HomeMy WebLinkAbout2019 Ordinance No. 011ORDINANCE NO. ll_
SERIES OF 2019
BY AUTHORITY
COUNCIL BILL NO. 6
INTR ODUCED BY COUNCIL
MEMBER RUSSELL
AN ORDINANCE AMENDING TITLE 4, CHAPTER 4, SECTIONS 2, 4-2,
AND 5-2 OF THE ENGLEWOOD MUNICIPAL CODE 2000, ALL
PERTAINING TO SALES AND USE TAX DEFINITIONS, INCLUDING
MOVING CERTAIN DEFINITIONS INTO THE APPLICABLE
EXEMPTION SECTIONS OF THE CODE.
WHEREAS, the Colorado State Legislature through Senate Joint Resolution 14-038 requested
those home rule municipalities that assess a local Sales/Use Tax adopt a list of standard definitions
in order to reduce the complexity for businesses operating in more than one jurisdiction to comply
with and remit such Sales/Use Taxes;
WHEREAS, the majority of the home rule municipalities that assess a local Sales/Use Tax
have adopted the standard definitions;
WHEREAS, on October 3, 2018 the Alliance for Commerce in Englewood reviewed and
approved the standard definitions for use within the City;
WHEREAS, the adoption of these definitions will not change the City's ability to collect the
locally assessed Sales/Use Tax;
WHEREAS, the City Council of the City of Englewood supports all efforts to reduce
complexities associated with business operations for those business operating within Englewood.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. Amendment of Title 4, Chapter 4, Section 2. Title 4, Chapter 4, Section 2 of
the Englewood Municipal Code shall be amended as follows:
4-4-2: Definitions.
When used in this Chapter, the following words and phrases shall ha ve the following meanings, unless
from the context it clearly appears that a different meaning is indicated:
Access Services: The services furnished by a local exchange company to its customers who provide
telecommunications services which allow them to provide such telecommunications services.
"Agricultural Producer" means a person regularly engaged in the business of using land for the
production of commercial crops or commercial livestock. The term includes farmers market garde ners, commercial fruit growers livestock bree der s, d airymen, poultrymen and other persons similarly engaged but does not include a person who breeds or markets animals birds or fish for domestic pets nor a person who cultivates. grows or harvests plants or plant products exclusively for that person's own consump tion
or casual s ale.
Auction: Any sale where tangible personal property is sold by an auctioneer who is either the agent for
the owner of such property or is in fact the owner thereof.
"Auction" means any sale where tangible personal property is sold by an auctioneer who is either the agent for the owner of such property or is in fact the owner thereof Automotive Vehicle: Any vehicle or device in, upon, or by which any person or property is or may be transported or drawn upon a public highway, or any device used or designed for aviation or flight in the air. Automotive vehicle includes, but is not limited to, motor vehicles, trailers, semi trailers, or mobile homes. Automotive vehicle shall not include devices moved b11 human power or used exclusivel'I upon stationar'I rails or tracks. "Automotive Vehicle" means any vehicle or device in upon or by which any person or property is or may be transported or drawn upon a public highway or any device used or designed for aviation or flight in the air. Automotive Vehicle includes but is not limited to motor vehicles trailers semi-trailers, or mobile homes. Automotive Vehicle shall not include devices moved by human power or used exclusively upon stationary rails or tracks. Business: All activities enqaqed in or caused to be enqaqed in with the object of qain. benefit. or advantage, direct or indirect. "Business" means all activities engaged in or caused to be engaged in with the object of gain benefit or advantage direct or indirect "Candy" means a preparation of sugar honey or other natural or artificial sweeteners in combination with chocolate fruit nuts or other ingredients or flavorings in the form of bars drops, or pieces. Candy does not include any preparation containing flour products that require refrigeration or marijuana infused products "Carrier 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. Charitable Organiz,ation: Any entity which: 1) has been certified as a not for profit organization under Section 501 (C)(3) of the Internal Revenue Code, and 2) is a religious or charitable organization. As used in this definition, a "charitable organization" 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. Charitable Organization" means any entity which· l1) has been certified as a nonprofit organization under Section 50Hc}(3) of the Internal Revenue Code, and (2} is an organization which exclusively and in a manner consistent with existing laws and for the benefit of an indefinite number of persons or animals freely and voluntarily ministers to the physical mental or spiritual needs of persons or animals, and thereby lessens the burden of government. City: The Municipality of the City of Englewood. "City" means the municipality of Englewood. "Coins" means monetized bullion or other forms of money manufactured from gold silver platinum, palladium or other such metals now, in the future or heretofore designated as a medium of exchange under the laws of this State the United States or any foreign nation. "Coin Operated Device" means any device operated by coins or currency or any substitute therefor "Collection Costs" shall include but is not limited to all costs of audit assessment bank fees hearings execution lien filing, distraint, litigation, locksmith fees, auction fees and costs prosecution and attorney fees. "Commercial Packaging Materials" means containers labels and/or cases that become part of the finished product to the purchaser used by or sold to a person engaged in manufacturing, compounding, wholesaling jobbing, retailing packaging, distributing or bottling for sale profit or use and is not returnable to said person for reuse. Commercial Packaging Materials does not include Commercial Shipping Materials. 2
"Commercial Shipping Materials" means materials that do not become part of the finished product to the purchaser which are used exclusively in the shipping process. Commercial Shipping Materials include but are not limited to containers labels pallets banding material and fasteners shipping cases shrink wrap bubble wrap or other forms of binding. padding or protection. "Community Organization" means a nonprofit entity organized and operated exclusively for the promotion of social welfare primarily engaged in promoting the common good and general welfare of the community so long as: (1} No part of the net earnings of which inures to the benefit of any private shareholder or individual· (2} No substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation· and <3} Which does not participate in or intervene in <including the publishing or distributing of statements} any political campaign on behalf of any candidate for public office. "Construction Equipment" means any equipment including mobile machinery and mobile equipment. which is used to erect install alter demolish repair remodel or otherwise make improvements to any real property building structure or infrastructure. Construction Materials: Tangible personal property which, when combined with other tangible personal property, loses its identity to become an integral and inseparable part of a completed structure or project including public and private improvements. Construction materials include, but are not limited to, such things as: asphalt, bricks, builder's hardware, caulking material, cement, concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh, road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs, and other landscaping materials, wall board, 'Nall coping, wall paper, weather stripping, wire netting and screen, water mains and meters, and 'Nood preserver. The above materials, when used for forms, or other items which do not remain as an integral or inseparable part of a completed structure or project are not construction materials. "Construction Materials" means tangible personal property which when combined with other tangible personal property. loses its identity to become an integral and inseparable part of a structure or project including public and private improvements. Construction Materials include but are not limited to. such things as· asphalt. bricks builders' hardware caulking material cement concrete conduit electric wiring and connections fireplace inserts electrical heating and cooling equipment floorinCLqlass gravel insulation lath lead lime lumber macadam millwork mortar oil paint. piping. pipe valves and pipe fittings plaster. plumbing fixtures. putty reinforcing mesh road base roofing. sand. sanitary sewer pipe sheet metal site lighting. steel stone. stucco tile trees shrubs and other landscaping materials wall board, wall coping, wallpaper weather stripping wire netting and screen. water mains and meters and wood preserver. The above materials. when used for forms. or other items which do not remain as an integral and inseparable part of completed structure or project are not construction materials. Consumer: 1) .A.ny individual person or 2) person engaged in business in the City who uses, stores, distributes or otherwise consumes in the City tangible personal property or taxable services purchased from sources inside or outside the City. "Consumer" means any person in the City who purchases uses, stores distributes or otherwise consumes tangible personal property or taxable services purchased from sources inside or outside the ~ "Contract Auditor" means a duly authorized agent designated by the taxing authority and qualified to conduct tax audits on behalf of and pursuant to an agreement with the municipality. "Contractor" means any person who shall build, construct reconstruct alter expand modify or improve any building dwelling. structure infrastructure or other improvement to real property for another party pursuant to an agreement. For purposes of this definition Contractor also includes subcontractor. 3
