HomeMy WebLinkAbout10318ORDINANCE NO. 10318
AN ORDINANCE AMENDING SECTION 14-4-76 OF THE
PUEBLO MUNICIPAL CODE RELATING TO SALES AND USE
TAX AND EXEMPTING FROM SALES TAX ALL SALES OF
PERIOD PRODUCTS, INCONTINENCE PRODUCTS AND
DIAPERS PURCHASED ON AND AFTER JANUARY 1, 2023
WHEREAS, the State of Colorado has enacted a sales tax exemption exempting from
sales tax all sales of period products, incontinence products and diapers purchased on and after
January 1, 2023; and
WHEREAS, the creation of such a specific but limited tax exemption 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:
SECTION 1.
Section 14-4-76 of the Pueblo Municipal Code, is amended by the addition of a new
subsection (24) to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from taxation under this
Chapter:
. . .
(24) All sales of period products, incontinence products and diapers purchased
on and after January 1, 2023. For the purposes of this exemption, the following words
have the following meanings:
a. “Period products” means consumer products used to manage
menstruation; and
b. “Incontinence products and diapers” means absorbent cloth or disposable
products worn by humans who are incapable of, or have difficulty, controlling their
bladder or bowel movements.
SECTION 2.
The officers and staff of the City are authorized to perform any and all acts consistent
with the intent of this Ordinance to implement the policies and procedures described herein.
SECTION 3.
This Ordinance shall become effective thirty days after 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 October 24, 2022.
Final adoption of Ordinance by City Council on November 14, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on November 17, 2022 .
□ 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 # R1
Background Paper for Proposed
Ordinance
October 24, 2022
COUNCIL MEETING DATE:
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM:
Bob Jagger, Deputy 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 ALL SALES OF PERIOD PRODUCTS,
INCONTINENCE PRODUCTS AND DIAPERS PURCHASED ON AND
AFTER JANUARY 1, 2023
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 sales tax exemptions for
period products, incontinence products and diapers.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
The tax exemption will make the City’s tax code uniform with the exemption recently
enacted by the State of Colorado with respect to period products, incontinence products
and diapers. The public purpose promoted by such exemption includes the following:
(a) With respect to period products, the exemption will increase the affordability of
period products and redress the inequitable burden that the imposition of sales tax
places on women for whom such products are essential; and
(b) With respect to incontinence products and diapers, the exemption will increase
the affordability of incontinence products and diapers and to redress the inequitable
burden that the imposition of sales tax places on parents, individuals caring for infants
and young children, and other users of incontinence products for whom such products
are essential.
FINANCIAL IMPLICATIONS:
The proposed Ordinance is estimated to decrease revenue by $250,000 each fiscal
year, which is approximately .38% of the total City sales tax revenue. The approximate
percentage used to determine the sales tax for period products, incontinence products,
and diapers is extrapolated from the financial impact contained in Colorado HB 22-
1055.
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 no City sales tax exemption
would exist for period products, incontinence products and diapers.
RECOMMENDATION:
This is a tax policy issue reserved to Council’s discretion.
ATTACHMENTS:
None