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HomeMy WebLinkAboutordinance.council.004-87 ORDINANCE NO. ~ (Series of 1987) AN ORDINANCE IMPOSING AN ADDITIONAL ONE-HALF PERCENT (.5%) SALES TAX IN THE CITY OF ASPEN, COLORADO, THEREBY INCREASING THE SALES TAX TO ONE AND ONE-HALF PERCENT (1.5%) UPON THE SELLING OF TANGIBLE PERSONAL PROPERTY AT RETAIL UPON EVERY RETAILER OR FURNISHING OF SERVICES IN THE CITY OF ASPEN, COLORADO, OPERATIVE AND EFFECTIVE ON AND AFTER JULY 1, 1987; PROVIDING THAT THE ADDITIONAL REVENUES RECEIVED BY SAID INCREASE MAY BE EXPENDED BY THE CITY COUNCIL FOR RECREATIONAL PURPOSES IN CONNECTION WITH MULTI-USE RECREATIONAL FACILITIES AND/OR NORDIC TRAIL SYSTEM, INCLUDING CAPITAL IMPROVEMENTS, CAPITAL EXPENDITURES, LAND ACQUISITION, GENERAL OPERATING PURPOSES, INCLUDING RECREATIONAL PROGRAMS, PAYMENT OF INDEBTEDNESS INCURRED IN CONNECTION THERE- WITH, RESERVES AND FOR THE EXPENDITURES NECESSARY TO PROTECT ANY SUCH PROPERTY AGAINST LOSS OR DAMAGE OR DESTRUCTION; PROVIDING THAT THE CITY COUNCIL MAY AMEND, ALTER OR CHANGE SAID ORDINANCE EXCEPT AS TO THE PERCENTAGE OF TAX AND MAY REPEAL SAID TAX IF ALL INDEBTEDNESS SECURED HEREBY IS PAID OR PROVIDED FOR; AND PROVID- ING DETAILS IN RELATION TO THE FOREGOING WHEREAS, the City of Aspen has an interest in attending to the recreational interests of the residents of and visitors to the City of Aspen; and WHEREAS, the financial costs of sustaining a multi-use recreational facilities and nordic trail system exceed the City's budgetary constraints; and WHEREAS, the City Council for the City of Aspen deems it to be in the best interests of the City, its inhabitants and visitors to impose an additional City sales tax of one-half percent (.5%), as set forth in this ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. Purpose. 1.1 The purpose of this ordinance is to impose a sales tax on the sale of tangible personal property at retail and/or the furnishing of services, as provided in Section 29-2-105(1) (d), C.R.S. 1.2 The sales tax is imposed pursuant to the powers of the City of Aspen under the City of Aspen Home Rule Charter, which has been adopted in accordance with Article 20 of the Colorado Constitution, and will result in a total sales tax within the City of Aspen, giving effect to county-wide sales tax, in excess of the limit described in Section 29-2-108, C.R.S., such excess being one-half percent (.5%). Section 2. General Provisions and Exemptions from Taxation. 2.1 For the purpose of this ordinance all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to a destination outside the limits of the City of Aspen or to a common carrier for delivery to a destination outside the limits of the City of Aspen. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax imposed by Article 26 of Title 39, C.R.S., regardless of the place to which delivery is made. If a retailer has no permanent place of business in the City of Aspen or has more than one place of business, the place 2 at which the retail sales are consummated for the purpose of the sales tax imposed by this ordinance shall be determined by the provisions of Article 26 of Title 39, C.R.S., and by rules and regulations promulgated by the Colorado Department of Revenue. 2.2 The amount subject to tax as imposed herein, shall not include the amount of any sales or use tax imposed by Article 26 of Title 39, C.R.S. 2.3 The tangible personal property and services taxable under this ordinance shall be the same as the tangible personal property and services taxable pursuant to Section 39-26-104, C.R.S., and subject to the same exemptions as those specified in Section 39-26-114, C.R.S., except the exemption allowed by Section 39-26-114(11), C.R.S., for purchases of machinery and tools, the exemption of sales and purchases of those items in Section 39-26-114(1) (a) (XXI), C.R.S., and the exemption for sales of food specified in Section 39-26-114(1) (a) (XX), C.R.S. 2.4 All sales of personal property on which a specific ownership tax has been paid or is payable shall be exempt from the sales tax when such sales meet both of the following condi- tions: (a) The purchaser is a non-resident of or has his principal place of business outside the city of Aspen; and (b) Such personal property is registered or required to be registered outside the limits of the city of Aspen under the laws of the State of Colorado. 2.5 The sales tax shall not apply in the following circum- stances: (a) Pursuant to Section 29-2-106(2), C.R.S., the sale of construction and building materials, as the term is used in Section 29-2-109, C.R.S., if such materials are picked up by the purchaser and if the purchaser of such materials presents to the retailer a building permit or other acceptable documentation evidencing that a local use tax has been paid or is required to be paid. (b) Pursuant to Section 29-2-106(4), C.R.S., the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule city and county, city or town equal to or in excess of that sought to be imposed by the City of Aspen. A credit shall be granted against the sales tax imposed by the City of Aspen with respect to any such transaction equal in amount to the lawfully local sales or use tax previously paid by the purchaser or user to the previous statutory home rule city and county, city, or town. The amount of the credit shall not exceed the sales tax imposed by the City of Aspen. 