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HomeMy WebLinkAbout05170J ' r i ORDINANCE NO. 5170 AN ORDINANCE AMENDING CHAPTER 4, TITLE XIV OF THE 1971 CODE OF ORDINANCES RELATING TO SALES AND USE TAX; PROVIDING FOR A ONE -HALF PERCENT SALES AND USE TAX RATE INCREASE FOR A TWO YEAR PERIOD; PLEDGING THE REVENUES THEREFROM FOR CAPITAL IMPROVEMENT PURPOSES AT PUEBLO MEMORIAL AIRPORT; AND PROVIDING FOR OTHER MATTERS RELATING THERETO. BE IT ORDAINED BY THE PEOPLE OF PUEBLO, COLORADO, that: (brackets indicate material deleted, underscoring indicates material added) SECTION 1. Section 85 of Chapter 4, Title XIV of the 1971 Code of Ordinances (Section 13 of Ordinance No. 2189 approved by vote of the People on November 8, 1955, as amended by Ordinance Nos. 3160 and 3474) is hereby repealed and reenacted to read as follows: [14 -4 -85: SCHEDULE; TAX ADDED TO PRICE There are hereby imposed upon all sales of commodi- ties and services specified in Section 14 -4 -61 taxes in accordance with the following schedule: (a) On sales amounting to nineteen cents to and including fifty -one cents, a tax of one cent. (b) On sales amounting to fifty -two cents to and including eighty -four cents, a tax of two cents. (c) On sales amounting to eighty -five cents to and including one dollar, a tax of three cents. (d) On all sales in excess of one dollar, the tax shall be three cents on each full dollar of the sales price, plus the tax shown in (a), (b) or (c) above for the applicable fractional part of a dollar of each such sales price. Retailers shall add the tax imposed hereby, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts; except that any retailer selling malt, vinous, or spirituous liquors by the drink may include in his sales price the tax levied under this Chapter but no such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as part of the sales price to the consumer. The schedule set forth in this section shall be used by a retailer selling such malt, vinous or spirituous liquor in determining amounts to be included in such sales price and no such retailer shall gain any benefit from the collection or payment of such tax except as permitted in Section 14 -4 -86 of this Chapter; nor shall the use of the schedule set forth in this section relieve such retailer from liability for payment of the full amount of the tax levied by this Chapter.] -2- 14 -4 -85: SCHEDULE; TAX ADDED TO PRICE (a) There is imposed upon all sales of commodities and services specified in Section 14 -4 -61 a tax at the rate of three percent of the amount of the sale, to be computed in accordance with schedules or systems approved by the Director of Finance. Said schedules or systems shall be designed so that no such tax is charged on any sale of seventeen cents or less. (b) Notwithstanding the three percent rate provisions of paragraph (a) of this Section 14 -4 -85 for the period January 1, 1985 through December 31, 1986, the rate of tax im osed pursuant to this Section shall be three and one -half percent. (c) Retailers shall add the tax imposed hereby, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts; except that any retailer selling malt, vinous, or spirituous liquors by the drink may include in his sales price the tax levied under this Section but no such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as part of the sales price to the consumer. -3- (d) The additional one -half percent sales and use tax imposed by Section 14- 4 -63(a) and 14- 4 -85(b) of this Chapter, together with interest thereon and penalties with respect thereof, shall, upon collection and receipt by the City, be deposited and placed in a special fund to be known as "Sales and Use Tax Capital Improvement Fund" to be used solely for capital improvement purposes at Pueblo Memorial Airport including, without limitation, the aviation, commercial, and industrial areas thereof. SECTION 2 Section 63 of Chapter 4, Title XIV of the 1971 Code of Ordinances (Section 20 of Ordinance No. 2189 approved by vote of the People on November 8, 1955, as amended by Ordinance Nos. 3160 and 3474) is amended by the addition of the following new subsection (a) : (a) Notwithstanding the three percent rate provision of Section 14 -4 -63 of this Chapter, for the period January 1, 1985 through December 31, 1986, the rate of tax imposed pursuant to this Section shall be three and one -half percent. SECTION 3 Section 65 of Chapter 4, Title XIV of the 1971 Code