It is the purpose of council, in exercising the home rule powers reserved by the state constitution, that, through this chapter, every person in the city who purchases at retail, leases, consumes, stores, or puts to any use any tangible personal property or taxable services is exercising a taxable privilege. All sales, leases, and purchases of tangible personal property and taxable services defined in this chapter are taxable unless specifically exempted by this chapter. The sales tax imposed upon tangible personal property by this chapter applies to each transfer of ownership, possession, and control of such property and may occur more than once during the life of the property. The sales tax is a transaction levied upon all sales, purchases, and leases of tangible personal property and taxable services sold or leased by persons engaged in business in the city and is collected by the vendor or lessor and remitted to the city. (Ord. 1656 §1, 2001)

There is hereby levied and imposed a tax of four and fifteen one-hundredths percent of the amount of the sale, on the sale or lease of tangible personal property at retail or the furnishing of taxable services, as provided herein at section 3-04-090. (Ord. 1656 §1, 2001)

For the purpose of this chapter, all retail sales are consummated at the place of business of the retailer, unless tangible personal property sold is delivered by the retailer or his or her agent to a destination outside the limits of the city, or to a common carrier for delivery to a destination outside the limits of the city. The gross receipts from such sales shall include delivery charges. If legal title to the property sold is transferred to the purchaser, or his or her agent, prior to delivery to a destination outside the limits of the city, the place of taxation is deemed within the city. (Ord. 1656 §1, 2001)

The city sales tax shall not apply to 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 municipality equal to or in excess of the rate imposed under this chapter. A credit shall be granted against the city’s sales tax with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous municipality. The amount of the credit shall not exceed the rate currently imposed. (Ord. 1656 §1, 2001)

The administration of the provisions of this chapter is vested in the finance director, or designee thereof, who shall prescribe forms and reasonable rules and regulations for the making of returns, for the ascertainment, assessment, and collection of the taxes imposed in this chapter, and for the proper administration and enforcement of this chapter. (Ord. 1656 §1, 2001)

Not less than one-third of the revenues collected based upon a 3.5% tax rate shall be deposited into the city’s sales and use tax capital improvement fund. The balance of the funds received pursuant to this chapter shall be deposited into such fund or funds of the city as the council shall determine in the annual budget or in resolution or ordinance adopted by the council from time to time. (Ord. 1656 §1, 2001)

