HomeMy WebLinkAbout2011 Ordinance No. 055ORDINANCE NO.~
SERIES OF 2011
BY AUTHORITY
COUNCIL BILL NO. 64
INTRODUCED BY COUNCIL
MEMBER McCASLIN
AN ORDINANCE AMENDING TITLE 4, CHAPTER 4, SECTIO:-1 4, SIJRSF.CTION 7
PARA GRAPH (C), OF THE ENGLEWOOD MUNICIPAL CODE 2000, WHICH PERTAINS TO
THE EI.IMlNA TION OF THE VENDOR FEE.
WHEREAS, the Englewood City Council authorized the establishment of a vendor fee which
provided a five percent vendor fee 10 cover the vendor's expense in the collection and remittance
of sales tax by the passage of Ordinance No. 32, Series of 1961; and
WHEREAS, the passage of Ordinance No. 32, Series of 1968 reduced the fee from the initial
rate of five percent 10 2.5 percent; and
WHEREAS, the passage of Ordinance No. 27, Series of I 970 reduced the fee to 1.6 percent;
and
WHEREAS , the passage of Ordinance No. 58, Series of 2002 reduced the fee to .5 percent; and
WHEREAS, the passage of Ordinance No . 3S, Series of 2009 reduced the fee to .2S percent;
and
WHEREAS, due to the continuing weak revenue growth, the City lus,; looked for ways to reduce
costs and/or raise revenues without violating the terms of the TABOR amendment; and
WHEREAS , the fee paid to vendors to collect and remit taxes is a method of saving funds badly
needed to support progrQlllS that the citizens of Englewood depend upon uithout placing an undue
burden on the business community: and
WHEREAS , by r::ducing the vendor fee to zero businesses will not withhold the vendor fee
after January I, 2012.
NOW, THEREFORE, BE IT ORDAJNED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, THAT :
~-The City Council of the City of Englewood, Colorado hereby authorizes amending
Title 4, Chapter 4, Section 4, Subsection 7, Porogroph C, of the Englewood Municipal Code 2000, 10
read as follows :
4-4-4-7: Sales Tax Return .
A. Every person required to obtain a sales tax license pursuant 10 the provis ions of Section 4-4-
4-4, shall file a sales tax return, with payment of tax owed, if any, upon the standard
Municipal ,oles and use tox reporting fonn as adopted by the Executive Ditt.ctor of the
Colorado Department of Revenue, not later than the iwentieth day of each month for the
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9bii
preceding calendar month; provided, however, 1ha1 if the accounting methods rell"larly
omplnyed by the licensed rc1niler in lhe 1ra11sactinn orhi,11,er husiness , or olher eondi1ions,
nre such 1ha1 reports of soles made on • calendar monthly bosis will impoae unnecessary
hnrdship, 1he Vircctor may, upon rcques1 of said retailer, accept reports at such intervals as
will , in his/her orininn, hotter .,uit the conve~icnee of the taxpayer, and will not jeopardize
the cnllcctinn of the tax.
B. The returns so filed shall contuin such information as may enable the Director to accurately
dotcrmine the amount of tnx collected by the person !iling ~,e return, but in nil en••• •hull
contain the following infonnmion :
I • The amount of gross taxable •ales made by the retailer during the period for which the
return is filed ;
2. The lotnl sales price of all property returned by the purchaser as a result of a return of
guuus ,uld by the retailer; provided, the original sale was a taxable transaction;
3 . The total fair market value of any property rer.eive.rl by lhc retailer ns • resull of on
exchange of property; provided the property so received is held by the retniler to be sold
or leased to a user or consumer m the regular course of his/her business;
4 . The total omount uf rctoil soles which arc exempt from the true imposed by Section 4-4-4-
2 by reason of the provisions of Section 4-4-4-3;
S TI,o totol amount of soles ma<le on credit, 1he obliuntion for which is not secure<! by a
conditional soles eol\lract , chattel monsase or other 1ccurity instrumclll entitling the
retailer to repossess the item sold, which are found to be wonhless and which may be
<leducted ns bad debts on the retailer's Federal income lax retum.
C. The rctum shall be accompanied by an amount equal lo the sales tax required lo be collected by
the retailer but which, in no case, shall be less than the amount actually collected , nN le,s thRn
three and une-halfpcrccnt (3.5%) of the figure derived by subtracting from the b'l'OSS taxable
sales, as rcOected on the return, the total sales described in subsections B.2 ., 3., 4. ond S. above,
•• rcOectcd on the return, ; pFB' ided, RB"'l"lli IRB Feloiler ""'l dodYet fre,n lhe talol tnr due AR
BIAU\11 I aq11al 1e 8111 q11ofler pe,eelll EB .asq~) eflh• •• , •• IIA ••qai,ed 18 h• •• 11 •• 1.d, mhieh '""l
lie retained hy 1he retailer BIi a fee l'er aelleatiftg eeie 11111. If Ille ,etuR1 er ti•• ta11 remilltlnee ie
Hied lalar lMR 1he I entielh day ef eeeh IR@Rlh er A!i preserihe~ h) •ho AireAIAF, 1ho Ans ftUAftH!'
