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HomeMy WebLinkAbout09868ORDINANCE NO. 9868 AN ORDINANCE AMENDING SECTION 14-9-11 OF CHAPTER 9 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO LODGER’S TAX AND ESTABLISHING REPORTING AND REMITTANCE REQUIREMENTS FOR MARKETPLACE FACILITATORS BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 14-9-11 of Chapter 9 of Title XIV of the Pueblo Municipal Code is amended to read as follows: Sec. 14-9-11. - Provisions incorporated by reference. Except where the context otherwise requires, all definitions and provisions contained in Chapter 4 of this Title are incorporated into this Chapter 9 by reference as if fully set forth herein, except that any reference therein to sales or use tax shall be deemed to refer to lodger's tax. All procedural and enforcement powers and remedies conferred in said Chapter 4 on the Director or on the City shall also apply to and be available for the enforcement of the provisions of this Chapter, and all rights and remedies granted to taxpayers thereunder shall also apply to and be available for persons subject to this Chapter, provided that in case of conflict between this Chapter and said Chapter 4, the provisions of this Chapter shall control. Any marketplace facilitator who collects and remits sales tax levied pursuant to Section 14-4-61(2) of this Code for lodging services shall be obligated and responsible for collection and remittance of the lodging tax imposed by this Chapter with respect to such sales. SECTION 2. In the event any section, subsection, clause, phrase or portion of this Ordinance is for any reason held illegal, invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remainder of this Ordinance. It is the legislative intent of the City Council that this Ordinance would have been adopted if such illegal provision had not been included or any illegal application had not been made. SECTION 3. The officers and staff of the City are authorized and directed 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 on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on December 28, 2020. Final adoption of Ordinance by City Council on January 11, 2021 . President of City Council Action by the Mayor: ☒ Approved on January 13, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-12 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 28, 2020 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Charles Hernandez, Director of Finance Valerie Palumbo, Tax Audit Manager, Robert P. Jagger, Sr. Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING SECTION 14-9-11 OF CHAPTER 9 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO LODGER’S TAX AND ESTABLISHING REPORTING AND REMITTANCE REQUIREMENTS FOR MARKETPLACE FACILITATORS SUMMARY: The proposed Ordinance requires a marketplace facilitator who collects and remits sales tax levied for lodging services to also collect and remit the Lodger’s tax for such sales. PREVIOUS COUNCIL ACTION: Ordinance No. 9723 passed June 22, 2020 made marketplace facilitators obligated to collect and remit sales tax on taxable sales made by the marketplace facilitator or facilitated by it for marketplace sellers or multichannel sellers to customers in the City. Ordinance No. 9722 passed June 22, 2020 approved the Sales & Use Tax Software System agreement with the Colorado Department of Revenue (“State”) which allows marketplace facilitators a single point of remittance for reporting sales and use tax (“SUTS System”). BACKGROUND: The City has been informed that a number of marketplace facilitators will be registering with the SUTS System for the purpose of remitting sales tax levied pursuant to the City’s Sales Tax Code for lodging services. For such transactions, the City also imposes a Lodger’s tax. The proposed ordinance clearly reflect that the marketplace facilitator is obligated to not only collect and remit the sales tax but also the Lodger’s tax with respect to such transactions. FINANCIAL IMPLICATIONS: None. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: Not approve, however, such would leave the tax codes and the marketplace facilitator’s obligations unclear. RECOMMENDATION: Pass and approve the proposed Ordinance. Attachments: Proposed Ordinance.