As used in this chapter, unless the context clearly indicates otherwise, certain words, terms, and phrases are defined as follows:
(A) Access services means the services furnished by a local exchange company to its customers who provide telecommunications services which allow them to provide such telecommunications services.
(B) Agricultural compounds means:
(1) Insecticides, fungicides, growth-regulating chemicals, enhancing compounds, vaccines, and hormones;
(2) Drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock; and
(3) Animal pharmaceuticals that have been approved by the food and drug administration.
(C) Attachments means any equipment or machinery added to an exempt farm tractor or implement of husbandry that aids or enhances the performance of such tractor or implement.
(D) Auction means any sale where tangible personal property is sold by an auctioneer who is either the agent or the owner of such property or is in fact the owner thereof.
(E) Business means all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect.
(F) Charitable organization means any entity which:
(1) Has been certified as a not-for-profit organization under 501(c)(3) of the Internal Revenue Code; and
(2) Is a religious or charitable organization, which is an organization which exclusively, and in a manner consistent with existing laws, and for the benefit of an indefinite number of persons, freely and voluntarily ministers to the physical, mental, or spiritual needs of persons, and which thereby lessens the burdens of government.
(G) Claim for recovery means a claim for reimbursement of sales and use taxes paid to the wrong taxing jurisdiction.
(H) Coins means monetized bullion or other forms of money manufactured from gold, silver, platinum, palladium, or other such metals now, in the future, and heretofore designated as a medium of exchange under the laws of this state, the United States, or any foreign nation.
(I) Cooperative direct mail advertising means advertising for one or more businesses, which is in the form of discount coupons, advertising leaflets, or other printed advertising, which is delivered by mail in a single package or bundle to potential customers of such businesses participating in such advertising.
(J) Direct mail advertising materials means discount coupons, advertising leaflets, and other printed advertising, including, but not limited to, accompanying envelopes and labels.
(K) Doing business in this city means the selling, leasing, or any activity in connection with the selling, leasing, or delivering in the city of tangible personal property by a retail sale as defined in this section, for use, storage, distribution, or consumption within this city. This term includes, but shall not be limited to, the following acts or methods of transacting business;
(1) Maintaining within the city, directly or indirectly or by a subsidiary, of an office, distributing house, salesroom or house, warehouse, mobile vendor, or other place of business;
(2) Maintaining an office for employees, agents, or commissioned sales persons to solicit business or to install, assemble, repair, service, or assist in the use of its products, or for demonstration or other reasons; or
(3) Owning, leasing, renting, or otherwise exercising control over real or personal property within the taxing jurisdiction.
(L) Farm closeout sale means a sale by auction or private treaty of all tangible personal property of a farmer or rancher previously used by him or her in carrying on his or her farming or ranching operations. Unless said farmer or rancher is making or attempting to make full and final disposition of all property used in his or her farming or ranching operations and is abandoning the said operations on the premises whereon those were previously conducted, such sale shall not be deemed a farm close-out sale within the meaning of this chapter.
(M) Farm equipment means farm tractors, as defined in section 42-1-102(33), C.R.S., as amended, implements of husbandry, as defined in section 42-1-102(44), C.R.S., as amended, and irrigation equipment having a per-unit purchase price of at least $1,000.00. Farm equipment also includes, regardless of the purchase price, attachments and bailing wire, binders, twine, and surface wrap used primarily and directly in any farm operation. Farm equipment does not include:
(1) Vehicles subject to the registration requirements of section 42-3-103, C.R.S., as amended, regardless of the purpose for which such vehicles are used;
(2) Machinery, equipment, materials, and supplies used in a manner that is incidental to a farm operation;
(3) Maintenance and janitorial equipment and supplies; or
(4) Tangible personal property used in any activity other than farming, such as office equipment and supplies used in the sale or distribution of farm products, research, or transportation.
(N) Farm operation means the production of any of the following products for profit, including, but not limited to, a business that hires out to produce or harvest such products:
(1) Agricultural, viticultural, fruit, and vegetable products;
(2) Livestock, as defined in section 39-26-102(5.5), C.R.S., as amended;
(3) Milk;
(4) Honey;
(5) Poultry; and
(6) Eggs.
(O) Finance director means the finance director of the city or such person’s designee.
(P) Food means food for domestic home consumption as defined in 7 U.S.C. sec. 2012(g), as amended, for purposes of the federal food stamp program as defined in 7 U.S.C. sec. 2012(h), as amended; except that food does not include carbonated water marketed in containers, chewing gum, seeds and plants to grow foods, prepared salads and salad bars, packaged and unpacked cold sandwiches, deli trays, and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin-operated coin collecting food and snack devices on behalf of a vendor.
(Q) Internet access means the cost of internet connection services provided by an internet service provider (ISP). Internet access does not mean the price paid for goods or services obtained from internet sales companies.
(R) Livestock means cattle, horses, mules, burros, sheep, lambs, poultry, swine, ostrich, llama, alpaca, and goats, regardless of use, and any other animal which is raised primarily for food, fiber, or hide production. Livestock also means alternative livestock as defined under section 35-41.5-102(1), C.R.S., as amended. Livestock shall not mean a pet animal as defined under section 35-80-102(10), C.R.S., as amended.
(S) Long-term lease and rental contracts means the granting of a right to continuous possession or use for more than three years of any article of tangible personal property under a lease or contract.
(T) Manufacturing equipment means machinery or machine tools used directly in manufacturing by a person engaged in manufacturing, compounding for sale, profit or use, any article, substance, or commodity.
(U) Manufacturing sales and purchases by manufacturers means:
(1) Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, compounding for sale, profit, or use, any article, substance, or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded, or furnished, and the container, label, or the furnished shipping case thereof, shall be deemed to be wholesale sales and shall be exempt from taxation.
(2) As used in paragraph (1) above, with regard to food products, tangible personal property enters into the processing of such products and is therefore exempt from taxation when:
a. It is intended that such property become an integral or constituent part of a food product which is intended to be sold ultimately at retail for human consumption; or
b. Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold, skin casing, or other material; is used for the purpose of producing or inducing a chemical or physical change in a food product or is used for the purpose of placing a food product in a more marketable condition; and is directly utilized and consumed, dissipated, or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product which is intended to be sold ultimately at retail for human consumption.
(3) Sales to manufacturers shall be documented as wholesale sales and such documentation shall include a valid resale license from the manufacturer, and the customer’s state and local resale license number prominently located on the invoice.
(V) Medical supplies means drugs dispensed in accordance with a prescription; insulin in all its forms dispensed pursuant to the direction of a licensed physician, glucose useable for treatment of insulin reactions; urine- and blood-testing kits and materials; insulin measuring and injecting devices, including hypodermic syringes and needles; prosthetic devices; wheelchairs and hospital beds; drugs or materials when furnished by a practitioner of the healing arts as part of professional services provided to an individual; and corrective eyeglasses, contact lenses, or hearing aids.
(W) Mobile machinery and self-propelled construction equipment means those vehicles, self-propelled or otherwise, which are not designed primarily for the transportation of persons or cargo over the public highways; and those motor vehicles which may have originally been designed for the transportation of persons or cargo over the public highways, and those motor vehicles which may have originally been designed for the transportation of persons or cargo, but which have been redesigned or modified by the mounting thereon of special equipment or machinery, and which may be only incidentally operated or moved over the public highways; and includes, but is not limited to, wheeled vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, or the digging of ditches.
(X) Motor vehicle means the definition as set forth in section 39-22-516(2.5)(a)(III), C.R.S., as amended.
(Y) Newspaper means a publication, printed on newsprint, intended for general circulation, and published regularly at short intervals, containing information and editorials on current events and news of general interest. The term newspaper does not include magazines, trade publications or journals, credit bulletins, advertising inserts, circulars, directories, maps, racing programs, reprints, newspaper clipping and mailing services or listings, publications that include an updating or revision service, or books or pocket editions of books.
(Z) Occasional sales means retail sales of tangible personal property, including concessions, for fund-raising purposes, if the funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable service, and:
(1) The sale of tangible personal property or concessions by the charitable organization takes place no more than twelve days, whether consecutive or not, during any one calendar year; or
(2) The funds raised by the charitable organization through these sales do not exceed $25,000.00 of gross profit during any one calendar year.
(AA) Parts used for converting means the wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor.
(BB) Person means any individual, firm, partnership, joint venture, corporation, limited liability company, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or representative capacity, whether appointed by court or otherwise, or any group or combination acting as a unit.
(CC) Precious metal bullion means any precious metal, including, but not limited to, gold, silver, platinum, and palladium, that has been put through a process of refining and is in such a state or condition that its value depends upon its precious metal content and not its form.
(DD) Pre-press preparation printing materials means those tangible products converted to use for a specific print job that are subsequently saved but can only be reused for that same print client on rerun. Title to such pre-press preparation printing materials must pass to an independent customer with the sale of the printed materials, and they must be reusable for their original purpose or a similar purpose after the press run. Examples of pre-press preparation printing materials include, but are not limited to, photos, color keys, dies, engravings, light-sensitive film or paper, masking sheets of any material, plates, rotogravure cylinders, and proofing samples of any material. No disposable materials or materials consumed to a significant degree are pre-press preparation printing materials for the purposes of this article. Examples of disposable or consumable materials include, but are not limited to, tape, alcohol, glues, adhesives, washes, silicon solutions, pens, markers, and cleaners.
(EE) Price or purchase price means:
(1) 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 time and place of the exchange, if:
a. Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or
b. 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.
(2) In the case of the sale or transfer of wireless telecommunication equipment, as an inducement to a consumer to enter into or continue a contract for telecommunications services, that are taxable pursuant to section 3-04-020, purchase price means and shall be limited to the monetary amount paid by the consumer and shall not reflect any sales commission or other compensation received by the retailer as a result of the consumer entering into or continuing a contract for such telecommunication services. Nothing in this subparagraph (2) shall be construed to define purchase price as it applies to the amount a retailer collects from a consumer who defaults or terminates a contract for telecommunication services.
(3) Price or purchase price includes:
a. The amount of money received or due in cash and credits;
b. Property at fair market value taken in exchange but not for resale in the usual course of the retailer’s business;
c. Any consideration valued in money, such as trading stamps or coupons whereby the manufacturer or any other person reimburses the retailer for part of the purchase price and other media of exchange;
d. 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 that the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of a note or other written evidence of debt 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;
e. Installation, delivery, and wheeling-in charges included in the purchase price and not separately stated;
f. Transportation and other charges to effect delivery of tangible personal property to the purchaser;
g. Indirect federal manufacturers’ excise taxes, such as taxes on automobiles, tires, and floor stock; and
h. The gross purchase price of articles sold after manufacturing or after having been made to order, including the gross value of all materials used, labor and service performed and the profit thereon.
(4) Price or purchase price shall not include:
a. Any sales or use tax imposed by the state or by any political subdivision thereof;
b. 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 the state. Out-of-state trade-ins are not included in the purchase price;
c. 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 included in the purchase price. This subparagrap does not include manufacturer coupons.
(FF) Residential fuel means all sales and purchases of electricity, coal, wood, gas, fuel, oil, or coke sold, but not for resale, to occupants of residences, whether owned, leased, or rented by said occupants, for the purpose of operating residential fixtures and appliances, which provide light, heat, and power for such residences. For purposes of this subsection, gas includes natural, manufactured, and liquefied petroleum gas.
(GG) Retailer or vendor means a person doing a retail business, known to the trade and public as such, and selling to the user or consumer, and not for resale.
(HH) Retail sale means all sales made within the city except wholesale sales.
(II) Sale or purchase means the acquisition, for any consideration by any person, of tangible personal property or taxable services that are purchased, leased, rented, sold, used, stored, distributed, or consumed, but excludes a bona fide gift of property or services.
(1) The term purchase or sale includes capital leases, installment and credit sales, and property and services acquired by:
a. A transfer, either conditionally or absolutely, of title or possession or both to tangible personal property;
b. A lease, lease-purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property or taxable services;
c. Performance of taxable services; or
d. Barter or exchange for other property or services, including coupons.
(2) The terms purchase and sale do not include:
a. A division of partnership assets among the partners according to their interests in the partnership;
b. The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation’s outstanding stock, except qualifying shares, in proportion to the assets contributed;
c. The transfer of assets of shareholders in the formation or dissolution of professional corporations;
d. The dissolution and the pro rata distribution of the corporation's assets to its stockholders;
e. A transfer of a partnership interest;
f. The transfer in a reorganization qualifying under section 368(a)(1) of the Internal Revenue Code of 1954, as amended;
g. The formation of a partnership by the transfer of assets to the partnership or transfers to a partnership in exchange for proportionate interests in the partnership;
h. The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder;
i. The transfer of assets from a parent corporation to a subsidiary corporation or corporations which is/are owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;
j. The transfer of assets from a subsidiary corporation or corporations, which are owned at least eighty percent by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation of the subsidiary which received the assets;
k. The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders with identical percentages of stock, computed on a share-by-share basis, when a tax imposed by this article was paid by the transfer corporation at the time it acquired such assets; however, any increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation is taxable. For the purposes of this subparagraph, a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent of the total number of shares of all other classes of stock.
(3) Sale or sale and purchase also includes the transaction of furnishing rooms or accommodations by any person, partnership, limited liability company, association, corporation, estate, receiver, trustee, assignee, lessee, or person acting in a representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, under any concession, permit, right of access, license to use, or other agreement, or otherwise.
(4) Except as otherwise provided in this subsection (4), the sales tax is imposed on the full purchase price of articles sold after manufacture or after having been made to order and includes the full purchase price for material used and the service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this chapter. In connection with the transactions referred to in subparagraph (2)(k) of this section, the sales tax is imposed only on the amount of any increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. Except as otherwise provided in this subsection (4), the sales price is the gross value of all materials, labor, and service, and the profit thereon, included in the price charged to the user or consumer.
(JJ) School means an educational institution having a curriculum comparable to grade, grammar, junior high, high school, or college, or any combination thereof, requiring daily attendance, having an enrollment of at least forty students, and charging a tuition fee.
(KK) Short term lease and rental contracts means when right to continuous possession or use for three years or less of any article of tangible personal property is granted under a lease or contract.
(LL) Tangible personal property means corporeal personal property.
(MM) Tax means either the tax payable by the purchaser of a commodity or service subject to tax, or the aggregate amount of taxes due from the vendor of such commodities or services during the period for which he or she is required to report his or her collections, as the context may require.
(NN) Taxpayer means any person obligated to collect and/or pay tax under the terms of this chapter.
(OO) Telecommunication service means the transmission of any two-way interactive electromagnetic communications including but not limited to voice, image, data and any other information, by the use of any means but not limited to wire, cable, fiber optical cable, microwave, radio wave or any combinations of such media. Telecommunication service includes, but is not limited to, basic local exchange telephone service, toll telephone service and teletypewriter service, including but not limited to residential and business service, directory assistance, cellular mobile telephone or telecommunication service, specialized mobile radio and two-way pagers and paging service, including any form of mobile two-way communication. Telecommunications service does not include separately stated non-transmission services, which constitute computer-processing applications used to act on the information to be transmitted.
(PP) Therapeutic devices mean devices, appliances, or related accessories that are sold to correct or treat a human physical disability or surgically created abnormality. If such a device, appliance or related accessory has a retail value of more than $100.00, it must be sold in accordance with a written recommendation from a practitioner of the healing arts to qualify as a therapeutic device for purposes of this chapter.
(QQ) Vendor fee means a credit, as designated by the finance director, to be allowed against the tax due on timely filed sales tax returns. The amount of the credit, and any limitation per return, will be stated on the sales tax return as approved by the finance director.
(RR) Wholesaler means a person doing a regularly organized wholesale or jobbing business, and known to the trade as such and selling to retail merchants, jobbers, dealers, or other wholesalers, for the purpose of resale.
(SS) Wholesale sale means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers not for resale; and the latter sales shall be deemed retail sales, and subject to the provisions of this chapter. This term includes sales of all pre-press preparation printing materials, as defined by subsection (DD) of this section, which are used by a printer for a specific printing contract where the printed product is sold at retail to a customer accepting delivery within this city. Documentation of a wholesale sale shall include a valid resale certificate from the customer, and the customer’s state and local resale license number prominently located on the invoice. (Ord. 1656 §1, 2001)