"Cover Charge" means a charge paid to a club or similar entertainment establishment which may or may not. entitle the patron paying such charge to receive tangible personal property. such as food and/or beverages "Data Processing Equipment" means any equipment or system of equipment used in the storage manipulation management display reception or transmission of information. "Digital Product" means an electronic product including but not limited to-<1} "digital images" which means works that include but are not limited to the following that are generally recognized in the ordinary and usual sense as "photographs" "logos" "cartoons" or "drawings." (2) "digital audio-visual works" which means a series of related images which, when shown in succession,· impart an impression of motion together with accompanying sounds if any (3) "digital audio works" which means works that result from the fixation of a series of musical, spoken or other sounds including ringtones For purposes of the definition of "digital audio works", "ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication, and (4) "digital books" which means works that are generally recognized in the ordinary and usual sense as "books" "Distribution" means the act of distributing any article of tangible personal property for use or consumption, which may include but not be limited to the distribution of advertising gifts shoppers guides catalogs, directories or other property given as prizes premiums or for goodwill or in conjunction with the sales of other commodities or services. Drug Dispensed in Accordance V-lith a Prescription: Drugs dispensed in accordance with any order in writing, dated and signed by a licensed practitioner of the healing arts. or given orally by a practitioner. and immediately reduced to writing by the pharmacist. assistant pharmacist. or pharmacy intern, specifying the name and address of the person for whom the medicine, drug or poison is offered and directions. if any. to be placed on the label. "Dual Residency" means those situations including but not limited to where a person maintains a residence place of business or business presence, both within and outside the City. A person shall be deemed to have established a legitimate residence place of business or business presence outside of the City for purposes of dual residency if the person has a physical structure owned leased or rented by such person which is designated by street number or road location outside of the City has within it a telephone or telephones in the name of such person and conducts business operations on a regular basis at such location in a manner that includes the type of business activities for which the business (person} as defined in this Code is organized. "Dwelling Unit" means a building or any portion of a building designed for occupancy as complete independent living quarters for one <1 l or more persons having direct access from the outside of the building or through a common hall and having living, sleeping kitchen and sanitary facilities for the exclusive use of the occupants. Engaged in Business in the City: Performing or providing services or selling. leasing, renting. delivering or installing tangible personal property for storage. use or consumption within the City. Engaged in business in the City includes. but is not limited to. any one of the following activities by a person. A. Directly. indirectly. or by a subsidiary maintains a building, store. office. salesroom. warehouse. or place of business within the taxing jurisdiction; B. Sends one or more employees. agents or commissioned sales persons into the taxing jurisdiction to solicit business or to install. assemble. repair. service. or assist in the use of its products. or for demonstration or other reasons; C. Maintains one or more employees. agents or commissioned sales persons on duty at a location within the taxing jurisdiction; D. Owns, leases. rents or other.vise exercises control over real or personal property within the taxing jurisdiction; or E Makes more than one deliverv into the taxinq jurisdiction within a twelve (12) month period. 4
"Engaged in Business in the City" means performing or providing services or selling leasing renting delivering or installing tangible personal property for storage use or consumption within the City. Engaged in Business in the City includes but is not limited to. any one of the following activities by a person: (1} Directly indirectly or by a subsidiary maintains a building store office salesroom warehouse. or other place of business within the taxing jurisdiction· (2} Sends one or more employees agents or commissioned sales persons into the taxing jurisdiction to solicit business or to install assemble repair service. or assist in the use of its products or for demonstration or other reasons· (3} Maintains one or more employees agents or commissioned sales persons on duty at a location within the taxing jurisdiction; (4} Owns leases. rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or (5} Makes more than one delivery into the taxing jurisdiction within a twelve month period by any means other than a common carrier. Exempt Commercial Packaging Materials: Containers, labels and shipping cases sold to a person engaged in manufacturing, compounding, wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit, or use that meets all of the following conditions: 1) is used by the manufacturer, compounder, wholesaler, jobber, retailer, packager, distributor or bottler to contain or label the finished product; 2) is transferred by said person along with and as a part of the finished product to the purchaser; and 3) is not returnable to said person for reuse. "Factory Built Housing" means a manufactured home or modular home Farm Ctoseout sate: Full and final disposition of all tangible personal property previously used by a farmer or rancher in farming or ranching operations which are being abandoned. "Farm Closeout Sale" means full and final disposition of all tangible personal property previously used by a farmer or rancher in farming or ranching operations which are being abandoned. "Farm Equipment" means any farm tractor as defined in Section 42-1-102(33} c Rs any implement of husbandry as defined in Section 42-1-102(44} C.R.S. and irrigation equipment having a per unit purchase price of at least one thousand dollars ($1 ooo.om. Farm Equipment also includes regardless of purchase price. attachments and bailing wire. binders twine and surface wrap used primarily and directly in any farm operation. Farm Equipment also includes. regardless of purchase price parts that are used in the repair or maintenance of the Farm Equipment described in this Paragraph. all shipping pallets crates or aids paid for by a farm operation and aircraft designed or adapted to undertake agricultural applications. Farm Equipment also includes regardless of purchase price. dairy equipment. Except for shipping pallets crates or aids used in the transfer or shipping of agricultural products Farm Equipment does not include: (1} Vehicles subject to the registration requirements of Section 42-3-103. C.R. s .. 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; and (4} Tangible personal property used in any activity other than farming such as office equipment and supplies and equipment and supplies used in the sale or distribution of farm products research or transportation. "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: (3} Milk· (4} Honey· and (5} Poultry and eggs. "Finance Director" means the Finance Director of the City of Englewood or such other person designated by the municipality· Finance Director shall also include such person's designee. Food: Food for domestic home consumption as defined in 7 U.S.C. Section 2012(G) as amended, for purposes of the Federal food stamp program as defined in 7 U.S.C. Section 2012(H), as amended, except that "food" does not include: carbonated water marketed in containers, chewing gum, seeds and plants to grow food, prepared salads and salad bars, cold sandwiches, deli trays, and food or drink vended by or through machines or non coin operated coin collecting food and snack devices on behalf of a vendor. "Food For Home Consumption" means food for domestic home consumption as defined in 7 u S C sec. 2012 (k} (2014} as amended for purposes of the supplemental nutrition assistance program. or any successor program as defined in 7 u.s.c sec 2012 <t}. as amended· except that "food" does not include carbonated water marketed in containers· chewing gum; seeds and plants to grow foods: prepared salads 5
and salad bars; packaged and unpackaged 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.