of Ordinances is hereby amended to read as follows: 14 -4 -65: EXCESS COLLECTIONS If any vendor, during any reporting period, shall collect as a tax an amount in excess of [three per cent (3 %) of] the tax imposed by Section 14 -4 -85 of this -4- Chapter on his total taxable sales, he shall remit to the Director of Finance the full net amount of the tax herein imposed and also such excess. The retention by the retailer or vendor of any excess of tax collections over [the three per cent (3 %) of] the tax imposed by Section 14 -4 -85 of this Chapter on the total taxable sales of such retailer or vendor or the intentional failure to remit punctually to the Director of Finance the full amount required to be remitted by the provisions of this Chapter is declared to be unlawful and shall constitute a violation of this Code. SECTION 4 Subsections (j) and (k) of Section 77 of Chapter 4, Title XIV of the 1971 Code of Ordinances are hereby repealed and reenacted with amendments to read as follows: [(j) Payment of Other Colorado Municipality Tax - No Pueblo Use Tax Due. The use, storage, distribution or consumption in the City of tangible personal property and upon the sale of which a retail sales tax at a rate equal to or greater than three per cent (3 %) has been imposed, collected, and remitted to a municipal corporation organized and existing under the authority of the Constitution of the State of Colorado is exempt from the levy of the Pueblo Use Tax. If the rate of retail sales tax paid to such Colorado municipal corporation is less than three per cent (3 %) the net difference between the tax due -5- under this Code and the tax computed at the rate of such other retail sales tax shall be computed in accordance with the formula set forth in Section 14 -4 -85 of this Code, and shall be paid to the Director of Finance. This exemption will be denied if a tax paid another Colorado municipal corporation was not legally due under the laws of such municipal corporation or the laws of the Colorado municipal corporation are not compatible with those of the City of Pueblo as to specific taxation and exemption as applied to the transaction in question. This exemption shall also be denied for subsequent transactions within the City including but not limited to rentals and leases.] [(k) Payment of Other States Sales Tax - No Pueblo Use Tax Due. The use, storage, distribution or consumption in the City of tangible personal property and upon the sale of which any other state or any other state in combination with any subdivision thereof has imposed and collected a retail sales tax at a rate equal to or greater than six per cent (6 %) is exempt from the levy of the Pueblo Use Tax. If the rate of retail sales tax paid to such other state and /or its political subdivisions thereof is three per cent (3 %) or less, then the full three per cent (3 %) City of Pueblo Use Tax is due. If the rate of retail sales tax paid the other state and /or its political subdi- visions thereof is more than three per cent (3 %) but less than six per cent (6 %) then the City of Pueblo Use Tax tenths per cent of such tax to cover the vendor's expense in the collection and remittance of such tax. SECTION 6 Subsection (d) of Section 86 of Chapter 4, Title XIV of the 1971 Code of Ordinances is hereby amended to read as follows: (d) Every vendor vending individual items of personal property through coin- operated vending machines shall be exempt from the provisions of Sections 14 -4 -85 and 14 -4 -86 of this Chapter but nevertheless such vendor shall pay a sales or use tax [of three per cent] at the rate of tax imposed by Section 14 -4 -85 of this Chapter on the personal property sold in excess of ten cents so vended in the coin - operated machines unless the sale shall be otherwise exempt under the provisions of this Chapter. SECTION 7 Subsection (e) of Section 86 of Chapter 4, Title XIV of the 1971 Code of Ordinances is hereby amended to read as follows: (e) Excess Collections - Failure to Remit Collections. If any vendor shall, during the reporting period, collect as a tax an amount in excess of [three percent (3 %) of] the rate of tax imposed by Section 14 -4 -85 of this Chapter on his total taxable sales, he shall remit to the Director of Finance the full net amount of the tax herein imposed and also such excess. If record of City and State Sales Tax collections are kept separately, the vendor will remit MOM will be due