(A) It shall be unlawful for any person to engage in the business of selling or leasing tangible personal property at retail, or wholesale, within the city without first having obtained a license therefor. Such license shall be granted at no charge and issued by the finance director upon filing of an application in the form prescribed by the finance director. Such license shall be in force until revoked or until termination of the business. A separate license shall be applied for and issued in the name of the person and at the specific address of the applicant. A separate license shall be applied for and issued for each location if more than one location is used by the applicant in the conduct of business of sales at retail.
(B) There shall be no charge for the issuance of a sales tax license, provided that such license is applied for and approved prior to engaging in the business of taxable sales. If a person has been engaged in the business of selling or leasing tangible personal property or taxable services at retail, or wholesale, in the city, without having secured a valid license therefor, and repeated administrative efforts are required to achieve compliance, a fee of $50.00 must be paid prior to the issuance of a valid license, in addition to any other penalties imposed under this chapter or chapter 1-12, B.M.C.
(C) Each license shall be numbered and shall show the name, residence, place, and character of business of the licensee and shall be posted in a conspicuous place at the place of business for which it is issued. No license shall be transferable.
(D) At any time after a license is issued pursuant to this chapter, upon request of the city, the applicant shall supplement such information in writing to make any corrections or include any changes in information. (Ord. 1656 §1, 2001)

There is levied and there shall be collected and paid a tax in the amount stated in section 3-04-020 as follows:
(A) On the purchase price paid or charged upon all sales, leases, and rentals of tangible personal property at retail, unless specifically exempted in section 3-04-100 of this chapter.
(B) In the case of retail sales involving the exchange of property, on the purchase price paid or charged, including the fair market value of the property exchanged at the time and place of the exchange, excluding, however, from the consideration or purchase price, the fair market value of the exchanged property 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.
(3) The exchange of three or more vehicles of the same type by any person in any calendar year in transactions subject to the provisions of this article shall be prima facie evidence that such person is engaged in the business of selling vehicles of the type involved in such transactions and that he or she is thereby subject to any licensing requirements necessary to engage in such activity.
(C) Upon telecommunication services, whether furnished by public or private corporations or enterprises, for all intrastate telecommunications services as defined in subsection 3-04-070(OO) of this chapter.
(D) Upon the amount paid for food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like places of business at which prepared food or drink is regularly sold, including sales from pushcarts, motor vehicles, and other mobile facilities. Cover charges shall be included as part of the amount paid for such food or drink.
(E) Upon the amount paid for food for home consumption unless specifically exempted in section 3-04-100.
(F) On the entire amount charged to any person for rooms or accommodations rented for a period of less than thirty days. Written documentation must be obtained to document the rental period. A check is not considered written documentation for purposes of this section.
(G) On leases, as follows:
(1) Long-term leases are taxable and such leases or contracts shall be considered the sale of such article, and the tax shall be computed and paid by the vendor upon the rental or lease payment; and
(2) Short-term leases are taxable and such leases or contracts shall be considered the sale of such article, and the tax shall be computed and paid either by the vendor, when purchasing items to be leased, or by collecting the tax from the customer through the lease payments.
(H) On gas and electric service, whether furnished by municipal, public, or private corporations or enterprises, for gas and electricity furnished and sold for commercial and residential consumption and not for resale, upon steam when consumed or used by the purchaser and not resold in original form whether furnished or sold by municipal, public, or private corporations or enterprises. (Ord. 1656 §1, 2001)