Garage Sale : Includes all sales entitled "garage sale ," "lawn sales ," "attic sale ," "rumm age sale ," or
similar sale of tangible personal property which is advertised to the public at large .
"Garage Sales" means sales of tangible personal property except automotive vehicles occurrinqat
the residence of the seller where the property to be sold was originally purchased for use by membe rs of
the household where such sale is being conducted The term includes but is not limited to yard sales
estate sales and block sales
Gross Saies : The total amount received in money , credit , property or other consideration valued in
money for all sales , leases, or rentals of tangible personal property or services .
"Gross Sales" means the total amount received in money , credit, property or other consideration
valued in money for all sales . leases or rentals of tangible personal property or services .
"Internet Access Services" means services that provide or enable computer access by multiple
users to the Internet but shall not include that portion of packaged or bundled services providing phone or
television cable services when the package or bundle includes the sale of Internet Access Services .
"Internet Subscription Service" means software programs systems data and applications available
online through rental lease or subscription that provide information and services including but not limited
to, data linking. data research data analysis data filtering or record compiling .
License : A City of Englewood sales and use tax license .
"License" means a City of Englewood sales and/or use tax license .
Linen Services: Services involving provision and cleaning of linens , including but not limited to rags ,
uniforms , coveralls and diapers .
"Linen Services" means services involving the provision and cleaning of linens including but not
lim ite d to rags . uniforms coveralls and diapers ,
"Lodging Services" means tl:le furnishing of rooms or accommodations by any person, partnership ,
association , corporation , estate , 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 , inn , bed and breakfast residence , apartment hotel , lodging house , motor hotel ,
guesthouse , guest ranch , trailer coach , mobile home , auto camp , or trailer court and park , short term renta l.
or similar establishment , for a period of less than thirty (30) days under any concession , permit , right of
access , license to use, or other agreement , or otherwise .
"Machinery" means any apparatus consisting of inte rrelated parts used to produce an article of
tangible personal property . The term includes both the basic unit and any adjunct or attachment necessary
for the basic unit to accomplish it s intended function
"Manufactured Home" means any preconstructed building unit or combination of preconstructed
building units without motive power where such unit or units are manufactured in a factory or at a location
other than the residential site of the completed home . which is designed and commonly used for occupancy
by persons for residential purposes . in either temporary or permanent locations . and which unit or units are
not licensed as a vehicle .
"Manufacturing" means the operation or performance of an integrated series of operations which
places a product article substance , commodity or other tangible personal property in a form composition
or character different from that in which it was acquired whether for sale or for use by a manufacturer . The
change in form composition or character must result in a different product having a distinctive name .
character or use from the raw or prepared materials .
"Medical Marijuana" means marijuana acquired possessed cultivated manufactured delivered
transported supplied, sold , or dispensed to a person who qualifies as a patient with a debilitating medical
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condition<s} under Article XVIII Section 14 of the Colorado Constitution and which person holds a valid "registry identification card" issued by the State of Colorado pursuant to Colorado Constitution Article XVIII Section 14. Medical Suppties: Medical supplies, drugs, prosthetic medical and dental appliances, and special beds for patients with neuromuscular or similar debilitating ailments, when sold for the direct, personal use of a specific individual in accordance with a prescription or other written directive issued by a licensed practitioner of medicine, dentistry, or podiatry; corrective eyeglass lenses (including eyeglass frames), and corrective contact lenses, when sold for the direct, personal use of a specific individual in accordance with a prescription or other written directive issued by a licensed practitioner of medicine or optometry; wheelchairs and crutches, 'Nhen sold for the direct, personal use of a specific individual; oxygen and hemodialysis products for use by a medical patient, hearing aids, hearing aid batteries, insulin, insulin measuring and injecting devices, glucose to be used for treatment of insulin reactions, and human whole blood, plasma, blood products and derivatives. This exemption excludes items purchased for use by medical and dental practitioners or medical facilities in providing their services, even though certain of those items may be packaged for single use by individual patients after which the item would be discarded. MobiJe Machinery and SeJf P.ropeUed Construction Equipment: 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. This definition includes but is not limited to wheeled vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches. "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. This definition includes but is not limited to wheeled vehicles commonly used in the construction. maintenance and repair of roadways the drilling of wells and the digginqof ditches. "Modular Home" means any structure that consists of multiple sections fabricated formed or assembled in manufacturing facilities for installation and assembly at the building site. and is constructed to the building codes adopted by the State Division of Housing created in Section 24-32-706 C.R.$. and is designed to be installed on a permanent foundation. "Motor Fuel" means gasoline casing head or natural gasoline benzol benzene and naphtha gasohol and any other liquid prepared advertised. offered for sale sold for use or used or commercially usable in internal combustion engines for the generation of power for the propulsion of motor vehicles upon the public highways The term does not include fuel used for the propulsion or drawing of aircraft or railroad cars or railroad locomotives. Nev;spaper: 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, ne1Nspaper clipping and mailing services or listings, publications that include an updating or revision service, or books or pocket editions of ooGk-&.-"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 7
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 .
"Online Garage Sales" means sales of tangible personal property except automotive vehicles
occurring online where the property to be sold was originally purchased for use by the seller or members
of the seller 's household .
"Parent" means a parent of a student
"Park!!.: Park shall include means any area used as a park , reservation , playground , beach , ballfield ,
shelter house , or any other area owned and used by the City and devoted or designated to active or passive
recreation , either on a temporary or permanent basis .
P-ay Te!ev-ision : Shall include , but not be limited to , cable , microwa'le or other tele'lision service for
which a charge is imposed .
Person : Any indi'lidual , firm , partnership, joint 'lenture , corporation , estate or trust , recei'ler , trustee,
assignee , lessee , or any person acting in a fiduciary or representati'le capacity , whether appointed by court
or otherwise , or any group or combination acting as a unit.
"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.
