HomeMy WebLinkAbout2009 Ordinance No. 035•
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ORDINANCE NO . JS
SERIES OF 2009 --
BY AUTHOR ITY
COUNCIL BILL NO . 36
INTRODUCED BY CO UN CIL
MEMBER WILSON
AN ORDINANCE AMENDING TITLE 4, CHAPT ER 4, SECTION 4, SUBSECTION 7(C), OF
THE ENGLEWOOD MUNI CIPAL CO DE 2000, PERTAfrllNG TO RET AiLER AND
VENDOR FEES FOR SALES TA)(. LICENSES .
WHEREAS, the Englewood City Council authorized th e estab lishment of a vendor fee which
provided a five percen t venoor fee to cover the vendor's expense in the co ll ec tion and remittance
of sa les tax by the passage of Ordinance No. 32, Series of 1961; and
WHEREAS, the passage of Ordinan ce No . 32 , Series of 1968 reduced th e fee from the initial
rate of five percent to 2.5 perce nt ; and
WHEREAS, the passage of Ordinance No. 27, Series of 1970 reduced the fee to 1.6 percent ;
and
WHEREAS, the pa ssage of Ordinance No . 58, Series of 2002 reduced the fee to .5 percent ; and
WHEREAS , the passage of this Ordinance will reduce the Vendor fee from .5 to .25 percent in
order to preserve City funds that can be used to maintain staffing and provide necessary services to
the community ;
NOW , THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO, AS FOLLOWS :
Secti on I. The Cit y Council of the City of Englewood, Co lorado hereby authorized amending
Title 4, Chapter 4, Section 4, Subsection 7(C), of the Englewood Municipal Code 2000 , entitled
"Sales Tax Returns" to read as follows:
4-4-4-7: Sales Tax Returns .
A. Every person required tc ,btain a sa les tax li cense pursuant to the provision s of Section
4-4-4-4 , shall file a sa les tax return , with payment of ta x owed, if any , upon the standard
Muni ci pal sales and use tax reporting fortn as adopted by the Executive Director of the
Co lorado Department of Revenue, not later than the tw entieth da y of each mo 1th for the
preceding calendar month ; provided, however, that if the accounting methods regularly
employed by the licensed reta iler in the transac tion of his/her business, or other conditions,
are such that reports of sa les made on a calendar monthly basi s will impose unnecessary
hardship, the Director may, upon request of said retailer, accept reports at such interval s as
will, in his/her opinion, better suit the convenience of th e taxpa yer, and will not jeopardize
the collection of the tax .
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B. T he ret urn s so 1i lcd slmll co ntmn suet\ mformati on as ma y enab le the Direc tor to ncc urn tcly •
dctcnninc the amou111 of tux co ll ected by 1h c person filin g th e rctum. hut in :Il l cases shall
c.-ll\ta in th e fo ll ow ing info nmui on:
I . Th e amount of gross taxab le sales made by th e rc wilcr durin g the period fo r whi ch
th e ret urn is fi led:
2. The 101al sal es price of all propert y retumcd by th e pu rc hase r as a res ult of a return
of good s so ld by the retaile r; pro vid ed, th e or igin al sa le wa s a taxable transact ion;
3. The 101al fair markcl va lue of any pro pert y received by th e relail er as a resu il o f an
exc hange of pro pert y; provi ded 1he prope rt y so rec eived is held by 1hc rclail cr 10 be
sold or leased to a user or consu mer in the regu lar co urse of hi s/her bu siness;
4. The total amount of ret ail sa les whi ch arc exe mpt from th e tax imp osed by Sec ti on 4-
4-4 -2 by reason of 1he provisions of Sec1ion 4-4-4-3;
S. The total amount of sal es made on credit , the obliga tion for which is not sec ured by a
co nditional sales co ntract, chatt el mortgage or other sec urity in strument entitli ng the
ret ailer 10 repossess th e ilem so ld , whic h are fou nd 10 be worth less and whi ch ma y be
deducted as bad debts on the relailer's Federal income lax return .