There shall be exempt from taxation under the provisions of this chapter the following:
(A) All sales to the United States government and to the state, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;
(B) All sales made to charitable organizations, in the conduct of their regular charitable functions and activities;
(C) All sales which the city is prohibited from taxing under the constitution or laws of the United States, the state, or the city’s Charter;
(D) All sales of cigarettes;
(E) All sales made to schools, other than schools held or conducted for private or corporate profit;
(F) All sales of drugs dispensed in accordance with a prescription; all sales of insulin in all its forms dispensed pursuant to the direction of a licensed physician; all sales of glucose useable for treatment of insulin reactions; all sales of urine- and blood-testing kits and materials; all sales of insulin measuring and injecting devices, including hypodermic syringes and needles; all sales of prosthetic devices; all sales of wheelchairs and hospital beds; all sales of drugs or materials when furnished by a doctor as part of professional services provided to a patient; and all sales of corrective eyeglasses, contact lenses, or hearing aids;
(G) When sold in accordance with a written recommendation from a licensed doctor, all sales of therapeutic devices, appliances, or related accessories, with a retail value of more than $100.00, which are sold to correct or treat a human physical disability or surgically created abnormality;
(H) All sales and purchases of commodities and services to any occupant who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court or park who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least thirty consecutive days during the calendar year or preceding year;
(I) The sale of special fuel, as defined in section 39-27-101(6.3), C.R.S., as amended, used for the operation of farm vehicles when such vehicles are being used on farms and ranches;
(J) Any sale of any article, container, or bag to a retailer or vendor of food, meals, or beverages, which article is to be furnished to a consumer or user for use with articles of tangible personal property purchased at retail, if a separate charge is not made for the article to the consumer or user, if such article becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by section 3-04-090;
(K) All sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works owned and used by:
(1) The United States government, the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;
(2) Charitable organizations in the conduct of their regular charitable functions and activities; or
(3) Schools, other than schools held or conducted for private or corporate profit;
(L) Sales and purchases of electricity, coal, gas, fuel oil, steam, coke, or nuclear fuel, for use in processing, manufacturing, mining, refining, irrigation, construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses, and newsprint and printer's ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales and shall be exempt from taxation;
(M) All sales of aircraft used or purchased for use in interstate commerce by a commercial airline;
(N) The sale of tangible personal property that is to be permanently affixed or attached as a component part of an aircraft;
(O) The sale of tangible personal property that is to be affixed or attached as a component part of a locomotive, a freight car, railroad work equipment, or other railroad rolling stock;
(P) All sales of locomotives, freight cars, railroad work equipment, and other railroad rolling stock used or purchased for use in interstate commerce by a railroad company;
(Q) Internet access services;
(R) All sales and purchases of livestock; all sales and purchases of live fish for stocking purposes; and all farm close-out sales, and the storage, use, or consumption of such property;
(S) All sales and purchases of feed for livestock, all sales and purchases of seeds, and all sales and purchases of orchard trees shall be exempt from taxation, and the storage, use, or consumption of such property shall be exempt from taxation;
(T) All sales and purchases of straw and other bedding for use in the care of livestock or poultry; and the storage, use, or consumption of straw and other bedding for use in the care of livestock or poultry;
(U) Forty-eight percent of the purchase price of factory-built housing, as such housing is defined in section 24-32-703(3), C.R.S., as amended, except that the entire purchase price in any subsequent sale of a manufactured home, as such vehicle is defined in section 42-1-102(106)(b), C.R.S., as amended, after such manufactured home has been once subject to the payment of sales tax by virtue of section 39-26-113, C.R.S., as amended;
(V) All sales of food, as defined in 7 U.S.C. sec. 2012 (g), as amended, which is purchased with food stamps. Also see subsection 3-04-070(P) under definitions;
(W) All sales of food, as defined in 42 U.S.C. sec. 1786, as amended, when purchased with funds provided by the special supplemental food program for women, infants, and children, as provided for in 42 U.S.C. sec. 1786, as amended;
(X) All sales and purchases of food, as defined in section 3-04-070(P) by or through vending machines;
(Y) All sales of precious metal bullion and coins;
(Z) All occasional sales by a charitable organization;
(AA) All sales and purchases of tangible personal property by a manufacturer that used such property as a component part of goods that it manufacturers, including, but not limited to, high technology goods, and that donates such goods to the United State government, the state, or any department, institution, or political subdivision thereof; of any organization exempt from federal income taxes pursuant to section 501(c)(3) of the Internal Revenue Code, as amended, to the extent that the aggregate value of the goods included in a single donation exceeds $1,000.00;
(BB) All sales and purchases of farm equipment;
(CC) Any farm equipment under lease or contract, if the fair market value of such equipment is at least $1,000.00 and the equipment is rented or leased for use primarily and directly in any farm operation, provided that the lessor shall obtain a signed affidavit from the lessee or renter affirming that the farm equipment will be used primarily and directly in a farm operation;
(DD) All sales and purchases of agricultural compounds to be consumed by, administered to, or otherwise used in caring for livestock and all sales and purchases of semen for agricultural or ranching purposes;
(EE) All sales of any motor vehicles, power source for any motor vehicles, or parts used for converting the power source for any motor vehicle if the gross vehicle weight rating of the motor vehicle is greater than 10,000 pounds and if the motor vehicle, power source, or parts used for converting the power source are certified by the federal environmental protection agency or any state as provided in the Federal Clean Air Act as meeting an emission standard equal to or more stringent than the low-emitting vehicle emission standard;
(FF) All sales and purchases of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products pursuant to the provisions of the Pesticide Act, article 9 of title 35, C.R.S., as amended, and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S., as amended;
(GG) The taxable amount pursuant to this chapter shall not include the amount of any sales or use tax imposed by article 26 of title 39, C.R.S., as amended;
(HH) The city sales tax shall not apply to the sale of construction and building materials as the term is used in chapter 3-08, 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 documentation acceptable to the city evidencing that a local use tax has been paid or is required to be paid.
(II) Meals provided to employees of the places mentioned in subsection 3-04-090(D) at no charge or at a reduced charge and which are considered as part of their salary, wages, or income. (Ord. 1656 §1, 2001)

(A) No special event, defined as any sales event taking place at a single location for a limited period of time not to exceed three days, which includes three or more vendors, shall occur without the issuance of a special event license to the organizer of the event. The vendors of a special event need not individually obtain a license if a special event license has been issued to the organizer of the special event.
(B) If there is no special event organizer, the vendors at the special event must obtain their own sales tax license and collect and remit the tax to the city pursuant to this chapter.
(C) The organizer shall remit all taxes collected by the vendors who do not have a sales tax license for the event and for all vendors who have a license but who elect to have the organizer remit the tax.
(D) No later than one day prior to the beginning of the event, the special events organizer shall provide the finance director with a list of the names, addresses, and phone numbers of all vendors of the special event, and the same information pertaining to vendors who have obtained their own licenses for the event and are remitting the tax to the city themselves.
(E) Vendors or organizers of a special event must remit the sales tax they collect pursuant to this section and complete a tax return, to be filed on or before the 20th day of the month following the event, on a form provided by the finance director. Only the organizer will be permitted to take the deduction for the vendor fee. (Ord. 1656 §1, 2001)

(A) Retailers shall add the tax imposed, or the average equivalent thereof, to the price, showing such tax as a separate and distinct item. Except as provided in this section, no retailer shall advertise or hold out or state to the public or to any consumer, directly or indirectly, that the sales tax or any part thereof shall be assumed or absorbed by the retailer, or that it will not be added to the price, or if added, that it or any part thereof shall be refunded.
(B) Nothing herein contained shall be deemed to prohibit any retailer selling malt, vinous, or spirituous liquors by the drink from electing to include in his or her purchase price any tax levied under section 3-04-090(D). Once having made the election and having reported his or her decision to the city on such forms as are prescribed by the finance director, he or she must continue to impose and collect the tax in the manner elected unless granted authorization to change by the finance director. Any excess taxes collected are to be remitted to the city in accordance with subsection (D) of this section.
(C) Any tax added to the price by a retailer shall constitute a debt from the purchaser to the retailer until paid and shall be recoverable in the same manner as other debts.
(D) No retailer shall retain any sales tax collected in excess of the tax computed, but shall report such excess collections on the return for the period in which it was collected and include it in the calculation of tax due. (Ord. 1656 §1, 2001)

Whenever an article is sold to a person who thereby is obligated to the vendor on an account, chattel paper, contract right, general intangible, or a writing which supports a right to the payment of a purchase price, or any part thereof, the tax shall be based on the total purchase price and shall become immediately due and payable. No refund or credit shall be allowed to either party to a transaction in case of repossession by the vendor of collateral securing the purchase price or any part of the purchase price. (Ord. 1656 §1, 2001)

If a retailer transfers, sells, assigns, or otherwise disposes of an account receivable, he or she shall be deemed to have received the full balance of the consideration for the original sale and shall be liable for the remittance of the sales tax on the balance of the total sale price not previously reported; except that such transfer, sale, assignment, or other disposition of an account receivable by a retailer to a closely held subsidiary shall not be deemed to require the retailer to pay the sales tax on the credit sale represented by the account transferred prior to the time the customer makes payment on said account. (Ord. 1656 §1, 2001)

Any retailer who sells out his or her business or stock of goods, or quits business, shall be required to make out the return as provided herein, within ten days after the date he or she sold his or her business or stock of goods, or quit business, and his or her successor in business shall be required to withhold sufficient purchase money to cover the amount of said taxes due and unpaid until such time as the former owner produces a receipt from the finance director of the department of revenue showing that the taxes have been paid, or a certificate that no taxes are due. (Ord. 1656 §1, 2001)

(A) Every taxpayer shall file a return, on a city form, whether or not tax is due, and remit any tax due the city on or before the 20th day of the month following the reporting period.
(B) A retailer engaged in business in the city at two or more locations, whether inside or outside the city, who is obligated to collect sales tax, may file one return for all such locations, when accompanied by a supplemental schedule showing the gross sales and net taxable sales for each location.
(C) For good cause shown and upon written request by the taxpayer, approval of which is granted by the finance director, the finance director may extend the time for making a return and paying tax due. (Ord. 1656 §1, 2001)

(A) Unless otherwise approved, each taxpayer shall file a return and pay tax as follows:
(1) A taxpayer whose monthly tax due is $15.00 per month or less may file a return and pay tax annually, quarterly or monthly;
(2) A taxpayer whose monthly tax due is less than $300.00 per month may file returns and pay tax quarterly or monthly; and
(3) A taxpayer whose monthly tax due is $300.00 per month or more shall file returns and pay tax monthly.
(B) The reporting period for a final return shall end on the date of the transfer of ownership of business.
(C) The reporting period for an initial use tax return shall be the calendar month of the date of sale if a business was purchased or the opening day of business if a business is new.
(D) The reporting period for a vendor selling tangible personal property at a special event inside the city, who is not required to obtain a license, shall end on the day the special event concludes.
(E) If the accounting methods employed by the taxpayer, or other conditions, are such that returns made on a calendar month basis will impose unnecessary hardship, the finance director may, upon written request of the taxpayer, accept returns at such intervals as will, in the opinion of the finance director, better suit the convenience of the taxpayer, but not jeopardize the collection of the tax.
(F) If any taxpayer who has been granted permission to file returns and pay tax on other than a monthly basis becomes delinquent, authorization for such alternate method of reporting may be revoked by the finance director. Thereafter following notice of such revocation, the taxpayer shall file returns and pay tax on a monthly basis. (Ord. 1656 §1, 2001)