"Photovoltaic System" means a power system designed to supply usable solar power by means of
photovoltaics . a method of converting solar energy into direct current electricity using semiconducting
materials that create voltage or electric current in a material upon exposure to light. It consists of an
arrangement of several components including solar panels to absorb and convert sunlight into electricity .
a solar inverter to change the electric current from DC to AC . as well as mounting , cabling , metering systems
and other electrical accessories to set up a working system .
"Precious Metal Bullion" means any precious metal including but not limited to gold silver
platinum . 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 .
"Prepress Preparation Material" means all materials used by those in the printing industry including,
but not limited to . airbrush color photos color keys dies engravings light-sensitive film . light-sensitive
paper . masking materials . Mylar plates proofing materials tape transparencies and veloxes which are
used by printers in the preparation of customer specific layouts or in plates used to fill customers' printing
orders which are eventually sold to a customer either in their original purchase form or in an altered form .
and for which a sales or use tax is demonstrably collected from the printer's customer if applicable either
separately from the printed materials or as part of the inclusive price therefor . Materials sold to a printer
which are used by the printer for the printer's own purposes and are not sold either directly or in an altered
form to a customer . are not included within this definition .
Preprinted Newspaper S1:Jpplements : Inserts , attachments or supplements circulated in newspapers
that: 1) are primarily de'loted to advertising ; and 2) the distribution , insertion or attachment of which is
commonly paid for by the ad'lertiser .
"Preprinted Newspaper Supplements" shall mean inserts attachments or supplements circulated
in newspapers that: <1} are primarily devoted to advertising · and (2} the distribution . insertion . or attachment
of which is commonly paid for by the advertiser .
Prescription On:;gs f:or Animals : Drugs dispensed in accordance with any order in writing , dated and
signed by a practitioner , or gi'len orally by a practitioner , specifying the animal for which the medicine or
drug is offered and directions . if any , to be placed on the label.
"Prescription Drugs for Animals" means a drug which prior to being dispensed or delivered is
required by the federal Food . Drug . and Cosmetic Act 21 u.s C. Sect 301 et. seq .• as amended to state
at a minimum the symbol "Rx Only " and is dispensed in accordance with any order in writing dated and
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signed by a licensed veterinarian specifying the animal for which the medicine or drug is offered and directions if any to be placed on the label "Prescription Drugs for Humans" means a drug which prior to being dispensed or delivered is required by the federal Food Drug, and Cosmetic Act 21 U s.c Sect 301 et. seq. as amended to state at a minimum the symbol "Rx Only", and is dispensed in accordance with any written or electronic order dated and signed by a licensed practitioner of the healing arts or given orally by a practitioner and immediately reduced to writing by the pharmacist assistant pharmacist or pharmacy intern specifying the name and any required information of the patient for whom the medicine drug or poison is offered and directions if any to be placed on the label. Price or P1;Jrchase Price: A . , Ef t tax imposed by the Federal government or by The price to the c~n~~mer. exc~~~:~:t:i1~7ie~I~:~olving the exchange of property, also exclusive this Chapter. and. in e case O , h ed at the same time and place of the exchange. of the fair market value of the propertr exc ang i-F. ·1 • 1. Such exchanged property is to be sold thereafter in the usual course of the retai er s business, or . , . " . I d is exchanged for another vehicle and both veh1~les 2. Such ex?hange? pro~ertr is~ ,eh_1c e an ertificatio; under the laws of this State, inclu_dmg, are subject to l1cens1~g, regiStrat~on. or c brc high"'ays off highway recreation vehicles, but not limited to,_ vehicles operating up~= pu I sider;iion paid over and above the value of watercraft. and aircraft. Any money or o er con the exchanaed orooertv is sub1ect to tax B. "Price" or "purchase price" includes: 1. The amount of money received or due in cash and credits. 2. Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business. 3. Any consideration valued in money, such as trading stamps or coupons whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other medium of exchange. 4. 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 the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of the note 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. 5. Installation. delivery and wheeling in charges included in the purchase price and not separately stated. 6. Transportation and other charges to effect delivery of tangible personal property to the purchaser. 7. Indirect Federal manufacturers' excise taxes. such as taxes on automobiles. tires and floor ~ 8. The gross purchase price of articles sold after manufacturing or after having been made to order. including the gross value of all the materials used, labor and service performed and the profit thereon. C. "Price" or "Purchase Price" shall not include: 1. Anv sales or use tax imoosed by the State of Colorado or by any political subdivision thereof. 9
2. The fair market value of property exchanged if such property is to be sold thereafter in the retailers usual course of business. This is not limited to exchanges in Colorado. Out of state trade ins are an allowable adjustment to the purchase price. 3. 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 not an allowable adjustment to the price in reporting gross sales. "Price" or "Purchase Price" means the aggregate value measured in currency paid or delivered or promised to be paid or delivered in consummation of a sale without any discount from the price on account of the cost of materials used labor or service cost and 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 same time and place of the exchange 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. Any money or other consideration paid over and above the value of the exchanged property is subject to tax. Price or Purchase Price includes: (1) The amount of money received or due in cash and credits. (2) Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business. (3) Any consideration valued in money whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other media of exchange ( 4) The total price charged on credit sales including finance charges which are not separately stated at the time of sale. 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 the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of the note is not part of the purchase price An amount charged for insurance on the property sold and separately stated at the time of sale is not part of the purchase price. (5) Installation applying remodeling or repairing the property delivery and wheeling-in charges included in the purchase price and not separately stated (6) Transportation and other charges to effect delivery of tangible personal property to the purchaser. (7) Indirect federal manufacturers' excise taxes. such as taxes on automobiles tires and floor stock. (8) The gross purchase price of articles sold after manufacturing or after having been made to order including the gross value of all the materials used labor and service performed and the profit thereon. Price or Purchase Price shall not include: (1) Any sales or use tax imposed by the State of Colorado or by any political subdivision thereof. (2) The fair market value of property exchanged if such property is to be sold thereafter in the retailers' usual course of business. This is not limited to exchanges in Colorado. Out of state trade-ins are an allowable adjustment to the purchase price (3) Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser and the seller is not reimbursed for the discount 10
