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HomeMy WebLinkAbout2022 Ordinance No. 0321 BY AUTHORITY ORDINANCE NO. 32 COUNCIL BILL NO. 33 SERIES OF 2022 INTRODUCED BY COUNCIL MEMBER WARD AN ORDINANCE AMENDING ENGLEWOOD MUNICIPAL CODE SECTIONS 5-1-5 AND 4-4-1 TO COMPLY WITH COLORADO LAW ON SALES AND USE TAX LICENSE EXEMPTIONS, AND TO REVISE LANGUAGE OF THOSE CODE SECTIONS FOR CONSISTENCY IN STYLE. WHEREAS, the State of Colorado adopted HB 22-032, which amended state-wide law on business licensing to expedite collection of sales/use tax; and WHEREAS, on and after July 1, 2022, by state law, the City of Englewood cannot charge a fee for a business license, sales/use tax license, or other license to make retail sales in Englewood if the retailer has a state standard retail license but lack a permanent physical presence in Englewood; and WHEREAS, on and after July 1, 2023, by state law, the City of Englewood cannot require a separate license application for these retailers (with exceptions only if we have previously revoked a business license); and WHEREAS, the new law only applies to retail sales, and does not apply to occupational or other business license requirements; and WHEREAS, in order to comply with the newly-applicable state law, the City of Englewood Municipal Code must be revised. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. Amendment of Englewood Municipal Code Title 5, Chapter 1, Section 5 of Englewood Municipal Code is hereby amended to read as follows (deleted provisions struck through; new provisions in italics/underline): 5-1-5: - Exemptions. A. Charitable Organizations. The Licensing Officer may waive fees and licenses to charitable organizations. A letter of application for exemption must be filed with, and approved by, the Licensing Officer prior to engaging in business. B. Retail Sales. A license under this Chapter is not required solely to make retail sales by those holding a state standard retail license, if the retailer either does not have a physical presence or only an incidental physical presence within this City, and has not previously had an Englewood business license revoked for failing to comply with license requirements. DocuSign Envelope ID: CC76FFD7-0203-4F5F-82D3-447721DA8DB5 2 Section 2. Amendment of Englewood Municipal Code Title 4, Chapter 4, Section 1 of Englewood Municipal Code is hereby amended to read as follows (deleted provisions struck through; new provisions in italics/underline): 4-4-1: - Administration of Tax and License Requirement. A. The administration of all the provisions of this chapter is hereby vested in the City Manager’s or designee, who shall prescribe forms and reasonable rules and regulations in conformity with this chapter for the making of returns, for the ascertainment, assessment and collection of the taxes imposed hereunder, and for the proper administration and enforcement hereof, a copy of which forms, rules and regulations shall be made available to the public. B. A sales tax license shall be required for Aany person or entity to engage in the business of selling at retail in the City tangible personal property or services within the City that are taxable hereunder which are purchased in the City and are subject to sales tax pursuant to this chapter shall obtain and maintain a current City sales tax license, which license shall be granted and issued by the Director of Finance, or designee, and shall be in force and effect in accordance with the chapter unless suspended or revoked. C. Any person or entity storing, using, or consuming tangible personal property within the City subject to use tax pursuant to this chapter shall obtain and maintain a current City A use tax license may be required for tangible personal property that is stored, used or consumed in the City and is subject to use tax pursuant to this chapter, which license shall be granted and issued by the Director of Finance, or designee, and shall be in force and effect in accordance with the chapter unless suspended or revoked. D. The following shall be exempt from obtaining a sales or use tax license: the provisions of paragraph B: 1. Garage sales held in accordance with E.M.C. §Section 15-16-2; 2. Informal cCommercial enterprises typically associated with children and accruing an with annual income less than five hundred dollars ($500.00), including lemonade stands and snow shoveling; 3. Commercial sales associated with not-for-profit fundraising with all monies collected returned to athe parent organization, including scouting organizations and local school fundraisers; and 4. Retailers holding a state standard retail license that ensures payment of sales and use tax to the City, if the retailer either does not have a physical presence or only an incidental physical presence within the City, and has not previously had a City sales or use tax license revoked for failing to comply with license requirements. E. The Licensing Officer shall determine the Any decisions determining the applicability of an exemption, which this paragraph to any business made by the Director of Finance shall be final and subject to appeal pursuant to E.M.C. § Section 4-4-1-6 below. FE. The Director of Finance may shall be authorized to establish a "de minimis" Sales and Use Tax License, for which shall be an alternative license applicable to commercial entities grossing or DocuSign Envelope ID: CC76FFD7-0203-4F5F-82D3-447721DA8DB5 3 acquiring goods subject to use tax less than thirty thousand dollars ($30,000.00) annually, and/or acquiring less than thirty thousand dollars ($30,000.00) of goods subject to use tax annually. Section 3. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. C. Effect of repeal or modification. The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purposes of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions. D. 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. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. E. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayo r where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. G. Enforcement. To the extent this ordinance establishes a required or prohibited action punishable by law, unless otherwise specifically provided in Englewood Municipal Code or applicable law, violations shall be subject to the General Penalty provisions contained within EMC § 1-4-1. DocuSign Envelope ID: CC76FFD7-0203-4F5F-82D3-447721DA8DB5 4 Introduced, read in full, and passed on first reading on the 27th day of June, 2022. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 30th day of June, 2022. Published as a Bill for an Ordinance on the City’s official website beginning on the 29th day of June, 2022 for thirty (30) days. Read by Title and passed on final reading on the 18th day of July, 2022. Published by Title in the City’s official newspaper as Ordinance No. 32, Series of 2022, on the 21st day of July, 2022. Published by title on the City’s official website beginning on the 20th day of July, 2022 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Othoniel Sierra, Mayor ATTEST: Stephanie Carlile, City Clerk 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. 32, Series of 2022. Stephanie Carlile DocuSign Envelope ID: CC76FFD7-0203-4F5F-82D3-447721DA8DB5