HomeMy WebLinkAbout2013 Ordinance No. 039.,.._,
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ORDINANCE NO. lfl
SERIES OF 2013
BY AUTHORITY
COUNCIL BILL NO . 38
INTRODUCED BY COUNCIL
MEMBER WOODWARD
AN ORDINANCE AMENDING TITLE 4, CHAPTER 4, SECTION 2, OF THE ENGLEWOOD
MUNICIPAL CODE 2000 RELATING TO BUILDING USE TAXES
WHEREAS, the code provisions allowing periodic payments of building use tax has not been
amended since the 1985 code; and
WHEREAS, the Englewood Municipal Code requires a deposit for building use taxes for small
projects and allows larger projects to pay building use taxes on a periodic basis; and
WHEREAS, the current threshold is $200,000 (two hundred thousand dollars) which was
reasonable in 1985 but is low today because most projects easily exceed that amount and so those
projects valued at $200,000 (two hundred thousand dollars) or below should be treated as other
smaller projects; and
WHEREAS, the changes clarify current code language in describing what is subject to the
building use tax; and
WHEREAS, the Director of Finance and Administrative Services met with the Englewood City
Council to discuss this matter at the July 1, 2013 Study Session.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. The City Council of the City of Englewood, Colorado hereby authorizes amending
Title 4, Chapter 4, Section 2, entitled "Definitions" of the Englewood Municipal Code 2000, by
inserting the following terms in alphabetical order, to read as follows:
4-4-2: Definitions.
When used in this Chapter, the following words and phrases shall have the following meanings,
unless from the context it clearly appears that a different meaning is indicated:
Realty: Includes 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.
Section 2. The City Council of the City of Englewood, Colorado hereby authorizes amending
Title 4, Chapter 4, Section 5 Subsection 3, of the Englewood Municipal Code 2000, entitled
Payment and Collection of Use Tax to read as follows:
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4-4-5-3: Payment and Collection of Use Tax.
[EDITORS NOTE: 4-4-5-3(A) contains no changes and is therefore not included here.]
B. Payment and Collection on Specific Items: The following special provision shall apply to the
payment of any use tax due on the use, consumption or storage of the following items:
2. Building and Construction Materials and Supplies : Any person 1.vho does not maintain a
permanent place ofbusiE:ess within the boundaries of the City and who shall build,
construct or improve any building, dwelling or other structure or improvement to realty
whatsoever (including but not limited to structures. and site work such as landscaping.
utility infrastructure, curb/gutter installation. parking lot resurfacing. etc.) within the City
shall, upon application for a building permit for improvement to realty. oay as a deposit
for payment of the tax levied by Section 4-4-5-1 an amount equal to three and one-half
percent (3 .5%) of fifty percent ( 50%) of the estimated cost or total contract price of the
structure improvement or three and one-half (3 .5%) of forty percent ( 40%) of the
estimated cost of the improvement other than to the structure.: provided, hov,re•,rer, that lf
the estimated cost or the total contract price of the improvement to realty is in excess of
tv,ro hundred thousand dollars ($200,000.00) three million dollars ($3.000.000.00) or as
set by City Council Resolution. the City Manager or designee. at his/her discretion and
upon application to it, may authorize a waiver of said deposit and accept the payment of
said tax on a monthly, quarterly or other basis, based upon actual purchases of materials,
supplies and equipment for such tax may be due, subject to such rules and regulations as
the said City may adopt. In all cases where the deposit required by the provisions of this
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Section is made, if it is determined at the time of the completion of the building, •
dwelling or other structure of improvement from the invoices and statements reflecting
the purchase therefor, that the deposit made as herein required, together with the actual
payments to the City as a sales tax, is in excess of the actual tax due therefor, the person
making said deposit or paying said tax may make application to the City for refund of
any amount paid in excess of the actual taxes due, in which event it shall be the duty of
the person making such application to furnish all necessary bills and invoices evidencing
over-payment of the tax, and, if the said City is satisfied that there has been such
overpayment, it shall refund such overpayment to the taxpayer.
Section 3. 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.
Section 4. Severability. If any clause, sentence, paragraph, or part ofthis 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 it application to other persons or circumstances.
Section 5. 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.
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• Section 6. Effect of repeal or modification. The repeal or modification of any provision of
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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.
Section 7. Penalty. The Penalty Provision of Section 1-4-1 EMC shall apply to each and
every violation of this Ordinance.