by the manufacturer or someone else An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reportinCLgross sales Priv-ate Communications Services: Telecommunications services furnished to a subscriber, which entitles the subscriber to exclusive or priority use of any communication channel or groups of channels, or to the exclusive or priority use of any interstate inter communications systems for the subscriber's stations. "Private Communications Services" means telecommunications services furnished to a subscriber which entitles the subscriber to exclusive or priority use of any communication channel or groups of channels, or to the exclusive or priority use of any interstate intercommunications system for the subscriber's stations. Prosthetic Devices: Any artificial limb, part, device or appliance for human use which aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular individual; and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include but are not limited to prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances, oxygen concentrators and oxygen 'Nith related accessories. "Prosthetic Devices tor Animals" means any artificial limb part device or appliance for animal use which replaces a body part or aids or replaces a bodily function: is designed, manufactured altered or adjusted to fit a particular patient and is prescribed by a licensed veterinarian Prosthetic devices include, but are not limited to prescribed auditory, ophthalmic or ocular cardiac dental or orthopedic devices or appliances and oxygen concentrators with related accessories "Prosthetic Devices for Humans" means any artificial limb part device or appliance for human use which replaces a body part or aids or replaces a bodily function· is designed manufactured altered or adjusted to fit a particular patient and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include but are not limited to, prescribed auditory ophthalmic or ocular cardiac dental or orthopedic devices or appliances and oxygen concentrators with related accessories. Purchase or Sate: A 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. These terms include capital leases, installment and credit sales, and property and services acquired by: 1. Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property; 2. A lease, lease purchase agreement, rental or grant of a license, including royalty agreements, to use tangible personal property or taxable services; 3. Performance of taxable services; or 4. Barter or exchange for other property or services including coupons. B. The terms "purchase" and "sale" do not include. 1. A division of partnership assets among the partners according to their interests in the partnership; 2. 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; 3. The transfer of assets of shareholders in the formation or dissolution of professional corporations; 4. The dissolution and the pro rata distribution of the corporation's assets to its stockholders; 5. A transfer of a oartnershio interest; 11
6. The transfer in a reorganization qualifying under Section 368(A)(1) of the "Internal Revenue Code of 1984 ," as amended: 7. 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· 8. The repossession of personal property by a chattel mortgage holder or foreclosure by a lien ootGeF, 9. The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation. which transfer is solely in exchange for stock or securities of the subsidiary corporation· 10. The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets: 11. The transfer of assets bet\veen parent and closely held subsidiary corporations, or bet\veen subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share by share basis, when a tax imposed by this Chapter was paid by the transferor corporation at the time it acquired such assets, except to the extent that there is an increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. To such an extent that any transfer referred to in this subsection shall constitute a sale. For the purposes of this subsection, a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent (80%) of the total combined voting power of all classes of stock entitled to vote, and owns at least eighty percent (80%) of the total number of shares of all other classes of stock "Purchase" or "Sale" means the acquisition for any consideration by any person of tangible personal property other taxable products or taxable services that are purchased, leased rented or sold These terms include capital leases installment and credit sales and property and services acquired by: (1) Transfer, either conditionally or absolutely of title or possession or both to tangible personal property other taxable products or taxable services· (2) A lease lease-purchase agreement rental or grant of a license including royalty agreements. to use tangible personal property. other taxable products or taxable services· (3) Performance of taxable services: or ( 4) Barter or exchange for other tangible personal property other taxable products or services. The terms Purchase and Sale do not include· (1) A division of partnership assets among the partners according to their interests in the partnership· (2) The transfer of assets of shareholders in the formation or dissolution of professional corporations. if no consideration including but not limited to the assumption of a liability is paid for the transfer of assets· (3) The dissolution and the pro rata distribution of the corporation's assets to its stockholders, if no consideration including but not limited to the assumption of a liability is paid for the transfer of assets: ( 4) A transfer of a partnership or limited liability company interest: 12
(5) The transfer of assets to a commencing or existing partnership or limited liability company . if
no consideration including . but not limited to the assumption of a liability is paid for the transfer
of assets ·
(6) The repossession of personal property by a chattel mortgage holder or foreclosure by a
lien holder ·
"Rail Carrier" means as defined in Section 10102 of Title 49 of the United States Code as of October
10 2013 and as it may be amended hereafter .
"Rail Carrier Part" means any tangible personal property that is originally designed and intended to
be permanently affixed or attached as a component part of a locomotive or rail car used by a rail carrie r.
"Realty-" means land and anything fixed . immovable . or permanently attached to it such as buildings ,
walls , fixtures , improvements , roads . trees , shrubs . fences , sewers , structures , and utility systems .
Recreation So.ol-icos : All services relating to athletic or entertainment participation events including but
not limited to pool , golf . billiards . skating , tennis , bowling , health/athletic club memberships , coin operated
amusement devices , video games and video club memberships .
"Recreation Services" means all services relating to athletic or entertainment participation events
and/or activities including but not limited to poo l. golf . billiards skating tennis . bowling health/athletic club
memberships . co in operated amusement devices video games and video club memberships .
"Renewable Energy" means any energy resource that is naturally regenerated ove r a short time
scale and derived directly from the sun <such as thermal photochemical. and photoelectric} indirectly from
the sun <such as wind . hydropower . and photosynthetic energy stored in biomass) or from other natural
movements and mechanisms of the environment <such as geothermal and tidal energy}. Renewable Energy
does not include energy resources derived from fossil fuels . waste products from foss il sou rces or waste
products from inorganic sources
"Resident" means a person who resides or maintains one or more places of business within the City .
regardless of whether that person also resides or maintains a place of business outside of the City .
Rotai! Salos : All sales except wholesale sales .
"Retail Sales" means all sales except wholesale sales
Rotai.lor: Any person selling , leas ing or renting tangible personal property or services at retail. Retailer
shall include any :
A. Auctioneer ;
B. Salesperson , representative , peddler or canvasser . who makes sales as a direct or indirect agent
of or obtains such property or services sold from a dealer , distributor, supervisor or employer ;
C. Charitable organization or governmental entity which makes sales of tangible personal property
to the public , notwithstanding the fact that the merchandise sold may have been acquired by gift
or donation or that the proceeds are to be used for charitable or governmental purposes .
"Retailer" means any person selling leasing renting or granting a license to use tangible personal
property or services at retail. Retailer shall include . but is not limited to any : O) Auctioneer (2) Salesperson .
representative peddler or canvasser who makes sales as a direct or indirect agent of or obtains such
property or services sold from a dealer distributor supervisor or employer : (3) Charitable organization or
governmental entity which makes sales of tangible personal property to the public notwithstanding the fact
that the merchandise sold may have been acquired by gift or donation or that the proceeds are to be used
for charitable or governmental purposes · (4) Retailer-Contractor when acting in the capacity of a seller of
building supplies construction materials and other tangible personal property .