(A) Timely payment shall be evidenced by the postmark date if mailed; otherwise timely payment shall be evidenced by the finance department validation date.
(B) Any due date, payment date, or deadline for paying tax due, providing information or taking other action, which falls on a Saturday, Sunday, or legal holiday, recognized by either the federal government or the state, shall be extended to the first business day following such weekend or holiday. (Ord. 1656 §1, 2001)

As soon as practicable after a return is filed, the finance director shall examine it. If it appears that the correct amount of tax to be remitted may be greater or less than that shown in the return, the tax shall be recomputed by the finance director. If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the taxpayer. If the amount paid is less than the amount due and any part of the deficiency is due to negligence or intentional disregard of the provisions of this chapter or of authorized rules and regulations of the city with knowledge thereof but without intent to defraud, the amount of the deficiency, together with a penalty of ten percent of the amount of the deficiency plus interest on both the deficiency and the penalty at the rate imposed under section 3-04-330 from the date the return and the tax were due, shall be due and payable by the taxpayer within twenty days after written notice and demand is mailed to the taxpayer by the finance director. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added a penalty of one hundred percent of the deficiency and in such case, the amount of the deficiency, the penalty and interest calculated as stated above shall be due and payable by the taxpayer within twenty days after written notice and demand is mailed to the taxpayer by the finance director and an additional amount of three percent per month on such amount shall be added from the date the return and tax were due until paid. (Ord. 1656 §1, 2001)

It is unlawful for any retailer or vendor to refuse to make any return required to be made in this chapter or to make any false or fraudulent return or false or fraudulent statement on any return, or fail and refuse to make payment to the finance director of any taxes collected or due the city, or in any manner evade the collection and payment of the tax, or any part thereof, or for any person or purchaser to fail or refuse to pay such tax, or evade the payment thereof, or to aid or abet another in any attempt to evade the payment of the tax. (Ord. 1656 §1, 2001)

(A) Except in accordance with judicial order or as otherwise provided by law, the finance director shall not divulge or make known in any way any financial information obtained from any investigation conducted by the finance director or the administrative services department of the city or disclosed in any document, report or return filed under the provisions of this chapter.
(B) The persons charged with the custody of such documents, report, investigation, and returns filed pursuant to this chapter shall not be required to produce any of them or evidence of any matters contained therein in any action or proceeding in any court, except on behalf of the finance director in any action or proceeding under the provisions of this chapter to which the finance director or the city is a party, or on behalf of any party to an action or proceeding under the provisions of this chapter when the report of facts shown thereby is directly involved in such action or proceeding, or pursuant to any judicial order in which event the court may require the production of and may admit in evidence so much of such returns or of the facts shown thereby as are pertinent to the action or proceeding and no more.
(C) No provision of this section shall be construed to prohibit the delivery to a person or a duly authorized representative thereof a copy of any application, report, return, or any other document kept, filed, or maintained in connection with such person's tax liability. Copies of such documents may be certified by the finance director and when so certified shall be evidence equal with the originals and may be received as evidence of their contents.
(D) Nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the contents thereof, nor to prohibit the inspection of any documents by the city attorney or any other legal representatives of the city.
(E) Notwithstanding the provisions of this section, the finance director may furnish to the taxing officials of the state or its political subdivisions, or any other state or its political subdivisions, or the United States any information contained in any application, report, return, or any other document if the recipient jurisdiction agrees with the finance director to grant similar privileges to the city and if such information is to be used by the jurisdiction only for tax-related purposes. (Ord. 1656 §1, 2001)

(A) Retailers engaged in business in the city shall collect and purchasers and consumers shall pay the taxes levied by this chapter, notwithstanding the fact that the retailer, purchaser, or consumer disputes the tax liability or claims an exemption.
(B) If the application of the tax to any transaction is disputed, the retailer shall collect and the purchaser or consumer shall pay the tax, and the taxpayer may thereafter apply to the finance director for a refund of such taxes paid, as provided in this chapter.
(C) For tax returns filed in a timely manner in accordance with this chapter, there shall be allowed in the discretion of the finance director a credit to the vendor in the amount of three percent of the amount due or $200.00, whichever is less. (Ord. 1656 §1, 2001)

All sums of money paid by the purchaser to the retailer as taxes imposed by this chapter shall be and remain public money, the property of the city, in the hands of such retailer, and the retailer shall hold the same in trust for the sole use and benefit of the city until paid to the finance director, and for failure to so pay to the finance director, such retailer shall be subject to such penalties as provided herein. (Ord. 1656 §1, 2001)

It is the duty of every person engaged in business in this city for the transaction of which a license is required by this chapter to keep and preserve suitable records of all sales, purchases and leases made by such person, and such other books or accounts as may be necessary to determine the amount of tax for the collection of which such person is liable under this chapter. It is the duty of every such person to keep and preserve for a period of three years all invoices of goods and merchandise purchased or sold. All such books, invoices, and other records shall be open for examination and audit at any time by the finance director. (Ord. 1656 §1, 2001)

The finance director shall issue a notice of assessment for any total tax liability. Notices of assessment shall be in writing and delivered in person or sent postpaid by first class mail, to the last known address of the taxpayer on file with the finance department. The payment due date for the tax due pursuant to a notice of assessment shall be as stated in the notice of assessment. (Ord. 1656 §1, 2001)

A protest of a notice of assessment and demand for payment issued to a taxpayer for failure to file a return, underpayment of tax owed, or as a result of an audit shall be submitted in writing to the finance director within twenty days from the date the notice of assessment is mailed. Any such protest shall identify the amount of tax disputed and the basis for the protest. Such protest may include a request for a hearing and shall be given under oath of the taxpayer. The protest shall constitute a petition of the taxpayer. (Ord. 1656 §1, 2001)

(A) The finance director shall commence a hearing within ninety days after the city’s receipt of the taxpayer’s written protest; except the finance director may extend such period if the delay is requested by the taxpayer. The finance director shall notify the taxpayer in writing of the time and place of such hearing.
(B) At the hearing the taxpayer may assert any facts, make any arguments, and file any briefs and affidavits, which in the opinion of the taxpayer are pertinent to the protest. This filing of briefs shall not be required.
(C) Based on the evidence presented at the hearing, the finance director shall issue findings of fact, conclusions, and a decision which may modify or abate in full the tax, penalties and interest protested at the hearing, approve a refund, or uphold a notice of assessment.
(D) Unless the decision of the finance director is appealed as provided in this chapter, the remaining tax due, if any, shall be paid on or before thirty days after the date of the findings of fact, conclusions, and decision. (Ord. 1656 §1, 2001)

(A) Subsequent to a hearing as set forth in section 3-04-270, the taxpayer may appeal the final decision of the finance director to the district court of the county. Said appeal shall be in accordance with section 29-2-106.1, C.R.S.
(B) Within fifteen days after filing a notice of appeal as provided in subsection (C) of this section, the taxpayer shall file with the district court a surety bond in twice the amount of the taxes, interest, and other charges stated in the final decision of the finance director that are being contested on appeal. The taxpayer may, at his or her option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a state or national bank or by a state or federal savings and loan association, in accordance with the provision of section 11-35-101(1), C.R.S., equal to twice the amount of the taxes, interest, and other charges stated in the final decision of the finance director. The taxpayer may, at his or her option, deposit the disputed amount with the finance director in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the deficiency contested during the pendency of the action. At the conclusion of the action, after appeal to the supreme court of the court of appeals or after the time for such appeal has expired, the funds deposited shall be, at the direction of the district court, either retained by the finance director and applied against the deficiency or returned in whole or in part to the taxpayer. No claim for refund of amounts deposited with the finance director need be made by the taxpayer in order for such amounts to be repaid in accordance with the direction of the district court.
(C) Any appeal pursuant to section 29-2-106.1, C.R.S., shall, to the extent allowed by law, be filed on the district court of the county upon a verified petition of the taxpayer filed within twenty days after notice of the decision of the finance director in any such matter. (Ord. 1656 §1, 2001)

