No significant financial implications are anticipated as the cost of resources expended in enforcing
compliance outweighs what is received in tax revenue.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
City Council could choose not to enact the Ordinance, and the present system would continue
without change.
RECOMMENDATION:
Pass and approve the proposed Ordinance.
Attachments:
Ordinance