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"Retailer-Contractor" means a contractor who is also a retailer of building supplies construction materials. or other tangible personal property and purchases manufactures. or fabricates such property for sale <which may include installation} repair work time and materials jobs and/or lump sum contracts. Return: The sales and use tax reporting form used to report sales and use tax. "Return" means any form prescribed by the City of Englewood administration for computing and reporting a total tax liability "Sale that Benefits a Colorado School" means a sale of a commodity or service from which all proceeds of the sale less only the actual cost of the commodity or service to a person or entity as described in this Code are donated to a school or a school-approved student organization. Sates Tax: The tax to be collected and remitted by a retailer on sales taxed under this Code. "Sales Tax" means the tax that is collected or required to be collected and remitted by a retailer on sales taxed under this Cocfo. "School" means a public or nonpublic school for students in kindergarten through 12th grade or any portion thereof Security System Services: Electronic security system services. Such term does not include non electronic security services such as consulting or human or guard dog patrol services. "Security System Services" means electronic alarm and/or monitoring services Such term does not include non-electronic security services such as consulting or human or guard dog patrol services. "Soft Drink" means a nonalcoholic beverage that contains natural or artificial sweeteners. "Soft drink" does not include beverages that contain milk or milk products soy rice or similar milk substitutes or greater than fifty percent of vegetable or fruit juice by volume. "Software Program" means a sequence of instructions that can be measured interpreted and executed by an electronic device (e.g. a computer tablets smart phones} regardless of the means by which it is accessed or the medium of conveyance. Software program includes: <1} Custom software program which is a software program prepared to the special order or specifications of a single customer <2} Pre-written software program which is a software program prepared for sale or license to multiple users and not to the special order or specifications of a single customer. Pre-written software is commonly referred to as "canned." "off-the-shelf ("COTS"}." "mass produced" or "standardized·" <3} Modified software which means pre-written software that is altered or enhanced by someone other than the purchaser to create a program for a particular user; and (4} The generic term "software." "software application" as well as "updates " "upgrades " "patches " "user exits " and any items which add or extend functionality to existing software programs "Software as a Service" means software that is rented leased or subscribed to from a provider and used at the consumer's location including but not limited to applications systems or programs. "Software License Fee" means a fee charged for the right to use access or maintain software programs. "Software Maintenance Agreement" means an agreement typically with a software provider that may include <1} provisions to maintain the right to use the software-(2} provisions for software upgrades including code updates version updates code fix modifications. enhancements. and added or new functional capabilities loaded into existing software or <3} technical support "Solar Thermal Systems" means a system whose primary purpose is to use energy from the sun to produce heat or cold for: <1} Heating or cooling a residential or commercial building: <2} Heating or cooling water or (3} Any industrial commercial or manufacturing process. Sound System Services: Sound system services involving provision of broadcast or pre recorded audio programming to a building or portion thereof. Such term does not include installation of sound systems where the entire system becomes the property of the building owner or the sound system service is for oresentation of live performances. 14
"Sound System Services" means the provision of broadcast or pre-recorded audio programming to a building or portion thereof. Such term does not include installation of sound systems where the entire system becomes the property of the building owner or the sound system service is for presentation of live performances. "Special Fuel" means kerosene oil. kerosene distillate, diesel fuel, all liquefied petroleum gases. and all combustible gases and liquids for use in the generation of power for propulsion of motor vehicles upon the public highways The term does not include fuel used for the propulsion or drawing of aircraft. railroad cars or railroad locomotives "Special Sales Event" means any sales event which includes more than three (3} Vendors taking place at a single location for a limited period of time not to exceed seven (7} consecutive days. "Storage" means any keeping or retention of. or exercise dominion or control over or possession of. for any length of time tangible personal property not while in transit but on a stand still basis for future use when leased rented or purchased at retail from sources either within or without the City from any person or vendor "Student" means any person enrolled in a school Tangible Persona! Property: Corporeal personal property. "Tangible Personal Property" means personal property that can be one or more of the following· seen weighed. measured. felt touched stored transported exchanged or that is in any other manner perceptible to the senses. Tax: The use tax due from a consumer or the sales tax due from a retailer or the sum of both due from a retailer who also consumes. "Tax" means the use tax due from a consumer or the sales tax due from a retailer or the sum of both due from a retailer who also consumes. Tax Deficiency: Any amount of tax that is not reported or not paid on or before the due date. "Tax Deficiency" or "Deficiency" means any amount of tax penalty interest or other fee that is not reported and/or not paid on or before the date that any return or payment of the tax is required under the terms of this Code. Taxable Sales: Gross sales less any exemptions and deductions specified in this Code. "Taxable Sales" means gross sales less any exemptions and deductions specified in this Code Taxable Services: Services subject to tax pursuant to this Chapter. "Taxable Services" means services subject to tax pursuant to this Code Taxpayer: Any person obligated to collect and/or pay tax under the terms of this Code. "Taxpayer" means any person obligated to collect and/or pay tax under the terms of this Code. Telecommunications Services: 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 optic cable. microwave. radio wave or any combinations of such media. "Telecommunications 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 telecommunications service. specialized mobile radio and two way pagers and paging service. including any form of mobile tv;o way communication. "Telecommunication service" does not include separately stated non transmission services which constitute computer processing applications used to act on the information to be transmitted. "Telecommunications Service" means the service of which the object is the transmission of any two-way interactive electronic or 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 Voice over Internet Protocol <VoIP} or any combinations of such media including any form of mobile two-way communication 15
"Television & Entertainment Services" means audio or visual content that can be transmitted electronically by any means for which a charge is imposed Therapeutic Device: Devices, appliances, or related accessories that are sold to correct or treat a h1.Jman physical disability or s1.Jrgically created abnormality; if s1.Jch device, appliance or related accessory has a retail val1.Je of more than one h1.Jndred dollars ($100.00), it m1.Jst be sold in accordance with a written recommendation from a licensed doctor to q1.Jalify as a "therape1.Jtic device" for p1.Jrposes of this Code. "Therapeutic Device" means devices appliances or related accessories that correct or treat a human physical disability or surgically created abnormality. "Toll Free Telecommunications Service" means a Telecommunications Service that allows a caller to dial a number without incurring an additional charge for the call. Tota! Tax Liabi!ity: The total of all tax, penalties or interest owed by a taxpayer and shall incl1.Jde sales tax collected in excess of s1.Jch tax comp1.Jted on total sales. "Total Tax Liability" means the total of all tax penalties and/or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales. Tota! Tax Liabi!ity: The total of all tax, penalties or interest owed by a taxpayer and shall incl1.Jde sales tax collected in excess of s1.Jch tax comp1.Jted on total sales. "Transient I Temporary Sale" means a sale by any person who engages in a temporary business of selling and delivering goods within the city for a period of no more than seven consecutive days. "Transient t Temporary Vendor" means any person who engages in the business of Transient I Temporary Sales. "Use" means the exercise for any length of time by any person within the City of any right power or dominion over tangible personal property or services when rented. leased or purchased at retail from sources either within or without the City from any person or vendor or used in the performance of a contract in the City whether such tangible personal property is owned or not owned by the taxpayer. Use also includes the withdrawal of items from inventory for consumption. Use Tax: The tax to be paid or req1.Jired to be paid by a cons1.Jmer for 1.Jsing, storing, distrib1.Jting or otherwise cons1.Jming tangible personal property or taxable services inside the City. "Use Tax" means the tax paid or required to be paid by a consumer for using storing. distributinq__Q[ otherwise consuming tangible personal property or taxable services inside the City. WATS/800 SePl-ice: Any 01.Jtbo1.Jnd or inbo1.Jnd interstate wide area telecomm1.Jnications service or other similar service which entitles the s1.Jbscriber, 1.Jpon payment of a periodic charge, based 1.Jpon a flat amo1.Jnt and/or 1.Jsage, to make or receive a large vol1.Jme of telephonic comm1.Jnications to or from persons having telephone or radio telephone stations in specified areas which are 01.Jtside the telephone system area in which the s1.Jbscriber's station is located. Wholesale Sates: Sales to licensed retailers, jobbers, dealers or wholesalers for resale. Sales by •Nholesalers to cons1.Jmers are not wholesale sales. Sales by 1Nholesalers to nonlicensed retailers are not wholesale sales. "Wholesale Sales" means a sale by wholesalers to retailers jobbers dealers or other wholesalers for resale and does not include a sale by Wholesalers to users or consumers not for resale: latter types of sales shall be deemed to be Retail Sales and shall be subject to the provisions of this chapter. 'v1lho!esa!er: Any person selling to retailers, jobbers, dealers, or other wholesalers, for resale, and not for storage, 1.Jse cons1.Jmption, or distrib1.Jtion. "Wholesaler" means any person doing an organized wholesale or jobbing business and sellingto Retailers jobbers dealers or other Wholesalers for the purpose of resale. and not for storage use consumption or distribution. 16
Section 2. Amendment of Title 4, Chapter 4, Section 4-3. Title 4 , C hapt er 4 , Section 4-3 of
the E nglewood Municipal Code shall be amended as fo llo ws:
4-4-4-3 : Exemptions to Sales Tax .
