HomeMy WebLinkAbout07840ORDINANCE NO. 7840
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE
RELATING TO THE CREATION OF AN EXEMPTION FROM SALES AND USE TAX FOR DYED
DIESEL FUEL WHEN USED IN CONSTRUCTION
WHEREAS, in order to further the policy of encouraging growth and building construction
within the City, the City Council declares that it would be in the best interest of the City to exempt
from City sales and use tax dyed diesel fuel when used in construction.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
(brackets indicate matter deleted, underscoring indicates matter added)
SECTION 1 _
Section 76 of Chapter 4 of Title XIV of the Pueblo Municipal Code is hereby amended by
the addition of a new subsection to read as follows:
Sec. 14 -4 -76. Items exempt.
The following classes of tangible personal property are exempt from taxation under this
Chapter:
Sales and purchases of dyed diesel fuel, as that term is defined in Section
39 -27- 101(8), C.R.S., for use in the construction, rehabilitation, alteration, conversion,
extension, demolition or repair of buildings, dwellings, structures, roads, highways,
or other changes or improvements to real property.
SECTION 2_
Section 77 of Chapter 4 of Title XIV of the Pueblo Municipal Code is hereby amended by
the addition of a new subsection to read as follows:
Sec. 14 -4 -77. Items exempt from use tax.
This tax or excise of the storage, consumption and use of tangible personal property is
hereby declared to be supplementary to the City tax on retail sales as provided in this
Chapter and shall not apply:
To the storage use or consumption of dyed diesel fuel, as that term is
defined in Section 39 -27- 101(8), C.R.S., for use in the construction, rehabilitation,
alteration, conversion, extension, demolition or repair of buildings, dwellings,
structures, roads, highways, or other changes or improvements to real property.
SECTION 3.
This Ordinance shall take effect immediately upon final passage and approval.
INTRODUCED July 14, 2008
BY Judy Weaver
Councilperson
APPROVE �.
i i l� l F'erf run i
A S ECG Iay,
� CLERK
PASSED AND APPROVED: July 28, 2008
0 ? 9V
�I D�
Background Paper for Proposed
ORDINANCE
AGENDA ITEM # 3 -5'
DATE: July 14, 2008
DEPARTMENT: Law Department
TITLE
AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL
CODE RELATING TO THE CREATION OF AN EXEMPTION FROM SALES AND USE
TAX FOR DYED DIESEL FUEL WHEN USED IN CONSTRUCTION
ISSUE
Should the City Council pass and approve the proposed Ordinance which exempts from
sales and use tax dyed diesel fuel when used in construction?
RECOMMENDATION
See Background.
BACKGROUND
Pursuant to review and instruction from City Council, staff prepared this proposed
Ordinance and submitted it to the proponents of such exemption. The proponents of the
exemption have reviewed the proposed ordinance and communicated that it is acceptable.
Staff takes no position with respect to recommending this Ordinance other than to advise
City Council that, once enacted, this exemption from the sales and use tax cannot be
rescinded other than by a vote of the people.
FINANCIAL IMPACT
There will be less sales and use tax revenues subject to collection but in an amount not
presently known.