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HomeMy WebLinkAbout10362 ORDINANCE NO. 10362 AN ORDINANCE AMENDING SECTION 14-4-21 OF THE PUEBLO MUNICIPAL CODE RELATING TO THE CITY’S SALES AND USE TAX CODE AND EXCLUDING THE STATE CARRYOUT BAG FEE FROM THE DEFINITION OF PURCHASE PRICE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Subsection 24 of Section 14-4-77 of the Pueblo Municipal Code, is amended to read as follows: Sec. 14-4-21. Definitions. . . . When not clearly otherwise indicated by the context, the following words and phrases, as used in this Chapter, shall have the following meanings: (24) Price or purchase price means the price to the consumer, exclusive of any direct tax imposed by the federal government or by this Article, and, in the case of all retail sales involving the exchange of property, also exclusive of the fair market value of the property exchanged at the same time and place of the exchange, if: 1. Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or 2. Such exchanged property is a vehicle and is exchanged for another vehicle and both vehicles are subject to licensing, registration or certification under the laws of this State, including, but not limited to, vehicles operating upon public highways, off-highway recreation vehicles, watercraft and aircraft. Any money or other consideration paid over and above the value of the exchanged property is subject to tax. Price or purchase price includes: 1. The amount of money received or due in cash and credits. 2. Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business. 3. Any consideration valued in money, such as trading stamps or coupons whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other media of exchange. 4. The total price charged on credit sales, including finance charges which are not separately stated. An amount charged as interest on the unpaid balance of the purchase price is not part of the purchase price unless the amount added to the purchase price is included in the principal amount of a promissory note; except the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of the note is not part of the purchase price. An amount charged for insurance on the property sold and separately stated is not part of the purchase price. 5. Installation, delivery and wheeling-in charges included in the purchase price and not separately stated. 6. Transportation and other charges to effect delivery of tangible personal property to the purchaser. 7. Indirect federal manufacturers' excise taxes, such as taxes on automobiles, tires and floor stock. 8. The gross purchase price of articles sold after manufacturing or after having been made to order, including the gross value of all the materials used, labor and service performed and the profit thereon. Price or purchase price shall not include: 1. Any sales or use tax imposed by the State or by any political subdivision thereof. 2. The fair market value of property exchanged if such property is to be sold thereafter in the retailer's usual course of business. This is not limited to exchanges in Colorado. Out-of-state trade-ins are an allowable adjustment to the purchase price. 3. Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reporting gross sales. d. Carryout bag fees imposed pursuant to Section 25-17-505, C.R.S., as amended. . . . SECTION 2. The officers 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 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 12, 2022. Final adoption of Ordinance by City Council on December 27, 2022 . President of City Council Action by the Mayor: ☒ Approved on December 29, 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 Deputy City Clerk City Clerk's Office Item # R10 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 12, 2022 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Alexandria Romero, Director of Finance Robert Jagger, Deputy City Attorney SUBJECT: AN ORDINANCE AMENDING SECTION 14-4-21 OF THE PUEBLO MUNICIPAL CODE RELATING TO THE CITY’S SALES AND USE TAX CODE AND EXCLUDING THE STATE CARRYOUT BAG FEE FROM THE DEFINITION OF PURCHASE PRICE SUMMARY: The proposed Ordinance excludes the State’s carryout bag fee from being subject to City’s sales tax. PREVIOUS COUNCIL ACTION: The City Sales and Use Tax Code has been amended numerous times to address issues relative payment, collection, settlement, refund and enforcement. BACKGROUND: By recent legislation, the State of Colorado has imposed a disposable bag fee on stores that provide recycled paper or single-use plastic carryout bags to their customers. The proposed Ordinance excludes such fee from being included in the definition of purchase price as such term is used in the Sales and Use Tax Code. By such exclusion, the carryout bag fee will not be subject to City’s sales tax, but the disposable bag fee will still be imposed pursuant to State law. FINANCIAL IMPLICATIONS: The amount of any decrease in sales tax revenue is not reasonably subject to calculation but is not believed to be significant. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If the proposed Ordinance is not passed, the bag fee will be subject to City sales tax. RECOMMENDATION: The proposed Ordinance be passed and approved. ATTACHMENTS: None