A. Exempt Items : The sale of the following classes of tangible personal property are exempt from the tax
imposed by Section 4-4-4-2 :
1. Motor vehicles , trailers and semi-trailers , registered outside of the C ity .
2 . Sales of tangible personal property where both the following conditions exist:
a. The sales are to parties who are residents of, or doing business in , the State of Colorado ,
but outside the City ; and
b. The articles purchased are to be delivered to the purchaser outside the City by common
carrier or by the conveyance of the seller or by mail.
3. Sale of fuel used for the operation of internal combustion engines .
4 . Sale of medicine , medical supplies , orthopedic braces and appliances , dental appliances , hearing
aids , crutches , wheel chairs , eye glasses or other mechanical contrivances when purchased with
a licensed practitioner's written prescription .
Medical supplies drugs prosthetic medical and dental appliances and special beds for patients
with neuromuscular or similar debilitating ailments when sold for the direct personal use of a
specific individual in accordance with a prescription or other w ritten directive issued by a licensed
practitioner of medicine , dentistry , or podiatry-corrective eyeglass lenses (includi ng eyeglass
frames ) and corrective contact lenses when sold for the direct, personal use of a specific
individual in accordance with a prescription or other writte n directive issued by a licensed
practitioner of medicine or optometry · wheelchairs and crutches , when sold for the direct,
personal use of a specific individual : oxygen and hemodialysis products for use by a medical
patient hearing aids hearing aid batteries insulin insulin measurin g and injecting devices
glucose to be used for treatment of insulin reactions and human whole blood , plasma , blood
products and derivatives . This exemption excludes items purchased for use by medical and
dental practitioners or medical facilities in providing their services even though certain of those
items may be packaged for single use by individual patients after which t he item wo uld be
discarded.
5. Sales of food products which are to be consumed off the prem ises of the vendor. As used herein
"food" means food wh ich is advertised or marketed for home consumption and sold in the same
form , condition , quant iti es and packaging as is commonly sold by grocers. The term includes
cereals and cereal products ; milk and milk products ; meat and meat products ; fish and fish
products ; eggs and egg products ; vegetables and vegetable products ; fru it and fruit products ;
sugar, sugar products and sugar substitutes ; coffees and coffee substitutes ; teas , cocoa and
cocoa products; spices , condiments , salt and oleomargarine. The term "food " does not inc lude
chewing gum ; spirituous malt or vinous liquors ; cocktail mixes ; proprietary medicines; nostrums;
lozenges; tonics ; vitamins and other dietary supplements ; water, mineral water and carbonated
water marketed in containers ; ice ; pet foods ; food or drink purchased and used by a business or
commercial entity by serv ing to customers or employees (not resold); food or drink furnished ,
prepared or served for consumption at tables , chairs or counters or from trays ; glasses , dishes or
other tableware provided by the retailer ; prepared food or drink sold by retailers who regularly sell
for consumption on or near the premises of the retailer even though such food or drink is sold on
a "take out" or "to go" order and is bagged , packaged or wrapped and taken from the premises
of the retailer; and food or drink vended by or through machines on behalf of a vendor .
6 . Sales of goods manufactured within the City and sold directly by the manufacturer to a common
carrier operating in interstate commerce as the ultimate consumer thereof.
7. For transactions consummated on or after January 1, 1986 , the C ity's sales tax shall not apply to
the sale of construction and building materials , as the term is used in Section 29-2-109 , C.R.S .,
17
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 , or that such purchaser presents a building
permit or other documentation acceptable to the City evidencing that such purchaser is exempt
from payment of Use Tax pursuant to Section 4-4-5-2.
8. Sales of newspapers and magazines .
9. Sales of tangible personal property at a garage sale as defined herein and not in violation of 15-
16-2 EMC .
1 O. Exempt Commercial Packaqiqg Materials · Containers labels and shipping cases sold to a person
engaged in manufacturing compounding , wholesaling jobbing retailing packaging, distributing
or bottling for sale profit or use that meets all of the following conditions : 1} is used by the
manufacturer, compounde r, wholesaler, jobber retailer packager distributor or bottler to contain
or label the finished product · 2} is transferred by said person along with and as a part of the
finished product to the purchaser and 3} is not returnable to said person for reuse
B. Exempt Taxpayers : Sales to the following classes of taxpayers shall be exempt from the tax imposed
by this Chapter:
1. Sales to the United States government; to the State of Colorado , its departments or institutions
and to the political subdivisions thereof , in their governmental capacity only ; in all sales to the
City ; providing , however, that no commercial, industrial or other banking institution , organized or
chartered by the United States government, any agency or department thereof, or by the State of
Colorado , shall be considered a governmental institution for the purpose of this exemption.
2. Sales to religious , charitable and eleemosynary institutions , in the conduct of their regular
religious , charitable and eleemosynary functions and activities .
3. Nothing herein contained shall be deemed to exempt from the tax levied by this Chapter , sales of
building materials or supplies to be used by a contractor for the construction of an improvement
for any of the institutions or agencies enumerated in subsection B1 or B2 hereof.
4. Persons purchasing tangible personal property at a garage sale as defined herein and not in
violation of 15-16-2 EMC .
