HomeMy WebLinkAbout10823ORDINANCE NO. 10823
AN ORDINANCE AMENDING SECTION 14-4-76 OF THE
PUEBLO MUNICIPAL CODE RELATING TO SALES TAX
EXEMPTION WITH RESPECT TO OCCASIONAL SALES BY
STATE QUALIFYING CHARITABLE ORGANIZATIONS AND
INCREASING THE ANNUAL QUALIFYING AMOUNT FOR
OCCASIONAL SALES TO MAKE CONSISTENT WITH STATE
STATUTE
WHEREAS, the granting of the sales and use tax exemptions set forth in this Ordinance
makes uniform the provi
Colorado for such exemptions and 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.
Subsection 14-4-76(22) of the Pueblo Municipal Code, is amended by to read as follows:
Sec. 14-4-76. Items Exempt.
The following classes of tangible personal property are exempt from taxation under this
Chapter:
. . .
(22) Effective January 1, 2018, occasional sales by an organization which is certified by and
meets the requirements of the State of Colorado as a charitable organization pursuant to
Section 39-26-102(2.5), C.R.S. For the purpose of this exemption, "occasional sales" means
retail sales of tangible personal property, including concessions, for fund-raising purposes if:
a. The sale of tangible personal property or concessions by such charitable organization
takes place no more than twelve (12) days, whether consecutive or not, during any one (1)
calendar year;
b. The funds raised by such charitable organization through these sales are retained by the
organization to be used in the course of the organization's charitable service; and
c. The funds raised by such charitable organization through these sales do not exceed
\[twenty-five thousand dollars ($25,000.00)\] the amount set forth under § 39-26-
718(1)(b)(I)(A), C.R.S., as amended, during any one (1) calendar year.
SECTION 2.
The officers of the City are directed and authorized to perform any and all acts
consistent with the intent of this Ordinance to effectuate the policies and procedures described
herein.
SECTION 3.
This Ordinance shall become effective on January 1, 2025.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on October 15, 2024.
Final adoption of Ordinance by City Council on October 28, 2024.
____________________________
President of City Council
Action by the Mayor:
Approved on _______________.
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 _____________
____________________________
President of City Council
ATTEST
________________________________
Deputy City Clerk
City Clerk's Office Item # R4
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: October 28, 2024
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Danny Nunn, Interim Finance Director
SUBJECT: AN ORDINANCE AMENDING SECTION 14-4-76 OF THE PUEBLO
MUNICIPAL CODE RELATING TO SALES TAX EXEMPTION WITH
RESPECT TO OCCASIONAL SALES BY STATE QUALIFYING
CHARITABLE ORGANIZATIONS AND INCREASING THE ANNUAL
QUALIFYING AMOUNT FOR OCCASIONAL SALES TO MAKE
CONSISTENT WITH STATE STATUTE
SUMMARY:
Code with the laws of the State of Colorado with respect to exemptions for sales by
State qualifying charitable organizations.
PREVIOUS COUNCIL ACTION:
Ordinance No. 9172 (September 25, 2017) made the City sales tax exemption uniform
with the State of Colorado with respect to occasional sales by charitable organization.
The calendar year threshold for such exemption at such time was $25,000.00.
BACKGROUND:
occasional sales by charitable organizations is $25,000.00. The State of Colorado has
increased its exemption amount for such sales to $45,000.00. The proposed ordinance
incorporating a dollar amount, the exemption incorporates the threshold amount by
reference to statute.
FINANCIAL IMPLICATIONS:
Although this will allow qualifying charitable organizations to exempt a higher dollar
value in sales, the impact to the City is minimal. The decrease in sales tax revenue to
the City will be offset by a decrease in the resources expensed to maintain compliance.
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 the present system would
continue without change.
RECOMMENDATION:
Pass and approve the proposed Ordinance.
ATTACHMENTS:
None