Introduced, read in full, and passed on first reading on the 5th day of August, 2013.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 9th day of
August, 2013.
Published as a Bill for an Ordinance on the City's official website beginning on the 7th day of
August, 2013 for thirty (30) days.
Read by title and passed on final reading on the 19th day of August, 2013.
Published by title in the City's official newspaper as Ordinance No.f!Z_, Series of 2013, on
the 23 rd day of August, 2013 .
Published by title on the City's official website beginning on the 21 st day of
August, 2013 for thirty (30) days.
This Ordinance shall take effect thirty (30) days after publication following final passage.
Penn, Mayor
I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing i~e copy of the Ordinance passed on final reading and published by
title as Ordinance No .4-, Series of 2013 .
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COUNCIL COMMUNICATION
Date: Agenda Item: Subject:
August 5, 2013 9 a iii A Bill for an Ordinance Making Changes to 4-4-2 of the
Englewood Municipal Code (Building Use Taxes)
Initiated By: Staff Source:
Finance and Administrative Services Department Frank Gryglewicz, Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council discussed this issue with staff at the stud y session on Jul y 1, 2013. Council requested staff
prepare a bill for an ordinance making changes that will clarify language, add a definition for "Real Estate"
in the Code, as well as update language regarding the m inimum amount a project must be to before being
allowed to make payments .
RECOMMENDED ACTION
Staff recommends Council approve the attached bill for an ordinance making changes to 4-4-2 of the
Englewood Municipal Code as noted in the following section .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Generally, a contractor issued a permit for work in the City of Englewood is subject to building use ta x on
half the contract price times 3 .5 percent. Under the current Code, a contractor can make payments if the
project is over $200,000. This amount may have been relevant when the language was written but is far
too low, as even small projects easily exceed $200,000.
Current Code language is vague regarding what is subject to the building use tax. All building materials
used in the "footprint" of the building as well as "site work." Site work includes construction materials but
also landscaping, utility installation, curb and gutter, parking lot materials, etc.
The proposed changes are shown below:
4-4-2: -Definitions.
Realty: Includes 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.
4-4-5-3-8-2 Building/Construction Materials and Supplies: An y person -..•,'ho does not maintain a
permanent place of business within the boundaries of the City and who shall build, construct or
improve an y building, dwelling or other structure or improvement to realty whatsoever (including
but not limited to structures, and site work such as landscaping, utility infrastructure, curb/gutter
installation. parking lot resurfacing. etc.) within the City shall, upon application for a building
permit for improvement to realty, pay as a deposit for payment of the tax levied by Section 4-4-5-1
an amount equal to three and one-half percent {3.5%) of fifty percent (50%} of the estimated cost
or total contract price of the structure improvement or three and one-half percent (3.5%} of forty
percent ( 40%} of the estimated cost of the improvement other than to the structure.; provided,
however, that !f the estimated cost or the total contract price of the improvement to realty is in
excess of two hundred thousand dollars ($200,000.00} three million dollars ($3,000,000.00) or as
set by City Council Resolution. the City Manager or designee, at his/her discretion and upon
applicati on to it, may authorize a waiver of said deposit and accept the payment of said tax on a
monthly, quarterly or other basis, based upon actual purchases of materials, supplies and equipment
for which such tax may be due, subject to such rules and regulations as the said City may adopt. In
all cases where the deposit required by the provisions of this Section is made, if it is determined at
the time of the completion of the building, dwelling or other structure of improvement from the
invoices and statements reflecting the purchase therefor, that the deposit made as herein required,
together with the actual payments to the City as a sales tax, is in excess of the actual tax due
therefor, the person making said deposit or paying said tax may make application to the City for
refund of any amount paid in excess of the actual taxes due, in which event it shall be the duty of
the person making such application to furnish all necessary bills and invoices evidencing over-
payment of the tax, and, if the said City is satisfied that there has been such overpayment, it shall
refund such overpayment to the taxpayer.
FINANCIAL IMPACT
These changes to the Code will better inform contractors of the materials they use that are subject to the
Building Use Tax. Revenues could increase in the future as collection of taxes will be made on all materials
used for a project including the building footprint and any work on the site.
Increasing the amount that a project must exceed before being allowed to go on a payment plan will insure
the City of Englewood collects more Building Use Tax when the building permit is issued instead of
collecting taxes over a period of time.
LIST OF ATTACHMENTS
Proposed bill for an ordinance
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