4 Section 3. Schedule of Sales Tax. 3-1 There is hereby imposed on all sales of tangible personal property or the furnishing of services at retail an additional one-half percent (.5%) tax on the gross receipts, with respect to such sales or furnishing of services. The imposition of the tax on individual sales shall be in accordance with the schedule set forth in the rules and regulations promulgated by the Department of Revenue, or by this section, or by separate ordinance of the City of Aspen. The tax imposed in this section is referred to in this ordinance as the "sales tax". 3-2 Unless otherwise directed by ordinance of the City Council, the collection, administration and enforcement of this sales tax is hereby vested in and shall be performed by the Director of Revenue of the State of Colorado in the same manner as the collection, administration and enforcement of the state sales tax. 3-3 Every retailer shall be liable and responsible for the payment of an additional one-half percent (.5%) of all sales made by the retailer and all sales of tangible personal property and remit an additional amount one-half percent (.5%) of such sales to the Director of Revenue. 3-4 There are hereby imposed upon all sales for tangible personal property, taxes in accordance with the State of Colorado Department of Revenue sales tax charts which indicate the total amount of tax to be collected based on the combined State, COUnty and City sales tax rates. Retailers shall add the tax imposed hereby or the average equivalent thereof to the sales price of 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. Section 4. Election and Amendments. 4-1 Before this sales tax ordinance shall become effective it shall receive the approval of a majority of the qualified electors of the city of Aspen at a general election to be held Tuesday, May 5, 1987. 4-2 Upon approval of the electors, the city Clerk on behalf of and in the name of the City Council, is hereby directed to provide notice of the adoption of the sales tax imposed herein to the Executive Director of the Department of Revenue no later than May 14, 1987, and otherwise satisfy the provisions of Section 29- 2-106(4), C.R.S. 4-3 The City Council of the city of Aspen may amend, alter or change this ordinance, except as to the one-half percent (.5%), subsequent to adoption by majority vote of the City Council of the City of Aspen and may repeal said tax if all indebtedness secured thereby is paid or provided for. Such 6 amendment, alteration or change need not be submitted to the electors of the City of Aspen, Colorado, for their approval. Section 5. All revenues from this retail sales tax collected by the city of Aspen in any fiscal year shall be expended by the city Council for the payment of services, facilities, and programs with regard to the establishment of a multi-use recreational facilities and/or nordic trail system, including capital improve- ments and capital expenditures therefor, acquisition of land, payment of indebtedness incurred for such purposes, capital improvements, capital expenditures, or land acquisition, and general operating purposes including recreational programs in connection therewith, reserves and for such expenditures as may be necessary to protect such real property acquired or the capital improvements constructed or purchased from any and all threatened or actual damages, loss, destruction or impairment from any cause or occurrences. Section 6. The tax imposed by this ordinance shall take effect July 1, 1987, and shall apply to all sales of tangible personal property at retail or furnishing of services made on or after that date unless exempt as provided in this ordinance. Section 7. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 8. Nothing in this ordinance shall be construed to affect any right, duty or liability under any ordinances in effect prior to the effective date of this ordinance, and the same shall be continued and concluded under such prior ordinance. Section 9. A public hearing on the ordinance shall be held on the ~" day of , 1987, in the city Council Chambers, Aspen city Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the city Council of the City of Aspen on the day of , 1987. William L. Stirling, Mayor ATTEST: Kathryn S. Koch, City Clerk 8 FINALLY adopted, passed and approved this day of , 1987. William L. Stirling, Mayor ATTEST: Kathryn S. Koch, City Clerk 9