C. Burden of Providing Exemptions; Disputes: The burden of proof that any retailer is exempt from
collecting a tax upon any goods sold and paying the same to the City, or from making return for the same ,
shall be on the retailer under such reasonable requirements of proof as the City may prescribe . Should a
dispute arise between any purchaser and seller as to whether or not any retail sale is exempt from taxation
hereunder, the seller shall , nevertheless , collect and the purchaser shall pay such tax ; and the seller shall
thereupon issue to the purchaser a receipt , or certificate , on forms prescribed by the City showing the
names of the seller and purchaser, the items purchased, the date , price , amount of tax paid, and a brief
statement of the claim of exemption . Thereafter the purchaser may apply to the City for a refund of such
taxes and it shall then be the duty of the City to determine the question of exemption . In any case where
the City refunds any taxes, it may collect from the retailer the amount of taxes retained by him/her as a fee
which is attributable to the transaction.
Section 3. Amendment of Title 4, Chapter 4, Section 5-2. Title 4 , Chapter 4 , Section 5-2 of
the Englewood Municipal Code shall be amended as follows :
4-4-5-2 : Exemptions to Use Tax.
A. The tax or excise levied by Section 4-4-5-1 is hereby declared to be supplementary to the tax levied
by Section 4-4-4 hereof, and for this reason , the following transactions shall be exempt therefrom :
1. The storage , use or consumption of personal property , the sale of which is subject to the tax levied
by Section 4-4-4 .
18
2. The storage , use or consumption of any tangible personal property purchased for resale to this
City , either in its original form or as an ingredient of a manufactured or compounded product , in
the regular course of a business .
3. The storage , use or consumption of motor fuel upon which there has accrued , or has been paid ,
the motor fuel tax prescribed by the Colorado Motor Fuel Tax Law of 1933 , or any amendments
thereto . r21
4 . The storage , use or consumption of tangible personal property which was acquired at a time when
the user or consumer thereof was a nonresident of the City; provided its use or consumption is
for the benefit of said user or consumer.
5. The storage , use or consumption of tangible personal property of the United States government,
or the State of Colorado , or its institutions , or its political subdivisions , in their governmental
capacities only ; or by religious , charitable or eleemosynary institutions in the conduct of their
regular religious or charitable functions ; provided , however, that no commercial , industrial or other
banking institutions , organized or chartered by the United States government, any agency or
department thereof, or by the State of Colorado , shall be considered a governmental institution
for the purpose of this exemption .
6. The storage , use or consumption 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 meets all of the following conditions .
a. Is actually and factually transformed by the process of manufacture ;
b. Becomes by the manufacturing process a necessary and recognizable ingredient ,
component or constituent part of the finished product ; and
c. Its physical presence in the finished product is essential to the use thereof in the hands of
the ultimate consumer.
7. All exemptions set forth within Section 4-4-4-3 . Exemptions to Sales Tax .
B. For transactions consummated on or after January 1, 1986 , the City's use tax shall not apply to the
storage , use , or consumption of any article of tangible personal property , the sale or use of which has
already been subjected to a sales or use tax of another statutory or home rule municipality properly
and proportionally imposed on the purchaser or user equal to or in excess of three and one-half percent
(3 .5%). A credit shall be granted against the City's use tax with respect to the person's storage , use or
consumption in the City of tangible personal property , the amount of the credit to equal the tax paid by
him/her by reason of the imposition of a sales or use tax of the previous statutory or home rule
municipality on his/her purchase or use of the property . The amount of the credit shall not exceed three
and one-half percent (3 .5%).
C. For transactions consummated on or after January 1, 1986 , the City's use tax shall not be imposed
with respect to the use or consumption of tangible personal property within the City which occurs more
than three (3) years after the most recent sale of the property if, within the three (3) years following
such sale, the property has been significantly used within the State for the principal purposes for which
it was purchased .
D. Nothing herein contained shall be deemed to exempt from the tax levied by Subsection 4-4-5-3B on
the storage , use or consumption of any tangible personal property to be used by a contractor for the
construction of an improvement for any of the institutions or agencies enumerated in subsection A.5
above , except any tangible personal property to be used by a contractor for construction projects
associated with any capital improvement project of any public school district, for which bond financing
has been approved by majority vote of the applicable electors of such public school district , shall be
deemed exempt. All costs associated with municipal infrastructure projects connected to such school
district construction project(s) will be the responsibility of the public school district, and will be
completed in conformance with City regulations , including but not limited to crosswalks , lighting , curb
and guttering , utilities , and roadway access.
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Section 4. Notice of general provisions and findings applicable to interpretation and
application of this Ordinance:
Applicability of Title 1, Chapter 2, Saving Clause. The provisions ofE.M .C . Title 1, Chapter 2 ,
Saving Clause apply to interpretation and application of this Ordinance , unless otherwise set forth
above, including, but not limited to , the provisions regarding severability , inconsistent ordinances
or code provisions , effect of repeal or modification , and legislation not affected by repeal.
Enforcement. E .M.C. Title 4 , Chapter 4 , Section 20 provides that in addition to or in lieu of any
other penalty or punishment prescribed in that Chapter, the following penalty may also be imposed
for violation of any of the provisions of Title 4 , Chapter 4: a five hundred dollar ($500.00) fine or
one hundred eighty (180) days imprisonment, or both such fine and imprisonment. A separate
offense shall be deemed committed upon each day or portion thereof during or on which any
violation of any of the provisions of Title 4 , Chapter 4 occurs or continues.
Safety Clauses. The City Council hereby finds , determines, and declares that this Ordinance is
promulgated under the general police power of the City of Englewood , that it is promulgated for
the health, safety, and welfare of the public , and that this Ordinance is necessary for the
preservation of health and safety and for the protection of public convenience and welfare . The
City Council further determines that the Ordinance bears a rational relation to the proper legislative
object sought to be obtained .
Introduced, read in full, and passed on first reading on the 19 th day of February , 2019 .
Published by Title as a Bill for an Ordinance in the City 's official newspaper on the 2 pt
day of February, 2019 .
Published as a Bill for an Ordinance on the City 's official website beginning on the 20th
day of February , 2019 for thirty (30) days.
Read by Title and passed on final reading on the 4th day of March , 2019.
Published by Title in the City 's official newspaper as Ordinance No.11, Series of 2019 ,
on the 7th day of March, 2019.
Published by title on the City 's official website beginning on the 3rd day of March, 2019
for thirty (30) days .
This Ordinance shall take effect thirty (30) days after publication following final passage.
Linda Olson , Mayor
ATTEST:
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I, Stephanie Carlile, City Clerk of the City of Englewood , Colorado , hereby certify that the above
and foregoing is a true copy of the Ordinance passed on final reading and published by Title as
Ordinance No.11, Series of 2019.
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