Refunds of tax paid to a retailer by a purchaser, who claims that the sale is exempt from the tax, may be requested by such purchaser by signing and submitting a claim for refund on or before three years from the date of purchase. (Ord. 1656 §1, 2001)

(A) The burden of proving that any transaction or item is not taxable or is exempt from the tax shall be upon the person asserting such claim under such reasonable requirements of proof as the finance director may prescribe.
(B) An application for a claim of refund of tax shall:
(1) Be made on a claim for refund form furnished by the finance director;
(2) Be signed by the taxpayer; and
(3) Include the original paid invoice or sales receipt or other adequate documentation of the claim.
(C) Upon receipt of an application, the finance director shall examine it and make a determination in writing to the applicant of his or her decision thereon.
(D) No person shall make any false statement in connection with a claim for refund.
(E) The right of any person to a refund under this chapter is not assignable.
(F) An application for a refund must be made by the individual who paid the tax, as shown on the sales receipt or invoice of the sale. (Ord. 1656 §1, 2001)

If any such person obtains any refund unlawfully, the finance director is hereby empowered and directed to bring appropriate action for recovery of such refund. A conviction of a violation of section 3-04-200 shall constitute prima facie evidence that all refunds received by such person pursuant to the application, which contained the false statement, were obtained unlawfully. (Ord. 1656 §1, 2001)

(A) The finance director, or a contract auditor as designated by the finance director, may, at any time within three years of the date the tax was due, for the purpose of ascertaining the correct amount of tax due from any person engaged in business in the city, conduct an audit by examining any relevant books, accounts, and records of such person and by interviewing the taxpayer and the taxpayer’s officers, agents, and employees. Before the expiration of the time permitted for the audit under this subsection (A), the taxpayer and the finance director may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing made before the expiration of the previously agreed time.
(B) The finance director may make, permit, or cause to be made the examination, inspection, and audit of books, accounts, and records of any taxpayer, and the interviews as described in subsection (A) of this section, at a location inside the city limits during regular business hours. If any taxpayer refuses to provide any of the foregoing information when requested, the finance director may issue a subpoena to require that the taxpayer or an agent or employee of the taxpayer attend a hearing and produce any such books, accounts, and records for examination and copying.
(C) When the taxpayer does not make available suitable records, the finance director may determine total tax liability based upon generally accepted accounting principles, expert testimony or any other method deemed reasonable by the finance director.
(D) If a taxpayer provides books, accounts, or records which, in the judgment of the finance director, are so voluminous that excessive and undue time would be required to review and examine each and every record, the finance director may use a test-period or other appropriate sampling technique to determine and compute the total tax liability.
(E) Any charitable entity claiming exemption under the provisions of this chapter is subject to audit in the same manner as any other person engaged in business in the city.
(F) In the sole discretion of the finance director, the city may choose to engage a contract audit firm to perform sales or use tax audits. These audits may be performed for one city or multiple cities in order to create efficiencies in costs to the city or cities. If the person or business fails to allow a single or multiple city audit, upon the initial request to perform such audit, the person or business will be required to pay all fees and expenses for that audit in addition to any audit assessment, penalty or interest due, or the credit due as the result of the audit will be reduced by the amount of the fees and expenses. (Ord. 1656 §1, 2001)

(A) If any person fails, neglects, or refuses to collect tax or to file a return and pay the tax as required by this chapter, the finance director shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the sum of $15.00 for such failure or ten percent thereof, whichever is greater, and interest on such delinquent taxes at the rate imposed under section 3-04-360, plus one-half percent per month from the date when due, not exceeding eighteen percent in the aggregate.
(B) The finance director shall serve upon the delinquent taxpayer written notice of such estimated taxes, penalty, and interest, which notice shall be personally delivered or sent by first class mail directed to the last address of such person on file with the city. Such notice shall constitute a notice of determination, assessment, and demand for payment and shall be due and payable within twenty days from the date the notice is mailed. (Ord. 1656 §1, 2001)

If any taxpayer has failed, neglected or refused to pay the tax imposed by this chapter within the time specified for payment, the finance director may assess the following penalties, in addition to the taxes, penalties, and interest provided for elsewhere in this chapter, the additional amount being imposed to compensate the city for administrative and collection costs incurred in collecting such delinquent taxes:
(A) Upon the first or second issuance of a notice of determination, assessment and demand for payment within twelve months, $15.00 per notice;
(B) Upon the third, fourth, or fifth issuance of a notice of determination, assessment and demand for payment within twelve months, $25.00 or fifteen percent of the delinquent taxes, penalties and interest, whichever is greater, per notice;
(C) Upon the sixth or more issuance of a notice of determination, assessment, and demand for payment within twelve months, $50.00 or thirty percent of the delinquent taxes, penalties and interest, whichever is greater, per notice. (Ord. 1656 §1, 2001)

(A) If the finance director finds that collection of the tax will be jeopardized for any reason, the finance director may declare the taxable period immediately terminated, determine the tax, and issue a notice of determination, assessment, and demand for payment. Notwithstanding the provisions of sections 3-04-160 and 3-04-170, the tax shall then be due and payable immediately, and the finance director may proceed to collect the tax as provided in this chapter.
(B) If the taxpayer subject to a jeopardy assessment provides security for payment of the tax satisfactory to the finance director, the finance director may forego the jeopardy assessment collection proceedings. (Ord. 1656 §1, 2001)

When interest is required or permitted to be charged under any provision of this chapter, the annual rate of interest shall be calculated as follows:
(A) Interest at a rate of one percent per month shall be calculated for each month or portion of a month from the due date that a tax deficiency remains unpaid.
(B) Interest at a rate of one percent per month shall be calculated for each month or portion of a month on the total tax liability from the first installment date when a payment schedule is arranged. (Ord. 1656 §1, 2001)

Taxpayers licensed with the city under this chapter, and holding a similar sales tax license in at least four other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided for herein.
(A) Within fourteen days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the taxpayer may provide to the finance director, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those Colorado municipalities utilizing local collection of their sales tax in which the taxpayer holds a current sales tax license and a declaration that the taxpayer will sign a waiver of any passage-of-time based limitation upon the city's right to recover tax owed by the vendor for the audit period.
(B) Except as provided in subsection (F) of this section, any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of thirty-six months may be audited by the city during the twelve months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.
(C) If the city desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to subsection (B) of this section, the finance director shall so notify the finance officer of the municipality whose notice of audit prompted the taxpayer's request within ten days after receipt of the taxpayer's request for a coordinated audit. The finance director shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of the coordinated audit.
(D) If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by the city, the finance director shall facilitate arrangements between the city and other municipalities participating in the coordinated audit unless and until an official from some other participating municipality agrees to assume this responsibility. The finance director shall cooperate with other participating municipalities to minimize, whenever practicable, the number of auditors that will be present on the taxpayer's premises to conduct the coordinated audit on behalf of the participating municipalities. Information obtained by or on behalf of those municipalities participating in the coordinated audit may be shared only among such participating municipalities.
(E) If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by the city, the finance director shall, once arrangements for the coordinated audit between the city and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities will be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit. The finance director shall also propose a schedule for the coordinated audit.
(F) The coordinated audit procedure set forth in this section shall not apply:
(1) When the proposed audit is a jeopardy audit;
(2) To audits for which a notice of audit was given prior to the effective date of this section;
(3) When a taxpayer refuses to promptly sign a waiver of thirty-six months. (Ord. 1656 §1, 2001)

(A) The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to another municipality in error. It is not intended to reduce or eliminate the responsibilities of the taxpayer or retailer to correctly pay, collect, and remit sales and use taxes to the city.

(B) When it is determined by the finance director that sales and use tax owed to the city has
been reported and paid to another municipality, the city shall promptly notify the retailer that taxes are being improperly collected and remitted, and that as of the date the notice is mailed, the retailer must cease improper tax collections and remittances.