C. The return shall be acco mpanied by an amo unl equal 10 1he sales 1ax required 10 be
collected by the re1 ailer but which , in no case, shall be less than the amo nni actua ll y
co ll ected. nor less than thre e and one-half percent (3.5 %) of the fib,ure deri ved by
subt racting fr om the gross taxable sales , as reflected on the return , th e to tal sa les de sc ribed
in subsecti on 82, 3, 4 and 5 abo ve, as re fl ected on the return ; provided , however, th e
relai ler may deduct from the total 1ax du e an amounl eq ual 10 ooe-h&lf ~ perce nt
(lMQ )~of th e sa les tax required 10 be co ll eclcd , whic h ma y be relained by the
retailer as n fee for co ll ecting sa id tax . If th e return or the tax remitt ance is filed later than
th e 1wcntie1h day of eac h monlh or as presc ribed by the Direc tor, th e &ll&-kalf ~
percent (~ ~ vendor's fee all owa nce shall be forfeilcd and added 10 th e amounl of
the defi ciency .
D. All other perso ns shall pa y to the Director th e amount of any tax du e und er th e pro vis ions
of th lS Sec1ion 4-4-4-7 . no, !mer th an fifteen ( 15) da ys afie r th e date th m sa id 1ax be-co mes
due .
See l ion 2. Safct v Clauses . The C1 1y Co un ci l hereby fi nd s, determines, and dec lares tha t 1hi s
Ordinance is pro mulgmcd under th e gen eral po li ce pow er of 1hc Cit y of Eng lewood, thal ii is
promul gated for th e hea lth , sa fety, and welforc of1 hc publi c, and that thi s Ord inan ce is necessary
fo r the pres ervati on of hea lt h and sa fet y and for the prot ec tion of publi c convenience and
\:/e l fare . The Cit y Coun cil further detennincs th at th e Ordin ance bears a ra ti ona l relati on to th e
proper leg islative obj ect sought to be obta in ed.
Secti on 3. Scvcrability . If any cl!l use. se ntence . para grap h, or part of thi s Ord inance or th e
ap pli cati on th ereof to any person or circumstan l' s sha ll for any reaso n be adjudged by a co urt of
co mp etent jurisd icti on invalid , such jud gment shiill not affec t, impair or inva lid ate the rema inder
of thi s Ordin ance or it appli ca ti on to oth er person s or c ircumstances .
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Section 4. lnco nsisteni Ordinances. All oth er Ordin ances or pan.ion s thereof in consistent or
co nfli cting with thi s Ordina nce or any portion hereof are he reby repea led 10 the ex1enl of such
inco nsislen cy or co nflict .
Section S. Effec1 of repeal or modificati on. Th e repeal or modification of any provi sion of
the Code of th e Cit y of Englewood by thi s Ordi nance shall not release, cxt in1,~1i sh, alt er, modify,
or cha nge in who le or in part any penalty , forfei ture , or li ab ilit y, ei th er civi l or criminal , whi ch
shall have been incurred und er such pro vision, and each provisi on sha ll be trea ted and held as
sti ll remaining in force for the purposes of sustaining any and all proper actions, suit s,
proceedings 1 and prosecution s for the enforcement of the pena lty, fo rfei ture , or li ability, as well
as fo r the purpose of sustainin g any judgment, decree, or order whic h can or may be rendered,
entered, or made in such acti ons, suit s, proceedings, or prosecutions.
£ec tion 6. Pe nalt.)c The Penalt y Provi sion of Sectio n 1-4-1 EMC shall app ly to each od
every vio lati on of th rn Ordinance.
Secti on 7. The change in Vend or fees sha ll be effective January 1, 2010.
Introduced , rend in full , and passed on first readi ng on the 17th day of Aug,"' ?,(J(,1;1
Publi shed as a Bi:'. for an Ordinance in the City's officia l newspaper on the 21 " day of August,
2009.
