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HomeMy WebLinkAbout1995 Ordinance No. 021• • ORDINANCE N0.,21_ SERIES OF 1995 BY AUTHORITY COUNCIL BILL NO. 21 INTRODUCED BY COUNCIL MEMBER HATHAWAY All ORDINANCE A·IBNDING TITLE 4, CRA.PI'ER 4, SEL'TION 5, SUBSECTION 1, OF THE ENGLEWOOD MUNICIPAL CODE ENTITLED TAX ON STORAGE, CONSUM PTION AND USE. WHEREAS, Englewood citizens have ,·oiced concern that the Englewood Municipal Code is unclear whether the use tax is assessed on the initial purchase or if it can be assessed annually; and WHEREAS , this amendment will clarify the use tax levied on initial purchase, co nsumption and use of materials purchased outside th e corpo rate limits of Englf'•f9oo U; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNC IL OF THE CITY OF ENGLEWOOD , COLORADO , AS FOLLOWS: ~-The City Council of the City of Rnglewood, Colorado hereby amenda Title 4, Chapter 4, Section 5, Subsection 1, of the Engl..,ood Municipal Code 1985 to read as follows : 4-4-5-1 : TAX ON STORAGE, CONSUMPTION AND USE: There is h ereby levied and there shall be collected from every person in the City, a tax upon the INITIAL privilege of storing, using or consuming within the boundaries of the City any articles of tangible personal property purchnsed at retail fro m sources outside th e corporate limits of the City. Such tax, to become effective January l , 1988 , shall be payable to, and shall be collected by, the Director of Financial Services in ncco r dance with the follow ing schedule: On Storage or Acquisition Charges of Cost 5 .01 including$ .14 $ .15 including S .42 $ .43 including$ .71 $ . 72 including 5 .99 S l.00 including $1 .28 $1.29 including $1.57 $1.58 including 51.85 $1.86 including $2.00 I IJu No Tax $.01 $.02 $.0 3 $.04 $.05 $.06 $.07 On storage or ac qui sition charges or costs, in excess of tw, dollars ($2 .00), the tax shall be seven ce n ts (~ .07) on each two dollars ($2.00) of surl, sl.oT6ge or acquisition charges or cost, plus the tax shown in the above sc hedule for the a~plicable fractional part of a dollar of each such charges or cost . For transactions consummated on or after Janurry l, 1986 , the City use tax shall not apply to the s torage of construction and building material s. (Ord . 73 Series 1991 ) Introduce d , rend in fu il , and passed on fir st reading on the 15th doy of Ma :,, 1995 . -1 - Published as a Bill for an Ordinance on the 18th day of May , 1995. Read by title and passed on final reading on the 5th day of June, 1995. Published by title as Ordinance No .JL, Series of 1995, on the 8th day of Juue, 1995. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance pasaed on final reading 'llld • '"'""'' >, ""' ,.o ... ~• N• >I ,"""~>~•-~ I(. (4, Loucrishia A. Ellis • • -2- J · COUNCIL COMMUNICATION Date Agenda Item Subject Bill For An Ord inance -May 15 , 19 95 10 :i. iii Am end ing T itl e 4 , Ch apter 4, Section 5 , Subs ection 1, Of T he Mun icipa l Code Enti tled Tax 1.,n Storage , Consu mption And Use Initi ated By I Staff Source Dep art ment of Financi a l Se rvi ces Fran k Gryol ew icz. Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION T hi s bill for an ordinance clarifies tha t use tax is le vi ed on th e in itial purcha se , consu mption , and use of materials purchased outs ide th e corpora•e lim it s of Englewood . T hi s b ill fo r an ord inance will ma ke the Co de e asier for the City's citi zen to understand a nd co mply w ith . • Council in itia lly levied sa les and use taxes by p ass ing Ordi nance 32 , Se ries of 196 1 . • RECOMMENDED ACTION Staff reco mm ends Cou n cil adopt •h ·s bill for an ord inance clarify in g th at use tax is le vied on the in iti al pu rch as e, consumption a:id use of materials pu r chased ou tside th e co rporate lim it s of Englewood. T h is doe s not extend to lease payments All lease paym e nts are subject to the use tax . BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFIED The use tax wa s put into effect on Ja nua ry 1, 19 88 . Citizens have voiced concern that th e City Code is unclear wh ether the use tax is a ssessed on th e initial purchase or if it ca n be assessed annua ll y. Th is bill for a n ordi nance c la rifie s that the use ta x is pa id 2.t th e in iti al purch as e , consumption or use (except fo r lea ses ). No a lternati ves w ere identifi ed . Fl~I ANCIAL IMPACT There should be no fin a ncia l impact on the City oi En glewood. LIS T OF ATTACH MENTS Proposed bill fo r a n ord in an ce .