(C) The city may make a written claim for recovery directly to the municipality that received tax and/or penalty and/or interest owed to the city, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or retailer. The decision to make a claim for a recovery lies in the sole discretion of the city. Any claim for recovery shall include a properly executed release of claim from the taxpayer and/or retailer releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the claim and a request that the municipality approve or deny, in whole or in part, the claim within ninety days of its receipt. The municipality to which the city submits a claim for recovery may, for good cause, request an extension of time to investigate the claim, and approval of such extension by the city shall not be unreasonably withheld.

(D) Within ninety days after receipt of a claim for recovery, the other municipality shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received and shall notify the city in writing that the claim is either approved or denied in whole or in part, including the reasons for the decision. If the claim is approved in whole or in part, the municipality shall remit the undisputed amount to the city submitting the claim within thirty days of approval. If a claim is submitted jointly by the city and a retailer or taxpayer, the check shall be made to the parties jointly. Denial of a claim of recovery may only be made for good cause.

(E) The other municipality may deny a claim on the grounds that it has previously paid a claim for recovery arising out of an audit of the taxpayer.

(F) The period subject to a claim for recovery shall be limited to the thirty-six-month period prior to the date the municipality that was wrongly paid the tax receives the claim for recovery. (Ord. 1656 §1, 2001)

In any action affecting the title to real property or the ownership or right to possession of personal property, the city may be made a party defendant for the purpose of obtaining an adjudication or determination of its lien upon the property involved therein. (Ord. 1656 §1, 2001)

The finance director may seek injunctive or other equitable relief in any court of competent jurisdiction to enforce provisions of this chapter. (Ord. 1656 §1, 2001)

The finance director is hereby authorized to waive, for good cause shown, any interest, penalty, or fee imposed under this chapter. (Ord. 1656 §1, 2001)

For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any person, whether licensed under this chapter or not, the finance director may hold investigations, including audits and hearings concerning any matters covered by this chapter, and may examine any relevant books, papers, records or memoranda of any such person and may require the attendance of such person, or any officer or employee of such person, or of any person having knowledge of transactions involved and may take testimony and proof of the information. Audits may be performed by the finance director or referred to a contracted auditor. The finance director shall have the power to administer oaths to such persons. Every hearing before the finance director shall be held in the city. (Ord. 1656 §1, 2001)

(A) The finance director may issue a subpoena to command a person to attend and give testimony and/or to produce books, accounts and records. Any subpoena issued under the terms of this chapter shall be served as set forth in the Colorado Municipal Court Rules of Procedure, including the payment of witness fees. When a witness is subpoenaed by the city, such fees shall be paid by the city. When a witness is subpoenaed at the request of a taxpayer, the finance director shall require that the cost of service of the subpoena and the fee be paid by the taxpayer. The finance director shall require a deposit to cover the costs of the service of subpoena and witness fees. If a subpoena issued by the finance director is duly served and the respondent fails to attend, give testimony or to produce books, accounts and records as commanded, the finance director may apply to, with the assistance of the city attorney, the municipal court of the city for an order enforcing the subpoena. The municipal court shall have jurisdiction to enforce such a subpoena through appropriate proceedings including contempt.

(B) All subpoenas issued under the terms of this chapter may be served by any person over the age of eighteen years. The fees of witnesses for attendance in response to a subpoena shall be the same as the fees of witnesses before the district court, such fees to be paid when the witness is excused from further attendance. When the witness is subpoenaed at the instance of the finance director, such fees shall be paid by the city, but when a witness is subpoenaed at the instance of any other party to such proceeding, the finance director may require that the cost of service of the subpoena and the fee of the witness be borne by the party at whose instance the witness is summoned. In such case, the finance director, in his or her discretion, may require a deposit to cover the cost of such service and witness fees prior to issuing such subpoenas. A subpoena issued as aforesaid shall be served in the same manner as a subpoena issued out of a court of record. (Ord. 1656 §1, 2001)

Any judge of the district court, upon the application of the finance director, may compel the attendance of witnesses, the production of books, papers, records, or memoranda and the giving of testimony before the finance director, by an action for contempt or otherwise in the same manner as the production of evidence may be compelled before such court. (Ord. 1656 §1, 2001)

The finance director, or any party to an investigation or hearing before the finance director, may cause the deposition of witnesses residing within or without the state to be taken in the manner prescribed by law for depositions in civil actions in courts of this state and to that end compel the attendance of witnesses and the production of books, papers, records, or memoranda. (Ord. 1656 §1, 2001)

Unless otherwise provided by the chapter, written notices required to be mailed, served, or given to any taxpayer under the provisions of this chapter shall be hand-delivered or mailed, postage prepaid, addressed to such taxpayer at the last known address of the taxpayer on file with the city and shall be deemed to have been received by the taxpayer when so mailed or delivered. (Ord. 1656 §1, 2001)

(A) It shall be unlawful for any retailer to fail to collect or for any purchaser or consumer to fail to pay any tax, penalty, or interest levied by this chapter, regardless of whether the tax liability is disputed or an exemption is claimed.

(B) It shall be unlawful for any retailer to retain any tax collected in excess of the rate stated in section 3-04-020 or to fail to remit punctually to the finance director the full amount required by the provisions of this chapter, including taxes, penalties, and interest.

(C) It shall be unlawful for any person to fail or refuse to make or file any return required to be made or filed by this chapter or to make any false or fraudulent return or any false or fraudulent statement in any return.

(D) It shall be unlawful for any person to do business without the license required by this chapter or to continue to do business after such license is revoked.

(E) It shall be unlawful for any applicant for a tax refund to make a false statement in connection with such application.

(F) Except as may be otherwise provided for by rule or regulation of the finance director or the department of revenue for the state, it is unlawful for any person who is a resident of the city to register any motor vehicle owned by such person or to obtain a license or to procure a certificate of title at any address other than:

(1) For a motor vehicle which is owned by a business and operated primarily for business purposes, the address from which such vehicle is principally operated and maintained; or

(2) For any motor vehicle for which the provisions of subparagraph (1) above do not apply, the address of the owner's residence; except that, if a motor vehicle is permanently operated and maintained at an address other than the address of the owner's residence, such motor vehicle shall be registered at the address from which such motor vehicle is permanently operated and maintained.
(3) For purposes of this subsection, a person's residence shall be his or her principal or primary home or place of abode, to be determined in the same manner as residency for voter registration purposes as provided in sections 1-2-102 and 31-10-201, C.R.S., except that “voter registration” shall be substituted for “motor vehicle registration” as a circumstance to be taken into account in determining such principal or primary home or place of abode.

(A) The sales tax imposed by this chapter, together with all penalties, and interest pertaining thereto and the costs of collection which may be incurred, shall remain until paid a first and prior lien superior to all other liens upon the goods, merchandise, furniture, stock-in-trade, business fixtures, tools, and equipment in which the taxpayer has an ownership interest, and shall take precedence on all such property over other liens or claims of whatsoever kind or nature and may be foreclosed by seizing under distraint warrant and selling so much of said goods, merchandise, furniture, stock-in-trade, business fixtures, tools, and equipment as may be necessary to discharge said lien.
(B) If any tax due is not paid by the payment date of a notice of assessment, the finance director may issue a notice of lien on the real and personal property of the taxpayer. Such lien shall specify the name of the taxpayer, the tax due, the date of the accrual thereof, and the location of the property if known, and shall be certified by the finance director.
(C) The notice of lien may be filed in the office of the clerk and recorder of any county in the state. Such filing shall provide additional notice of such a lien.
(D) The attachment and priority of such lien shall be as follows:
(1) Such lien shall be a first and prior lien upon the goods, merchandise, furniture, stock-in-trade, business fixtures, tools, and equipment owned or used by any taxpayer, including those used under lease, installment sale, or other contract agreement, and shall take precedence on all such property over all other liens or claims of whatsoever kind or nature.
(2) Such lien on the real and tangible personal property of the taxpayer that is not goods, merchandise, furniture, stock-in-trade, business fixtures, tools, and equipment goods shall be a first and prior lien except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser, whose rights have attached and been perfected prior to the filing of the notice of lien.
(3) The personal property of an owner who has made a bona fide lease to a taxpayer shall be exempt from the lien created in this subsection if such property can reasonably be identified from the lease description and if the lessee is given no right to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease if the lease is recorded with the county clerk and recorder of the county where the property is located or based.
(4) Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from such lien except that such lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee.
(5) Where a lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this section.
(E) If a notice of lien is filed against real property, the finance director may request the city attorney to file a civil action to enforce such lien. The court may determine the interest in the property of each party, decree a sale of the real property, and distribute the proceeds according to such findings. Procedure for the action and the manner of sale, the period for and manner of redemption from the sale and the execution of deed of conveyance shall be in accordance with the law and practice relating to foreclosures of mortgages upon real property. In any such action, the court may appoint a receiver of the real property involved in such action if equity so requires. (Ord. 1656 §1, 2001)