, ........ 1 !0 .2§"l ••de,'e fee elle 111111 ehall he fe,l'eilod end edded 10 the affteant ef1he
eelieien&)',
D. All other persons shall pay to the Director the nmount of any tox due under the provision• of this
Section 4-4-4-7, not later than fifteen ( I 5) days after the date that said tax becomes due .
~-Safety Clnuscs . The City Council hereby finds, determines, and declares that this
Ordinance 1s promulgated under the general police power of the City of Englewood, that it is
promul11ated for the health, safety, and welfare of the public, and that this Ordinance is necessary
for lhe preservation of heollh 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
prnper legislative object sought to be obtllined .
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~ SeverabjJjly . If any clause, sentence, paragraph, or pan of this Ordinance or the
application thereof 10 any person or circwnstances shall for any reason be lllljudgcd by a court of
competenl jurisdiction invalid, such judgment shall nol afft.ct, impair or invalidate lhe remainder
or this Ordinance or ii application 10 other persons or circwnstanccs.
~-lncoruistcnt Ordjnancgs. All olher Ordinances or ponions !hereof inconsislenl or
conflicting with this Ordinance or any ponion hereof are hereby repealed to the extent of such
inconsistency or conflict.
Section S, E[ecl of n:peal pr modification . The repeal or modifica1ion or any provision of
lhe Code or lite City ofEnglewood by this Ordinance shall not release, extinguish, alter, modify,
or change in whole or in pan any penally, forfeiture, or liabilily, either civil or criminal, which
shall have been incurred under such provision, and each provision shall be treated and held os
still remaining in force for the purposes or sustaining any and all proper actions, suits,
proceedings, and prosccu1ions for the enforcement oftbe penalty, forfeiture, or liability, as w••·
as for the purpose of sustaining any judgmcnl, decree, or order which can or may be rendered,
entered, or made in such actions, suits, proceedings , or prosecutions .
~ ~ The Penalty Provision of Section 1-4• I EMC shall appl)• to each and
every violation of this Ordinance.
Introduced, read in full, and passed on ftrsl reading on lhe 3rd day of October , 2011.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 71h day of
October, 2011.
Published as a Bill for an Ordinance on the City 's officio! website beginning on the 5th day of
October, 201 I for thirty (30) days .
Read by title and passed on final reading on the 17th day of October, 2011.
Published by title in the City's officio! newspaper as Ordinance No.$, Series of201 I, on
the 21st doy of October, 2011.
Published by title on the City's official wchsite hcginning on the 19th day of
October, 201 I for thirty (30) days .
James K . Woodwnrd , Mayor
I, Loucrish ia A. Ellis, City Clerk of' ti,e City of E1111lewuud, Colorado, hereby cenify that the
above and foregoing is !".!Pl• copy or thr. Ordinance passed on final reading nnd published by
title as Ordinance No.~. Series of 2011.
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COUNCIL COMMUNICATION
Date Agenda Item Subject
October 3, 2011 11 a i /\ Bill tor an Ordinance amending 4-4-4-7-C
of the Englewood Municipal Code to
reduce the vendor fee to zero
lnltlateJ By Staff Source
City of Englewood, Finance and Administrative Frank Gryglcwic2, Director
Services Department
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council discussed this issue at the August 1 and August 22, 2011 stud1• sessions. Council
directed staff to prepare the necessary bill for an ordinance reducing the vendor fee to zero
effective January 1, 2012.
RECOMMENDED ACTION
Staff recommends the City Council approve the attached bill for an ordinance reducing the vendor
fee from .25 percent (EMC 4-4-4-7-C) to zero .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIEIJ
The City of Englewood has allowed sales tax license holders ta withhold .25 percent of the taxes
remitted to the City if the taxes are paid in full and on time .
Due to continuing weak revenue growth, City staff has looked for ways to reduce costs and/or ra ise
revenues without violating the terms o : the TABOR amendment. The fee paid to vendors to collect
and remit taxes has been reviewed by staff as a method of saving funds badly needed to support
program> that tin:: citizens of Englewood depend upon without placing an undue burden on the
business community.
The City of Englewood currently has issued approximately l,4UU sales and use tax licenses and
allows these businesses to withhold .25 of the t3Xes remitted. In 2010, this amounted to
approximately $42,000 or $17 .50 per vendor.
F,nance and Administrauve Services Department staff will update the sales and use tax return
documents to reflect this change effective January 1, 2012 .
FINANCIAL IMPACT
This action will provide additional revenue to the City of Englewood of approximately $42,000 in
2012 (as well as future years) that can help fund programs and services prm•ided to the citizens of
Englewood. 1
UST OF ATTACHMENTS
Proposed Bill for an Ordinance