Published as a Bill for an Ordinance on the Cit y's officia l website beginning on the 19th day of
Augu st, 2009 fo r thirty (30) daj'S .
Amended and rei ntroduced, rea~ in full , and pa ssed as amended on the 8t h day of September,
2009 .
Published as an amended Bill for an On lin ance in the Ci ty's offic ial newspaper on th e 11th day of
September, 2009 .
Published as an amended Bill fo r an Ordinance on the Cit y's officia l website beginni ng on the 9"'
day of September , 2009 for thirt y (30) da ys.
Read by titl e and passed as amend ed on final readin g on th e 2 1st day of Sep tember, 2009.
Publi shed by title as amended in the Cit y's offi cial newspaper as Ordinance No. b(series of
2009, on the 25° day of Sep tember, 2009 .
Published by ti tle as amended on the City 's officia l web sit e hegiru1ing on th e 23rd da y of
September, 2009 fo r thirt y (3• fays .
I, Lou cri shi a A. Ellis , i1y Clerk oflhc Ci1 y of Englewood, Co lorndo , hereby ce rtify thal 1h e
above an d foregoing is a true copy of t!).o Ordinance pa ssed as amend ed on final readin g and
publi shed by 1i1l e as Ordi nance No .~, Series of 2009.
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COUNCIL COMMUNICATION
Date : Agenda It em: Subj ect:
Sep tember 8, 2009 11 a i Bill for an Ordinance amending 4-4-4-7C of th e
Code, reducing the Vendor Fee from .5 pe rc en t to
.25 percen t effecti ve January 1, 20 10
Ini tiated By: I Staff Source:
D epartment of Fina nce and A dminis trative Serv ices · Frank Gryglewicz, Director
COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION
This proposa l was d•, ussed with Co un cil at th e Stu dy Session held August 3, 2009; at th at tim e
Council agreed to g,J forwa rd w ith a fifty perce nt red uc tion in th e current fee of one-ha lf of one
pe rcent (.5%) to a quarter of one percent (.25%) effecti ve Janu ary 1, 2010. Council initi all y adop ted
thi s o rd inance on firs t reading at th e Au gus t 17 meeting.
The vend or fee was es tabl ished by Ordin ance N o. 32, Seri es of 1961 Sec ti on 12. RETAILER
RESPO N SIBLE FOR PA YM ENT OF TAX, w hich prov ide d a five percent vendor fee to cover th e
ve ndor's expense in the coll ecti on and remittance of sa les tax. This fee has been red uced sin ce its
initial rate of five percent to 2.5 percen t by th e passage of Ordinance 32 , Se ries of 1968, to 1.6
percent by th e passage of Ordinance 27, Series of 1970, and to its c urrent rate of .5 percent by
Ordinance 58, Series of 2002.
RECOMMENDED ACTION
Staff recomm en ds Counc il approve th e pr oposed bill fo r an ordinance amendi ng 4-4-4-7C of th e
Engl ewood Municipal Code. This ordinance was approve d on firs t read in g at th e August 1 7, 2009
Council mee ti ng. We subseq uentl y discove red that the effecti ve date had b een omitted from th e
ordin ance and consequently, we are reques ti ng that C oun ci l approve th e amended ordin ance tha t
now in clu des th is inform ation.
BACKGROUND, ANALYSIS, ANO ALTERNATIVES IDENTIFIED
The Code all ows a ve ndor filin g a timely sa les tax re tu rn to the City of Englewood to retain one-ha lf
of one p ercent (.5%) of the taxes req uired to b e co ll ected. City staff recom m ends reducing this fee
to a quarter of a percent (.25%). Thi s act ion w ill preserve City funds th at ca n b e use d to main tai n
staffi ng and pr0> ,de necessary services to th e community.
FINANCIAL IMPACT
Th e es timated sav in gs fo r 20 10 is approximately $48,000 .
LIST OF ATTAC HMENTS
Proposed Bil l for an Ordinance