on net difference between that tax paid in excess of three per cent (3 %) and the combined City of Pueblo and State of Colorado tax rate of six per cent (6 %). In no instance will the City of Pueblo tax credit nor charge exceed three per cent (3 %). This exemption will be denied if a tax paid another state and /or its subdivisions thereof was not legally due under the laws of such other state and its subdivisions, or the laws of that state and /or its subdivisions are not compatible with those of the City of Pueblo as to specific taxation and exemption as applied to the transaction in question. This exemption shall also be denied for subsequent trans- actions within the City including but not limited to rentals and leases.] (j) A credit shall be granted against the use tax imposed by Section 14 -4 -63 of this Chapter on any article of tangible personal property the sale of which has already been subjected to a retail sales tax. The amount of the credit shall be equal to: (i) if purchased within the state of Colorado, the retail sales tax imposed, collected and remitted to a Colorado municipality, city or county, or (ii) if purchased outside the state of Colorado, the amount by which the retail sales tax imposed, collected and remitted to another state or political subdivision thereof, or both, exceeds the sales tax imposed by Section 39 -26- 106(1), C.R.S. -7- The amount of the credit shall not exceed the use tax imposed by Section 14 -4 -63 of this Chapter. The credit will be denied if such retail sales tax was not legally due under the laws of such other taxing authority, or such laws are not compati- ble with those of the Citv as to specific taxation or exemption of the transaction in question. The credit shall not be granted for subsequent transactions within the City relating to such article of tangible personal property including but not limited to rentals or leases thereof. (k) reserved. SECTION 5 The first paragraph of Section 86 of Chapter 4, Title XIV of the 1971 Code of Ordinances is hereby amended to read as follows: 14 -4 -86: RESPONSIBILITY FOR PAYMENT; RETURN; REMITTANCE; ALLOWANCE Every retailer, also herein called vendor, shall, irrespective of the provisions of Section 14 -4 -85 be liable and responsible for the payment of an amount equivalent to [three per cent of the rate of] the rate of to imposed by Section 14 -4 -85 of this Chapter on all sales made by him of commodities or services specified in Section 41 -4 -61 and shall, before the twentieth day of each month, make a return to the Director of Finance for the preceding calendar month and remit an amount equivalent to [such three per cent of] the rate of tax imposed by Section 14 -4 -85 of this Chapter on such sales to the Director of Finance, less three and three- C:IM excess of City Tax and State Tax collections and if it is not possible to determine the excess to be remitted to each, the vendor shall remit one -half (1/2) of such excess to the City of Pueblo. The retention by the vendor of any excess of tax collections over (three per cent (3 %) of] the rate of tax imposed by Section 14 -4 -85 of this Chapter on the total taxable sales of such vendor, or the intentional failure to remit punctually to the Director of Finance the full amount required to be remitted by the provisions of this Chapter, is hereby declared to be a violation of this Chapter. SECTION 8 All ordinances relating to sales and use taxes heretofore adopted, amended or implemented, including without limitation Ordinance Nos. 2189, 3160, 3450, 3474, 4235, 4573, 4734 and 5022 shall remain in full force and effect except as the same have been previously amended or repealed or as same may be amended or repealed by this Ordinance. SECTION 9 All ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. This repealer shall not be construed to revive any ordinance, or part thereof, heretofore repealed. gRrmrnW in If any section, subsection, paragraph, clause or other provisions of this Ordinance for any reason is invalid or unenforceable, -10- the invalidity or unenforceability of such section, subsection, paragraph, clause or other provisions shall not affect any of the remaining provisions of this Ordinance. SECTION 11. This Ordinance shall become effective at 12:00 o'clock A.M. January 1, 1985 upon majority vote in favor thereof of the qualified electors of Pueblo voting thereon at the general election to be held Tuesday, November 6, 1984. -11-