(A) Any lien for tax due shall continue until a release of lien is filed by the finance director.
(B) Any person who purchases or repossesses real or personal property upon which a lien has been filed by the finance director for tax due shall be liable for the payment of such tax due up to the value of the property taken or acquired. (Ord. 1656 §1, 2001)

Upon payment of the tax, penalties, and interest due or enforcement of the lien, the finance director shall file a release of lien with the county clerk and recorder of the county in which the lien was filed. (Ord. 1656 §1, 2001)

(A) Any unpaid tax, penalties, and interest due shall constitute a debt of the taxpayer to the city and the finance director may request the city attorney to file a civil action to collect such tax, penalty, and interest due.
(B) The return filed by a taxpayer or the notice of assessment issued by the finance director shall be prima facie proof of the tax due.
(C) If a judgment is obtained by the city, collection of the tax due may be made by attachment, garnishment, or other means established by law. When attachment is sought, no bond shall be required of the finance director, nor shall any sheriff require from the finance director an indemnity bond for executing the writ of attachment or writ of execution upon any judgment. (Ord. 1656 §1, 2001)

(A) Unless such property is exempt by state statute from distraint and sale, the finance director may sign and issue a warrant directed to any employee or agent of the city, or any sheriff of any county in the state, commanding the distraint and sale of personal property of the taxpayer on which a lien has attached for a payment of tax due.
(1) Such warrant may be issued if the tax due is not paid on or before twenty-one days from the payment date of a notice of assessment and no protest of such assessment has been timely filed.
(2) Such warrant may be issued immediately if a jeopardy assessment and demand for payment has been issued.
(B) If the taxpayer does not volunteer entry to the premises, the finance director may apply to the municipal court or county court for a warrant authorizing any employee or agent of the city to search for and distrain property located inside the city to enforce the collection of tax due.
(1) The finance director shall demonstrate to the court that the premises to which entry is sought contains property that is subject to distraint and sale for tax due.
(2) If a jeopardy assessment and demand for payment has been issued, the finance director shall specify to the court why collection of the tax will be jeopardized.
(3) The procedures to be followed in issuing and executing a warrant pursuant to this subsection shall comply with rule 241 of the Colorado Municipal Court Rules of Procedure or the Colorado Rules of County Court Procedure, as applicable.
(C) Disposal of distrained property shall be in accordance with the following:
(1) A signed inventory of the property distrained shall be made by the city or its agent. Prior to the sale the owner or possessor shall be served with a copy of such inventory, a notice of the sum of the tax, penalties, and interest due and related expenses incurred to date, the time and place of sale.
(2) A notice of the time and place of the sale together with a description of the property to be sold, shall be published in a newspaper of general circulation within the county where distraint is made or, in lieu thereof and in the discretion of the finance director, notice shall be posted at the courthouse of the county where distraint is made, and in at least two other places within such county.
(3) The time fixed for the sale shall not be less than ten days or more than sixty days from the date of distraint. The sale may be postponed by the city or agent for not more than ninety days from the date originally fixed for the sale.
(4) If the property is not sold, such property may be disposed of in the same manner as other city property, such as an annual auction, and the lien thereon shall be reduced by the amount of the net proceeds received.
(5) The property may be offered first by bulk bid, then subsequently for bid singularly or by lots, and the city or its agent may accept the higher bid.
(6) The property offered for sale may be redeemed if the owner or possessor or other person holding a security interest pays the total tax liability and all collection costs not less than twenty-four hours before the sale.
(7) The finance director shall issue to each purchaser a certificate of sale which shall be prima facie evidence of its right to make the sale and transfer to the purchaser all right, title, and interest of the taxpayer in and to the property sold.
a. When the property sold consists of certificates of stock, the certificate of sale shall be notice to any corporation, company, or association to record the transfer on its books and records.
b. When the property sold consists of securities or other evidences of debt, the certificate of sale shall be good and valid evidence of title.
(8) Any surplus remaining after satisfaction of the taxes, penalties, and interest due, plus any costs of making the distraint and advertising the sale, may be distributed by the city first to the jurisdictions which have filed liens or claims of sales and use or personal property ad valorem taxes, and second to the owner, or such other person having a legal right thereto.
(D) Property of the taxpayer subject to distraint shall include the personal property of the taxpayer and the personal property of corporate officers deemed to be in a fiduciary position of such sales tax, and the goods, stock in trade, and business fixtures owned or used by any taxpayer, including those used under lease, installment sale, or other contract arrangement.
(E) The taxpayer or any person who claims an ownership interest or right of possession in the distrained property may petition the finance director, or the municipal court if the property was seized pursuant to a warrant issued by the court, for the return of the property.
(1) The grounds for return of the property shall be that the person has a perfected interest in such property which is superior to the city’s interest or that the property is exempt from the city’s lien.
(2) The fact finder shall receive evidence on any issue of fact necessary to the decision of the petition. If the fact finder determines by a preponderance of the evidence in favor of the taxpayer or other petitioner, the property shall be returned. (Ord. 1656 §1, 2001)

Whenever the business or property of any taxpayer is subject to receivership, bankruptcy, or assignment for the benefit of creditors, or is under distraint for property taxes, total tax liability shall be a prior and preferred lien against all the property of the taxpayer. No sheriff, receiver, assignee, or other officer shall sell the property of any such taxpayer under process or order of any court, without first ascertaining from the finance director the amount of the total tax liability payable under this chapter. Such officer shall pay any total tax liability to the city before making payment to any judgment creditor or other claimants. (Ord. 1656 §1, 2001)

(A) The distributee of a decedent's estate, a trust estate, or fund, and the stockholder of any dissolved corporation who receives any of the property of such decedent's estate, trust estate, fund, or corporation is liable under this chapter to the same extent that the decedent, trust estate, fund, or corporation is liable under this chapter.
(B) If a tax under this chapter is due from a decedent or the decedent's estate, personal liability of the persons set forth in this section remains in effect only if a determination of the tax due is made and notice and demand therefor issues within eighteen months after the decedent's personal representative files with the finance director a written request for such determination, filed after he or she has filed the decedent's final return or the decedent's estate's return to which the request applies. A request for determination under this subsection does not extend the otherwise applicable period of limitation.
(C) If a tax under this chapter is due from a corporation that is in the process of dissolution or has been dissolved, personal liability of directors or stockholders as provided in this section remains in effect only if a determination of the tax due is made and notice and demand issues within eighteen months after the corporation files with the finance director a written request for such determination, filed after it has filed the corporation's return, but only if the request states that the dissolution was begun in good faith before the expiration of the eighteen-month period and the dissolution is completed. A request for determination under this subsection does not extend the otherwise applicable period of limitation. (Ord. 1656 §1, 2001)

(A) Except as otherwise provided in this section or state statute, the taxes for any period together with interest thereon and penalties with respect thereto imposed by this chapter shall not be assessed, nor shall any notice of lien be filed, distraint warrant be issued, bond be collected upon, suit for collection be instituted, or any other action to collect the same be commenced, more than three years after the date on which the tax was or is payable. In addition, no lien shall continue after such period, except for taxes assessed before the expiration of such period, when a notice of lien regarding such taxes was filed prior to the expiration of such period, in which case the lien shall continue for only one year after the filing of notice thereof.
(B) In the case of a false or fraudulent return filed with intent to evade the tax and in the case of failure to file a return, the tax, together with interest and penalties, may be assessed or proceedings for the collection of such taxes may be begun at any time.
(C) Before the expiration of such period of limitation, the taxpayer and the finance director may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing made before the expiration of the previously agreed upon time.
(D) Nothing in this section shall be construed to limit any right accrued or to revive any liability barred by any statute in effect on the effective date of the ordinance from which this chapter was derived. (Ord. 1656 §1, 2001)